N.Y. Agriculture & Markets Law § 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.