Bill Text: NY S05755 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to agricultural districts and assessments; authorizes farms to challenge the denial of an agricultural value assessment through the small claims assessment review process.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2020-03-02 - REPORTED AND COMMITTED TO FINANCE [S05755 Detail]
Download: New_York-2019-S05755-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5755 2019-2020 Regular Sessions IN SENATE May 14, 2019 ___________ Introduced by Sen. METZGER -- (at request of the Department of Agricul- ture and Markets) -- 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, in relation to certain definitions and agricultural districts and assessments; and to amend the real property tax law, in relation to the farm buildings tax exemption and authorizing farms to challenge the denial of an agricul- tural value assessment through the small claims assessment review (SCAR) process The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 4 of section 301 of the agriculture and markets 2 law, as amended by chapter 445 of the laws of 2002, the opening para- 3 graph as amended by chapter 344 of the laws of 2012, paragraph a-1 as 4 added by chapter 611 of the laws of 2008, paragraph c as amended by 5 chapter 47 of the laws of 2011, paragraph h as amended by chapter 587 of 6 the laws of 2005, paragraph i as added by chapter 252 of the laws of 7 2004, paragraph j as added by chapter 256 of the laws of 2006, paragraph 8 k as added by chapter 341 of the laws of 2008, paragraph l as added by 9 chapter 384 of the laws of 2011, paragraph m as added by chapter 547 of 10 the laws of 2014 and paragraph n as added by chapter 192 of the laws of 11 2018, is amended to read as follows: 12 4. "Land used in agricultural production" means [not less than seven13acres of] land used as a single operation [in the preceding two years] 14 for the production for sale of crops, livestock or livestock products 15 [of an average] with annual gross sales [value] of ten thousand dollars 16 or more; or, not less than seven acres of land used [in the preceding17two years] to support a commercial horse boarding operation or a commer- 18 cial equine operation with annual gross receipts of ten thousand dollars 19 or more. [Land used in agricultural production shall not include land or20portions thereof used for processing or retail merchandising of suchEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09100-01-9S. 5755 2 1crops, livestock or livestock products.] Land used in agricultural 2 production shall also include: 3 a. Rented land which otherwise satisfies the requirements for eligi- 4 bility for an agricultural assessment. 5 a-1. Land used by a not-for-profit institution for the purposes of 6 agricultural research that is intended to improve the quality or quanti- 7 ty of crops, livestock or livestock products. Such land shall qualify 8 for an agricultural assessment upon application made pursuant to para- 9 graph [(a)] a of subdivision one of section three hundred five of this 10 article, except that no minimum annual gross sales value shall be 11 required. 12 b. Land of not less than seven acres used as a single operation for 13 the production for sale of crops, livestock or livestock products, 14 exclusive of woodland products, which does not independently satisfy the 15 annual gross sales [value] requirement[, where such land was used in16such production for the preceding two years] and [currently] is current- 17 ly being so used under a written rental arrangement of five or more 18 years in conjunction with land which is eligible for an agricultural 19 assessment. 20 c. Land used in support of a farm operation or land used in agricul- 21 tural production, constituting a portion of a parcel, as identified on 22 the assessment roll, which also contains land qualified for an agricul- 23 tural assessment. Such land shall include land used for agricultural 24 amusements which are produced from crops grown or produced on the farm, 25 provided that such crops are harvested and marketed in the same manner 26 as other crops produced on such farm. Such agricultural amusements shall 27 include, but not be limited to, so-called "corn mazes" or "hay bale 28 mazes". 29 d. Farm woodland which is part of land which is qualified for an agri- 30 cultural assessment, provided, however, that such farm woodland attrib- 31 utable to any separately described and assessed parcel shall not exceed 32 fifty acres. 33 e. Land set aside through participation in a federal conservation 34 program pursuant to title one of the federal food security act of nine- 35 teen hundred eighty-five or any subsequent federal programs established 36 for the purposes of replenishing highly erodible land which has been 37 depleted by continuous tilling or reducing national surpluses of agri- 38 cultural commodities and such land shall qualify for agricultural 39 assessment upon application made pursuant to paragraph a of subdivision 40 one of section three hundred five of this article, except that no mini- 41 mum annual gross sales [value] shall be required. 42 f. Land of not less than seven acres used as a single operation [in43the preceding two years] for the production for sale of crops, livestock 44 or livestock products [of an average] with annual gross sales [value] of 45 ten thousand dollars or more, or land of less than seven acres used as a 46 single operation [in the preceding two years] for the production for 47 sale of crops, livestock or livestock products [of an average] with 48 annual gross sales [value] of fifty thousand dollars or more. 49 g. Land under a structure within which crops, livestock or livestock 50 products are produced, provided that the sales of such crops, livestock 51 or livestock products meet the annual gross sales requirements of [para-52graph f of] this subdivision. 53 [h. Land that is owned or rented by a farm operation in its first or54second year of agricultural production, or, in the case of a commercial55horse boarding operation in its first or second year of operation, that56consists of (1) not less than seven acres used as a single operation forS. 5755 3 1the production for sale of crops, livestock or livestock products of an2annual gross sales value of ten thousand dollars or more; or (2) less3than seven acres used as a single operation for the production for sale4of crops, livestock or livestock products of an annual gross sales value5of fifty thousand dollars or more; or (3) land situated under a struc-6ture within which crops, livestock or livestock products are produced,7provided that such crops, livestock or livestock products have an annual8gross sales value of (i) ten thousand dollars or more, if the farm oper-9ation uses seven or more acres in agricultural production, or (ii) fifty10thousand dollars or more, if the farm operation uses less than seven11acres in agricultural production; or (4) not less than seven acres used12as a single operation to support a commercial horse boarding operation13with annual gross receipts of ten thousand dollars or more.14i.] h. Land of not less than seven acres used as a single operation 15 for the production for sale of orchard or vineyard crops when such land 16 is used solely for the purpose of planting a new orchard or vineyard and 17 when such land is also owned or rented by a newly established farm oper- 18 ation in its first, second, third or fourth year of agricultural 19 production. 20 [j.] i. Land of not less than seven acres used as a single operation 21 for the production and sale of Christmas trees when such land is used 22 solely for the purpose of planting Christmas trees that will be made 23 available for sale, whether dug for transplanting or cut from the stump 24 and when such land is owned or rented by a newly established farm opera- 25 tion in its first, second, third, fourth or fifth year of agricultural 26 production. 27 [k.] j. Land used to support an apiary products operation which is 28 owned by the operation and consists of (i) not less than seven acres nor 29 more than ten acres used as a single operation [in the preceding two30years] for the production for sale of crops, livestock or livestock 31 products [of an average] with annual gross sales [value] of ten thousand 32 dollars or more or (ii) less than seven acres used as a single operation 33 [in the preceding two years] for the production for sale of crops, live- 34 stock or livestock products [of an average] with annual gross sales 35 [value] of fifty thousand dollars or more. The land used to support an 36 apiary products operation shall include, but not be limited to, the land 37 under a structure within which apiary products are produced, harvested 38 and stored for sale; and a buffer area maintained by the operation 39 between the operation and adjacent landowners. Notwithstanding any 40 other provision of this subdivision, rented land associated with an 41 apiary products operation is not eligible for an agricultural assessment 42 based on this paragraph. 43 [l. Land that is owned or rented by a farm operation in its first or44second year of agricultural production or in the case of a commercial45equine operation, in its first or second year of operation, that46consists of not less than seven acres and stabling at least ten horses,47regardless of ownership, that receives ten thousand dollars or more in48gross receipts annually from fees generated through the provision of49commercial equine activities including, but not limited to riding50lessons, trail riding activities or training of horses or through the51production for sale of crops, livestock, and livestock products, or52through both the provision of such commercial equine activities and such53production. Under no circumstances shall this subdivision be construed54to include operations whose primary on site function is horse racing.55m.] k. Land used in silvopasturing, which is part of a single opera- 56 tion that otherwise satisfies the requirements for eligibility for anS. 5755 4 1 agricultural assessment, shall be limited to up to ten fenced acres per 2 large livestock, including cattle, horses and camelids, and up to five 3 fenced acres per small livestock, such as sheep, hogs, goats and poul- 4 try. For the purposes of this subdivision, "silvopasturing" shall mean 5 the intentional combination of trees, forages and livestock managed as a 6 single integrated practice for the collective benefit of each, including 7 the planting of appropriate grasses and legume forages among trees for 8 sound grazing and livestock husbandry. 9 l. Land or portions thereof used for processing or retail merchandis- 10 ing of crops, livestock or livestock products on land which is part of a 11 farm operation, as defined in section three hundred one of this article, 12 and used exclusively for the processing and marketing of agricultural 13 and horticultural commodities which are grown on land which is part of 14 such farm operation. 15 [n.] m. Land of not less than seven acres used as a single operation 16 for the production for sale of hops when such land is used solely for 17 the purpose of planting a new hopyard and when such land is also owned 18 or rented by a newly established farm operation in its first, second, 19 third or fourth year of agricultural production. 20 § 2. Subdivision 9 of section 301 of the agriculture and markets law, 21 as amended by chapter 440 of the laws of 1993, paragraphs c, d, e, and f 22 as amended and paragraph g as added by chapter 536 of the laws of 2008, 23 is amended to read as follows: 24 9. "Gross sales [value]" means the proceeds from the sale of: 25 a. Crops, livestock and livestock products produced on land used in 26 agricultural production provided, however, that whenever a crop is proc- 27 essed before sale, the proceeds shall be based upon the market value of 28 such crop in its unprocessed state; 29 b. Woodland products from farm woodland eligible to receive an agri- 30 cultural assessment, not to exceed two thousand dollars annually; 31 c. Honey and beeswax produced by bees in hives located on an otherwise 32 qualified farm operation but which does not independently satisfy the 33 gross sales requirement; 34 d. Maple syrup, maple candy, maple sugar and maple cream processed 35 from maple sap produced on land used in agricultural production in 36 conjunction with the same or an otherwise qualified farm operation; 37 e. Or payments received by reason of land set aside pursuant to para- 38 graph e of subdivision four of this section; 39 f. Compost, mulch or other organic biomass crops as defined in subdi- 40 vision seventeen of this section produced on land used in agricultural 41 production, not to exceed five thousand dollars annually; 42 [f.] g. Or payments received by thoroughbred breeders pursuant to 43 section two hundred fifty-four of the racing, pari-mutuel wagering and 44 breeding law; [and45g. Compost, mulch or other organic biomass crops as defined in subdi-46vision sixteen of this section produced on land used in agricultural47production, not to exceed five thousand dollars annually.] 48 h. Or in a commercial horse boarding operation as defined in subdivi- 49 sion thirteen of this section, the income received from the boarding of 50 horses or through the production for sale of crops, livestock and live- 51 stock products or through both such boarding and such production; and 52 i. Or in a commercial equine operation as defined in subdivision eigh- 53 teen of this section, the income received from fees generated through 54 the provision of commercial equine activities including, but not limited 55 to, riding lessons, trail riding activities or training of horses or 56 through the production for sale of crops, livestock and livestockS. 5755 5 1 products or through both commercial equine activities and such 2 production. 3 § 3. Subdivision 1 of section 305 of the agriculture and markets law 4 is amended by adding a new paragraph f to read as follows: 5 f. The commissioner may initiate an investigation pursuant to section 6 thirty-six of this chapter to determine if land was improperly denied an 7 agricultural assessment pursuant to this section or section three 8 hundred six of this article. If the commissioner finds after such inves- 9 tigation that land was improperly denied such assessment, he or she may 10 issue an order pursuant to section thirty-six of this chapter to compel 11 the assessor to approve the agricultural assessment as provided for in 12 this order. 13 § 4. Subdivision 4 of section 305 of the agriculture and markets law 14 is amended by adding a new paragraph h-1 to read as follows: 15 h-1. Notwithstanding any other provision of law to the contrary, no 16 above ground natural gas and electric transmission line facilities shall 17 be sited on land in agricultural production which is located within an 18 agricultural district, or land in agricultural production that qualifies 19 for and is receiving an agricultural assessment pursuant to section 20 three hundred six of this article. Nothing contained in this paragraph, 21 however, shall be deemed to prohibit siting when: 22 (i) The owner of such land has entered into a written agreement which 23 shall indicate his or her consent for site consideration; or 24 (ii) The applicant for a permit has made a commitment in the permit 25 application to fund a farm land protection conservation easement within 26 a reasonable proximity to the proposed project in an amount not less 27 than the dollar value of any such farm land purchased for the project; 28 or 29 (iii) The commissioner has determined that any such agricultural land 30 to be taken, constitutes less than five percent of the land in agricul- 31 tural production and the project sponsor has done everything practicable 32 to minimize adverse impacts to the land in agricultural production. 33 § 5. Subdivisions 2 and 8 of section 483 of the real property tax law, 34 subdivision 2 as amended by chapter 35 of the laws of 2016, and subdivi- 35 sion 8 as amended by chapter 411 of the laws of 2001, are amended to 36 read as follows: 37 2. The term "structures and buildings" shall include: (a) permanent 38 and impermanent structures, including trellises and pergolas, made of 39 metal, string or wood, and buildings or portions thereof used directly 40 and exclusively in the raising and production for sale of agricultural 41 and horticultural commodities or necessary for the storage thereof[, but42not structures and buildings or portions thereof used for the processing43of agricultural and horticultural commodities, or the retail merchandis-44ing of such commodities]; (b) structures and buildings located on land 45 which is part of a farm operation, as defined in section three hundred 46 one of the agriculture and markets law, and used exclusively for the 47 processing and marketing of agricultural and horticultural commodities 48 which are grown on land which is part of such farm operation; (c) struc- 49 tures and buildings used to provide housing for regular and essential 50 employees and their immediate families who are primarily employed in 51 connection with the operation of lands actively devoted to agricultural 52 and horticultural use, but not including structures and buildings occu- 53 pied as a residence by the applicant and his or her immediate family; 54 [(c)] (d) structures and buildings used as indoor exercise arenas exclu- 55 sively for training and exercising horses in connection with the raising 56 and production for sale of agricultural and horticultural commodities orS. 5755 6 1 in connection with a commercial horse boarding operation or a commercial 2 equine operation as defined in section three hundred one of the agricul- 3 ture and markets law. For purposes of this section, the term "indoor 4 exercise arenas" shall not include [riding academies or] dude ranches; 5 [(d)] (e) structures and buildings used in the production of maple 6 syrup, maple candy, maple sugar and maple cream; [(e)] (f) structures 7 and buildings used in the production of honey and beeswax including 8 those structures and buildings used for the storage of bees. For 9 purposes of this section, this shall not include those structures or 10 buildings and portions thereof used for the sale of maple syrup or sale 11 of honey and beeswax. The term "structures and buildings" shall not 12 include silos, bulk milk tanks or coolers, or manure storage, handling 13 and treatment facilities as such terms are used in section four hundred 14 eighty-three-a of this title. 15 8. As used in this section, the term "agricultural and horticultural" 16 shall include the [activity] activities of raising, breeding [and], 17 training and/or boarding of livestock, including commercial horse board- 18 ing operations and commercial equine operations as defined in section 19 three hundred one of the agriculture and markets law. 20 § 6. Paragraph (b) and the closing paragraph of subdivision 1 and 21 subdivision 2 of section 730 of the real property tax law, paragraph (b) 22 of subdivision 1 as amended by chapter 154 of the laws of 1993, the 23 closing paragraph of subdivision 1 as added by chapter 114 of the laws 24 of 2012, and subdivision 2 as amended by chapter 714 of the laws of 25 1982, are amended to read as follows: 26 (b) the property is: (i) improved by a one, two or three family 27 owner-occupied structure used exclusively for residential purposes other 28 than property subject to the assessment limitations of section five 29 hundred eighty-one of this chapter and article nine-B of the real prop- 30 erty law [or]; (ii) the property is unimproved and is not of sufficient 31 size as determined by the assessing unit or special assessing unit to 32 contain a one, two or three family residential structure; or (iii) the 33 property has been denied an agricultural value assessment and/or a farm 34 buildings tax exemption by the assessor under section three hundred five 35 or three hundred six of the agriculture and markets law and/or under 36 section four hundred eighty-three of this chapter; 37 An owner of real property who qualifies under paragraphs (a) through 38 (d) of this subdivision shall also include: 39 (i) a person or persons whose real property is held in trust solely 40 for the benefit of such person or persons if the property serves as the 41 primary residence of such person or persons and the trust which holds 42 title to the property was lawfully created to hold title solely for 43 estate planning and asset protection purposes; [and] 44 (ii) a person or persons who reside in real property which is owned by 45 a limited partnership if the property serves as the primary residence of 46 such person or persons and said limited partnership does not engage in 47 any commercial activity, was lawfully created to hold title solely for 48 estate planning and asset protection purposes and the partner or part- 49 ners who primarily reside thereon personally pay all of the real proper- 50 ty taxes and other costs associated with the property's ownership; and 51 (iii) a person or persons, partnership, corporation, limited partner- 52 ship or limited liability corporation which owns real property that has 53 been denied an agricultural value assessment and/or a farm buildings tax 54 exemption by the assessor under section three hundred five or three 55 hundred six of the agriculture and markets law and/or under section four 56 hundred eighty-three of this chapter, where such real property is heldS. 5755 7 1 in trust solely for the benefit of such person or persons, partnership, 2 corporation, limited partnership or limited liability corporation and 3 the trust which holds title to the property was lawfully created to hold 4 title solely for estate planning and asset protection purposes. 5 2. Upon determining any such complaint every real property tax board 6 of assessment review shall inform in writing every owner of one, two or 7 three family owner-occupied residential real property [in writing], and 8 every owner of property that has been denied an agricultural value 9 assessment and/or a farm buildings tax exemption by the assessor under 10 section three hundred five or three hundred six of the agriculture and 11 markets law and/or under section four hundred eighty-three of this chap- 12 ter, of the right to small claims assessment review in the manner 13 provided by subdivision four of section five hundred twenty-five of this 14 chapter. Such notice shall specify the last date on which petitions must 15 be filed and the location where small claims assessment review forms may 16 be obtained. The petition form for small claims assessment review shall 17 be provided to such property owner, upon request, at no cost in accord- 18 ance with the rules promulgated pursuant to section seven hundred thir- 19 ty-seven of this title. 20 § 7. This act shall take effect immediately and shall apply to taxable 21 status dates occurring on or after such date; provided, however, that 22 section six of this act shall apply to petitions filed against assess- 23 ment rolls prepared on or after the first of January next succeeding the 24 date on which it shall have become a law.
