Expands eligibility for designation as land used in agricultural production by lowering the average gross sale value of the land to $20,000 or more in certain cases.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3612
SPONSOR: Pretlow TITLE OF BILL:
An act to amend the agriculture and markets law, in relation to the
determination of land used in agricultural production for purposes of
agricultural districts
PURPOSE:
This bill would expand eligibility for designation as land used in agri-
cultural production by lowering the agricultural assessment "gross sales
value" threshold for properties under seven acres from $50,000 to $20,
000.
SUMMARY OF PROVISIONS:
Section one amends paragraphs f, h and k of subdivision 4 of section 301
of the agriculture and markets law to decrease the agricultural assess-
ment "gross sales value" threshold for properties under seven acres from
$50,000 to $20,000.
Section two establishes the effective date.
JUSTIFICATION:
The income threshold for New York's farmland assessment law is outdated,
and it is time for a change.
The agricultural districts law was enacted in 1971 to allow farm oper-
ations to enjoy certain benefits such as the agricultural assessment of
real property. After completing a soil assessment from the County Soil &
Water Conservation District, farm operations may receive an agricultural
assessment if the town assessor certifies there is a farm operation, and
the Office of Real Property Tax Services verifies there are gross
receipts in excess of $50,000 in sales. If an application is denied, the
farm operation may appeal to the local Board of Assessment Review.
This $50,000 threshold was arbitrarily established back in 1971, and
does not currently reflect the ability of new farms to start-up through-
out the state. This discourages new start-up businesses and economic
growth, and diminishes the ability for small farm operations to conduct
business including urban farms, small organic orchards and flower grow-
ers and meal delivery service farms. Thanks to the Internet, these are
each becoming highly profitable industries, which could be creating jobs
and local tax revenue here in New York were the start-up threshold
lowered.
There are tremendous benefits to encouraging urban agriculture.
Converting land to previous surface helps clean stormwater and reduce
runoff, produces a sustainable local food source for schools, restau-
rants, grocery stores and households, and is economically beneficial.
This legislation would revise the threshold to $20,000 per year which
will help preserve agriculture in New York State and encourage more
urban and small farm operations down state.
LEGISLATIVE HISTORY:
2022 01/05/22 A2264 referred to agriculture
2019-2020 A6063 referred to agriculture
2017-2018 New Bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to real property
assessments for taxes imposed on or after such date.
STATE OF NEW YORK
________________________________________________________________________
3612
2023-2024 Regular Sessions
IN ASSEMBLY
February 3, 2023
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Agriculture
AN ACT to amend the agriculture and markets law, in relation to the
determination of land used in agricultural production for purposes of
agricultural districts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs f, h and k of subdivision 4 of section 301 of
2 the agriculture and markets law, paragraph f as amended by chapter 445
3 of the laws of 2002, paragraph h as amended by chapter 587 of the laws
4 of 2005 and paragraph k as added by chapter 341 of the laws of 2008, are
5 amended to read as follows:
6 f. Land of not less than seven acres used as a single operation in the
7 preceding two years for the production for sale of crops, livestock or
8 livestock products of an average gross sales value of ten thousand
9 dollars or more, or land of less than seven acres used as a single oper-
10 ation in the preceding two years for the production for sale of crops,
11 livestock or livestock products of an average gross sales value of
12 [fifty] twenty thousand dollars or more.
13 h. Land that is owned or rented by a farm operation in its first or
14 second year of agricultural production, or, in the case of a commercial
15 horse boarding operation in its first or second year of operation, that
16 consists of (1) not less than seven acres used as a single operation for
17 the production for sale of crops, livestock or livestock products of an
18 annual gross sales value of ten thousand dollars or more; or (2) less
19 than seven acres used as a single operation for the production for sale
20 of crops, livestock or livestock products of an annual gross sales value
21 of [fifty] twenty thousand dollars or more; or (3) land situated under a
22 structure within which crops, livestock or livestock products are
23 produced, provided that such crops, livestock or livestock products have
24 an annual gross sales value of (i) ten thousand dollars or more, if the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08309-01-3
A. 3612 2
1 farm operation uses seven or more acres in agricultural production, or
2 (ii) fifty thousand dollars or more, if the farm operation uses less
3 than seven acres in agricultural production; or (4) not less than seven
4 acres used as a single operation to support a commercial horse boarding
5 operation with annual gross receipts of ten thousand dollars or more.
6 k. Land used to support an apiary products operation which is owned by
7 the operation and consists of (i) not less than seven acres nor more
8 than ten acres used as a single operation in the preceding two years for
9 the production for sale of crops, livestock or livestock products of an
10 average gross sales value of ten thousand dollars or more or (ii) less
11 than seven acres used as a single operation in the preceding two years
12 for the production for sale of crops, livestock or livestock products of
13 an average gross sales value of [fifty] twenty thousand dollars or more.
14 The land used to support an apiary products operation shall include, but
15 not be limited to, the land under a structure within which apiary
16 products are produced, harvested and stored for sale; and a buffer area
17 maintained by the operation between the operation and adjacent landown-
18 ers. Notwithstanding any other provision of this subdivision, rented
19 land associated with an apiary products operation is not eligible for an
20 agricultural assessment based on this paragraph.
21 § 2. This act shall take effect immediately and shall apply to real
22 property assessments for taxes imposed on or after such date.
