NY State Senate Bill 2023-S4383

Senate Bill S4383

2023-2024 Legislative Session

Includes land used for processing or retail merchandising of agricultural products within the real property tax exemption for land used in agricultural production

download bill text pdf

Current Bill Status - In Senate Committee Agriculture Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to agriculture
Feb 08, 2023	referred to agriculture

co-Sponsors

2023-S4383 (ACTIVE) - Details

See Assembly Version of this Bill:: A4964
Current Committee:: Senate Agriculture
Law Section:: Agriculture and Markets Law
Laws Affected:: Amd §301, Ag & Mkts L; amd §483, RPT L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2414
2011-2012: S778
2013-2014: S2674
2015-2016: S3075
2017-2018: S456
2019-2020: S918, S4799
2021-2022: S2283

2023-S4383 (ACTIVE) - Summary

Includes land used for processing or retail merchandising of agricultural products within the real property tax exemption for land used in agricultural production.

2023-S4383 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4383

SPONSOR: WALCZYK
 
TITLE OF BILL:

An act to amend the agriculture and markets law and the real property
tax law, in relation to property tax exemption for on-farm structures
that provide added value to farm products

 
PURPOSE:

This bill would include within the ten-year property tax exemption for
agriculture buildings those on-farm structures that are used by a farm
to add value to farm products.

 
SUMMARY OF PROVISIONS:

Section 1: Section 301 of the Agriculture and Markets Law is amended to
include land or portions thereof used for processing or retrial merchan-
dising of such crops, livestock or livestock products.

Section 2: Section 483 of the Real Property Tax Law is amended to

include land and structures used for processing or retail merchandising
of crops and/or livestock products from such land in the agriculture
buildings exemption.

Section 3: Sets forth the effective date.

Current law provides a 10-year property tax exemption for newly
constructed or reconstructed agricultural structures within certain
limitations. The Real Property Tax law limits this benefit to structures
which are "essential to the operation of lands actively devoted to agri-
cultural or horticultural use" and exclusively used in "the raising and
production for sale of agricultural or horticultural commodities, or
necessary for their storage for sale at a future time; or to provide
housing for regular and essential employees and their immediate families
who are primarily employed in connection with the operation of lands
actively devoted to agricultural and horticultural use." The law specif-
ically excludes buildings that are used for the processing or retail
merchandising of agricultural products.

 
JUSTIFICATION:

Unfortunately, farmers are often deterred from expanding their farms due
to dramatic yearly property taxes. This bill would offer a ten-year real
property tax exemption for structures and buildings built on land used
in agricultural production.

Since a ten-year talc exemption would save farmers money, this bill
encourages farmers to invest in structures they may not have if they did
not have the exemption. Farmers would be more willing to expand into a
value-added initiative, because they would be temporarily sheltered from
taxes on their new developments. By doing this, they would be making
their farms more economically sustainable and eventually be able to
provide more tax revenue to the State of New York.

 
LEGISLATIVE HISTORY:

2021-2022: S.2283 Referred to Agriculture
2020: S.4799 Referred to Agriculture

2019: S.918 Referred to Agriculture

2017-18: S.456 Referred to Agriculture

2015,2016: S.3075 Referred to Agriculture

2013,2014: S.2674A Referred to Local Government

2011,2012: S.778 Referred to Agriculture

2009,2010: S.2414 Referred to Agriculture

2007,2008: S.5678 Referred to Agriculture

 
FISCAL IMPLICATIONS:

None to the state. Since the bill only covers the value of new farm
construction, there would be no negative impact on local revenues.

 
EFFECTIVE DATE:
Effective immediately and shall apply to assessment rolls prepared on
the basis of taxable status dates occurring on or after such date.

2023-S4383 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4383
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2023
                                ___________
 
 Introduced  by  Sen. WALCZYK -- read twice and ordered printed, and when
   printed to be committed to the Committee on Agriculture
 
 AN ACT to amend the agriculture and markets law and  the  real  property
   tax  law, in relation to property tax exemption for on-farm structures
   that provide added value to farm products

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.   The opening paragraph of subdivision 4 of section 301 of
 the agriculture and markets law, as amended by chapter 344 of  the  laws
 of 2012, is amended to read as follows:
   "Land used in agricultural production" means not less than seven acres
 of  land  used  as a single operation in the preceding two years for the
 production for sale of crops, livestock  or  livestock  products  of  an
 average  gross sales value of ten thousand dollars or more; or, not less
 than seven acres of land used in the preceding two years  to  support  a
 commercial  horse  boarding  operation  or a commercial equine operation
 with annual gross receipts of ten thousand dollars or more. Land used in
 agricultural production shall [not] include  land  or  portions  thereof
 used  for processing or retail merchandising of such crops, livestock or
 livestock products. Land used  in  agricultural  production  shall  also
 include:
   §  2.  Subdivision  2  of section 483 of the real property tax law, as
 amended by chapter 35 of the laws of 2016 and paragraph (e)  as  amended
 by chapter 160 of the laws of 2021, is amended to read as follows:
   2.  The  term  "structures and buildings" shall include: (a) permanent
 and impermanent structures, including trellises and  pergolas,  made  of
 metal,  string  or wood, and buildings or portions thereof used directly
 and exclusively in the raising and production for sale  of  agricultural
 and horticultural commodities or necessary for the storage thereof, [but
 not] AND INCLUDING structures and buildings or portions thereof used for
 the  processing  of  agricultural  and horticultural commodities, or the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06847-01-3

 S. 4383                             2
 
 retail merchandising of such commodities; (b) structures  and  buildings
 used  to  provide  housing for regular and essential employees and their
 immediate families who are primarily employed  in  connection  with  the
 operation  of  lands  actively devoted to agricultural and horticultural
 use, but not including structures and buildings occupied as a  residence
 by  the applicant and his immediate family; (c) structures and buildings
 used as indoor exercise arenas exclusively for training  and  exercising
 horses  in  connection with the raising and production for sale of agri-
 cultural and horticultural commodities or in connection with  a  commer-
 cial horse boarding operation as defined in section three hundred one of
 the  agriculture and markets law. For purposes of this section, the term
 "indoor exercise arenas" shall not  include  riding  academies  or  dude
 ranches;  (d)  structures  and buildings used in the production of maple
 syrup; (e) structures and buildings used in  the  production  of  honey,
 royal jelly, bee pollen, propolis and beeswax including those structures
 and  buildings  used  for  the  storage  of  bees.  For purposes of this
 section, this shall  not  include  those  structures  or  buildings  and
 portions  thereof  used for the sale of maple syrup or sale of honey and
 beeswax.  The term "structures and buildings" shall not  include  silos,
 bulk  milk  tanks  or coolers, or manure storage, handling and treatment
 facilities as such terms are used in section four hundred eighty-three-a
 of this title.
   § 3. This act shall take effect immediately and shall apply to assess-
 ment rolls prepared on the basis of taxable status dates occurring on or
 after such date.

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Senate Bill S4383

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Sponsored By

Mark Walczyk