NY Agric & Mkts L § 304-A (2021)
2021 New York Laws AGM - Agriculture and Markets Article 25-AA - Agricultural Districts 304-A - Agricultural Assessment Values.

§ 304-a. Agricultural  assessment  values.  1. Agricultural assessment values shall be calculated and certified annually in accordance with the provisions of this section.   2. a. The commissioner of agriculture and markets shall establish  and maintain  an  agricultural  land  classification  system based upon soil productivity and capability. The agricultural land classification system shall distinguish between mineral and organic soils. There shall be  ten primary  groups  of  mineral  soils  and  such  other  subgroups  as the commissioner determines necessary to represent  high-lime  and  low-lime content. There shall be four groups of organic soils.   b.  The land classification system shall be promulgated by rule by the commissioner following a review of comments and recommendations  of  the advisory  council  on  agriculture and after a public hearing. In making any revisions to the land classification system the commissioner may, in his or her discretion, conduct a public hearing. The commissioner  shall foster  participation  by  county  agricultural  and farmland protection boards,  district  soil  and  water  conservation  committees,  and  the cooperative  extension  service  and  consult with other state agencies, appropriate federal agencies, municipalities, the New York state college of  agriculture  and  life  sciences  at  Cornell  university  and  farm organizations.   c.  The commissioner shall certify to the commissioner of taxation and finance  the  soil  list  developed  in   accordance   with   the   land classification system and any revisions thereto.   d.  The commissioner shall prepare such materials as may be needed for the utilization of the land classification system and provide assistance to landowners and local officials in its use.   3.  a.  The  commissioner  of  taxation  and  finance  shall  annually calculate a single agricultural assessment value for each of the mineral and  organic soil groups which shall be applied uniformly throughout the state.  A  base  agricultural  assessment  value  shall  be   separately calculated  for  mineral  and organic soil groups in accordance with the procedure set forth in subdivision four of this  section  and  shall  be assigned  as  the  agricultural  assessment  value  of the highest grade mineral and organic soil group.   b. The agricultural assessment values for the remaining  mineral  soil groups  shall  be  the product of the base agricultural assessment value and a percentage, derived from the productivity measurements  determined for  each  soil  and  related  soil  group  in conjunction with the land classification system, as follows:                                              Percentage of                                             Base Agricultural     Mineral Soil Group                      Assessment Value              1A                                     100             1B                                      89             2A                                      89             2B                                      79             3A                                      79             3B                                      68             4A                                      68             4B                                      58             5A                                      58             5B                                      47             6A                                      47             6B                                      37             7                                       37              8                                       26             9                                       16             10                                       5    c.  The  agricultural assessment values for the remaining organic soil groups shall be the product of the base  agricultural  assessment  value and a percentage, as follows:                                              Percentage of                                             Base Agricultural     Organic Soil Group                      Assessment Value              A                                      100             B                                       65             C                                       55             D                                       35    d. The agricultural assessment value for organic soil group A shall be two  times the base agricultural assessment value calculated for mineral soil group 1A.   e. The agricultural assessment value for farm woodland  shall  be  the same as that calculated for mineral soil group seven.   f.  Where  trees or vines used for the production of fruit are located on land used in agricultural production, the value  of  such  trees  and vines,  and  the  value  of  all posts, wires and trellises used for the production of fruit, shall be considered to be part of the  agricultural assessment value of such land.   g.  The  agricultural  assessment  value  for  land and waters used in aquacultural enterprises shall  be  the  same  as  that  calculated  for mineral soil group 1A.   4.  a.  The  base  agricultural  assessment value shall be the average capitalized value of production per  acre  for  the  eight  year  period ending  in the second year preceding the year for which the agricultural assessment values are certified. The capitalized value of production per acre shall be calculated  by  dividing  the  product  of  the  value  of production per acre and the percentage of net profit by a capitalization rate  of  ten percent, representing an assumed investment return rate of eight percent and an assumed real property tax rate of two percent.   b. The value of production per acre shall be the value  of  production divided by the number of acres harvested in New York state.   c.  The  percentage  of  net  profit shall be adjusted net farm income divided by realized gross farm income.  (i) Adjusted net farm income shall be the  sum  of  net  farm  income, taxes  on  farm  real  estate  and  the amount of mortgage interest debt attributable to farmland, less a management charge  of  one  percent  of realized  gross  farm  income  plus seven percent of adjusted production expenses.  (ii) The amount of mortgage interest  debt  attributable  to  farmland shall be the product of the interest on mortgage debt and the percentage of farm real estate value attributable to land.  (iii)  The  percentage  of farm real estate value attributable to land shall be  the  difference  between  farm  real  estate  value  and  farm structure value divided by farm real estate value.  (iv)  Adjusted  production expenses shall be production expenses, less the sum of the taxes on farm real estate and the  interest  on  mortgage debt.    d.  The  following  data,  required  for calculations pursuant to this subdivision, shall be as published by the United  States  department  of agriculture for all farming in New York state:  (i)  Farm  real  estate value shall be the total value of farmland and buildings, including improvements.  (ii) Farm structure value shall be the total value of farm  buildings, including improvements.  (iii)  Interest  on  mortgage debt shall be the total interest paid on farm real estate debt.  (iv) Net farm income shall be realized gross  income  less  production expenses, as adjusted for change in inventory.  (v) Production expenses shall be the total cost of production.  (vi)  Realized  gross  income shall be the total of cash receipts from farm marketings, government payments, nonmoney  income  and  other  farm income.  (vii) Taxes on farm real estate shall be the total real property taxes on farmland and buildings, including improvements.  (viii) Number of acres harvested including all reported crops.  (ix)  Value  of  production  shall be the total estimated value of all reported crops.   e. In the event that the data required  for  calculation  pursuant  to this  subdivision  is  not  published by the United States department of agriculture or is incomplete, such required data shall be obtained  from the New York state department of agriculture and markets.   f.   Upon  completion  of  each  annual  calculation  of  agricultural assessment values,  the  commissioner  of  taxation  and  finance  shall publish  an  annual  report,  which  shall include a schedule of values, citations to data sources and presentation of all calculations.   The commissioner of taxation and finance shall thereupon  certify  the schedule of agricultural assessment values and shall transmit a schedule of  such  certified  values  to each assessor. Beginning in the year two thousand six and  every  five  years  thereafter,  the  commissioner  of taxation  and  finance  shall transmit copies of such annual reports for the five years  previous  to  such  transmittal,  to  the  governor  and legislature,  the advisory council on agriculture, and other appropriate state agencies and interested parties.   g.  Notwithstanding  any  other  provision  of  this  section  to  the contrary,  in  no  event  shall  the  change  in  the  base agricultural assessment value for any given year  exceed  two  percent  of  the  base agricultural assessment value of the preceding year.   5.  a.  In carrying out their responsibilities under this section, the commissioner of taxation and finance and the commissioner shall keep the advisory council on agriculture fully apprised on  matters  relating  to its duties and responsibilities.   b.  In  doing  so,  the  commissioner  of taxation and finance and the commissioner shall provide, in a timely manner, any materials needed  by the  advisory  council  on agriculture to carry out its responsibilities under this section.