senate Bill S789

Establishes a working farmland property tax credit for owners of agricultural assessment land within agricultural districts

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Establishes a working farmland property tax credit for owners of agricultural assessment land within agricultural districts.

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Bill Details

Versions:
S789
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §§210 & 606, Tax L; add Art 18-D §§972 - 972-i, Gen Muni L; amd §922, RPT L; amd §302, Ag & Mkts L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S2416A
2007-2008: S5685A

Sponsor Memo

BILL NUMBER:S789

TITLE OF BILL:

An act
to amend the tax law, the general municipal law, the real property tax
law and the agriculture and markets law, in relation to the
establishment of a working farmland property tax credit for owners of
agricultural assessment land within agricultural districts

PURPOSE:

To establish a working farmland property tax credit for owners of
agricultural districts.

SUMMARY OF PROVISIONS:

The Tax Law, General Municipal Law, Real Property Tax Law, and the
Agriculture and Markets Law, would be amended to establish and structure
program parameters for the working Farmland Tax Credit. In exchange
for a commitment to keep land in active agricultural use
for eight years, an eligible landowner would be eligible for a state
income tax credit equal to the total amount paid in school and local
municipal property taxes less any credits claimed under the Farmers'
School Tax Credit program.

JUSTIFICATION:

The Working Farmland Tax credit would complement New York's
agricultural districts program by building a partnership between New
York State, local governments and agricultural land owners to promote
economic viability of our farm operations. The intent of this program
is to encourage rural economic growth by encouraging active
management of New York's agricultural land base and provide local
governments with an optional tool to help support farms and
complement their local land use policies. To date, four counties have
recommended this concept in their Agriculture and Farmland Protection
plans.

LEGISLATIVE HISTORY:

2009-2010: S.2416-A/A.7205-A Reported to Finance
2007-2008: S.5685-A Passed Senate

FISCAL IMPLICATIONS:

Undetermined at this time.

EFFECTIVE DATE:

180 days after enactment into law and shall apply to taxable years
beginning on January 1, 2012.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   789

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  YOUNG, BONACIC, RANZENHOFER, SEWARD -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Investigations and Government Operations

AN ACT to amend the tax law, the general municipal law, the real proper-
  ty tax law and the agriculture and markets law,  in  relation  to  the
  establishment  of a working farmland property tax credit for owners of
  agricultural assessment land within agricultural districts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative  intent. The legislature hereby finds, deter-
mines and declares that the New York agriculture industry has a substan-
tial impact on the overall economic health and well-being of the  state.
The state constitution provides that the policy of the state shall be to
encourage  the development and improvement of its agricultural lands for
the production of food and other agricultural products.  The  activities
of  farmers  and the protection of viable farmland provide many environ-
mental benefits to society, such as open space, scenic vistas,  wetlands
that  aid in water purification, plants that purify air, and food, water
and habitat for people, domestic animals and wildlife.  Therefore, it is
in the public interest to encourage the maintenance of existing farmland
and agricultural lands for farming purposes, thereby helping  to  ensure
the continued economic viability of farm operations.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
22-a to read as follows:
  22-A.  WORKING  FARMLAND PROPERTY TAX CREDIT. (A) GENERAL. IN THE CASE
OF A TAXPAYER THAT OWNS AGRICULTURAL ASSESSMENT LAND WHICH  IS  ELIGIBLE
FOR  THE  WORKING  FARMLAND  PROPERTY TAX CREDIT ESTABLISHED PURSUANT TO
ARTICLE EIGHTEEN-D OF THE GENERAL  MUNICIPAL  LAW  AND  AN  AGRICULTURAL
DISTRICT  ESTABLISHED PURSUANT TO ARTICLE TWENTY-FIVE-AA OF THE AGRICUL-
TURE AND MARKETS LAW, AND  THE  TAXPAYER  HAS  EXECUTED  A  COVENANT  TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03390-01-1

S. 789                              2

RESTRICT  THE USE OF SUCH LAND PURSUANT TO SECTION NINE HUNDRED SEVENTY-
TWO-G OF THE GENERAL MUNICIPAL LAW, THERE SHALL BE ALLOWED A CREDIT  FOR
THE  SCHOOL  DISTRICT,  TOWN  AND  COUNTY PROPERTY TAXES PAID DURING THE
TAXABLE  YEAR  ON  SUCH  LAND; PROVIDED, HOWEVER, THAT THE AMOUNT OF THE
CREDIT SHALL BE LIMITED TO THE TAXES PAID ON THE AGRICULTURAL ASSESSMENT
VALUE OF SUCH LAND AS CALCULATED BY THE  ASSESSOR  PURSUANT  TO  SECTION
THREE  HUNDRED  FIVE OR THREE HUNDRED SIX OF THE AGRICULTURE AND MARKETS
LAW. IN THE EVENT THAT AGRICULTURAL ASSESSMENT LAND IS REMOVED  FROM  AN
AGRICULTURAL DISTRICT PURSUANT TO ARTICLE TWENTY-FIVE-AA OF THE AGRICUL-
TURE  AND  MARKETS LAW, A TAXPAYER THAT OWNS SUCH LAND SHALL CONTINUE TO
BE ELIGIBLE FOR THE CREDIT PROVIDED BY THIS SUBDIVISION FOR THE  REMAIN-
DER OF THE TERM OF THE EIGHT YEAR COVENANT.
  (B)  SCHOOL DISTRICT PROPERTY TAXES. FOR PURPOSES OF THIS SUBDIVISION,
THE TERM "SCHOOL DISTRICT PROPERTY  TAXES"  MEANS  ALL  PROPERTY  TAXES,
SPECIAL  AD  VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE OF PENAL-
TIES AND INTEREST, LEVIED FOR SCHOOL DISTRICT PURPOSES ON  THE  AGRICUL-
TURAL ASSESSMENT LAND OWNED BY THE TAXPAYER.
  (C)  TOWN AND COUNTY PROPERTY TAXES. FOR PURPOSES OF THIS SUBDIVISION,
THE TERM "TOWN AND COUNTY PROPERTY  TAXES"  MEANS  ALL  PROPERTY  TAXES,
SPECIAL  AD  VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE OF PENAL-
TIES AND INTEREST, LEVIED FOR TOWN AND COUNTY PURPOSES ON  THE  AGRICUL-
TURAL ASSESSMENT LAND OWNED BY THE TAXPAYER.
  (D)  AGRICULTURAL  ASSESSMENT  LAND. THE TERM "AGRICULTURAL ASSESSMENT
LAND" MEANS LAND WHICH RECEIVES OR IS ELIGIBLE TO  RECEIVE  AN  AGRICUL-
TURAL  ASSESSMENT FOR THE TAXABLE YEAR PURSUANT TO SECTION THREE HUNDRED
FIVE OR THREE HUNDRED SIX OF THE AGRICULTURE AND MARKETS  LAW.  AGRICUL-
TURAL  ASSESSMENT  LAND  ALSO INCLUDES LAND SET ASIDE OR RETIRED UNDER A
FEDERAL SUPPLY MANAGEMENT OR SOIL CONSERVATION PROGRAM.
  (E) NONQUALIFIED USE OF AGRICULTURAL ASSESSMENT LAND. (1) NO CREDIT IN
CONVERSION YEAR. IN THE EVENT THAT AGRICULTURAL ASSESSMENT LAND, OR  ANY
PORTION  OF  SUCH  LAND,  IS CONVERTED TO NONQUALIFIED USE, CREDIT UNDER
THIS SUBDIVISION SHALL NOT BE ALLOWED WITH RESPECT TO SUCH PROPERTY  FOR
THE TAXABLE YEAR OF CONVERSION (THE CONVERSION YEAR).
  (2)  CREDIT  RECAPTURE.  IF  THE CONVERSION OF AGRICULTURAL ASSESSMENT
LAND, OR ANY PORTION OF SUCH LAND, TO NONQUALIFIED USE OCCURS DURING THE
PERIOD OF THE EIGHT TAXABLE YEARS FOLLOWING THE TAXABLE YEAR  FOR  WHICH
THE  CREDIT UNDER THIS SUBDIVISION WAS LAST CLAIMED WITH RESPECT TO SUCH
PROPERTY, THE CREDITS ALLOWED WITH RESPECT  TO  SUCH  PROPERTY  FOR  THE
TAXABLE  YEARS  PRIOR  TO THE CONVERSION YEAR, MULTIPLIED BY TWO HUNDRED
PERCENT, MUST BE ADDED BACK IN THE CONVERSION YEAR.
  (3) EXCEPTION TO RECAPTURE. SUBPARAGRAPH TWO OF THIS  PARAGRAPH  SHALL
NOT APPLY TO THE CONVERSION OF LAND WHERE THE CONVERSION IS BY REASON OF
INVOLUNTARY CONVERSION, WITHIN THE MEANING OF SECTION ONE THOUSAND THIR-
TY-THREE OF THE INTERNAL REVENUE CODE.
  (4)  CONVERSION  TO  NONQUALIFIED USE. FOR PURPOSES OF THIS PARAGRAPH,
CONVERSION TO NONQUALIFIED USE SHALL MEAN THAT SUCH LAND IS CONVERTED TO
A USE WHICH WOULD DISQUALIFY SUCH LAND FOR  AN  AGRICULTURAL  ASSESSMENT
UNDER SECTION THREE HUNDRED FIVE OR THREE HUNDRED SIX OF THE AGRICULTURE
AND MARKETS LAW.
  (F)  IN  NO  EVENT  SHALL  THE  CREDIT PROVIDED IN THIS SUBDIVISION BE
ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN  THE
HIGHER  OF  THE AMOUNTS PRESCRIBED IN PARAGRAPHS (B) AND (C) OF SUBDIVI-
SION ONE OF THIS SECTION. IF, HOWEVER, THE AMOUNT  OF  CREDIT  ALLOWABLE
UNDER  THIS  SUBDIVISION    FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY  BE
CARRIED  OVER  TO THE FOLLOWING   YEAR OR YEARS AND MAY BE DEDUCTED FROM

S. 789                              3

THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. PROVIDED, HOWEVER, IN LIEU OF
CARRYING OVER THE UNUSED PORTION OF SUCH CREDIT, THE TAXPAYER MAY  ELECT
TO TREAT SUCH UNUSED PORTION AS AN  OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED  IN  ACCORDANCE  WITH  THE PROVISIONS   OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER EXCEPT THAT NO INTEREST SHALL BE PAID ON SUCH
OVERPAYMENT.
  (G) A TAXPAYER SHALL REDUCE CREDITS CLAIMED UNDER THIS SUBDIVISION  BY
ANY CREDITS CLAIMED UNDER SUBDIVISION TWENTY-TWO OF THIS SECTION FOR THE
TAXABLE YEAR.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(n-1) to read as follows:
  (N-1) WORKING FARMLAND PROPERTY TAX CREDIT. (1) GENERAL. IN  THE  CASE
OF A TAXPAYER THAT OWNS AGRICULTURAL ASSESSMENT LAND WHICH IS LOCATED IN
AN  AGRICULTURAL DISTRICT ESTABLISHED PURSUANT TO ARTICLE TWENTY-FIVE-AA
OF THE AGRICULTURE AND MARKETS LAW, AND  THE  TAXPAYER  HAS  EXECUTED  A
COVENANT  TO  RESTRICT  THE  USE  OF  SUCH LAND PURSUANT TO SECTION NINE
HUNDRED SEVENTY-TWO-G OF THE  GENERAL  MUNICIPAL  LAW,  THERE  SHALL  BE
ALLOWED A CREDIT FOR THE SCHOOL DISTRICT, TOWN AND COUNTY PROPERTY TAXES
PAID  DURING  THE TAXABLE YEAR ON SUCH LAND; PROVIDED, HOWEVER, THAT THE
AMOUNT OF THE CREDIT SHALL BE LIMITED TO THE TAXES PAID ON THE  AGRICUL-
TURAL ASSESSMENT VALUE OF SUCH LAND AS CALCULATED BY THE ASSESSOR PURSU-
ANT  TO  SECTION THREE HUNDRED FIVE OR THREE HUNDRED SIX OF THE AGRICUL-
TURE AND MARKETS LAW. SUCH CREDIT SHALL BE  ALLOWED  AGAINST  THE  TAXES
IMPOSED  BY  THIS  ARTICLE  FOR  THE TAXABLE YEAR REDUCED BY THE CREDITS
PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO  REDUCED,
THE  TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE
OF THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST,  THE
AMOUNT OF SUCH EXCESS. IN THE EVENT THAT AGRICULTURAL ASSESSMENT LAND IS
REMOVED  FROM  AN  AGRICULTURAL DISTRICT, A TAXPAYER THAT OWNS SUCH LAND
SHALL CONTINUE TO BE ELIGIBLE FOR THE CREDIT PROVIDED BY  THIS  SUBDIVI-
SION FOR THE REMAINDER OF THE TERM OF THE EIGHT YEAR COVENANT.
  (2)  SCHOOL  DISTRICT PROPERTY TAXES. FOR PURPOSES OF THIS SUBSECTION,
THE TERM "SCHOOL DISTRICT PROPERTY  TAXES"  MEANS  ALL  PROPERTY  TAXES,
SPECIAL  AD  VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE OF PENAL-
TIES AND INTEREST, LEVIED FOR SCHOOL DISTRICT PURPOSES ON  THE  AGRICUL-
TURAL ASSESSMENT LAND OWNED BY THE TAXPAYER.
  (3)  TOWN  AND COUNTY PROPERTY TAXES. FOR PURPOSES OF THIS SUBSECTION,
THE TERM "TOWN AND COUNTY PROPERTY  TAXES"  MEANS  ALL  PROPERTY  TAXES,
SPECIAL  AD  VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE OF PENAL-
TIES AND INTEREST, LEVIED FOR TOWN AND COUNTY PURPOSES ON  THE  AGRICUL-
TURAL ASSESSMENT LAND OWNED BY THE TAXPAYER.
  (4)  AGRICULTURAL  ASSESSMENT  LAND. THE TERM "AGRICULTURAL ASSESSMENT
LAND" MEANS LAND WHICH RECEIVES OR IS ELIGIBLE TO  RECEIVE  AN  AGRICUL-
TURAL  ASSESSMENT FOR THE TAXABLE YEAR PURSUANT TO SECTION THREE HUNDRED
FIVE OR THREE HUNDRED SIX OF THE AGRICULTURE AND MARKETS  LAW.  AGRICUL-
TURAL  ASSESSMENT  LAND  ALSO INCLUDES LAND SET ASIDE OR RETIRED UNDER A
FEDERAL SUPPLY MANAGEMENT OR SOIL CONSERVATION PROGRAM.
  (5) NONQUALIFIED USE OF AGRICULTURAL ASSESSMENT LAND. (A) NO CREDIT IN
CONVERSION YEAR. IN THE EVENT THAT AGRICULTURAL ASSESSMENT LAND, OR  ANY
PORTION  OF  SUCH  LAND,  IS CONVERTED TO NONQUALIFIED USE, CREDIT UNDER
THIS SUBSECTION SHALL NOT BE ALLOWED WITH RESPECT TO SUCH LAND  FOR  THE
TAXABLE YEAR OF CONVERSION (THE CONVERSION YEAR).
  (B)  CREDIT  RECAPTURE.  IF  THE CONVERSION OF AGRICULTURAL ASSESSMENT
LAND, OR ANY PORTION OF SUCH LAND, TO NONQUALIFIED USE OCCURS DURING THE
PERIOD OF THE EIGHT TAXABLE YEARS FOLLOWING THE TAXABLE YEAR  FOR  WHICH
THE  CREDIT  UNDER THIS SUBSECTION WAS LAST CLAIMED WITH RESPECT TO SUCH

S. 789                              4

LAND, THE CREDITS ALLOWED WITH RESPECT TO  SUCH  LAND  FOR  THE  TAXABLE
YEARS  PRIOR  TO THE CONVERSION YEAR, MULTIPLIED BY TWO HUNDRED PERCENT,
MUST BE ADDED BACK IN THE CONVERSION YEAR.
  (C)  EXCEPTION  TO RECAPTURE. SUBPARAGRAPH (B) OF THIS PARAGRAPH SHALL
NOT APPLY TO THE CONVERSION OF LAND WHERE THE CONVERSION IS BY REASON OF
INVOLUNTARY CONVERSION, WITHIN THE MEANING OF SECTION ONE THOUSAND THIR-
TY-THREE OF THE INTERNAL REVENUE CODE.
  (D) CONVERSION TO NONQUALIFIED USE. FOR PURPOSES  OF  THIS  PARAGRAPH,
CONVERSION TO NONQUALIFIED USE SHALL MEAN THAT SUCH LAND IS CONVERTED TO
A  USE  WHICH WOULD DISQUALIFY SUCH PROPERTY FOR AN AGRICULTURAL ASSESS-
MENT UNDER SECTION THREE HUNDRED FIVE OR THREE HUNDRED SIX OF THE  AGRI-
CULTURE AND MARKETS LAW.
  (6)  A  TAXPAYER SHALL REDUCE CREDITS CLAIMED UNDER THIS SUBSECTION BY
ANY CREDITS CLAIMED UNDER SUBSECTION (N) OF THIS SECTION FOR THE TAXABLE
YEAR.
  S 4. The general municipal law is amended by adding a new article 18-D
to read as follows:
                              ARTICLE 18-D
           NEW YORK STATE WORKING FARMLAND PROPERTY TAX CREDIT
SECTION 972. SHORT TITLE.
        972-A. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
        972-B. DEFINITIONS.
        972-C. ELIGIBILITY CRITERIA FOR WORKING  FARMLAND  PROPERTY  TAX
                 CREDIT.
        972-D. ELIGIBILITY  CRITERIA FOR APPROVAL OF COUNTY AGRICULTURAL
                 AND FARMLAND PROTECTION PLANS.
        972-E. POWERS AND DUTIES OF THE COMMISSIONER.
        972-F. APPLICATION FOR ELIGIBILITY FOR DESIGNATION  AS  ELIGIBLE
                 FOR THE WORKING FARMLAND PROPERTY TAX CREDIT.
        972-G. REVIEW OF WORKING FARMLAND DESIGNATION.
        972-H. RESTRICTION OF LANDS TO AGRICULTURAL USES.
        972-I. ANNUAL REPORT.
  S  972.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "NEW YORK STATE WORKING FARMLAND PROPERTY TAX CREDIT ACT".
  S 972-A. STATEMENT OF LEGISLATIVE  FINDINGS  AND  DECLARATION.  IT  IS
HEREBY  FOUND AND DECLARED THAT THE CONSERVATION AND PROTECTION OF AGRI-
CULTURAL LANDS, AND THE  PROMOTION  OF  AGRICULTURE  AS  A  VITAL  LOCAL
RESOURCE  IS  OF STATEWIDE CONCERN. IT IS THE PUBLIC POLICY OF THE STATE
TO CONSERVE, PROTECT AND ENCOURAGE THE DEVELOPMENT  AND  IMPROVEMENT  OF
ITS  AGRICULTURAL  LAND  FOR  PRODUCTION  OF FOOD AND OTHER AGRICULTURAL
PRODUCTS. IT IS ALSO THE DECLARED POLICY OF THE STATE  TO  CONSERVE  AND
PROTECT  AGRICULTURAL  LANDS  AS VALUED NATURAL AND ECOLOGICAL RESOURCES
WHICH PROVIDE NEEDED OPEN SPACES FOR CLEAN AIR SHEDS,  AS  WELL  AS  FOR
AESTHETIC PURPOSES. IN ORDER TO ACCOMPLISH THESE GOALS IN THE CONTEXT OF
LOCAL PLANNING AND LAND USE DECISION-MAKING, IT IS DECLARED TO BE IN THE
INTEREST  OF  THE  STATE TO ESTABLISH AUTHORITY AT THE TOWNSHIP LEVEL TO
DESIGNATE THE TOWN AS ELIGIBLE FOR THE  WORKING  FARMLAND  PROPERTY  TAX
CREDIT  TO  PROVIDE INCENTIVES AND OTHERWISE ASSIST LANDOWNERS AND TOWNS
TO MUTUALLY ACHIEVE THESE GOALS.
  S 972-B. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT  SHALL  INDI-
CATE ANOTHER OR DIFFERENT MEANING OR INTENT:
  (A) "APPLICANT" SHALL MEAN THE COUNTY SUBMITTING AN APPLICATION IN THE
MANNER AUTHORIZED BY THIS ARTICLE FOR DESIGNATION OF AN AREA AS ELIGIBLE
FOR THE WORKING FARMLAND PROPERTY TAX CREDIT.

S. 789                              5

  (B)  "COMMISSIONER"  SHALL  MEAN  THE  COMMISSIONER OF AGRICULTURE AND
MARKETS.
  (C)  "WORKING FARMLAND PROPERTY TAX CREDIT" SHALL MEAN A COUNTY WITHIN
THE STATE THAT HAS  BEEN DESIGNATED AS ELIGIBLE FOR A  WORKING  FARMLAND
PROPERTY TAX CREDIT PURSUANT TO THIS ARTICLE.
  (D)  "COUNTY  AGRICULTURAL  AND FARMLAND PROTECTION PLAN" SHALL MEAN A
PLAN THAT HAS BEEN  ADOPTED BY A COUNTY  LEGISLATIVE  BODY  PURSUANT  TO
SECTION THREE HUNDRED TWENTY-FOUR OF THE AGRICULTURE AND MARKETS LAW.
  (E)  "AGRICULTURAL  AND FARMLAND PROTECTION BOARD" SHALL MEAN A COUNTY
AGRICULTURAL AND   FARMLAND PROTECTION  BOARD  ESTABLISHED  PURSUANT  TO
SECTION THREE HUNDRED TWO OF THE AGRICULTURE AND MARKETS LAW.
  (F)  "AGRICULTURAL  ASSESSMENT LAND" SHALL MEAN LAND WHICH RECEIVES OR
IS ELIGIBLE TO RECEIVE AN AGRICULTURAL ASSESSMENT FOR THE  TAXABLE  YEAR
PURSUANT  TO  SECTION  THREE  HUNDRED FIVE OR THREE   HUNDRED SIX OF THE
AGRICULTURE AND MARKETS LAW. AGRICULTURAL ASSESSMENT LAND ALSO  INCLUDES
LAND    SET  ASIDE  OR RETIRED UNDER A FEDERAL SUPPLY MANAGEMENT OR SOIL
CONSERVATION PROGRAM.
  S 972-C. ELIGIBILITY CRITERIA FOR WORKING FARMLAND PROPERTY TAX  CRED-
IT.   FOR DESIGNATION AS  ELIGIBLE FOR THE WORKING FARMLAND PROPERTY TAX
CREDIT, A COUNTY  SHALL  ADOPT  A  COUNTY  AGRICULTURAL    AND  FARMLAND
PROTECTION  PLAN  PURSUANT  TO  SECTION THREE HUNDRED TWENTY-FOUR OF THE
AGRICULTURE AND   MARKETS LAW OR ITS EQUIVALENT  AS  DETERMINED  BY  THE
COMMISSIONER.
  S  972-D. ELIGIBILITY CRITERIA FOR APPROVAL OF COUNTY AGRICULTURAL AND
FARMLAND PROTECTION  PLANS. COUNTY AGRICULTURAL AND FARMLAND  PROTECTION
PLANS  ADOPTED  BY  A COUNTY LEGISLATIVE BODY   PURSUANT TO THIS ARTICLE
SHALL COMPLY WITH SECTION THREE HUNDRED TWENTY-FOUR OF  THE  AGRICULTURE
AND MARKETS LAW AND SHALL INCLUDE BUT NOT BE LIMITED TO:
  (A) THE LOCATION OF ANY LAND OR AREAS PROPOSED TO BE PROTECTED;
  (B)  AN  ANALYSIS  OF  THE  FOLLOWING FACTORS CONCERNING ANY AREAS AND
LANDS PROPOSED TO  BE PROTECTED:
  (I) VALUE TO THE AGRICULTURAL ECONOMY OF THE COUNTY;
  (II) OPEN SPACE VALUE;
  (III) CONSEQUENCES OF POSSIBLE CONVERSION; AND
  (IV) LEVEL OF CONVERSION PRESSURE ON THE LANDS OR AREAS PROPOSED TO BE
PROTECTED;
  (C) AN EVALUATION OF THE EFFECT OF COUNTY PROGRAMS AND POLICIES ON THE
VIABILITY OF FARM OPERATIONS AND THE AVAILABILITY OF LAND  FOR  AGRICUL-
TURAL PRODUCTION;
  (D)  A DESCRIPTION OF THE ACTIVITIES, PROGRAMS AND STRATEGIES INTENDED
TO BE USED BY THE COUNTY TO PROMOTE CONTINUED AGRICULTURAL USE.
  S 972-E. POWERS AND  DUTIES  OF  THE  COMMISSIONER.  THE  COMMISSIONER
SHALL:
  (A)  PROMULGATE  REGULATIONS GOVERNING THE CRITERIA OF ELIGIBILITY FOR
WORKING FARMLAND PROPERTY TAX CREDIT  DESIGNATION  AND  THE  APPLICATION
PROCESS;
  (B)  RECEIVE  AND  REVIEW  APPLICATIONS FOR DESIGNATION OF COUNTIES AS
ELIGIBLE FOR THE WORKING FARMLAND PROPERTY TAX CREDIT;
  (C) REVIEW THE STATUS OF ANY COUNTY PREVIOUSLY DESIGNATED AS  ELIGIBLE
FOR THE WORKING FARMLAND PROPERTY TAX CREDIT; AND
  (D)  FILE  NOTICE OF THE DESIGNATION OR REVOCATION OF ELIGIBILITY OF A
COUNTY FOR THE WORKING FARMLAND PROPERTY TAX CREDIT WITH THE  APPLICANT,
THE DEPARTMENT OF TAXATION AND FINANCE AND THE STATE BOARD OF REAL PROP-
ERTY SERVICES.
  S  972-F.  APPLICATION FOR ELIGIBILITY FOR DESIGNATION AS ELIGIBLE FOR
THE WORKING FARMLAND PROPERTY TAX CREDIT. (A) A COUNTY LEGISLATIVE  BODY

S. 789                              6

MAY  ADOPT  A  RESOLUTION  AUTHORIZING THE TOWN TO PREPARE AND SUBMIT AN
APPLICATION TO THE COMMISSIONER FOR DESIGNATION OF THE COUNTY AS  ELIGI-
BLE  FOR  THE  WORKING FARMLAND PROPERTY TAX CREDIT; AND THE ADOPTION OF
SUCH  RESOLUTION BY THE COUNTY SHALL BE A PREREQUISITE TO THE SUBMISSION
OF AN APPLICATION FOR SUCH DESIGNATION. SUCH RESOLUTION SHALL INCLUDE  A
DESCRIPTION  OF  SUCH  AREA INCLUDING THE TAX MAP IDENTIFICATION NUMBERS
FOR ALL PARCELS THAT WOULD BE ELIGIBLE FOR THE WORKING FARMLAND PROPERTY
TAX CREDIT.
  (B) EACH APPLICATION SHALL:
  (I) BE PREPARED IN A MANNER AND FORM PRESCRIBED BY REGULATIONS PROMUL-
GATED BY THE COMMISSIONER, AND SHALL INCLUDE WRITTEN CONFIRMATION BY THE
COUNTY LEGISLATIVE BODY VERIFYING THAT THE INFORMATION CONTAINED IN  THE
APPLICATION  IS  ACCURATE  AND  COMPLETE TO THE BEST OF HIS OR HER KNOW-
LEDGE;
  (II) INCLUDE EVIDENCE OF THE ADOPTION OF  A  COUNTY  AGRICULTURAL  AND
FARMLAND PROTECTION PLAN OR ITS EQUIVALENT, WHICH HAS BEEN PREPARED IN A
MANNER AND FORM PRESCRIBED BY REGULATIONS PROMULGATED BY THE COMMISSION-
ER,  BY  THE  GOVERNING  BODY OF THE COUNTY WHICH IS APPLYING FOR DESIG-
NATION AS ELIGIBLE FOR THE WORKING FARMLAND PROPERTY TAX CREDIT;
  (III) INCLUDE A TAX MAP OR OTHER MAP OF THE COUNTY  WHICH  SETS  FORTH
THE  TAX  MAP  NUMBERS OF ALL PARCELS OF LAND THAT WOULD BE ELIGIBLE FOR
THE WORKING FARMLAND PROPERTY TAX CREDIT; AND
  (IV) INCLUDE A COPY OF THE REPORT OF THE COUNTY AGRICULTURAL AND FARM-
LAND PROTECTION BOARD.
  (C) WITHIN NINETY DAYS  AFTER  RECEIPT  OF  WRITTEN  NOTICE  FROM  THE
COMMISSIONER  THAT  AN  APPLICATION  FOR DESIGNATION AS ELIGIBLE FOR THE
WORKING FARMLAND PROPERTY TAX  CREDIT  HAS  BEEN  APPROVED,  THE  COUNTY
LEGISLATIVE  BODY  SHALL  COMMENCE  THE PROCESS TO ADOPT A COMPREHENSIVE
PLAN, OR AMEND AN EXISTING COMPREHENSIVE PLAN, PURSUANT TO  SECTION  TWO
HUNDRED  THIRTY-NINE-D  OF  THIS CHAPTER, TO INCLUDE THE COUNTY AGRICUL-
TURAL AND FARMLAND PROTECTION PLAN WHICH HAS BEEN ADOPTED BY THE  COUNTY
AGRICULTURAL  AND  FARMLAND PROTECTION BOARD AND APPROVED BY THE COMMIS-
SIONER PURSUANT TO THIS SECTION. THE WORKING FARMLAND PROPERTY TAX CRED-
IT SHALL NOT BE EFFECTIVE UNLESS THE  COUNTY'S  COMPREHENSIVE  PLAN,  OR
AMENDMENT   OF  SUCH  PLAN,  INCLUDES  SUCH  AGRICULTURAL  AND  FARMLAND
PROTECTION PLAN. THE WORKING  FARMLAND  PROPERTY  TAX  CREDIT  SHALL  BE
EFFECTIVE FOR THE TAX YEAR IMMEDIATELY UPON THE ADOPTION OF THE COUNTY'S
COMPREHENSIVE  PLAN, OR AMENDMENT OF SUCH PLAN, WHICH INCLUDES THE AGRI-
CULTURAL AND FARMLAND PROTECTION PLAN.
  (D) WITHIN THIRTY DAYS AFTER THE EFFECTIVE DATE OF THE  WORKING  FARM-
LAND  PROPERTY  TAX  CREDIT, THE COUNTY CLERK SHALL RECORD A COPY OF THE
TAX MAP OR OTHER MAP OF THE PARCELS THAT WOULD BE ELIGIBLE FOR THE WORK-
ING FARMLAND PROPERTY TAX CREDIT AS APPROVED BY THE COMMISSIONER  PURSU-
ANT TO THIS ARTICLE.
  S 972-G. REVIEW OF WORKING FARMLAND DESIGNATION. (A) THE COUNTY LEGIS-
LATIVE  BODY  MAY,  BY RESOLUTION, SUBMIT TO THE COMMISSIONER ONCE EVERY
EIGHT YEARS A REQUEST TO REVIEW  AN  EXISTING  WORKING  FARMLAND  DESIG-
NATION.  THE  RESOLUTION SHALL INCLUDE THE REASONS AND JUSTIFICATION FOR
THE PROPOSED REVIEW ALONG WITH THE TAX MAP OR OTHER MAP OF THE  ELIGIBLE
PARCELS.  THE  COMMISSIONER  SHALL REVIEW THE DESIGNATION SUBJECT TO THE
FOLLOWING PROVISIONS:
  (I) THE COMMISSIONER SHALL DETERMINE WHETHER A CHANGE IN CIRCUMSTANCES
HAS OCCURRED SINCE THE DESIGNATION OF ELIGIBILITY WHICH MAKES THE COUNTY
NO LONGER ELIGIBLE.

S. 789                              7

  (II) ANY DESIGNATION OF A COUNTY AS ELIGIBLE FOR THE WORKING  FARMLAND
PROPERTY  TAX CREDIT SHALL REMAIN IN EFFECT FOR A MINIMUM OF THREE YEARS
FROM THE EFFECTIVE DATE OF THE DESIGNATION.
  (B)  ANY  REQUEST BY A COUNTY LEGISLATIVE BODY TO REMOVE THE COUNTY AS
ELIGIBLE FOR THE WORKING FARMLAND PROPERTY TAX CREDIT MUST INCLUDE PROOF
THAT THE  COUNTY  PROVIDED  PUBLIC  NOTICE  OF  SUCH  PROPOSED  REMOVAL,
PROVIDED  INDIVIDUAL NOTICE IN WRITING TO PERSONS, AS LISTED ON THE MOST
RECENT ASSESSMENT ROLLS, WHOSE LAND  IS  THE  SUBJECT  OF  THE  PROPOSED
REMOVAL  AND  HELD  A  PUBLIC  HEARING AT LEAST THIRTY DAYS PRIOR TO THE
REQUEST TO THE COMMISSIONER.
  (C) PRIOR TO SUBMISSION TO  THE  COMMISSIONER  OF  THE  RESOLUTION  TO
REMOVE  THE  COUNTY  AS  ELIGIBLE  FOR THE WORKING FARMLAND PROPERTY TAX
CREDIT, THE COUNTY AGRICULTURAL AND  FARMLAND  PROTECTION  BOARD  SHALL,
WITHIN  FORTY-FIVE DAYS REPORT TO THE COUNTY LEGISLATIVE BODY ITS RECOM-
MENDATIONS CONCERNING THE PROPOSED REMOVAL OF  ELIGIBILITY.  THE  COUNTY
LEGISLATIVE  BODY  SHALL  PROVIDE A COPY OF THE REPORT, OR, IN THE EVENT
THAT NO REPORT IS PROVIDED  BY  THE  COUNTY  AGRICULTURAL  AND  FARMLAND
PROTECTION  BOARD, A STATEMENT OF THE FACTS AND CIRCUMSTANCES CONCERNING
THE COUNTY LEGISLATIVE BODY'S REFERRAL TO THE  COUNTY  AGRICULTURAL  AND
FARMLAND PROTECTION BOARD, TO THE COMMISSIONER.
  (D)  UPON THE REMOVAL OF ELIGIBILITY FOR THE WORKING FARMLAND PROPERTY
TAX CREDIT AS PROVIDED IN THIS  SECTION,  THE  COMMISSIONER  SHALL  FILE
NOTICE  OF SUCH ACTION AS REQUIRED BY SECTION NINE HUNDRED SEVENTY-TWO-E
OF THIS ARTICLE.
  (E) WITHIN THIRTY DAYS  AFTER  RECEIPT  OF  WRITTEN  NOTICE  FROM  THE
COMMISSIONER THAT A REQUEST FOR REMOVAL OF THE WORKING FARMLAND PROPERTY
TAX  CREDIT HAS BEEN APPROVED, THE COUNTY CLERK SHALL RECORD SUCH NOTICE
RELATING TO THE PARCELS SO AFFECTED.
  S 972-H. RESTRICTION OF LANDS TO AGRICULTURAL  USES.  (A)  ANY  COUNTY
WHICH  IS ELIGIBLE FOR THE WORKING FARMLAND PROPERTY TAX CREDIT PURSUANT
TO THIS ARTICLE SHALL UTILIZE A COVENANT OR DEED  RESTRICTION  WITH  THE
LANDOWNER  TO  LIMIT  THE  USE  OF  AGRICULTURAL ASSESSMENT LAND FOR THE
PURPOSE OF PRESERVING SUCH LAND SUBJECT TO THE CONDITIONS SET  FORTH  IN
THE  COVENANT  AND IN THIS ARTICLE. THE OWNER OF SUCH LAND SHALL FURNISH
THE COUNTY WITH SUCH INFORMATION AS THE COUNTY SHALL REQUIRE IN ORDER TO
ENABLE IT TO DETERMINE THE ELIGIBILITY OF THE LAND INVOLVED.
  (B) IF SUCH A COVENANT IS MADE WITH ANY LANDOWNER,  THE  COUNTY  SHALL
OFFER  SUCH A COVENANT UNDER SIMILAR TERMS TO EVERY OTHER OWNER OF AGRI-
CULTURAL ASSESSMENT LAND LOCATED IN  AN  AGRICULTURAL  DISTRICT  IN  THE
COUNTY.
  (C)  EVERY COVENANT SHALL PROVIDE FOR THE EXCLUSION OF USES OTHER THAN
AGRICULTURAL, AND OTHER THAN THOSE COMPATIBLE  WITH  AGRICULTURAL  USES,
FOR   THE DURATION OF THE COVENANT AND BE BINDING UPON, AND INURE TO THE
BENEFIT OF, ALL SUCCESSORS IN INTEREST OF THE OWNER.
  (D) EACH COVENANT SHALL BE FOR A TERM OF EIGHT YEARS AND  SHALL  AUTO-
MATICALLY  BE  RENEWED  EACH YEAR UNLESS THE LANDOWNER FILES NOTICE WITH
THE COUNTY CLERK.
  (E) NO LATER THAN TWENTY DAYS AFTER A COUNTY ENTERS  INTO  A  COVENANT
WITH A LANDOWNER PURSUANT TO THIS SECTION, THE COUNTY CLERK SHALL RECORD
THE  COVENANT,  WHICH SHALL DESCRIBE THE LAND SUBJECT THERETO, INCLUDING
THE TAX MAP IDENTIFICATION NUMBER OR NUMBERS  FOR  SUCH  LAND,  TOGETHER
WITH  A  REFERENCE  TO  THE MAP SHOWING THE LOCATION OF THE AGRICULTURAL
DISTRICT IN WHICH THE PROPERTY LIES. FROM AND AFTER  THE  TIME  OF  SUCH
RECORDATION  SUCH  COVENANT  SHALL  IMPART  SUCH  NOTICE  THEREOF TO ALL
PERSONS AS IS AFFORDED BY THE RECORDING LAWS OF THIS STATE.

S. 789                              8

  (F) THE COUNTY MAY BRING ANY ACTION IN COURT NECESSARY TO ENFORCE  ANY
COVENANT, INCLUDING, BUT NOT LIMITED TO, AN ACTION TO ENFORCE THE COVEN-
ANT BY INJUNCTION.
  S  972-I.  ANNUAL  REPORT.  EACH COUNTY WHICH BECOMES ELIGIBLE FOR THE
WORKING FARMLAND PROPERTY TAX CREDIT ESTABLISHED PURSUANT TO THIS  ARTI-
CLE SHALL EVERY EIGHT YEARS FILE WITH THE COMMISSIONER, THE COMMISSIONER
OF  TAXATION AND FINANCE AND THE STATE BOARD OF REAL PROPERTY SERVICES A
REPORT CONCERNING THE STATUS OF ELIGIBLE AGRICULTURAL LAND.  THE  REPORT
SHALL  INCLUDE THE TAX MAP IDENTIFICATION NUMBERS FOR ALL PARCELS IN THE
COUNTY FOR WHICH A LANDOWNER HAS FILED  A  NON-AGRICULTURAL  DEVELOPMENT
COVENANT  PURSUANT  TO THIS ARTICLE AND THE TOTAL NUMBER OF ACRES IN THE
COUNTY WHICH ARE SUBJECT TO SUCH A NON-AGRICULTURAL  DEVELOPMENT  COVEN-
ANT.  IN THE EVENT THAT ANY OF THESE PARCELS OF LAND HAVE BEEN CONVERTED
TO A USE WHICH WOULD DISQUALIFY SUCH LAND FOR AN AGRICULTURAL ASSESSMENT
UNDER SECTION THREE HUNDRED FIVE OR THREE HUNDRED SIX OF THE AGRICULTURE
AND MARKETS LAW, THE REPORT SHALL IDENTIFY SUCH PARCELS.
  S 5. Paragraph (a) of subdivision 1 of section 922 of the real proper-
ty tax law is amended by adding a  new  subparagraph  (xv)  to  read  as
follows:
  (XV)  A  STATEMENT  AS TO WHETHER THE PARCEL IS ELIGIBLE FOR A WORKING
FARMLAND PROPERTY TAX CREDIT CREATED PURSUANT TO ARTICLE  EIGHTEEN-D  OF
THE GENERAL MUNICIPAL LAW.
  S  6.  Subdivision 1 of section 302 of the agriculture and markets law
is amended by adding a new paragraph (f) to read as follows:
  (F) THE COUNTY AGRICULTURAL AND FARMLAND PROTECTION BOARD SHALL ADVISE
THE COUNTY LEGISLATIVE BODY IN RELATION TO THE PROPOSED ESTABLISHMENT OR
REVIEW OF ANY WORKING FARMLAND PROPERTY TAX CREDIT ESTABLISHED  PURSUANT
TO  ARTICLE  EIGHTEEN-D  OF  THE  GENERAL MUNICIPAL LAW. THE BOARD SHALL
RENDER EXPERT ADVICE  RELATING  TO  THE  DESIRABILITY  OF  SUCH  ACTION,
INCLUDING  ADVICE  AS TO THE NATURE OF FARMING AND FARM RESOURCES WITHIN
THE COUNTY AND THE EXTENT TO WHICH IT  IS  CONSISTENT  WITH  THE  COUNTY
AGRICULTURAL  AND  FARMLAND  PROTECTION  PLAN THAT MAY HAVE BEEN ADOPTED
PURSUANT TO SECTION THREE HUNDRED TWENTY-FOUR  OF  THE  AGRICULTURE  AND
MARKETS LAW.
  S 7. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall apply to taxable years beginning on
or after January 1, 2012. Provided that any rule or regulation necessary
for  the  timely  implementation  of  the  provisions of this act on its
effective date may be promulgated on or before such effective date.

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