NY Agric & Mkts L § 305 (2021)
2021 New York Laws AGM - Agriculture and Markets Article 25-AA - Agricultural Districts 305 - Agricultural Districts; Effects.

§ 305. Agricultural  districts;  effects. 1. Agricultural assessments. a.  Any  owner  of  land  used  in  agricultural  production  within  an agricultural  district  shall be eligible for an agricultural assessment pursuant to this section. If an applicant rents land  from  another  for use in conjunction with the applicant's land for the production for sale of crops, livestock or livestock products, the gross sales value of such products  produced on such rented land shall be added to the gross sales value of such products  produced  on  the  land  of  the  applicant  for purposes  of  determining  eligibility for an agricultural assessment on the land of the applicant. Such assessment shall be granted only upon an annual application by the owner of such land on a form prescribed by the commissioner of taxation and finance; provided, however, that after  the initial grant of agricultural assessment the annual application shall be on  a  form  prescribed  by the commissioner of taxation and finance and shall consist  of  only  a  certification  by  the  landowner  that  the landowner  continues  to meet the eligibility requirements for receiving an agricultural assessment and seeks an agricultural assessment for  the same  acreage  that  initially  received an agricultural assessment. The landowner shall maintain  records  documenting  such  eligibility  which shall be provided to the assessor upon request. The landowner must apply for  agricultural  assessment for any change in acreage, whether land is added or removed, after the initial grant  of  agricultural  assessment. Any  new  owner  of  the  land  who  wishes  to  receive an agricultural assessment shall make an initial application for such  assessment.  Such applications  shall  be  on  a  form  prescribed  by the commissioner of taxation and finance. The applicant shall furnish to the  assessor  such information  as  the commissioner of taxation and finance shall require, including classification information prepared for the  applicant's  land or  water  bodies  used in agricultural production by the soil and water conservation  district  office  within  the  county,   and   information demonstrating  the  eligibility  for agricultural assessment of any land used in conjunction with rented land as  specified  in  paragraph  b  of subdivision  four  of  section  three  hundred one of this article. Such application shall be filed with the assessor of the assessing unit on or before the appropriate taxable status date; provided, however, that  (i) in  the  year  of a revaluation or update of assessments, as those terms are defined in section one hundred two of the real property tax law, the application may be filed with the assessor no later than  the  thirtieth day  prior to the day by which the tentative assessment roll is required to be filed by law; or (ii) an application for such an assessment may be filed with the assessor of the  assessing  unit  after  the  appropriate taxable status date but not later than the last date on which a petition with  respect to complaints of assessment may be filed, where failure to file a timely application resulted from: (a) a death of the  applicant's spouse,  child,  parent,  brother  or  sister,  (b)  an  illness  of the applicant or of  the  applicant's  spouse,  child,  parent,  brother  or sister,  which  actually  prevents the applicant from filing on a timely basis, as certified by a licensed physician, or (c) the occurrence of  a natural  disaster,  including,  but  not  limited  to,  a  flood, or the destruction of such applicant's residence, barn or other  farm  building by  wind, fire or flood. If the assessor is satisfied that the applicant is entitled to an agricultural assessment, the  assessor  shall  approve the application and the land shall be assessed pursuant to this section. Not  less  than  ten  days  prior  to the date for hearing complaints in relation to assessments, the assessor shall mail to each applicant,  who has  included with the application at least one self-addressed, pre-paid envelope, a notice of the approval or denial of  the  application.  Such notice shall be on a form prescribed by the commissioner of taxation and  finance  which  shall  indicate  the  manner in which the total assessed value is apportioned among the various portions of the property  subject to  agricultural assessment and those other portions of the property not eligible  for  agricultural  assessment  as determined for the tentative assessment roll and the latest final assessment roll.  Failure  to  mail any  such  notice  or failure of the owner to receive the same shall not prevent the levy, collection and enforcement of the payment of the taxes on such real property.   b. That portion  of  the  value  of  land  utilized  for  agricultural production  within  an  agricultural district which represents an excess above the agricultural assessment as determined in accordance with  this subdivision  shall not be subject to real property taxation. Such excess amount if any shall be entered on the  assessment  roll  in  the  manner prescribed by the commissioner of taxation and finance.   c.  (i)  The assessor shall utilize the agricultural assessment values per acre certified pursuant to section  three  hundred  four-a  of  this article  in  determining  the amount of the assessment of lands eligible for agricultural assessments by multiplying those values by  the  number of acres of land utilized for agricultural production and adjusting such result by application of the latest state equalization rate or a special equalization   rate   as   may  be  established  and  certified  by  the commissioner of taxation and finance for the purpose  of  computing  the agricultural  assessment  pursuant  to  this  paragraph.  This resulting amount shall be the agricultural assessment for such lands.  (ii) Where the latest state equalization rate exceeds one hundred,  or where  a  special equalization rate which would otherwise be established for the purposes of this section would exceed  one  hundred,  a  special equalization  rate  of one hundred shall be established and certified by the commissioner for the purpose of this section.  (iii) Where a special  equalization  rate  has  been  established  and certified  by  the  commissioner for the purposes of this paragraph, the assessor is  directed  and  authorized  to  recompute  the  agricultural assessment  on the assessment roll by applying such special equalization rate instead of the latest state equalization  rate,  and  to  make  the appropriate   corrections   on  the  assessment  roll,  subject  to  the provisions of title two of article twelve of the real property tax law.   d. (i) If land within  an  agricultural  district  which  received  an agricultural  assessment  is  converted  parcels,  as  described  on the assessment roll which include land so  converted  shall  be  subject  to payments  equalling five times the taxes saved in the last year in which the land benefited from an agricultural assessment, plus interest of six percent  per  year  compounded  annually  for  each  year  in  which  an agricultural  assessment  was  granted,  not  exceeding  five years. The amount of taxes saved for the last year in which the land benefited from an  agricultural  assessment  shall  be  determined  by   applying   the applicable  tax rates to the excess amount of assessed valuation of such land  over  its  agricultural  assessment  as  set  forth  on  the  last assessment  roll  which indicates such an excess. If only a portion of a parcel as described on the assessment roll is  converted,  the  assessor shall  apportion the assessment and agricultural assessment attributable to the converted portion, as determined for the last assessment roll for which  the  assessment  of  such  portion  exceeded   its   agricultural assessment.  The  difference  between the apportioned assessment and the apportioned agricultural assessment  shall  be  the  amount  upon  which payments shall be determined. Payments shall be added by or on behalf of each  taxing  jurisdiction  to  the  taxes levied on the assessment roll prepared on the basis of the first taxable  status  date  on  which  the assessor  considers  the land to have been converted; provided, however,  that no payments shall be imposed if the last assessment roll upon which the property benefited from an agricultural assessment,  was  more  than five  years  prior  to the year for which the assessment roll upon which payments would otherwise be levied is prepared.  (ii) Whenever a conversion occurs, the owner shall notify the assessor within  ninety  days  of  the  date such conversion is commenced. If the landowner fails to make such notification within the ninety day  period, the assessing unit, by majority vote of the governing body, may impose a penalty  on  behalf  of  the assessing unit of up to two times the total payments owed, but not to exceed a maximum total penalty of one thousand dollars in addition to any payments owed.  (iii) (a) An assessor who  determines  that  there  is  liability  for payments  and  any  penalties  assessed pursuant to subparagraph (ii) of this paragraph shall notify the landowner by mail of such  liability  at least  ten  days prior to the date for hearing complaints in relation to assessments. Such notice shall indicate the property to  which  payments apply  and  describe  how  the  payments shall be determined. Failure to provide such notice shall not affect the levy, collection or enforcement or payment of payments.  (b) Liability for payments shall  be  subject  to  administrative  and judicial review as provided by law for review of assessments.  (iv)  If  such land or any portion thereof is converted to a use other than  for  agricultural  production  by  virtue  of  oil,  gas  or  wind exploration,  development,  or  extraction  activity  or  by virtue of a taking by eminent domain or other involuntary proceeding  other  than  a tax  sale,  the  land  or  portion  so converted shall not be subject to payments. If the land so converted  constitutes  only  a  portion  of  a parcel  described  on  the assessment roll, the assessor shall apportion the assessment, and adjust the agricultural assessment  attributable  to the  portion of the parcel not subject to such conversion by subtracting the proportionate part of the agricultural  assessment  attributable  to the   portion  so  converted.  Provided  further  that  land  within  an agricultural district and eligible for an agricultural assessment  shall not  be  considered  to  have  been  converted  to  a use other than for agricultural production solely due to the conveyance of oil, gas or wind rights associated with that land.  (v) An assessor who imposes any  such  payments  shall  annually,  and within  forty-five days following the date on which the final assessment roll is required to be filed, report such payments to  the  commissioner of taxation and finance on a form prescribed by the commissioner.  (vi)  The  assessing unit, by majority vote of the governing body, may impose a minimum payment amount, not to exceed five hundred dollars.  (vii) The purchase of land  in  fee  by  the  city  of  New  York  for watershed  protection  purposes  or  the  conveyance  of  a conservation easement by the city of New York  to  the  department  of  environmental conservation  which  prohibits  future  use of the land for agricultural purposes shall not be a conversion of parcels and no  payment  shall  be due under this section.   e.  Notwithstanding  any inconsistent general, special or local law to the contrary, if a natural disaster, act of God,  or  continued  adverse weather  conditions  shall  destroy the agricultural production and such fact is certified by the cooperative extension service and, as a result, such production does not produce an average gross  sales  value  of  ten thousand  dollars  or  more,  the  owner may nevertheless qualify for an agricultural assessment provided the owner shall  substantiate  in  such manner  as  prescribed  by the commissioner of taxation and finance that the agricultural production initiated on such land would  have  produced  an average gross sales value of ten thousand dollars or more but for the natural disaster, act of God or continued adverse weather conditions.   * f.  Notwithstanding  any other provision of law to the contrary, the owner of real property which qualified for an agricultural assessment on the two thousand twenty -- two thousand twenty-one assessment  roll  and is  not producing an average annual gross sales value of at least either ten thousand dollars or more or fifty thousand dollars or more, as  such value would normally be determined pursuant to section three hundred one of  this article may nevertheless qualify for an agricultural assessment on the two thousand twenty-one --  two  thousand  twenty-two  assessment roll  provided  the  owner shall substantiate in such manner, including, but not limited to, analysis by an entity with recognized  expertise  in farm  production  and  finances, such as cooperative extension or a farm credit  institution  or  federal  farm  agency,  as  prescribed  by  the commissioner  of  taxation  and finance that the agricultural production initiated on such land would have produced an average annual gross sales value of ten thousand dollars or more or fifty thousand dollars or  more over  the  time period beginning on January first, two thousand nineteen and ending on December thirty-first, two thousand  twenty  but  for  the effects  of  the state disaster emergency declared pursuant to executive order number two hundred two of two thousand twenty.   * NB Repealed January 1, 2022   3. Policy of state agencies. It shall  be  the  policy  of  all  state agencies  to encourage the maintenance of viable farming in agricultural districts and their administrative regulations and procedures  shall  be modified  to  this  end  insofar  as is consistent with the promotion of public health  and  safety  and  with  the  provisions  of  any  federal statutes,  standards, criteria, rules, regulations, or policies, and any other requirements of federal agencies, including provisions  applicable only to obtaining federal grants, loans, or other funding.   4.  Limitation  on  the  exercise  of  eminent domain and other public acquisitions, and on the advance of public funds. a. Any agency  of  the state,  any  public  benefit  corporation  or any local government which intends to acquire land or  any  interest  therein,  provided  that  the acquisition  from  any  one  actively  operated farm within the district would be in excess of one acre or that the total acquisition within  the district would be in excess of ten acres, or which intends to construct, or  advance  a  grant,  loan,  interest  subsidy or other funds within a district to construct, dwellings, commercial or  industrial  facilities, or water or sewer facilities to serve non-farm structures, shall use all practicable  means  in undertaking such action to realize the policy and goals set forth in this article, and shall act and  choose  alternatives which,   consistent   with   social,   economic   and   other  essential considerations, to the maximum extent  practicable,  minimize  or  avoid adverse  impacts  on  agriculture  in  order  to  sustain  a viable farm enterprise or enterprises within the district. The adverse  agricultural impacts to be minimized or avoided shall include impacts revealed in the notice of intent process described in this subdivision.   b.  The  agency,  corporation or government proposing the action shall also, at least sixty-five days prior to such  acquisition,  construction or   advance  of  public  funds,  file  a  notice  of  intent  with  the commissioner and the county agricultural and farmland protection  board. Such  notice  shall  include  a  detailed  agricultural impact statement setting forth the following:  (i) a detailed description of the proposed action and its agricultural setting;  (ii)  the  agricultural  impact  of  the  proposed  action   including short-term and long-term effects;  (iii)  any adverse agricultural effects which cannot be avoided should the proposed action be implemented;  (iv) alternatives to the proposed action;  (v)  any  irreversible  and  irretrievable commitments of agricultural resources which would be involved in the proposed action  should  it  be implemented;  (vi)  mitigation  measures  proposed to minimize the adverse impact of the proposed action on the continuing viability of a farm enterprise  or enterprises within the district;  (vii)  any  aspects  of  the  proposed  action  which  would encourage non-farm development, where applicable and appropriate; and  (viii) such other information as the commissioner may require.   The commissioner  shall  promptly  determine  whether  the  notice  is complete  or  incomplete.  If  the  commissioner  does  not  issue  such determination within thirty days, the notice shall be  deemed  complete. If  the  notice  is  determined to be incomplete, the commissioner shall notify the party proposing the action in writing of the reasons for that determination.   Any new submission shall  commence  a  new  period  for department review for purposes of determining completeness.   c.  The  provisions of paragraph b of this subdivision shall not apply and shall be deemed waived by the owner of the land to be acquired where such owner signs a document to such effect and provides a  copy  to  the commissioner.   d.  Upon  notice  from  the commissioner that he or she has accepted a notice as complete, the  county  agricultural  and  farmland  protection board  may,  within  thirty  days,  review  the  proposed action and its effects  on  farm  operations  and  agricultural  resources  within  the district,   and   report   its   findings  and  recommendations  to  the commissioner and to the party  proposing  the  action  in  the  case  of actions  proposed  by  a state agency or public benefit corporation, and additionally to the county legislature in the case of  actions  proposed by local government agencies.   e.  Upon  receipt  and  acceptance of a notice, the commissioner shall thereupon  forward  a  copy  of  such  notice  to  the  commissioner  of environmental  conservation and the advisory council on agriculture. The commissioner, in consultation with  the  commissioner  of  environmental conservation  and the advisory council on agriculture, within forty-five days of the acceptance of a notice, shall review the proposed action and make  an  initial  determination  whether  such  action  would  have  an unreasonably  adverse  effect  on  the  continuing  viability  of a farm enterprise or enterprises within the district,  or  state  environmental plans, policies and objectives.   If  the  commissioner  so determines, he or she may (i) issue an order within the forty-five day period  directing  the  state  agency,  public benefit  corporation  or local government not to take such action for an additional period of sixty days immediately  following  such  forty-five day period; and (ii) review the proposed action to determine whether any reasonable and practicable alternative or alternatives exist which would minimize  or avoid the adverse impact on agriculture in order to sustain a viable farm enterprise or enterprises within the district.   The commissioner may hold a public hearing  concerning  such  proposed action  at a place within the district or otherwise easily accessible to the district upon notice in a newspaper  having  a  general  circulation within  the  district  and  posted  on the home page of the department's website, and individual notice, in writing by first class mail,  to  the municipalities   whose   territories   encompass   the   district,   the commissioner of environmental  conservation,  the  advisory  council  on agriculture  and  the  state agency, public benefit corporation or local  government proposing to take such action. On or before the conclusion of such additional sixty day period, the commissioner shall report  his  or her  findings to the agency, corporation or government proposing to take such  action,  to  any  public  agency  having the power of review of or approval of such  action,  and,  in  a  manner  conducive  to  the  wide dissemination  of  such  findings,  to  the  public. If the commissioner concludes that a reasonable and practicable alternative or  alternatives exist  which  would minimize or avoid the adverse impact of the proposed action, he or she shall propose that such alternative or alternatives be accepted. If the agency, corporation or government proposing the  action accepts the commissioner's proposal, then the requirements of the notice of  intent  filing shall be deemed fulfilled. If the agency, corporation or government rejects the commissioner's proposal, then it shall provide the commissioner with reasons for rejecting such proposal and a detailed comparison  between  its  proposed   action   and   the   commissioner's alternative or alternatives.   f.  At  least  ten days before commencing an action which has been the subject of a  notice  of  intent  filing,  the  agency,  corporation  or government  shall  certify  to  the  commissioner  that  it  has made an explicit finding that the requirements of  this  subdivision  have  been met,  and  that  consistent  with  social,  economic and other essential considerations, to the maximum extent practicable, adverse  agricultural impacts  revealed  in  the notice of intent process will be minimized or avoided. Such certification shall set forth the reasons  in  support  of the finding.   g.  The  commissioner  may  request  the  attorney general to bring an action to  enjoin  any  such  agency,  corporation  or  government  from violating any of the provisions of this subdivision.   h.  Notwithstanding  any  other  provision  of law to the contrary, no solid waste management facility shall be sited on land  in  agricultural production  which is located within an agricultural district, or land in agricultural  production  that  qualifies  for  and  is   receiving   an agricultural  assessment  pursuant  to section three hundred six of this article. Nothing contained herein, however, shall be deemed to  prohibit siting when:  (i)  The owner of such land has entered into a written agreement which shall indicate his consent for site consideration; or  (ii) The applicant for a permit has made a commitment  in  the  permit application  to fund a farm land protection conservation easement within a reasonable proximity to the proposed project in  an  amount  not  less than  the  dollar value of any such farm land purchased for the project; or  (iii)  The  commissioner  in  concurrence  with  the  commissioner  of environmental  conservation  has  determined  that any such agricultural land to be taken, constitutes less than  five  percent  of  the  project site.   For  purposes  of  this  paragraph,  "solid waste management facility" shall have the same meaning  as  provided  in  title  seven  of  article twenty-seven  of  the  environmental  conservation  law,  but  shall not include solid waste transfer stations or land upon which  sewage  sludge is   applied,   and   determinations   regarding  agricultural  district boundaries and agricultural assessments will be based on those in effect as of the date an initial determination is  made,  pursuant  to  article eight   of   the  environmental  conservation  law,  as  to  whether  an environmental impact statement needs to be  prepared  for  the  proposed project.   i.  This subdivision shall not apply to any emergency project which is immediately necessary for the protection of life or property or  to  any  project or proceeding to which the department is or has been a statutory party.   j.  The  commissioner  may  bring  an action to enforce any mitigation measures proposed by a public benefit corporation or a local government, and accepted by the commissioner, pursuant to a notice of intent filing, to minimize or avoid adverse  agricultural  impacts  from  the  proposed action.   5.  Limitation  on  power  to  impose  benefit assessments, special ad valorem levies or other rates or fees in certain  improvement  districts or benefit areas. Within improvement districts or areas deemed benefited by  municipal  improvements  including, but not limited to, improvements for sewer, water, lighting, non-farm  drainage,  solid  waste  disposal, including  those  solid waste management facilities established pursuant to section two hundred twenty-six-b of the county law, or other landfill operations, no benefit assessments, special ad valorem levies  or  other rates  or fees charged for such improvements may be imposed on land used primarily for agricultural production within an agricultural district on any basis, except a lot not  exceeding  one-half  acre  surrounding  any dwelling  or  non-farm  structure  located on said land, nor on any farm structure located in an  agricultural  district  unless  such  structure benefits  directly  from  the  service  of  such improvement district or benefited area; provided, however, that if such benefit assessments,  ad valorem  levies  or  other  rates  or  fees  were  imposed  prior to the formation of the agricultural district, then such  benefit  assessments, ad valorem levies or other rates or fees shall continue to be imposed on such land or farm structure.   6.  Use  of  assessment  for certain purposes. The governing body of a fire, fire  protection,  or  ambulance  district  for  which  a  benefit assessment  or a special ad valorem levy is made, may adopt a resolution to provide that the assessment determined pursuant to subdivision one of this section for such property shall be used for the benefit  assessment or  special  ad valorem levy of such fire, fire protection, or ambulance district.   7. Notwithstanding any provision of law to the contrary, that  portion of  the value of land which is used solely for the purpose of replanting or crop expansion as part of an orchard, vineyard, or hopyard  shall  be exempt  from real property taxation for a period of six successive years following the date of such replanting or crop expansion beginning on the first  eligible  taxable  status  date  following  such  replanting   or expansion provided the following conditions are met:   a. the land used for crop expansion or replanting must be a part of an existing  orchard, vineyard, or hopyard which is located on land used in agricultural production within an agricultural  district  or  such  land must  be  part  of  an  existing  orchard, vineyard, or hopyard which is eligible for an agricultural assessment  pursuant  to  this  section  or section  three  hundred six of this article where the owner of such land has filed an annual application for an agricultural assessment;   b. the land eligible for such real property tax exemption shall not in any one year exceed twenty percent of the total acreage of such orchard, vineyard, or hopyard which is  located  on  land  used  in  agricultural production  within  an  agricultural  district  or twenty percent of the total acreage of such orchard, vineyard,  or  hopyard  eligible  for  an agricultural  assessment  pursuant  to  this  section  and section three hundred six of this article where the owner of such land  has  filed  an annual application for an agricultural assessment;   c.  the  land  eligible  for  such real property tax exemption must be maintained as land used in  agricultural  production  as  part  of  such  orchard,  vineyard,  or hopyard for each year such exemption is granted; and   d.  when the land used for the purpose of replanting or crop expansion as part of an orchard, vineyard, or hopyard is located  within  an  area which  has been declared by the governor to be a disaster emergency in a year in which such tax exemption is sought and in a year in  which  such land meets all other eligibility requirements for such tax exemption set forth  in  this  subdivision,  the  maximum twenty percent total acreage restriction set forth in paragraph b of this subdivision may be exceeded for such year and for any remaining successive years, provided, however, that the land eligible for such real property tax  exemption  shall  not exceed  the  total acreage damaged or destroyed by such disaster in such year or the total acreage which remains  damaged  or  destroyed  in  any remaining successive year. The total acreage for which such exemption is sought  pursuant  to  this paragraph shall be subject to verification by the commissioner or his designee.   In administering this subdivision, the portion of the  value  of  land eligible  for such real property tax exemption shall be determined based on the average per acre assessment  of  all  agricultural  land  of  the specific  tax  parcel as reported in a form approved by the commissioner of taxation and finance.