Farmers will receive tax breaks on new buildings until 2029
By Diego Flammini
New York farmers planning to construct new buildings in the next decade will be exempt from increased property tax payments.
Yesterday, Governor Cuomo announced a 10-year extension to the Real Property Tax Law on farm buildings.
Any buildings constructed within the applicable timeframe “will be exempt from any increase in the property’s assessed value resulting from improvement,” the law says.
The law exempting farm buildings from state taxation was set to expire on Jan. 1, 2019. Cuomo’s extension carries the legislation until 2029.
“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,” Cuomo said in a statement yesterday.
The law last received renewal in 2008.
Since then, farmers have saved almost US$113 million in property taxes which they’ve been able to reinvest into their businesses.
“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,” David Fisher, president of the New York Farm Bureau, said in a statement yesterday. “The tax savings is especially important in today’s tough agricultural economy.”
Buildings must meet certain parameters to qualify for the exemption.
The tax break only applies to buildings that are “essential to the operation of lands actively devoted to agricultural or horticultural use,” the law states.
The structures must also be erected on farms that are at least five acres in size.
The exemptions do not apply to “the residence of the applicant or (his or her) immediate family.”
Farms.com has reached out to members of New York’s ag community for reaction to the exemption extension.
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