2023 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.
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.