S T A T E   O F   N E W   Y O R K
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                                  7485

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             April 13, 2009
                               ___________

Introduced  by  M. of A. BALL -- read once and referred to the Committee
  on Agriculture

AN ACT to amend the agriculture and markets law and  the  real  property
  tax  law, in relation to the assessment of land and structures used in
  agricultural production; to  amend  the  real  property  tax  law,  in
  relation  to  providing  state  aid  to  taxing  jurisdictions for the
  difference between the full value and the agricultural  assessment  of
  land and structures used in agricultural production; to repeal section
  304-a  of  the  agriculture  and  markets law relating to agricultural
  assessment values; and to repeal section 582 of the real property  tax
  law relating to valuation of agricultural structures

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

  Section 1. Subdivision 1 of section 301 of the agriculture and markets
law, as amended by chapter 797 of the laws of 1992, is amended  to  read
as follows:
  1. "Agricultural assessment value" means the value [per acre] assigned
to  land  USED IN AGRICULTURAL PRODUCTION AND THE STRUCTURES THEREON for
assessment purposes determined pursuant to  the  [capitalized  value  of
production]  procedure [prescribed by] ESTABLISHED BY THE STATE BOARD OF
REAL PROPERTY SERVICES IN ACCORDANCE WITH section three  hundred  four-a
of this article.
  S  2. Section 304-a of the agriculture and markets law is REPEALED and
a new section 304-a is added to read as follows:
  S 304-A. AGRICULTURAL ASSESSMENT VALUES.  1.  AGRICULTURAL  ASSESSMENT
VALUES FOR LAND USED IN AGRICULTURAL PRODUCTION AND THE STRUCTURES THER-
EON  SHALL  BE  ANNUALLY CALCULATED AND CERTIFIED IN ACCORDANCE WITH THE
PROCEDURES ESTABLISHED BY THE OFFICE OF REAL PROPERTY SERVICES.
  2. THE OFFICE OF REAL PROPERTY  SERVICES  SHALL  ESTABLISH  RULES  AND
REGULATIONS,  WHICH  SHALL  BE  BINDING  UPON ALL ASSESSING UNITS IN THE
STATE, FOR THE ASSESSMENT OF LAND USED IN  AGRICULTURAL  PRODUCTION  AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10649-01-9
              

A. 7485                             2

THE  STRUCTURES  THEREON.  SUCH RULES AND REGULATIONS SHALL PROVIDE THAT
THE  AGRICULTURAL  ASSESSMENT  VALUE  OF  LAND  USED   IN   AGRICULTURAL
PRODUCTION  AND THE STRUCTURES THEREON SHALL BE THE GROSS SALES VALUE OF
CROPS,  LIVESTOCK  AND LIVESTOCK PRODUCTS PRODUCED ON SUCH LAND, REDUCED
BY THE FIVE YEAR AVERAGE OF THE COST OF SEED,  FERTILIZER,  FEED,  FUEL,
OIL, GREASE, REPAIRS, ELECTRICITY, LABOR, EQUIPMENT AND MACHINERY. UNDER
NO  CIRCUMSTANCES  SHALL  LAND  USED  IN AGRICULTURAL PRODUCTION AND THE
STRUCTURES THEREON BE ASSESSED AT THE FULL VALUE  THEREOF,  UNLESS  SUCH
FULL  VALUE  IS  LESS THAN THE AGRICULTURAL ASSESSMENT VALUE ESTABLISHED
PURSUANT TO THIS SUBDIVISION.
  S 3. Paragraphs (n), (o), (p) and (q) of subdivision 1 of section  202
of the real property tax law, paragraph (n) as relettered by chapter 833
of  the  laws of 1960, paragraph (o) as added by chapter 716 of the laws
of 1990, paragraph (p) as added by chapter 166 of the laws of  1991  and
paragraph  (q)  as added by chapter 450 of the laws of 2004, are amended
and a new paragraph (r) is added to read as follows:
  (n) Exercise and perform such  other  powers  and  duties  as  may  be
conferred or imposed on it by law[.];
  (o)  [monitor]  MONITOR  the  quality of local assessment practices by
individual assessing units[.];
  (p) [impose] IMPOSE, collect and receive such charges or fees  as  may
be authorized by statute[.];
  (q) Promulgate rules and regulations for the ascertainment and report-
ing  of  "assessment  record  billing  owner" information, as defined in
section one hundred three of the eminent domain procedure law,  for  the
purposes of the administration of said law[.]; AND
  (R)  PROMULGATE  AND  IMPLEMENT RULES AND REGULATIONS ESTABLISHING THE
PROCEDURE FOR THE DETERMINATION OF THE AGRICULTURAL ASSESSMENT VALUE  OF
LAND USED IN AGRICULTURAL PRODUCTION AND THE STRUCTURES THEREON PURSUANT
TO SECTION THREE HUNDRED FOUR-A OF THE AGRICULTURE AND MARKETS LAW. SUCH
PROCEDURE  SHALL  BE  USED  BY ALL ASSESSING UNITS, AND THE AGRICULTURAL
ASSESSMENT VALUE SHALL BE THE ASSESSMENT OF LAND  USED  IN  AGRICULTURAL
PRODUCTION  AND  THE STRUCTURES THEREON FOR ALL PURPOSES AND FOR ALL TAX
LEVIES BY EVERY TAXING JURISDICTION.
  S 4. Section 481 of the real property tax law, as added by chapter 774
of the laws of 1987, is amended to read as follows:
  S 481. Taxation of land  used  for  agricultural  production  AND  THE
STRUCTURES  THEREON.   Notwithstanding any other provision of this chap-
ter, land used in agricultural production as that  term  is  defined  in
section  three  hundred  one  of the agriculture and markets law AND THE
STRUCTURES THEREON, shall be assessed and taxed FOR ALL PURPOSES in  the
manner provided by article twenty-five-AA of the agriculture and markets
law.
  S 5. Section 582 of the real property tax law is REPEALED.
  S  6. The real property tax law is amended by adding a new section 993
to read as follows:
  S 993. EFFECT OF AGRICULTURAL ASSESSMENT. 1. LEVY OF TAXES. THE AMOUNT
OF TAXES TO BE LEVIED BY ANY MUNICIPAL CORPORATION OR  SPECIAL  DISTRICT
SHALL  BE  DETERMINED  WITHOUT REGARD TO THE FACT THAT STATE AID WILL BE
PAYABLE PURSUANT TO THIS SECTION. IN ADDITION,  THE  TAX  RATE  FOR  ANY
MUNICIPAL  CORPORATION  OR SPECIAL DISTRICT SHALL BE DETERMINED AS IF NO
PARCELS WERE SUBJECT TO AN AGRICULTURAL  ASSESSMENT  VALUE  PURSUANT  TO
SECTION  THREE HUNDRED FOUR-A OF THE AGRICULTURE AND MARKETS LAW. HOWEV-
ER, THE TAX RATE SO DETERMINED SHALL  BE  APPLIED  TO  THE  AGRICULTURAL
ASSESSMENT  VALUE OF EACH PARCEL OF LAND USED IN AGRICULTURAL PRODUCTION

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AND  THE  STRUCTURES  THEREON  AFTER  ACCOUNTING  FOR   ALL   APPLICABLE
EXEMPTIONS.
  2.  TAX SAVINGS. THE TAX SAVINGS FOR EACH PARCEL OF LAND USED IN AGRI-
CULTURAL PRODUCTION AND THE STRUCTURES THEREON SUBJECT  TO  AN  AGRICUL-
TURAL  ASSESSMENT  VALUE PURSUANT TO SECTION THREE HUNDRED FOUR-A OF THE
AGRICULTURE AND MARKETS LAW SHALL BE COMPUTED BY SUBTRACTING  THE  AGRI-
CULTURAL  ASSESSMENT  VALUE  OF  SUCH PARCEL FROM THE FULL VALUE OF SUCH
PARCEL. A STATEMENT SHALL THEN BE PLACED ON THE TAX BILL FOR THE  PARCEL
IN SUBSTANTIALLY THE FOLLOWING FORM: "YOUR TAX SAVINGS THIS YEAR RESULT-
ING FROM AN AGRICULTURAL ASSESSMENT IS $________."
  3.  STATE AID. (A) THE TOTAL TAX SAVINGS DULY PROVIDED BY EACH MUNICI-
PAL CORPORATION AND SPECIAL DISTRICT PURSUANT TO THIS SECTION SHALL BE A
STATE CHARGE, WHICH SHALL BE PAYABLE AS PROVIDED IN THIS SECTION.
  (B) A MUNICIPAL CORPORATION OR SPECIAL DISTRICT SEEKING  AID  PURSUANT
TO THIS SECTION SHALL SUBMIT AN APPLICATION THEREFOR TO THE STATE BOARD.
THE  APPLICATION SHALL INCLUDE SUCH INFORMATION AS THE STATE BOARD SHALL
REQUIRE.
  (C) UPON APPROVING AN APPLICATION  FOR  STATE  AID  PURSUANT  TO  THIS
SECTION,  THE STATE BOARD SHALL COMPUTE THE AMOUNT PAYABLE TO THE APPRO-
PRIATE MUNICIPAL CORPORATION OR SPECIAL  DISTRICT.  SUCH  AID  SHALL  BE
PAYABLE  UPON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER FROM VOUCH-
ERS CERTIFIED AND APPROVED BY THE EXECUTIVE DIRECTOR OF  THE  OFFICE  OF
REAL PROPERTY SERVICES.
  (D) THE STATE BOARD MAY AUDIT AN APPLICATION FOR STATE AID PURSUANT TO
THIS  SECTION  WITHIN ONE YEAR AFTER AUTHORIZING PAYMENT THEREON. IF THE
STATE BOARD SHOULD DISCOVER THAT  A  MUNICIPAL  CORPORATION  OR  SPECIAL
DISTRICT  HAS  RECEIVED  A  GREATER OR LESSER AMOUNT OF SUCH AID THAN IT
SHOULD HAVE RECEIVED, THE STATE BOARD SHALL NOTIFY THE MUNICIPAL  CORPO-
RATION OR SPECIAL DISTRICT, AND SHALL CAUSE THE NEXT PAYMENT OF SUCH AID
TO  THE MUNICIPAL CORPORATION OR SPECIAL DISTRICT TO BE ADJUSTED ACCORD-
INGLY.
  (E) WHEN AN IMPROPERLY GRANTED AGRICULTURAL ASSESSMENT VALUE HAS  BEEN
REVOKED,  THE  AID  PAYABLE  TO  THE  MUNICIPAL  CORPORATION  OR SPECIAL
DISTRICT PURSUANT TO THIS SECTION SHALL BE  REDUCED  BY  THE  AMOUNT  OF
TAXES ATTRIBUTABLE TO THE REVOKED AGRICULTURAL ASSESSMENT.
  4.  INSTALLMENT  PAYMENTS.  WHEN  REAL  PROPERTY  TAXES ARE PAYABLE IN
INSTALLMENTS PURSUANT TO LAW, THE TAX SAVINGS PROVIDED BY  THIS  SECTION
SHALL BE APPLIED PROPORTIONALLY AGAINST THE RESPECTIVE INSTALLMENTS.
  5.  UNTIMELY  PAYMENT OF TAXES.  (A) WHEN TAXES ON PROPERTY SUBJECT TO
AN AGRICULTURAL ASSESSMENT PURSUANT TO SECTION THREE HUNDRED  FOUR-A  OF
THE  AGRICULTURE AND MARKETS LAW ARE NOT PAID IN A TIMELY MANNER, INTER-
EST, PENALTIES AND ANY OTHER APPLICABLE CHARGES SHALL  BE  IMPOSED  ONLY
AGAINST  THE  BALANCE DUE AFTER THE TAX SAVINGS PROVIDED BY THIS SECTION
HAVE BEEN DEDUCTED FROM THE TAXES OWED.
  (B) WHEN A COUNTY, CITY OR TOWN IS REQUIRED BY ANY PROVISION  OF  THIS
CHAPTER TO MAKE A PAYMENT TO A MUNICIPAL CORPORATION OR SPECIAL DISTRICT
ON  ACCOUNT  OF  UNPAID  TAXES, THE TAX SAVINGS PROVIDED BY THIS SECTION
SHALL BE DEDUCTED FROM THE AMOUNT SO PAYABLE.
  6. INCONSISTENT LAWS SUPERSEDED. THE PROVISIONS OF THIS SECTION  SHALL
APPLY TO ALL MUNICIPAL CORPORATIONS AND SPECIAL DISTRICTS, NOTWITHSTAND-
ING ANY PROVISION OF LAW TO THE CONTRARY.
  S 7. This act shall take effect immediately, except that sections one,
two,  four,  five  and six of this act shall take effect on the first of
January next succeeding the date on which this act shall have  become  a
law and shall apply to tax rolls completed on or after such date.