Relates to viable agricultural land and renewal of agricultural assessments

Summary of provisions

Section 1 of the bill would amend Agricultural and Markets Law ("AML") § 301 (7) to revise the definition of "viable agricultural land" for purposes of the Agricultural Districts Law by defining the term as land highly suitable for "a farm operation", a term already defined in law.

Section 2 of the bill would amend AML § 305(1)(a) to streamline the process of renewing agricultural assessments, provided there are no changes in farmland eligibility or acreage.

Section 3 of the bill provides for an immediate effective date.

Existing law

AML § 301(7) defines "viable agricultural land" as "... land highly suitable for agricultural production and which will continue to be economically feasible for such use if real property taxes, farm use restrictions, and speculative activities are limited to levels approximating those in commercial agricultural areas not influenced by the proximity of nonagricultural development." AML § 305(1)(a) provides that any owner of land used in agricultural production meeting minimum acreage and sales thresholds shall be eligible for an agricultural assessment upon an annual application to the assessor.

Prior legislative history

This is a new proposal.

Statement in support

The bill would amend the definition of "viable agricultural land," which is used both as a standard for adding land to an agricultural district and as the benchmark used by the Commissioner of Agriculture and Markets to certify an agricultural district under AML §§303 and 303-a. Localities have had difficulty in interpreting and applying the current definition.

Additionally, many county Agricultural and Farmland Protection Boards -- which are responsible pursuant to AML §303-b for recommending whether or not land should be added to an agricultural district -- have requested that the definition be clarified. In particular, many have had difficulty interpreting the terms "land highly suitable for agricultural production" or determining whether, as required under the definition, such land would "continue to be economically feasible for such use if real property taxes, farm use restrictions, and speculative activities are limited to levels approximating those in commercial agricultural areas not influenced by the proximity of non-agricultural development."

To address this issue, the bill would conform AML § 301(7) to the definition of "farm operation," which is defined in AML §305-a by tying the applicable land, buildings, and equipment to specific farm practices, eg, practices which contribute to the production, preparation and marketing of crops, livestock and livestock products, timber operation, commercial horse boarding operation, and manure processing and handling facilities. The new definition would provide a more workable standard for examining parcels for inclusion in an agricultural district.

The bill would also streamline the process to recertify agricultural assessments. Agricultural assessment was established as part of the Agricultural Districts Law to allow land used for farming to be assessed for real property tax purposes based on its agricultural value as opposed to its development value. By helping to relieve the property tax burden on farmers, agricultural assessment is a key tool in meeting the purposes of the law to protect and enhance the State's agricultural land as a viable segment of the local and State economies and as an economic and environmental resource of major importance.

This bill would permit farm landowners to file a simpler, more streamlined application to receive an agricultural assessment after the first year's application has been filed and accepted, provided that the property continues to meet all eligibility requirements and no changes have been made to the property as listed in the original application. The bill would thus relieve a burden on both landowners and assessors, who are otherwise required to file and review more complex applications for land which has, in many cases, been farmed for decades. Appropriate safeguards are included by requiring landowners to retain eligibility records for submission upon request by the local assessor. If there are any changes in acreage or ownership of the parcel receiving the assessment, a new application must be made which reflects those changes.

Budget implications and local impact

None.

Effective date

The bill would take effect immediately.