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
________________________________________________________________________
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 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.
LBD09100-01-9
S. 5755 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. 5755 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
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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; [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. 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[, 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. 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 held
S. 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.