CHENANGO COUNTY – The Chenango County Agriculture and Farmland Protection Board, in collaboration with the Chenango Real Property Tax Service Department, is striving to educate area farmers of a tax exemption for newly constructed buildings used for agriculture purposes, and help town assessors identify such structures.
New York’s Real Property Tax Law allows a 10-year property tax exemption for newly constructed or reconstructed ag buildings. Under the law, ag structures will be exempt from any increase in the property’s assessed value that results from the improvement.
However, the application for an ag building tax exemption must be made within one year after completion of the project, which is causing many farmers to miss out on the opportunity, according to Chenango County Real Property Director Steve Harris.
“If a farmer builds a building and the assessor doesn’t pick it up within a year, they no longer qualify for an exemption,” he said.
Equally problematic, some town assessors are appraising ag structures that, if a farmer were to file an application, may qualify for an exemption. Conversely, some assessors are counting an exemption toward ag buildings that don’t actually meet all legal requirements for it.
Harris presented the issue to the Chenango County Ag, Buildings and Grounds Committee in November on behalf of the Agriculture and Farmland Protection Board, saying that while it’s not a huge problem, it’s one that comes up often and could potentially affect assessments and equalization rates.
“It’s kind of a double edged sword,” he told committee members, explaining there’s no permitting process in the county for constructing a building used for agriculture purposes. Without a permitting process, he said farmers who are aware of the exemption build new structures under the assumption that it will be tax exempt without notifying the town assessor.
Moreover, he said some farmers who are aware of the exemption take advantage by using a new ag building for purposes such as office space, garages, and in some instances, living space – purposes that are not permitted under the tax exemption law.
To address the issue, the Agriculture Farmland and Protection Board motioned that an ag structure building permit be made available at no cost to farmers who are building on their property. This permit, the board agreed, would help clarify who qualifies for an exemption, and make assessors aware of new buildings so the tax exemption can be given.
That motion, however, was turned down by the Ag, Buildings and Grounds Committee for the time being because committee members said it’s more an education issue for farmers and assessors than it is an issue that requires new rules and regulations. Additionally, the committee said a building permit requirement would do little to solve the issue.
“Right now, we’re hoping to work with other agencies, like the Farm Bureau, Soil and Water Conservation District and the Cornell Cooperative Extension to educate farmers,” said Harris. “We’ll start an awareness program for farmers who are building new buildings to let them know this exemption exists.”