§ 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.
