Publisher's summary
We reviewed 58 out of 765 (8 percent) agricultural, veterans and senior citizen exemptions, totaling $2.9 million, on properties with a total assessed value of $7.7 million. We found that 20 exemptions (34 percent), totaling $1.4 million, were not properly supported by adequate documentation to establish and/or maintain exemption eligibility. We reviewed 21 agricultural exemptions totaling $1.36 million on properties with assessed values of $3.6 million. Fourteen exemptions valued at $927,000 lacked one or more pieces of supporting documentation to verify eligibility. We also reviewed 22 veteran exemptions totaling $921,000 on properties with assessed values of approximately $2.5 million. Six exemptions totaling $480,000 lacked the required supporting documentation. Finally, we reviewed 15 senior citizen exemptions totaling $600,000 on properties with assessed values of $1.6 million and found that they were generally properly supported.
Text · page 7 of 14
Appendix A: Specific Exemption Criteria
Our audit focused on agricultural, veteran and senior citizen exemptions from
real property taxes in the Town. All real property in New York is subject to taxation
unless specific legal provisions grant it exempt status. While certain exemptions
are mandated by State law, others are subject to local option and/or local
determination of eligibility criteria.
Following are the specific criteria for the exemptions included in our audit.
Agricultural – The agricultural exemption generally requires average annual gross
sales over the previous two years of $10,000 for farms with seven or more acres
of land, or $50,000 for farms of less than seven acres. The exemption amount is
calculated based on a New York State certified soil productivity value4 for each
parcel. Property owners may also lease acreage to eligible farmers and also
receive an exemption. Additionally, certain newly constructed or reconstructed
buildings and structures used for farming operations may also qualify for a
10-year property tax exemption or, may qualify for a permanent exemption for
temporary green houses, silos and bulk milk tanks. The exemption will terminate if
the building or structure ceases to be used for farming operations and/or the land
is converted to nonagricultural use. Property owners receiving these exemptions
are required to file an annual renewal form certifying the property’s continued
eligibility. Although this form does not require proof of income, assessors should
periodically verify farm income to ensure the property remains eligible.
Veteran – Requirements related to veteran exemptions vary, but typically include
that the property is the primary residence of a United States Armed Services
veteran (or a qualifying family member). The veteran must have actively served
during certain eligible time frames or received an expeditionary medal and was
discharged under honorable conditions. Also veterans who used eligible funds
such as pension, bonus or insurance money, compensation paid to prisoners
of war and mustering out [discharge] pay qualify for partial exemption. Towns
may pass local laws that establish these exemptions, as well as raise or lower
the maximum amount that a single property may be exempt from. Furthermore,
disabled veterans may receive an additional exemption based on supporting
documentation.
Senior Citizen – The senior citizen exemption requires the property be used
exclusively for residential purposes and owned by a person 65 years or older,
with varying income limits established by the Town. New York State Real Property
Tax Law also allows income deductions, such as certain medical expenses, to
be considered in calculating the exemption amount when adopted by the Town.
Residents receiving this exemption are required to file a renewal form each year,
along with supporting documentation to show their income is below the threshold.
4 The New York State Department of Agriculture and Markets Commissioner annually calculates a base
agricultural assessment value using the data published by the United States Department of Agriculture for all
farming in New York State, which identifies the certified soil productivity value for each parcel.
Of f ic e of t he New York State Comptroller 5