Agricultural Tax Policy

Since productive farming generally requires owning or leasing substantial amounts of land, property taxation and other land-related fees have a large impact on the viability of agricultural operations.

In New York State, there are two main tax relief programs for farmers: the Agricultural Assessment Program and the Farm School Tax Credit Program. The Agricultural Assessment Program allows owners of land used for agricultural production who satisfy certain eligibility requirements to qualify for reduced property tax bills by limiting the assessment of such land to its prescribed agricultural assessment value, as opposed to the standard assessment of "100% of fair market value." The Farm School Tax Credit Program provides farmers a significant state personal income and business tax credit for school property taxes paid on farmland and buildings.

In addition to these State programs, local governments may also establish a tax abatement term easements program. Such a program would offer reductions in property taxes to participating landowners in return for term (e.g., 15 year) agricultural conservation easements. This program could be used for smaller parcels of farmland that are not eligible for the agricultural assessment program, as well as other parcels that serve as a buffer for farmland.

Communities could also encourage the viability of farming operations by waiving sewer and/or water district fees for agricultural lands that were in active production prior to the formation of the sewer or water districts. Residents in ambulance and fire protection districts may also vote to exempt agricultural land from fees associated with those services.