We often get phone calls from landowners with questions about Ag Assessment and Ag Districts. These two programs are designed to help keep farmland in viable, commercial agricultural production, but they work very differently. One program provides financial incentives for agricultural use, through tax relief. The other provides protections from regulations and nuisance law-suits for landowners who are engaged in activities that are associated with agricultural production.
The Agricultural Assessment Program, established under the Agriculture & Markets Law § 305, allows active farmland to receive a reduced assessment for property tax purposes – resulting in a partial exemption from real property taxes. Farmland qualifying for this reduction in assessed value does not have to be enrolled in an Agricultural District. Any owner of at least seven acres of land which produces a minimum of $10,000 annually, or any owner of less than seven acres of land which produces a minimum of $50,000 annually, on average in the preceding two years, from the sale of crops, agri-tourism events, beekeeping, livestock, or livestock products, riding academy or from a commercial equine operation, is eligible to receive an agricultural assessment. The program only applies to the land, not buildings or homesteads.
The Agricultural Assessment Program establishes a ceiling value for taxable assessments on eligible farmland. The local assessor is provided with State Certified ceiling values every year. Any assessed value which exceeds the agricultural assessment is exempt from Real Property taxation. Landowners must file an application annually, usually by March 1, with the local assessor to be considered for the Agricultural Assessment Program. Failure to file the application on time will result in denial of the exemption.
An agricultural district is a geographic area which consists of predominantly viable agricultural land. Districts may include land that is actively farmed, idle, forested, as well as land for residential and commercial uses. The Agricultural District Program, was established under Agriculture & Markets Law § 303. It provides agricultural landowners a number of benefits and protections not associated with property tax relief, which encourage farmers to continue farming.
The Agricultural District Law protects farm operations within an agricultural district from the enactment and administration of unreasonably restrictive local regulations unless it can be shown that public health or safety is threatened. Under Agriculture and Markets Law § 308, known as the ‘Right to Farm’ law, if a question or dispute arises regarding farm practices that may threaten public health or safety, an opinion can be requested of the Commissioner of Agriculture and Markets as to whether or not sound agricultural practices are being followed. Enrollment in an Agricultural District does not automatically qualify the property for the Agricultural Assessment Program.
For more information on NYS Ag Assessment, see the New York State Department of Revenue site: http://www.tax.ny.gov/research/property/assess/valuation/agindex.htm
For more information on NYS Ag District Program, see the New York State Department of Ag and Markets site: http://www.agriculture.ny.gov/ap/agservices/agdistricts.html
Last updated May 29, 2015