Magee Bill Would Extend Property Tax Exemption on New Farm Buildings

A bill written by Assemblyman William Magee to extend the current real property tax exemption for new farm buildings until 2029 recently passed the Assembly.

The bill, A-10057, extends the property tax exemption for increases in value due to construction or improvement of buildings needed for farm operations by 10 years.

“Farmers work from sunrise to sundown to produce everything from crops to dairy products for our families,” Magee said. “But the cost of running and maintaining a farm is a lot to keep up with. This tax exemption is critical in helping farmers update their buildings and infrastructure and invest in businesses so they can afford to stay open and keep growing.”

Farm upkeep can be very costly, and building or upgrading vital structures like milking parlors, barns and stables is an expense many family farms can’t afford, Magee noted. The structures must abide by regulations that can drive these costs up even further. The bill helps lessen this burden, Magee said.

“Many farmers have invested in newer style milk barns which are more open, airy and efficient,” said Nelson Town Supervisor Roger Bradstreet. “Property tax assistance for this investment is helpful. I encourage the New York Senate to pass this important legislation, as the New York state Assembly has done in recent weeks.”

As the chair of the Assembly Committee on Agriculture, Magee has been a vocal advocate for farmers. Expanding the real property tax exemption and lowering the cost of production encourages farmers to invest in their farms, helps make farms more profitable and makes it easier to pass farms down to the next generation and keep them in the family, Magee noted.

Bill To Ensure Farm Property Tax Relief Eligibility Passes State Legislature

From Assemblyman Bill Magee's office:

Assemblyman Bill Magee, D-Nelson, announced that legislation he sponsored to ensure more farms are eligible for critical property tax relief has passed both the Assembly and the Senate. 

The legislation allows family members who operate farms held in trust to qualify for the Farmers’ School Tax Credit – a refundable credit for farming businesses that have paid school district property taxes (A.4650).
 
“It’s important that we help farms transition from one generation to the next,” Magee said. “Those who have been farming for decades have knowledge that has been handed down and is almost impossible to replace. We can help new farmers take the helm and continue their family’s legacy by cutting red tape to ensure they get the tax relief they need and deserve.”
 
As chair of the Assembly Committee on Agriculture, Magee is a strong advocate for farmers, and fights to ensure that family farms can continue to thrive. He recognizes that trusts have become more common over the past several years as more families use them to transfer their farms to the next generation. 

Currently, there are more than 400 farms in New York State classified as “cooperative, estate or trust, institutional” and a significant number of those are trusts.

However, a technicality in current law allows family members who intend to purchase the land to be eligible for the Farmers’ School Tax Credit, while those who will inherit through a trust are not. Magee’s legislation corrects that oversight and allows new farmers to claim the credit. 

The legislation has passed both houses and awaits the governor’s signature to become law.

Report: NY Unfriendly to Farmers

A recent report lists New York as extremely unfriendly to farmers. In fact the state ranks 49th out of 50 for friendliness toward the agriculture industry.

Go to http://www.uticaod.com/article/20150209/NEWS/150209477/0/SEARCH to see the story.

Agricultural Land Assessment Cap Bill Signed by Cuomo

Gov. Andrew Cuomo today signed a law to cap agricultural land assessments at 2 percent per year.

This is a bill New York Farm Bureau has been lobbying for months.

The governor's office said signing this bill into law ensures a more predictable tax climate for the state's agricultural sector. And putting this bill with the 2 percent property tax cap, farmers will be able to stay on their land and reinvest some of the money that would have gone for taxes into their operations.

“Protecting our farmers from unsustainable tax hikes is part of our work to change our state’s reputation as the tax capital of the nation by controlling spending while reducing the tax burden on New Yorkers,” Cuomo said.

“Agriculture is big business in New York and our state government is committed to doing everything we can to help this vital industry thrive and continue to create jobs and economic prosperity, particularly Upstate, he said. "This new law is a great example of just how far we’ve come and will help ensure that agricultural lands remain in the hands of hard working families for generations to come.”

According to the governor's office, during the past seven years, the base assessment value for agricultural lands has nearly doubled, leading to skyrocketing property tax increases. This, coupled with increases in municipal and school taxes, has led to a difficult business climate for some farmers. 

Previously, the annual change in the base agricultural assessment property value could not exceed 10 percent. The new legislation provides for an annual assessment increase of no more than 2 percent.

New York Farm Bureau was thrilled the bill was signed into law.

"In recent years, farmers have carried an increasingly heavy property tax burden that is second highest in the country and more than triple the national average," said Farm Bureau President Dean Norton. "But today, we will begin to get those skyrocketing property taxes under control. The cap will limit increases of agricultural assessment to no more than 2 percent a year."

"This does not mean farmers won’t be paying their fair share of taxes. It simply will control the rate of escalation that will make it easier for our family farms to budget for and pay their taxes," Norton said.  "By putting pen to paper, Governor Cuomo has given another boost to our family farms that contribute greatly to both the physical and economic health of their communities, and New York Farm Bureau very much appreciates his continued partnership with us on critical economic issues."

New York Farm Bureau also worked closely with many agricultural organizations to make today a reality. In addition, Sen. Patty Ritchie, R-Oswegatchie, and Assemblyman Bill Magee, D-Nelson, ushered the bill through their respective houses culminating in unanimous bipartisan victories.

To all of them, New York Farm Bureau expresses sincere gratitude for being our partners as well, Norton said

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