Bill Text: NY S06718 | 2021-2022 | 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 (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO AGRICULTURE [S06718 Detail]

Download: New_York-2021-S06718-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6718

                               2021-2022 Regular Sessions

                    IN SENATE

                                      May 13, 2021
                                       ___________

        Introduced  by  Sen. HINCHEY -- 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  seven
    13  acres  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  preceding
    17  two 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 or
    20  portions  thereof  used  for  processing or retail merchandising of such

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11348-01-1
        S. 6718                             2

     1  crops, 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 in
    16  such 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 [in
    43  the 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-
    52  graph f of] this subdivision.
    53    [h. Land that is owned or rented by a farm operation in its  first  or
    54  second  year of agricultural production, or, in the case of a commercial
    55  horse boarding operation in its first or second year of operation,  that
    56  consists of (1) not less than seven acres used as a single operation for
        S. 6718                             3

     1  the  production for sale of crops, livestock or livestock products of an
     2  annual gross sales value of ten thousand dollars or more;  or  (2)  less
     3  than  seven acres used as a single operation for the production for sale
     4  of crops, livestock or livestock products of an annual gross sales value
     5  of  fifty  thousand dollars or more; or (3) land situated under a struc-
     6  ture within which crops, livestock or livestock products  are  produced,
     7  provided that such crops, livestock or livestock products have an annual
     8  gross sales value of (i) ten thousand dollars or more, if the farm oper-
     9  ation uses seven or more acres in agricultural production, or (ii) fifty
    10  thousand  dollars  or  more,  if the farm operation uses less than seven
    11  acres in agricultural production; or (4) not less than seven acres  used
    12  as  a  single operation to support a commercial horse boarding operation
    13  with annual gross receipts of ten thousand dollars or more.
    14    i.] 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 two
    30  years] 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 or
    44  second year of agricultural production or in the case  of  a  commercial
    45  equine  operation,  in  its  first  or  second  year  of operation, that
    46  consists of not less than seven acres and stabling at least ten  horses,
    47  regardless  of  ownership, that receives ten thousand dollars or more in
    48  gross receipts annually from fees generated  through  the  provision  of
    49  commercial  equine  activities  including,  but  not  limited  to riding
    50  lessons, trail riding activities or training of horses  or  through  the
    51  production  for  sale  of  crops,  livestock, and livestock products, or
    52  through both the provision of such commercial equine activities and such
    53  production. Under no circumstances shall this subdivision  be  construed
    54  to include operations whose primary on site function is horse racing.
    55    m.]  k.  Land used in silvopasturing, which is part of a single opera-
    56  tion that otherwise satisfies the requirements for  eligibility  for  an
        S. 6718                             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    [n.]  1.  Land  or  portions  thereof  used  for  processing or retail
    10  merchandising of crops, livestock or livestock products on land which is
    11  part of a farm operation, as defined in this section,  and  used  exclu-
    12  sively for the processing and marketing of agricultural and horticultur-
    13  al commodities which are grown on land which is part of such farm opera-
    14  tion.
    15    m.  Land  of  not less than seven acres used as a single operation for
    16  the production for sale of hops when such land is used  solely  for  the
    17  purpose  of  planting  a new hopyard and when such land is also owned or
    18  rented by a newly established farm operation in its first, second, third
    19  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    g. Or payments received by thoroughbred breeders pursuant  to  section
    43  two  hundred fifty-four of the racing, pari-mutuel wagering and breeding
    44  law; [and
    45    g. Compost, mulch or other organic biomass crops as defined in  subdi-
    46  vision  sixteen  of  this  section produced on land used in agricultural
    47  production, 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 livestock
        S. 6718                             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 g to read as follows:
     5    g. 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[, but
    42  not structures and buildings or portions thereof used for the processing
    43  of agricultural and horticultural commodities, or the retail merchandis-
    44  ing  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 or
        S. 6718                             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 held
        S. 6718                             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.