2023 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.