NY State Senate Bill 2023-S6018

Senate Bill S6018

2023-2024 Legislative Session

Creates a real property tax exemption for land of a farm operation which is in the process of being certified for the production of organic crops

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to agriculture
Mar 27, 2023	referred to agriculture

2023-S6018 (ACTIVE) - Details

Current Committee:: Senate Agriculture
Law Section:: Agriculture and Markets Law
Laws Affected:: Amd §305, Ag & Mkts L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2415
2011-2012: S790
2013-2014: S3910
2015-2016: S3059
2017-2018: S562
2019-2020: S972, S4797
2021-2022: S2282

2023-S6018 (ACTIVE) - Summary

Creates a real property tax exemption for land of a farm operation which is in the process of being certified for the production of organic crops.

2023-S6018 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6018

SPONSOR: CANZONERI-FITZPATRICK
 
TITLE OF BILL:

An act to amend the agriculture and markets law, in relation to creating
a real property tax exemption for land of a farm operation being certi-
fied as organic

 
PURPOSE:

This bill would create a real property tax exemption for the lands of a
farm operation that are transitioning to organic - it is very similar to
an already existing tax exemption for the replanting of vineyards and
orchards.

 
SUMMARY OF PROVISIONS:

Amends Section 305 of the Agriculture and Markets Law by adding a new
subdivision 8.

JUSTIFICATION:

The agriculture industry in New York State continues to become more and
more diverse as it seeks to supply the many potential markets around the
state, country and world. As part of that, some farms are seeking to
transition to organic in an effort to grow fruits, vegetables and other
goods for consumers who, for whatever reason, are seeking organic food.

Certainly, organic farming is a growing part of the agricultural fabric
of the state and country given that, despite the increased costs, time
and effort, the number of acres devoted to organic production has
increased dramatically. For the first time ever, in 2005 all fifty
states had land in organic production with over 4 million acres dedi-
cated to it nationwide.

In 2011, New York ranked third in total amount of organic farms in the
country with 597 organic farms. New York's certified organic farms sold
a total of $107 million in organically produced commodities, including
$38.5 million in crop sales and $68.3 million in sales of livestock,
poultry and their products. Average sales were 4,186,668 per farm.
Fifty-six percent or $60.2 million of total organic sales in New York
were from milk from cows. Milk cow sales totals $3.77 million. Crop
sales included over $22.1 million from field crops, $14.5 million from
vegetables, and $1.36 million from fruit and berries. (United States
Department of Agriculture).

In an effort to continue this growth, this bill would provide farmers
who choose to transition to organic a partial tax exemption. Given the
great investment in time and capital, this exemption certainly does not
give farmers an overwhelming incentive but it will provide them some
assistance as they transition to organic production. It is important to
note that this bill closely reflects the already existing tax exemption
for the replanting of orchards and vineyards.

 
LEGISLATIVE HISTORY:

2021-22: S2282 Referred to Agriculture

2019-20: S.4797 Referred to Agriculture

2017-18: S.562 Passed Senate

2015-16: S.3059-A Referred to Agriculture

2013-14: S .3910-A Referred to Agriculture

2011-12: S.790 Referred to Agriculture

2009-10: S.2415A Referred to Agriculture

2008: S.7224 Passed Senate

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after the first of January next succeeding such effective date.

2023-S6018 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6018
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 27, 2023
                                ___________
 
 Introduced  by  Sen.  CANZONERI-FITZPATRICK  --  read  twice and ordered
   printed, and when printed to be committed to the Committee on Agricul-
   ture
 
 AN ACT to amend the agriculture and markets law, in relation to creating
   a real property tax exemption for  land  of  a  farm  operation  being
   certified as organic

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 305 of the agriculture and markets law  is  amended
 by adding a new subdivision 8 to read as follows:
   8.  A.  NOTWITHSTANDING  ANY  PROVISION  OF  LAW TO THE CONTRARY, THAT
 PORTION OF THE VALUE OF LAND OF A FARM OPERATION WHICH IS IN THE PROCESS
 OF BEING CERTIFIED BY AN ORGANIC CERTIFICATION AUTHORITY  ACCREDITED  BY
 THE UNITED STATES DEPARTMENT OF AGRICULTURE FOR THE PRODUCTION OF ORGAN-
 IC  CROPS,  LIVESTOCK  AND  LIVESTOCK PRODUCTS SHALL BE EXEMPT FROM REAL
 PROPERTY TAXATION FOR A PERIOD NOT TO EXCEED THREE YEARS.  THE  LAND  OF
 THE  FARM OPERATION SUBJECT TO SUCH EXEMPTION SHALL BE CERTIFIED ORGANIC
 AT THE END OF THE THREE YEAR TAX EXEMPTION PERIOD AND SHALL BE  USED  IN
 THE  PRODUCTION OF CROPS, LIVESTOCK AND LIVESTOCK PRODUCTS IN ACCORDANCE
 WITH THE  UNITED  STATES  DEPARTMENT  OF  AGRICULTURE  NATIONAL  ORGANIC
 PROGRAM  STANDARDS.  THE  LAND  ELIGIBLE  FOR  SUCH  EXEMPTION  SHALL BE
 REPORTED TO THE COMMISSIONER WHO MAY ISSUE AN  ANNUAL  REPORT  DETAILING
 THE  AMOUNT OF LAND SUBJECT TO SUCH EXEMPTION BEING CONVERTED TO ORGANIC
 PRODUCTION AND THE ASSESSED VALUE OF SUCH LAND.
   B. THE LAND ELIGIBLE FOR SUCH REAL PROPERTY TAX EXEMPTION SHALL NOT IN
 ANY ONE YEAR EXCEED FIFTY PERCENT OF THE TOTAL ASSESSED  VALUE  OF  SUCH
 FARM  OPERATION WHICH IS LOCATED ON LAND USED IN AGRICULTURAL PRODUCTION
 WITHIN AN AGRICULTURAL DISTRICT OR FIFTY PERCENT OF THE  TOTAL  ASSESSED
 VALUE  OF  SUCH  FARM  OPERATION ELIGIBLE FOR AN AGRICULTURAL ASSESSMENT
 PURSUANT TO THIS SECTION AND SECTION THREE HUNDRED SIX OF  THIS  ARTICLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09159-01-3
 S. 6018                             2

 
 WHERE  THE  OWNER  OF  SUCH  LAND HAS FILED AN ANNUAL APPLICATION FOR AN
 AGRICULTURAL ASSESSMENT.
   C.  THE LAND OF THE FARM OPERATION ELIGIBLE FOR SUCH REAL PROPERTY TAX
 EXEMPTION MUST BE MAINTAINED AS LAND USED IN AGRICULTURAL PRODUCTION  AS
 PART OF SUCH FARM OPERATION FOR EACH YEAR SUCH EXEMPTION IS GRANTED.
   D. WHEN THE LAND WHICH IS IN THE PROCESS OF BEING CERTIFIED ORGANIC IS
 LOCATED  WITHIN  AN AREA WHICH HAS BEEN DECLARED BY THE GOVERNOR TO BE A
 DISASTER EMERGENCY IN A YEAR IN WHICH SUCH TAX EXEMPTION IS  SOUGHT  AND
 IN  A  YEAR  IN WHICH SUCH LAND MEETS ALL OTHER ELIGIBILITY REQUIREMENTS
 FOR SUCH TAX EXEMPTION SET FORTH IN THIS SUBDIVISION, THE MAXIMUM  FIFTY
 PERCENT  TOTAL  ACREAGE  RESTRICTION  SET  FORTH  IN PARAGRAPH B OF THIS
 SUBDIVISION MAY BE EXCEEDED FOR SUCH YEAR AND FOR ANY REMAINING  SUCCES-
 SIVE  YEARS,  PROVIDED,  HOWEVER,  THAT  THE LAND ELIGIBLE FOR SUCH REAL
 PROPERTY TAX EXEMPTION SHALL NOT EXCEED THE  TOTAL  ACREAGE  DAMAGED  OR
 DESTROYED  BY  SUCH  DISASTER  IN  SUCH  YEAR OR THE TOTAL ACREAGE WHICH
 REMAINS DAMAGED OR DESTROYED IN ANY REMAINING SUCCESSIVE YEAR. THE TOTAL
 ACREAGE FOR WHICH SUCH EXEMPTION IS SOUGHT PURSUANT  TO  THIS  PARAGRAPH
 SHALL BE SUBJECT TO VERIFICATION BY THE COMMISSIONER OR HIS DESIGNEE.
   § 2. 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 the first of January next succeeding such effective date.

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