Amd §§301 & 305, Ag & Mkts L; amd §§483 & 730, RPT L
 
Relates to agricultural districts and assessments; authorizes farms to challenge the denial of an agricultural value assessment through the small claims assessment review process.
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.