AGRICULTURAL LAND VALUE ASSESSMENT
Landowners can receive a reduction in the amount of their property tax bills for land in agricultural production by obtaining a reassessment of the property based on its prescribed agricultural assessment value. Owners whose land satisfies the eligibility requirements may apply for an agricultural assessment.
Each year between January and March the SWCD completes Soil Group Worksheets for local landowners which are used by town assessors to evaluate agricultural tax exemptions
There are two factors necessary in determining agricultural assessments. First, a land classification system is needed to establish the different levels of land quality for which values must be determined. Second, a base agricultural assessment value must be calculated and an agricultural assessment per acre assigned for each level of land quality designated.
A. Land Classification System
The Department of Agriculture and Markets has established a uniform statewide land classification system. This system uses soil productivity as the criteria to classify all New York State farmland. A soil rating methodology has been developed based primarily on differences in the inherent ability of soils to support crop production. Two distinct types of soil groups are:
  1. Mineral soils are ranked in ten soil groups; groups 1-6 are further divided into subgroups, designated a and b, according to the natural lime content of the soil (i.e., a=high-lime and b=low-lime)
  2. Organic soils (muck) are ranked in four soil groups A-D.
B. Calculation of a Base Agricultural Assessment Value
The State Board of Real Property Services annually calculates a base agricultural assessment value. This base agricultural assessment value is calculated using the following data published by the United States Department of Agriculture for all farming in New York State:
  1. Farm real estate value is the total value of farmland and buildings, including improvements.
  2. Farm structure value is the total value of farm buildings, including improvements.
  3. Interest on mortgage debt is the total interest paid on farm real estate debt.
  4. Net farm income is the realized gross income (defined in number 6 below) less production expenses, as adjusted for change in inventory.
  5. Production expenses are the total costs of production.
  6. Realized gross income is the total of cash receipts from farm marketings, government payments, nonmoney income and other farm income.
  7. Taxes on farm real estate are the total real property taxes on farmland and buildings, including improvements.
  8. Number of acres harvested for all reported crops.
  9. Value of production which is the total estimated value of all reported crops.
Once this information is obtained by the State Board, the base agricultural assessment value is calculated as 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 approach is required by the amendments of 1987 and 1990 to Section 304 of the Agricultural Districts Law.