Assessor Manual, Exemption Administration: RPTL Section 483

Exemption Administration Manual, Part 2: Agricultural and Forest

Section 4.08, RPTL Section 483: Structures and Buildings Essential to the Operation of Agricultural and Horticultural Lands

Exemption code(s):

41700

Year originally enacted:

1968

Related statutes:

RPTL §582, Ag Mkts L §301

Summary:

Certain structures and buildings that (1) are essential to the operation of lands actively used for agricultural or horticultural purposes and (2) are constructed or reconstructed after January 1, 1969 and prior to January 1, 2029 are exempt from taxation to the extent of any increase in assessed value attributable to such construction or reconstruction. The exemption is allowed only while the structure or building is actually used as described under Property Use Requirements below, but in no event for more than 10 years. No exemption from special ad valorem levies or special assessments is allowed.

This exemption does not apply to farm silos, bulk milk tanks and coolers, farm feed grain storage bins and commodity sheds, or manure storage, handling, or treatment facilities, which may be eligible for exemption under RPTL §483-a, nor does it apply to temporary greenhouses which may be eligible for exemption under RPTL §483-c (see the Exemption Profiles for those statutes).

If a structure or building exempt under RPTL §483 is converted to a non-qualifying use during the period of exemption, roll-back taxes must be imposed for the entire period that the property was exempt. Roll-back taxes payable are to be determined by the appropriate tax levying bodies using the appropriate prior years' tax rates and exempt assessed value.

Eligibility requirements:

Ownership requirements:

None.

Property location requirements:

None.

Property use requirements:

The structure or building must be essential to the operation of lands actively devoted to agricultural or horticultural use. Lands actively devoted to agricultural or horticultural use are defined as lands not less than five acres in area actually used in bona fide agricultural or horticultural production and operation carried on for profit. The term "agricultural and horticultural" includes the activity of raising, breeding and boarding of livestock, including commercial horse boarding operations.

Eligible structures and buildings are defined as permanent and impermanent structures, including trellises and pergolas, made of metal, string, or wood and buildings, or portions thereof, used directly and exclusively in the raising or production for sale of agricultural or horticultural commodities, or necessary for the storage of such commodities, but not structures or buildings used for the processing or retail merchandising of such commodities. This definition also includes structures and buildings: (1) used to provide housing for regular and essential employees and their immediate families who are primarily employed in the operation of the agricultural or horticultural land are also eligible for the exemption, but not structures or buildings occupied as a residence by the owner and the owner's immediate family, (2) used exclusively as indoor exercise arenas for training and exercising horses in connection with the raising and production for sale of horses or in connection with a commercial horse boarding operation ("indoor exercise arenas," do not include indoor exercise arenas of riding academies or dude ranches), (3) used in the production of maple syrup (excludes structures or buildings and portions thereof used for the sale of maple syrup), or (4) used in the production of honey and beeswax including those structures and buildings used for the storage of bees (excludes structures or buildings and portions thereof used for the sale of honey and beeswax).

Certification by state or local government:

None required.

Required construction start date or other time requirement:

The structure or building must have been constructed or reconstructed after January 1, 1969 and prior to January 1, 2029.

Local option:

No.

Limitation on exemption:

* Exemption is limited to the increase in assessed value due to construction or reconstruction of the structure or building.

Payments in lieu of taxes:

None required.

Calculation of exemption:

General municipal and school district taxes:

Increase in assessed value attributable to qualifying construction or reconstruction.

If the structure is located in an agricultural district or on property receiving an agricultural assessment under Ag-Mkts L §305 or §306, the structure must be assessed at an amount not to exceed the cost of replacement new at current prices less a deduction for (a) physical depreciation calculated in accordance with Assessor's Manual Volume 7, distributed by the NYS Office of Real Property Tax Services, and (b) if applicable, functional and economic obsolescence.  Such structures are those used:

• For the production or storage of crops, livestock, or livestock products.
• For the storage of equipment and/or supplies used in agricultural production.
• In whole or in part as farm labor dwellings, except for structures used as the principal residence of the owner of the structure.
• Exclusively as indoor exercise arenas for training and exercising horses for sale, or in connection with a commercial horse boarding operation, but does not include indoor exercise arenas of riding academies or dude ranches.

Special ad valorem levies and special assessments:

No exemption allowed.

Assessment roll section:

Taxable (RPS Section 1).

Filing requirements (owner or occupant of property):

File Form RP-483 - Application for Tax Exemption of Agricultural and Horticultural Buildings and Structures

The form must be filed on or before taxable status date and within one year of the date of completion of the construction or reconstruction.

Reporting requirements (assessor):

None.

Similar exemptions:

Exemption application forms:

• Form RP-483
• Form RP-483-I

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