"New York's agricultural industry is a major sector of
our economy, and it's critical that we continue to support local farmers and
growers," Governor Cuomo said. "This tax exemption will help New
York's hard-working agricultural producers invest in their farms and grow their
businesses, and as a result increase competitiveness and productivity for years
to come."
"Agriculture is an essential part of New York's
economy, and we are working to remove barriers to growth for farmers across the
state," said Lieutenant Governor Kathy Hochul. "This new law lowers
the property tax burden on New York farms, helping them to stay competitive in
the global economy."
The Real Property Tax Law exemption was extended for the
next 10 years and applies to newly constructed and re-constructed agricultural
buildings through January 1, 2029. Since it was last renewed in 2008, the exemption
for farm structures is estimated to have saved New York farmers more than
$112.8 million. The exemption has helped support the growth of New York's
agricultural industry by allowing farmers and growers to use the money saved to
invest in their operations, purchase new equipment and modernize facilities,
which increases the farms' competitiveness and profitability.
Agricultural buildings have been exempt from state taxation
for decades, but the law granting the exemption was set to expire on New Year's
Day 2019. The new law, sponsored by Assemblyman Bill Magee and Senator Patty
Ritchie, amends New York State's Real Property Tax Law to extend the tax break
and ensure it will remain in effect for the next decade.
New York State Agriculture Commissioner Richard A. Ball
said, "We thank Governor Cuomo for signing this bill into law and we thank
the State Legislature for passing this legislation. It extends a crucial tax
break to our farmers and growers, who have historically relied on the exemption
to improve operations, expand businesses and offset other expenses."
Acting Commissioner of Taxation and Finance Nonie Manion
said, "Thanks to the extension of this property tax exemption, New York
State farmers can now continue to receive this beneficial tax break. I applaud
Governor Cuomo and the State Legislature for continuing to allow this valuable
benefit."
Senate Agriculture Committee Chair Patty Ritchie said,
"Our state's farmers work hard every day to produce world-class products
that are enjoyed by their fellow New Yorkers, but sometimes they see minimal
profit generated and, at times, can even experience losses, due to things like
infrastructure costs. This vital legislation, which I was proud to sponsor,
will deliver a property tax exemption for structures that play a key role to
strengthen their bottom lines, which in turn will help bolster our state's
agriculture industry for years to come."
Assembly Agriculture Committee Chair Bill Magee said,
"This property tax exemption law is extremely helpful to our farmers who
rely on it to lower production costs. That, in turn, helps them to stay in
business by keeping their farms in operation, maintaining our state's open
spaces, and growing food for New Yorkers."
New York Farm Bureau President David Fisher said, "This
law, which keeps new farm buildings off the tax rolls for 10 years, is
essential to encourage new farm investment, and it will make it more economical
to grow family farm businesses. The tax savings is especially important in
today's tough agricultural economy."
The law prohibits tax increases based on the value of
construction or improvement of structures that are used for essential
agricultural operations. That includes the cultivation, harvest and storage of
commodities; the feeding, breeding and management of livestock; and housing for
farm employees. Housing for immediate family members is not covered by the
exemption unless the family members are non-owners and critical to the
commercial operation of the farm.
A complete list of rules regarding the exemption can be
found here.
