N.Y. AGM Law § 304-A — New York Code / Act AGM / Article 25-AA / Section 304-A
Agricultural assessment values
Status: in_force

§ 304-a. Agricultural assessment values. 1. Agricultural assessment\nvalues shall be calculated and certified annually in accordance with the\nprovisions of this section.\n  2. a. The commissioner of agriculture and markets shall establish and\nmaintain an agricultural land classification system based upon soil\nproductivity and capability. The agricultural land classification system\nshall distinguish between mineral and organic soils. There shall be ten\nprimary groups of mineral soils and such other subgroups as the\ncommissioner determines necessary to represent high-lime and low-lime\ncontent. There shall be four groups of organic soils.\n  b. The land classification system shall be promulgated by rule by the\ncommissioner following a review of comments and recommendations of the\nadvisory council on agriculture and after a public hearing. In making\nany revisions to the land classification system the commissioner may, in\nhis or her discretion, conduct a public hearing. The commissioner shall\nfoster participation by county agricultural and farmland protection\nboards, district soil and water conservation committees, and the\ncooperative extension service and consult with other state agencies,\nappropriate federal agencies, municipalities, the New York state college\nof agriculture and life sciences at Cornell university and farm\norganizations.\n  c. The commissioner shall certify to the commissioner of taxation and\nfinance the soil list developed in accordance with the land\nclassification system and any revisions thereto.\n  d. The commissioner shall prepare such materials as may be needed for\nthe utilization of the land classification system and provide assistance\nto landowners and local officials in its use.\n  3. a. The commissioner of taxation and finance shall annually\ncalculate a single agricultural assessment value for each of the mineral\nand organic soil groups which shall be applied uniformly throughout the\nstate. A base agricultural assessment value shall be separately\ncalculated for mineral and organic soil groups in accordance with the\nprocedure set forth in subdivision four of this section and shall be\nassigned as the agricultural assessment value of the highest grade\nmineral and organic soil group.\n  b. The agricultural assessment values for the remaining mineral soil\ngroups shall be the product of the base agricultural assessment value\nand a percentage, derived from the productivity measurements determined\nfor each soil and related soil group in conjunction with the land\nclassification system, as follows:\n                                            Percentage of\n                                            Base Agricultural\n    Mineral Soil Group                      Assessment Value\n            1A                                     100\n            1B                                      89\n            2A                                      89\n            2B                                      79\n            3A                                      79\n            3B                                      68\n            4A                                      68\n            4B                                      58\n            5A                                      58\n            5B                                      47\n            6A                                      47\n            6B                                      37\n            7                                       37\n            8                                       26\n            9                                       16\n            10                                       5\n  c. The agricultural assessment values for the remaining organic soil\ngroups shall be the product of the base agricultural assessment value\nand a percentage, as follows:\n                                            Percentage of\n                                            Base Agricultural\n    Organic Soil Group                      Assessment Value\n            A                                      100\n            B                                       65\n            C                                       55\n            D                                       35\n  d. The agricultural assessment value for organic soil group A shall be\ntwo times the base agricultural assessment value calculated for mineral\nsoil group 1A.\n  e. The agricultural assessment value for farm woodland shall be the\nsame as that calculated for mineral soil group seven.\n  f. Where trees or vines used for the production of fruit are located\non land used in agricultural production, the value of such trees and\nvines, and the value of all posts, wires and trellises used for the\nproduction of fruit, shall be considered to be part of the agricultural\nassessment value of such land.\n  g. The agricultural assessment value for land and waters used in\naquacultural enterprises shall be the same as that calculated for\nmineral soil group 1A.\n  4. a. The base agricultural assessment value shall be the average\ncapitalized value of production per acre for the eight year period\nending in the second year preceding the year for which the agricultural\nassessment values are certified. The capitalized value of production per\nacre shall be calculated by dividing the product of the value of\nproduction per acre and the percentage of net profit by a capitalization\nrate of ten percent, representing an assumed investment return rate of\neight percent and an assumed real property tax rate of two percent.\n  b. The value of production per acre shall be the value of production\ndivided by the number of acres harvested in New York state.\n  c. The percentage of net profit shall be adjusted net farm income\ndivided by realized gross farm income.\n  (i) Adjusted net farm income shall be the sum of net farm income,\ntaxes on farm real estate and the amount of mortgage interest debt\nattributable to farmland, less a management charge of one percent of\nrealized gross farm income plus seven percent of adjusted production\nexpenses.\n  (ii) The amount of mortgage interest debt attributable to farmland\nshall be the product of the interest on mortgage debt and the percentage\nof farm real estate value attributable to land.\n  (iii) The percentage of farm real estate value attributable to land\nshall be the difference between farm real estate value and farm\nstructure value divided by farm real estate value.\n  (iv) Adjusted production expenses shall be production expenses, less\nthe sum of the taxes on farm real estate and the interest on mortgage\ndebt.\n  d. The following data, required for calculations pursuant to this\nsubdivision, shall be as published by the United States department of\nagriculture for all farming in New York state:\n  (i) Farm real estate value shall be the total value of farmland and\nbuildings, including improvements.\n  (ii) Farm structure value shall be the total value of farm buildings,\nincluding improvements.\n  (iii) Interest on mortgage debt shall be the total interest paid on\nfarm real estate debt.\n  (iv) Net farm income shall be realized gross income less production\nexpenses, as adjusted for change in inventory.\n  (v) Production expenses shall be the total cost of production.\n  (vi) Realized gross income shall be the total of cash receipts from\nfarm marketings, government payments, nonmoney income and other farm\nincome.\n  (vii) Taxes on farm real estate shall be the total real property taxes\non farmland and buildings, including improvements.\n  (viii) Number of acres harvested including all reported crops.\n  (ix) Value of production shall be the total estimated value of all\nreported crops.\n  e. In the event that the data required for calculation pursuant to\nthis subdivision is not published by the United States department of\nagriculture or is incomplete, such required data shall be obtained from\nthe New York state department of agriculture and markets.\n  f. Upon completion of each annual calculation of agricultural\nassessment values, the commissioner of taxation and finance shall\npublish an annual report, which shall include a schedule of values,\ncitations to data sources and presentation of all calculations.\n  The commissioner of taxation and finance shall thereupon certify the\nschedule of agricultural assessment values and shall transmit a schedule\nof such certified values to each assessor. Beginning in the year two\nthousand six and every five years thereafter, the commissioner of\ntaxation and finance shall transmit copies of such annual reports for\nthe five years previous to such transmittal, to the governor and\nlegislature, the advisory council on agriculture, and other appropriate\nstate agencies and interested parties.\n  g. Notwithstanding any other provision of this section to the\ncontrary, in no event shall the change in the base agricultural\nassessment value for any given year exceed two percent of the base\nagricultural assessment value of the preceding year.\n  5. a. In carrying out their responsibilities under this section, the\ncommissioner of taxation and finance and the commissioner shall keep the\nadvisory council on agriculture fully apprised on matters relating to\nits duties and responsibilities.\n  b. In doing so, the commissioner of taxation and finance and the\ncommissioner shall provide, in a timely manner, any materials needed by\nthe advisory council on agriculture to carry out its responsibilities\nunder this section.\n