N.Y. Agriculture & Markets Law § 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.