Bill Text: NY S08171 | 2017-2018 | General Assembly | Introduced

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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: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-06-20 - COMMITTED TO RULES [S08171 Detail]

Download: New_York-2017-S08171-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          8171
                    IN SENATE
                                     April 13, 2018
                                       ___________
        Introduced  by Sen. RITCHIE -- (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, and paragraph m as added by chapter 547
    10  of the laws of 2014, is amended to read as follows:
    11    4.  "Land  used in agricultural production" means [not less than seven
    12  acres of] land used as a single operation [in the preceding  two  years]
    13  for  the  production  for sale of crops, livestock or livestock products
    14  [of an average] with annual gross sales [value] of ten thousand  dollars
    15  or  more;  or,  not less than seven acres of land used [in the preceding
    16  two years] to support a commercial horse boarding operation or a commer-
    17  cial equine operation with annual gross receipts of ten thousand dollars
    18  or more. [Land used in agricultural production shall not include land or
    19  portions thereof used for processing or  retail  merchandising  of  such
    20  crops,  livestock  or  livestock  products.]  Land  used in agricultural
    21  production shall also include:
    22    a. Rented land which otherwise satisfies the requirements  for  eligi-
    23  bility for an agricultural assessment.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14328-02-8
        S. 8171                             2
     1    a-1.  Land  used  by  a not-for-profit institution for the purposes of
     2  agricultural research that is intended to improve the quality or quanti-
     3  ty of crops, livestock or livestock products. Such  land  shall  qualify
     4  for  an  agricultural assessment upon application made pursuant to para-
     5  graph  [(a)]  a of subdivision one of section three hundred five of this
     6  article, except that no  minimum  annual  gross  sales  value  shall  be
     7  required.
     8    b.  Land  of  not less than seven acres used as a single operation for
     9  the production for sale  of  crops,  livestock  or  livestock  products,
    10  exclusive of woodland products, which does not independently satisfy the
    11  annual  gross  sales  [value]  requirement[, where such land was used in
    12  such production for the preceding two years] and currently is  being  so
    13  used  under  a  written  rental  arrangement  of  five  or more years in
    14  conjunction with land which is eligible for an agricultural assessment.
    15    c. Land used in support of a farm operation or land used  in  agricul-
    16  tural  production,  constituting a portion of a parcel, as identified on
    17  the assessment roll, which also contains land qualified for an  agricul-
    18  tural  assessment.  Such  land  shall include land used for agricultural
    19  amusements which are produced from crops grown or produced on the  farm,
    20  provided  that  such crops are harvested and marketed in the same manner
    21  as other crops produced on such farm. Such agricultural amusements shall
    22  include, but not be limited to, so-called  "corn  mazes"  or  "hay  bale
    23  mazes".
    24    d. Farm woodland which is part of land which is qualified for an agri-
    25  cultural  assessment, provided, however, that such farm woodland attrib-
    26  utable to any separately described and assessed parcel shall not  exceed
    27  fifty acres.
    28    e.  Land  set  aside  through  participation in a federal conservation
    29  program pursuant to title one of the federal food security act of  nine-
    30  teen  hundred eighty-five or any subsequent federal programs established
    31  for the purposes of replenishing highly erodible  land  which  has  been
    32  depleted  by  continuous tilling or reducing national surpluses of agri-
    33  cultural commodities  and  such  land  shall  qualify  for  agricultural
    34  assessment  upon application made pursuant to paragraph a of subdivision
    35  one of section three hundred five of this article, except that no  mini-
    36  mum annual gross sales [value] shall be required.
    37    f.  [Land  of  not less than seven acres used as a single operation in
    38  the preceding two years for the production for sale of crops,  livestock
    39  or  livestock  products  of an average gross sales value of ten thousand
    40  dollars or more, or land of less than seven acres used as a single oper-
    41  ation in the preceding two years for the production for sale  of  crops,
    42  livestock or livestock products of an average gross sales value of fifty
    43  thousand dollars or more.
    44    g.]  Land under a structure within which crops, livestock or livestock
    45  products are produced, provided that the sales of such crops,  livestock
    46  or livestock products meet the annual gross sales requirements of [para-
    47  graph f of] this subdivision.
    48    [h.  Land  that is owned or rented by a farm operation in its first or
    49  second year of agricultural production, or, in the case of a  commercial
    50  horse  boarding operation in its first or second year of operation, that
    51  consists of (1) not less than seven acres used as a single operation for
    52  the production for sale of crops, livestock or livestock products of  an
    53  annual  gross  sales  value of ten thousand dollars or more; or (2) less
    54  than seven acres used as a single operation for the production for  sale
    55  of crops, livestock or livestock products of an annual gross sales value
    56  of  fifty  thousand dollars or more; or (3) land situated under a struc-
        S. 8171                             3

     1  ture within which crops, livestock or livestock products  are  produced,
     2  provided that such crops, livestock or livestock products have an annual
     3  gross sales value of (i) ten thousand dollars or more, if the farm oper-
     4  ation uses seven or more acres in agricultural production, or (ii) fifty
     5  thousand  dollars  or  more,  if the farm operation uses less than seven
     6  acres in agricultural production; or (4) not less than seven acres  used
     7  as  a  single operation to support a commercial horse boarding operation
     8  with annual gross receipts of ten thousand dollars or more.
     9    i.] g. Land of not less than seven acres used as  a  single  operation
    10  for  the production for sale of orchard or vineyard crops when such land
    11  is used solely for the purpose of planting a new orchard or vineyard and
    12  when such land is also owned or rented by a newly established farm oper-
    13  ation in its  first,  second,  third  or  fourth  year  of  agricultural
    14  production.
    15    [j.]  h.  Land of not less than seven acres used as a single operation
    16  for the production and sale of Christmas trees when such  land  is  used
    17  solely  for  the  purpose  of planting Christmas trees that will be made
    18  available for sale, whether dug for transplanting or cut from the  stump
    19  and when such land is owned or rented by a newly established farm opera-
    20  tion  in  its first, second, third, fourth or fifth year of agricultural
    21  production.
    22    [k.] i. Land used to support an apiary  products  operation  which  is
    23  owned  by  the  operation and consists of [(i) not less than seven acres
    24  nor] not more than ten acres used as a single operation [in the  preced-
    25  ing  two years] for the production for sale of crops, livestock or live-
    26  stock products of an [average] annual gross sales [value] of  ten  thou-
    27  sand  dollars  or  more  [or (ii) less than seven acres used as a single
    28  operation in the preceding two years for  the  production  for  sale  of
    29  crops,  livestock  or livestock products of an average gross sales value
    30  of fifty thousand dollars or more]. The land used to support  an  apiary
    31  products  operation shall include, but not be limited to, the land under
    32  a structure within which apiary products  are  produced,  harvested  and
    33  stored  for  sale; and a buffer area maintained by the operation between
    34  the operation  and  adjacent  landowners.    Notwithstanding  any  other
    35  provision  of  this  subdivision,  rented land associated with an apiary
    36  products operation is not eligible for an agricultural assessment  based
    37  on this paragraph.
    38    [l.  Land  that is owned or rented by a farm operation in its first or
    39  second year of agricultural production or in the case  of  a  commercial
    40  equine  operation,  in  its  first  or  second  year  of operation, that
    41  consists of not less than seven acres and stabling at least ten  horses,
    42  regardless  of  ownership, that receives ten thousand dollars or more in
    43  gross receipts annually from fees generated  through  the  provision  of
    44  commercial  equine  activities  including,  but  not  limited  to riding
    45  lessons, trail riding activities or training of horses  or  through  the
    46  production  for  sale  of  crops,  livestock, and livestock products, or
    47  through both the provision of such commercial equine activities and such
    48  production. Under no circumstances shall this subdivision  be  construed
    49  to include operations whose primary on site function is horse racing.
    50    m.]  j.  Land used in silvopasturing, which is part of a single opera-
    51  tion that otherwise satisfies the requirements for  eligibility  for  an
    52  agricultural  assessment, shall be limited to up to ten fenced acres per
    53  large livestock, including cattle, horses and camelids, and up  to  five
    54  fenced  acres  per small livestock, such as sheep, hogs, goats and poul-
    55  try. For the purposes of this subdivision, "silvopasturing"  shall  mean
    56  the intentional combination of trees, forages and livestock managed as a
        S. 8171                             4
     1  single integrated practice for the collective benefit of each, including
     2  the  planting  of appropriate grasses and legume forages among trees for
     3  sound grazing and livestock husbandry.
     4    k.  Land or portions thereof used for processing or retail merchandis-
     5  ing of crops, livestock or livestock products.
     6    § 2. Subdivision 9 of section 301 of the agriculture and markets  law,
     7  as amended by chapter 440 of the laws of 1993, paragraphs c, d, e, and f
     8  as  amended and paragraph g as added by chapter 536 of the laws of 2008,
     9  is amended to read as follows:
    10    9. "Gross sales [value]" means the proceeds from the sale of:
    11    a. Crops, livestock and livestock products produced on  land  used  in
    12  agricultural production provided, however, that whenever a crop is proc-
    13  essed  before sale, the proceeds shall be based upon the market value of
    14  such crop in its unprocessed state;
    15    b. Woodland products from farm woodland eligible to receive  an  agri-
    16  cultural assessment, not to exceed two thousand dollars annually;
    17    c.  Honey,  royal  jelly, bee pollen, propolis and beeswax produced by
    18  bees in hives located on [an  otherwise  qualified  farm  operation  but
    19  which  does  not independently satisfy the gross sales requirement] land
    20  used in agricultural production in  conjunction  with  the  same  or  an
    21  otherwise qualified farm operation;
    22    d.  Maple  syrup, maple candy and maple cream processed from maple sap
    23  produced on land used in agricultural production in conjunction with the
    24  same or an otherwise qualified farm operation;
    25    e. Compost, mulch or other organic biomass crops as defined in  subdi-
    26  vision  seventeen  of this section produced on land used in agricultural
    27  production, not to exceed five thousand dollars annually;
    28    f. Or payments received by reason of land set aside pursuant to  para-
    29  graph e of subdivision four of this section;
    30    [f.]  g.  Or  payments  received  by thoroughbred breeders pursuant to
    31  section two hundred fifty-four of the racing, pari-mutuel  wagering  and
    32  breeding law; [and
    33    g.  Compost, mulch or other organic biomass crops as defined in subdi-
    34  vision sixteen of this section produced on  land  used  in  agricultural
    35  production, not to exceed five thousand dollars annually.]
    36    h.  Or in a commercial horse boarding operation as defined in subdivi-
    37  sion thirteen of this section, the income received from the boarding  of
    38  horses  or through the production for sale of crops, livestock and live-
    39  stock products or through both such boarding and such production; and
    40    i. Or in a commercial equine operation as defined in subdivision eigh-
    41  teen of this section, the income received from  fees  generated  through
    42  the provision of commercial equine activities including, but not limited
    43  to,  riding  lessons,  trail  riding activities or training of horses or
    44  through the production  for  sale  of  crops,  livestock  and  livestock
    45  products   or   through  both  commercial  equine  activities  and  such
    46  production.
    47    § 3. Subdivision 1 of section 305 of the agriculture and  markets  law
    48  is amended by adding a new paragraph f to read as follows:
    49    f.  The commissioner may initiate an investigation pursuant to section
    50  thirty-six of this chapter to determine if an  eligible  farm  operation
    51  was  improperly  denied  an  agricultural  assessment  pursuant  to this
    52  section or section three hundred six of this article. If the commission-
    53  er finds after such investigation that an eligible  farm  operation  was
    54  improperly denied such assessment, he or she may issue an order pursuant
    55  to  section thirty-six of this chapter to compel the assessor to approve
    56  the agricultural assessment as provided for in the order.
        S. 8171                             5
     1    § 4. Subdivision 4 of section 305 of the agriculture and  markets  law
     2  is amended by adding a new paragraph h-1 to read as follows:
     3    h-1.  Notwithstanding  any  other provision of law to the contrary, no
     4  above ground natural gas and electric transmission line facilities shall
     5  be sited on land in agricultural production which is located  within  an
     6  agricultural district, or land in agricultural production that qualifies
     7  for  and  is  receiving  an  agricultural assessment pursuant to section
     8  three hundred six of this article.  Nothing contained in this paragraph,
     9  however, shall be deemed to prohibit siting when:
    10    (i) The owner of such land has entered into a written agreement  which
    11  shall indicate his consent for site consideration; or
    12    (ii)  The  applicant  for a permit has made a commitment in the permit
    13  application to fund a farm land protection conservation easement  within
    14  a  reasonable  proximity  to  the proposed project in an amount not less
    15  than the dollar value of any such farm land purchased for  the  project;
    16  or
    17    (iii)  The commissioner has determined that any such agricultural land
    18  to be taken, constitutes less than five percent of the land in  agricul-
    19  tural production and the project sponsor has done everything practicable
    20  to minimize adverse impacts to the land in agricultural production.
    21    § 5. Subdivisions 2 and 8 of section 483 of the real property tax law,
    22  subdivision 2 as amended by chapter 35 of the laws of 2016, and subdivi-
    23  sion  8  as  amended  by chapter 411 of the laws of 2001, are amended to
    24  read as follows:
    25    2. The term "structures and buildings" shall  include:  (a)  permanent
    26  and  impermanent  structures,  including trellises and pergolas, made of
    27  metal, string or wood, and buildings or portions thereof  used  directly
    28  and  exclusively  in  the  [raising and production for sale] production,
    29  preparation and/or marketing of agricultural and  horticultural  commod-
    30  ities  or  necessary  for  the  storage thereof[, but not structures and
    31  buildings or portions thereof used for the  processing  of  agricultural
    32  and  horticultural  commodities,  or  the  retail  merchandising of such
    33  commodities]; (b) structures and buildings used to provide  housing  for
    34  regular  and  essential  employees  and their immediate families who are
    35  primarily employed in connection with the operation  of  lands  actively
    36  devoted  to agricultural and horticultural use, but not including struc-
    37  tures and buildings occupied as a residence by  the  applicant  and  his
    38  immediate  family;  (c) structures and buildings used as indoor exercise
    39  arenas exclusively for training and exercising horses in connection with
    40  the [raising and production for  sale]  production,  preparation  and/or
    41  marketing of agricultural and horticultural commodities or in connection
    42  with a commercial horse boarding operation or a commercial equine opera-
    43  tion  as  defined  in  section  three hundred one of the agriculture and
    44  markets law. For purposes of this section,  the  term  "indoor  exercise
    45  arenas" shall not include [riding academies or] dude ranches; (d) struc-
    46  tures  and  buildings used in the production of maple syrup, maple candy
    47  and maple cream; (e) structures and buildings used in the production  of
    48  honey,  royal  jelly,  bee  pollen, propolis and beeswax including those
    49  structures and buildings used for the storage of bees. [For purposes  of
    50  this  section,  this shall not include those structures or buildings and
    51  portions thereof used for the sale of maple syrup or sale of  honey  and
    52  beeswax.]  The  term "structures and buildings" shall not include silos,
    53  bulk milk tanks or coolers, or manure storage,  handling  and  treatment
    54  facilities as such terms are used in section four hundred eighty-three-a
    55  of this title.
        S. 8171                             6
     1    8.  As used in this section, the term "agricultural and horticultural"
     2  shall include the [activity]  activities  of  raising,  breeding  [and],
     3  training and/or boarding of livestock, including commercial horse board-
     4  ing  operations   and commercial equine operations as defined in section
     5  three hundred one of the agriculture and markets law.
     6    §  6.  Paragraph  (b)  and  the closing paragraph of subdivision 1 and
     7  subdivision 2 of section 730 of the real property tax law, paragraph (b)
     8  of subdivision 1 as amended by chapter 154 of  the  laws  of  1993,  the
     9  closing  paragraph  of subdivision 1 as added by chapter 114 of the laws
    10  of 2012, and subdivision 2 as amended by chapter  714  of  the  laws  of
    11  1982, are amended to read as follows:
    12    (b)  the  property  is:  (i)  improved  by  a one, two or three family
    13  owner-occupied structure used exclusively for residential purposes other
    14  than property subject to the  assessment  limitations  of  section  five
    15  hundred  eighty-one of this chapter and article nine-B of the real prop-
    16  erty law [or]; (ii) the property is unimproved and is not of  sufficient
    17  size  as  determined  by the assessing unit or special assessing unit to
    18  contain a one, two or three family residential structure; or  (iii)  the
    19  property  has been denied an agricultural value assessment and/or a farm
    20  buildings tax exemption by the assessor under section three hundred five
    21  or three hundred six of the agriculture and  markets  law  and/or  under
    22  section four hundred eighty-three of this chapter;
    23    An  owner  of real property who qualifies under paragraphs (a) through
    24  (d) of this subdivision shall also include:
    25    (i) a person or persons whose real property is held  in  trust  solely
    26  for  the benefit of such person or persons if the property serves as the
    27  primary residence of such person or persons and the  trust  which  holds
    28  title  to  the  property  was  lawfully created to hold title solely for
    29  estate planning and asset protection purposes; [and]
    30    (ii) a person or persons who reside in real property which is owned by
    31  a limited partnership if the property serves as the primary residence of
    32  such person or persons and said limited partnership does not  engage  in
    33  any  commercial  activity, was lawfully created to hold title solely for
    34  estate planning and asset protection purposes and the partner  or  part-
    35  ners who primarily reside thereon personally pay all of the real proper-
    36  ty taxes and other costs associated with the property's ownership; and
    37    (iii)  a person or persons, partnership, corporation, limited partner-
    38  ship or limited liability corporation which owns real property that  has
    39  been denied an agricultural value assessment and/or a farm buildings tax
    40  exemption  by  the  assessor  under  section three hundred five or three
    41  hundred six of the agriculture and markets law and/or under section four
    42  hundred eighty-three of this chapter, where such real property  is  held
    43  in  trust solely for the benefit of such person or persons, partnership,
    44  corporation, limited partnership or limited  liability  corporation  and
    45  the trust which holds title to the property was lawfully created to hold
    46  title solely for estate planning and asset protection purposes.
    47    2.  Upon  determining any such complaint every real property tax board
    48  of assessment review shall inform in writing every owner of one, two  or
    49  three  family owner-occupied residential real property [in writing], and
    50  every owner of property that  has  been  denied  an  agricultural  value
    51  assessment  and/or  a farm buildings tax exemption by the assessor under
    52  section three hundred five or three hundred six of the  agriculture  and
    53  markets law and/or under section four hundred eighty-three of this chap-
    54  ter,  of  the  right  to  small  claims  assessment review in the manner
    55  provided by subdivision four of section five hundred twenty-five of this
    56  chapter. Such notice shall specify the last date on which petitions must
        S. 8171                             7
     1  be filed and the location where small claims assessment review forms may
     2  be obtained. The petition form for small claims assessment review  shall
     3  be  provided to such property owner, upon request, at no cost in accord-
     4  ance  with the rules promulgated pursuant to section seven hundred thir-
     5  ty-seven of this title.
     6    § 7. This act shall take effect immediately and shall apply to taxable
     7  status dates occurring on or after such date;  provided,  however,  that
     8  section  six  of this act shall apply to petitions filed against assess-
     9  ment rolls prepared on or after the first of January next succeeding the
    10  date on which it shall have become a law.