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Farm building tax exemption law could benefit St. Lawrence County farmers

Posted 12/4/18

CANTON -- The state's Real Property Tax Law exemption on farm buildings has been extended under legislation co-sponsored by State Senator Patty Ritchie who represents Northern St. Lawrence County. …

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Farm building tax exemption law could benefit St. Lawrence County farmers

Posted

CANTON -- The state's Real Property Tax Law exemption on farm buildings has been extended under legislation co-sponsored by State Senator Patty Ritchie who represents Northern St. Lawrence County.

The law provides continued tax relief for New York farmers and growers, said a press release from Governor Andrew M. Cuomo’s office.

The Real Property Tax Law exempts agricultural producers from paying real property tax on buildings that are essential to the production of agricultural or horticultural products, such as temporary greenhouses, dairy barns and exercise arenas for horse-boarding operations, the press release 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," said Ritchie, who chairs the Senate Agriculture Committee.

"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."

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 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, the press release said.

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.