New York State real property tax code allows several exemptions for farm buildings. This provision also exempts new and reconstructed farm employee housing.
- The provision exempts new or reconstructed farm employee housing from any increase in assessed value that results from the improvement.
- The exemption applies to buildings used to provide housing for regular and essential employees and their immediate families who are primarily employed in farming operations.
- The exemption does not apply to buildings occupied as a residence by the owner and his or her immediate family.
For Both Migrant and Permanent Employee Housing
One form of property tax exemption is available for both migrant/seasonal employers such as fruit or vegetable farms and for farms with permanent employees such as dairy farms. This is a one-time exemption that continues automatically for 10 years, providing the building continues to be used for farming. For this exemption, use form RP-483 and follow the instructions for the form. Application to the local assessor must be made within one year following the completion of new construction or re-construction work.
For Migrant Employee Housing Only
There is a permanent real property tax exemption for farm or food processing labor camps or commissaries, provided the structures are used to improve the health, living, and working conditions for farm laborers. The applicant must provide the assessor with a copy of the following:
- a state sanitary code permit to operate a “migrant farmworker housing facility,”
- a State Labor Department “farm labor contractor certificate of registration”, “permit to operate a farm labor camp commissary”, and/or “migrant labor registration certificate” and,
- proof of compliance with the fire-prevention and building code.
A renewal application need not be filed annually with the assessor, but the owner of the labor camp or commissary must be able to annually prove that the camp or commissary continues to comply with all applicable property use requirements to keep the exemption. For this permanent exemption, use form RP-483-d with instructions.
Whether a farm business owner pursues either the one-time, ten-year exemption or the permanent exemption, all safety and code requirements should be met. If the use classification of the building is converted to a non-farm use, the building will be subject to roll-back taxes.
To apply for the exemption, contact the local assessor, the county director of real property tax services, or the NYS Department of Taxation.
For additional details visit:
Farm building exemption – Tax.NY.gov
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By Jay Canzonier, Cornell University. Permission granted to repost, quote, and reprint with author attribution.
The post Real Property Tax Exemptions for Farm Employee Housing appeared in The Ag Workforce Journal.
