N.Y. AGM Law § 305 — New York Code / Act AGM / Article 25-AA / Section 305
Agricultural districts; effects
Status: in_force

§ 305. Agricultural districts; effects. 1. Agricultural assessments.\na. Any owner of land used in agricultural production within an\nagricultural district shall be eligible for an agricultural assessment\npursuant to this section. If an applicant rents land from another for\nuse in conjunction with the applicant's land for the production for sale\nof crops, livestock or livestock products, the gross sales value of such\nproducts produced on such rented land shall be added to the gross sales\nvalue of such products produced on the land of the applicant for\npurposes of determining eligibility for an agricultural assessment on\nthe land of the applicant. Such assessment shall be granted only upon an\nannual application by the owner of such land on a form prescribed by the\ncommissioner of taxation and finance; provided, however, that after the\ninitial grant of agricultural assessment the annual application shall be\non a form prescribed by the commissioner of taxation and finance and\nshall consist of only a certification by the landowner that the\nlandowner continues to meet the eligibility requirements for receiving\nan agricultural assessment and seeks an agricultural assessment for the\nsame acreage that initially received an agricultural assessment. The\nlandowner shall maintain records documenting such eligibility which\nshall be provided to the assessor upon request. The landowner must apply\nfor agricultural assessment for any change in acreage, whether land is\nadded or removed, after the initial grant of agricultural assessment.\nAny new owner of the land who wishes to receive an agricultural\nassessment shall make an initial application for such assessment. Such\napplications shall be on a form prescribed by the commissioner of\ntaxation and finance. The applicant shall furnish to the assessor such\ninformation as the commissioner of taxation and finance shall require,\nincluding classification information prepared for the applicant's land\nor water bodies used in agricultural production by the soil and water\nconservation district office within the county, and information\ndemonstrating the eligibility for agricultural assessment of any land\nused in conjunction with rented land as specified in paragraph b of\nsubdivision four of section three hundred one of this article. Such\napplication shall be filed with the assessor of the assessing unit on or\nbefore the appropriate taxable status date; provided, however, that (i)\nin the year of a revaluation or update of assessments, as those terms\nare defined in section one hundred two of the real property tax law, the\napplication may be filed with the assessor no later than the thirtieth\nday prior to the day by which the tentative assessment roll is required\nto be filed by law; or (ii) an application for such an assessment may be\nfiled with the assessor of the assessing unit after the appropriate\ntaxable status date but not later than the last date on which a petition\nwith respect to complaints of assessment may be filed, where failure to\nfile a timely application resulted from: (a) a death of the applicant's\nspouse, child, parent, brother or sister, (b) an illness of the\napplicant or of the applicant's spouse, child, parent, brother or\nsister, which actually prevents the applicant from filing on a timely\nbasis, as certified by a licensed physician, or (c) the occurrence of a\nnatural disaster, including, but not limited to, a flood, or the\ndestruction of such applicant's residence, barn or other farm building\nby wind, fire or flood. If the assessor is satisfied that the applicant\nis entitled to an agricultural assessment, the assessor shall approve\nthe application and the land shall be assessed pursuant to this section.\nNot less than ten days prior to the date for hearing complaints in\nrelation to assessments, the assessor shall mail to each applicant, who\nhas included with the application at least one self-addressed, pre-paid\nenvelope, a notice of the approval or denial of the application. Such\nnotice shall be on a form prescribed by the commissioner of taxation and\nfinance which shall indicate the manner in which the total assessed\nvalue is apportioned among the various portions of the property subject\nto agricultural assessment and those other portions of the property not\neligible for agricultural assessment as determined for the tentative\nassessment roll and the latest final assessment roll. Failure to mail\nany such notice or failure of the owner to receive the same shall not\nprevent the levy, collection and enforcement of the payment of the taxes\non such real property.\n  b. That portion of the value of land utilized for agricultural\nproduction within an agricultural district which represents an excess\nabove the agricultural assessment as determined in accordance with this\nsubdivision shall not be subject to real property taxation. Such excess\namount if any shall be entered on the assessment roll in the manner\nprescribed by the commissioner of taxation and finance.\n  c. (i) The assessor shall utilize the agricultural assessment values\nper acre certified pursuant to section three hundred four-a of this\narticle in determining the amount of the assessment of lands eligible\nfor agricultural assessments by multiplying those values by the number\nof acres of land utilized for agricultural production and adjusting such\nresult by application of the latest state equalization rate or a special\nequalization rate as may be established and certified by the\ncommissioner of taxation and finance for the purpose of computing the\nagricultural assessment pursuant to this paragraph. This resulting\namount shall be the agricultural assessment for such lands.\n  (ii) Where the latest state equalization rate exceeds one hundred, or\nwhere a special equalization rate which would otherwise be established\nfor the purposes of this section would exceed one hundred, a special\nequalization rate of one hundred shall be established and certified by\nthe commissioner for the purpose of this section.\n  (iii) Where a special equalization rate has been established and\ncertified by the commissioner for the purposes of this paragraph, the\nassessor is directed and authorized to recompute the agricultural\nassessment on the assessment roll by applying such special equalization\nrate instead of the latest state equalization rate, and to make the\nappropriate corrections on the assessment roll, subject to the\nprovisions of title two of article twelve of the real property tax law.\n  d. (i) If land within an agricultural district which received an\nagricultural assessment is converted parcels, as described on the\nassessment roll which include land so converted shall be subject to\npayments equalling five times the taxes saved in the last year in which\nthe land benefited from an agricultural assessment, plus interest of six\npercent per year compounded annually for each year in which an\nagricultural assessment was granted, not exceeding five years. The\namount of taxes saved for the last year in which the land benefited from\nan agricultural assessment shall be determined by applying the\napplicable tax rates to the excess amount of assessed valuation of such\nland over its agricultural assessment as set forth on the last\nassessment roll which indicates such an excess. If only a portion of a\nparcel as described on the assessment roll is converted, the assessor\nshall apportion the assessment and agricultural assessment attributable\nto the converted portion, as determined for the last assessment roll for\nwhich the assessment of such portion exceeded its agricultural\nassessment. The difference between the apportioned assessment and the\napportioned agricultural assessment shall be the amount upon which\npayments shall be determined. Payments shall be added by or on behalf of\neach taxing jurisdiction to the taxes levied on the assessment roll\nprepared on the basis of the first taxable status date on which the\nassessor considers the land to have been converted; provided, however,\nthat no payments shall be imposed if the last assessment roll upon which\nthe property benefited from an agricultural assessment, was more than\nfive years prior to the year for which the assessment roll upon which\npayments would otherwise be levied is prepared.\n  (ii) Whenever a conversion occurs, the owner shall notify the assessor\nwithin ninety days of the date such conversion is commenced. If the\nlandowner fails to make such notification within the ninety day period,\nthe assessing unit, by majority vote of the governing body, may impose a\npenalty on behalf of the assessing unit of up to two times the total\npayments owed, but not to exceed a maximum total penalty of one thousand\ndollars in addition to any payments owed.\n  (iii) (a) An assessor who determines that there is liability for\npayments and any penalties assessed pursuant to subparagraph (ii) of\nthis paragraph shall notify the landowner by mail of such liability at\nleast ten days prior to the date for hearing complaints in relation to\nassessments. Such notice shall indicate the property to which payments\napply and describe how the payments shall be determined. Failure to\nprovide such notice shall not affect the levy, collection or enforcement\nor payment of payments.\n  (b) Liability for payments shall be subject to administrative and\njudicial review as provided by law for review of assessments.\n  (iv) If such land or any portion thereof is converted to a use other\nthan for agricultural production by virtue of oil, gas or wind\nexploration, development, or extraction activity or by virtue of a\ntaking by eminent domain or other involuntary proceeding other than a\ntax sale, the land or portion so converted shall not be subject to\npayments. If the land so converted constitutes only a portion of a\nparcel described on the assessment roll, the assessor shall apportion\nthe assessment, and adjust the agricultural assessment attributable to\nthe portion of the parcel not subject to such conversion by subtracting\nthe proportionate part of the agricultural assessment attributable to\nthe portion so converted. Provided further that land within an\nagricultural district and eligible for an agricultural assessment shall\nnot be considered to have been converted to a use other than for\nagricultural production solely due to the conveyance of oil, gas or wind\nrights associated with that land.\n  (v) An assessor who imposes any such payments shall annually, and\nwithin forty-five days following the date on which the final assessment\nroll is required to be filed, report such payments to the commissioner\nof taxation and finance on a form prescribed by the commissioner.\n  (vi) The assessing unit, by majority vote of the governing body, may\nimpose a minimum payment amount, not to exceed five hundred dollars.\n  (vii) The purchase of land in fee by the city of New York for\nwatershed protection purposes or the conveyance of a conservation\neasement by the city of New York to the department of environmental\nconservation which prohibits future use of the land for agricultural\npurposes shall not be a conversion of parcels and no payment shall be\ndue under this section.\n  e. Notwithstanding any inconsistent general, special or local law to\nthe contrary, if a natural disaster, act of God, or continued adverse\nweather conditions shall destroy the agricultural production and such\nfact is certified by the cooperative extension service and, as a result,\nsuch production does not produce an average gross sales value of ten\nthousand dollars or more, the owner may nevertheless qualify for an\nagricultural assessment provided the owner shall substantiate in such\nmanner as prescribed by the commissioner of taxation and finance that\nthe agricultural production initiated on such land would have produced\nan average gross sales value of ten thousand dollars or more but for the\nnatural disaster, act of God or continued adverse weather conditions.\n  3. Policy of state agencies. It shall be the policy of all state\nagencies to encourage the maintenance of viable farming in agricultural\ndistricts and their administrative regulations and procedures shall be\nmodified to this end insofar as is consistent with the promotion of\npublic health and safety and with the provisions of any federal\nstatutes, standards, criteria, rules, regulations, or policies, and any\nother requirements of federal agencies, including provisions applicable\nonly to obtaining federal grants, loans, or other funding.\n  4. Limitation on the exercise of eminent domain and other public\nacquisitions, and on the advance of public funds. a. Any agency of the\nstate, any public benefit corporation or any local government which\nintends to acquire land or any interest therein, provided that the\nacquisition from any one actively operated farm within the district\nwould be in excess of one acre or that the total acquisition within the\ndistrict would be in excess of ten acres, or which intends to construct,\nor advance a grant, loan, interest subsidy or other funds within a\ndistrict to construct, dwellings, commercial or industrial facilities,\nor water or sewer facilities to serve non-farm structures, shall use all\npracticable means in undertaking such action to realize the policy and\ngoals set forth in this article, and shall act and choose alternatives\nwhich, consistent with social, economic and other essential\nconsiderations, to the maximum extent practicable, minimize or avoid\nadverse impacts on agriculture in order to sustain a viable farm\nenterprise or enterprises within the district. The adverse agricultural\nimpacts to be minimized or avoided shall include impacts revealed in the\nnotice of intent process described in this subdivision.\n  b. The agency, corporation or government proposing the action shall\nalso, at least sixty-five days prior to such acquisition, construction\nor advance of public funds, file a notice of intent with the\ncommissioner and the county agricultural and farmland protection board.\nSuch notice shall include a detailed agricultural impact statement\nsetting forth the following:\n  (i) a detailed description of the proposed action and its agricultural\nsetting;\n  (ii) the agricultural impact of the proposed action including\nshort-term and long-term effects;\n  (iii) any adverse agricultural effects which cannot be avoided should\nthe proposed action be implemented;\n  (iv) alternatives to the proposed action;\n  (v) any irreversible and irretrievable commitments of agricultural\nresources which would be involved in the proposed action should it be\nimplemented;\n  (vi) mitigation measures proposed to minimize the adverse impact of\nthe proposed action on the continuing viability of a farm enterprise or\nenterprises within the district;\n  (vii) any aspects of the proposed action which would encourage\nnon-farm development, where applicable and appropriate; and\n  (viii) such other information as the commissioner may require.\n  The commissioner shall promptly determine whether the notice is\ncomplete or incomplete. If the commissioner does not issue such\ndetermination within thirty days, the notice shall be deemed complete.\nIf the notice is determined to be incomplete, the commissioner shall\nnotify the party proposing the action in writing of the reasons for that\ndetermination.  Any new submission shall commence a new period for\ndepartment review for purposes of determining completeness.\n  c. The provisions of paragraph b of this subdivision shall not apply\nand shall be deemed waived by the owner of the land to be acquired where\nsuch owner signs a document to such effect and provides a copy to the\ncommissioner.\n  d. Upon notice from the commissioner that he or she has accepted a\nnotice as complete, the county agricultural and farmland protection\nboard may, within thirty days, review the proposed action and its\neffects on farm operations and agricultural resources within the\ndistrict, and report its findings and recommendations to the\ncommissioner and to the party proposing the action in the case of\nactions proposed by a state agency or public benefit corporation, and\nadditionally to the county legislature in the case of actions proposed\nby local government agencies.\n  e. Upon receipt and acceptance of a notice, the commissioner shall\nthereupon forward a copy of such notice to the commissioner of\nenvironmental conservation and the advisory council on agriculture. The\ncommissioner, in consultation with the commissioner of environmental\nconservation and the advisory council on agriculture, within forty-five\ndays of the acceptance of a notice, shall review the proposed action and\nmake an initial determination whether such action would have an\nunreasonably adverse effect on the continuing viability of a farm\nenterprise or enterprises within the district, or state environmental\nplans, policies and objectives.\n  If the commissioner so determines, he or she may (i) issue an order\nwithin the forty-five day period directing the state agency, public\nbenefit corporation or local government not to take such action for an\nadditional period of sixty days immediately following such forty-five\nday period; and (ii) review the proposed action to determine whether any\nreasonable and practicable alternative or alternatives exist which would\nminimize or avoid the adverse impact on agriculture in order to sustain\na viable farm enterprise or enterprises within the district.\n  The commissioner may hold a public hearing concerning such proposed\naction at a place within the district or otherwise easily accessible to\nthe district upon notice in a newspaper having a general circulation\nwithin the district and posted on the home page of the department's\nwebsite, and individual notice, in writing by first class mail, to the\nmunicipalities whose territories encompass the district, the\ncommissioner of environmental conservation, the advisory council on\nagriculture and the state agency, public benefit corporation or local\ngovernment proposing to take such action. On or before the conclusion of\nsuch additional sixty day period, the commissioner shall report his or\nher findings to the agency, corporation or government proposing to take\nsuch action, to any public agency having the power of review of or\napproval of such action, and, in a manner conducive to the wide\ndissemination of such findings, to the public. If the commissioner\nconcludes that a reasonable and practicable alternative or alternatives\nexist which would minimize or avoid the adverse impact of the proposed\naction, he or she shall propose that such alternative or alternatives be\naccepted. If the agency, corporation or government proposing the action\naccepts the commissioner's proposal, then the requirements of the notice\nof intent filing shall be deemed fulfilled. If the agency, corporation\nor government rejects the commissioner's proposal, then it shall provide\nthe commissioner with reasons for rejecting such proposal and a detailed\ncomparison between its proposed action and the commissioner's\nalternative or alternatives.\n  f. At least ten days before commencing an action which has been the\nsubject of a notice of intent filing, the agency, corporation or\ngovernment shall certify to the commissioner that it has made an\nexplicit finding that the requirements of this subdivision have been\nmet, and that consistent with social, economic and other essential\nconsiderations, to the maximum extent practicable, adverse agricultural\nimpacts revealed in the notice of intent process will be minimized or\navoided. Such certification shall set forth the reasons in support of\nthe finding.\n  g. The commissioner may request the attorney general to bring an\naction to enjoin any such agency, corporation or government from\nviolating any of the provisions of this subdivision.\n  h. Notwithstanding any other provision of law to the contrary, no\nsolid waste management facility shall be sited on land in agricultural\nproduction which is located within an agricultural district, or land in\nagricultural production that qualifies for and is receiving an\nagricultural assessment pursuant to section three hundred six of this\narticle. Nothing contained herein, however, shall be deemed to prohibit\nsiting when:\n  (i) The owner of such land has entered into a written agreement which\nshall indicate his consent for site consideration; or\n  (ii) The applicant for a permit has made a commitment in the permit\napplication to fund a farm land protection conservation easement within\na reasonable proximity to the proposed project in an amount not less\nthan the dollar value of any such farm land purchased for the project;\nor\n  (iii) The commissioner in concurrence with the commissioner of\nenvironmental conservation has determined that any such agricultural\nland to be taken, constitutes less than five percent of the project\nsite.\n  For purposes of this paragraph, "solid waste management facility"\nshall have the same meaning as provided in title seven of article\ntwenty-seven of the environmental conservation law, but shall not\ninclude solid waste transfer stations or land upon which sewage sludge\nis applied, and determinations regarding agricultural district\nboundaries and agricultural assessments will be based on those in effect\nas of the date an initial determination is made, pursuant to article\neight of the environmental conservation law, as to whether an\nenvironmental impact statement needs to be prepared for the proposed\nproject.\n  i. This subdivision shall not apply to any emergency project which is\nimmediately necessary for the protection of life or property or to any\nproject or proceeding to which the department is or has been a statutory\nparty.\n  j. The commissioner may bring an action to enforce any mitigation\nmeasures proposed by a public benefit corporation or a local government,\nand accepted by the commissioner, pursuant to a notice of intent filing,\nto minimize or avoid adverse agricultural impacts from the proposed\naction.\n  5. Limitation on power to impose benefit assessments, special ad\nvalorem levies or other rates or fees in certain improvement districts\nor benefit areas. Within improvement districts or areas deemed benefited\nby municipal improvements including, but not limited to, improvements\nfor sewer, water, lighting, non-farm drainage, solid waste disposal,\nincluding those solid waste management facilities established pursuant\nto section two hundred twenty-six-b of the county law, or other landfill\noperations, no benefit assessments, special ad valorem levies or other\nrates or fees charged for such improvements may be imposed on land used\nprimarily for agricultural production within an agricultural district on\nany basis, except a lot not exceeding one-half acre surrounding any\ndwelling or non-farm structure located on said land, nor on any farm\nstructure located in an agricultural district unless such structure\nbenefits directly from the service of such improvement district or\nbenefited area; provided, however, that if such benefit assessments, ad\nvalorem levies or other rates or fees were imposed prior to the\nformation of the agricultural district, then such benefit assessments,\nad valorem levies or other rates or fees shall continue to be imposed on\nsuch land or farm structure.\n  6. Use of assessment for certain purposes. The governing body of a\nfire, fire protection, or ambulance district for which a benefit\nassessment or a special ad valorem levy is made, may adopt a resolution\nto provide that the assessment determined pursuant to subdivision one of\nthis section for such property shall be used for the benefit assessment\nor special ad valorem levy of such fire, fire protection, or ambulance\ndistrict.\n  7. Notwithstanding any provision of law to the contrary, that portion\nof the value of land which is used solely for the purpose of replanting\nor crop expansion as part of an orchard, vineyard, or hopyard shall be\nexempt from real property taxation for a period of six successive years\nfollowing the date of such replanting or crop expansion beginning on the\nfirst eligible taxable status date following such replanting or\nexpansion provided the following conditions are met:\n  a. the land used for crop expansion or replanting must be a part of an\nexisting orchard, vineyard, or hopyard which is located on land used in\nagricultural production within an agricultural district or such land\nmust be part of an existing orchard, vineyard, or hopyard which is\neligible for an agricultural assessment pursuant to this section or\nsection three hundred six of this article where the owner of such land\nhas filed an annual application for an agricultural assessment;\n  b. the land eligible for such real property tax exemption shall not in\nany one year exceed twenty percent of the total acreage of such orchard,\nvineyard, or hopyard which is located on land used in agricultural\nproduction within an agricultural district or twenty percent of the\ntotal acreage of such orchard, vineyard, or hopyard eligible for an\nagricultural assessment pursuant to this section and section three\nhundred six of this article where the owner of such land has filed an\nannual application for an agricultural assessment;\n  c. the land eligible for such real property tax exemption must be\nmaintained as land used in agricultural production as part of such\norchard, vineyard, or hopyard for each year such exemption is granted;\nand\n  d. when the land used for the purpose of replanting or crop expansion\nas part of an orchard, vineyard, or hopyard is located within an area\nwhich has been declared by the governor to be a disaster emergency in a\nyear in which such tax exemption is sought and in a year in which such\nland meets all other eligibility requirements for such tax exemption set\nforth in this subdivision, the maximum twenty percent total acreage\nrestriction set forth in paragraph b of this subdivision may be exceeded\nfor such year and for any remaining successive years, provided, however,\nthat the land eligible for such real property tax exemption shall not\nexceed the total acreage damaged or destroyed by such disaster in such\nyear or the total acreage which remains damaged or destroyed in any\nremaining successive year. The total acreage for which such exemption is\nsought pursuant to this paragraph shall be subject to verification by\nthe commissioner or his designee.\n  In administering this subdivision, the portion of the value of land\neligible for such real property tax exemption shall be determined based\non the average per acre assessment of all agricultural land of the\nspecific tax parcel as reported in a form approved by the commissioner\nof taxation and finance.\n