Expands the tax exemption for new farm buildings

• Republican9
• Democratic5

◆ The sponsor's argument

Why Michelle Hinchey says this is needed

Currently, new farm structures and buildings used to produce crops are eligible for a ten-year tax exemption. New buildings used for the proc- essing or on-farm sale of crops are not eligible for the exemption, except for buildings used in the processing of maple syrup and honey. Farms are vital to New York's economy and long-term sustainability. The State is losing farms, partly due to development pressure and partly because it is difficult to make a living farming. In the past, most farmers produced crops and sold them wholesale to a processor or distributor. That model is rapidly changing, especially for smaller family farms. Small-scale farmers often make more money by selling their crops or "value-added" products made from their crops directly to consumers rather than to wholesalers. New York farmers are national leaders in direct marketing to consumers. We have over 700 farmers' markets in the state, and an undetermined number of farmstands and farm stores. In order to make our farms compet- itive and economically viable, we need to incentivize farm investment in infrastructure, including buildings for processing farm products. This bill will help farmers who wish to add value to their products develop the capacity to process their crops by expanding the existing ten-year tax break to include new buildings dedicated to processing of crops produced on-farm. The tax exemption in this bill does not apply to wedding barns and other event venues since such events are not related to the production or processing of farm commodities. Although local tax districts will temporarily lose tax revenue on such new buildings, the tax break should encourage more farm infrastructure, which will add to the tax rolls in the long run. Farms with retail stores should also produce jobs and create agritourism which will help rural communities throughout the state.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.