ALBANY, NY — Gov. Andrew Cuomo announced that he has signed a law that extends the tax exemption for buildings related to agricultural businesses such as greenhouses, dairy barns and exercise tracks.

“New York’s agricultural industry is a major sector of our economy, and it’s critical that we continue to support local farmers and growers,” Cuomo said. “This tax exemption will help New York’s hard-working agricultural producers invest in their farms and grow their businesses, and as a result increase competitiveness and productivity for years to come.”

Agricultural buildings have been exempt from real property taxes for decades, but the exemption was due to expire on January 1, 2019. The governor’s signature means the exemption will stay in place at least until 2029. It applies to buildings that are newly constructed or re-constructed.

Since the Real Property Tax Law was last renewed in 2008, the exemption for farm structures is estimated to have saved New York farmers more than $112.8 million, according to the NY Department of Agriculture.

New York State Agriculture Commissioner Richard A. Ball said, “This law extends a crucial tax break to our farmers and growers, who have historically relied on the exemption to improve operations, expand businesses and offset other expenses.”

New York Farm Bureau President David Fisher added to that praise of the law. “This law, which keeps new farm buildings off the tax rolls for 10 years, is essential to encourage new farm investment, and it will make it more economical to grow family farm businesses,” he said. “The tax savings [are] especially important in today’s tough agricultural economy.”

The law prohibits tax increases based on the value of construction or improvement of structures that are used for essential agricultural operations. These operations include the cultivation, harvest and storage of commodities; the feeding, breeding and management of livestock; and housing for farm employees. Housing for immediate family members is not covered by the exemption unless the family members are non-owners and critical to the commercial operation of the farm.