Section 304-A. Agricultural assessment values

1. Agricultural assessment
  values shall be calculated and certified annually in accordance with the
  provisions of this section.
    2. a. The commissioner of agriculture and markets shall establish  and
  maintain  an  agricultural  land  classification  system based upon soil
  productivity and capability. The agricultural land classification system
  shall distinguish between mineral and organic soils. There shall be  ten
  primary  groups  of  mineral  soils  and  such  other  subgroups  as the
  commissioner determines necessary to represent  high-lime  and  low-lime
  content. There shall be four groups of organic soils.
    b.  The land classification system shall be promulgated by rule by the
  commissioner following a review of comments and recommendations  of  the
  advisory  council  on  agriculture and after a public hearing. In making
  any revisions to the land classification system the commissioner may, in
  his or her discretion, conduct a public hearing. The commissioner  shall
  foster  participation  by  county  agricultural  and farmland protection
  boards,  district  soil  and  water  conservation  committees,  and  the
  cooperative  extension  service  and  consult with other state agencies,
  appropriate federal agencies, municipalities, the New York state college
  of  agriculture  and  life  sciences  at  Cornell  university  and  farm
  organizations.
    c.  The commissioner shall certify to the state board of real property
  services  the  soil  list  developed  in  accordance   with   the   land
  classification system and any revisions thereto.
    d.  The commissioner shall prepare such materials as may be needed for
  the utilization of the land classification system and provide assistance
  to landowners and local officials in its use.
    3. a. The  state  board  of  real  property  services  shall  annually
  calculate a single agricultural assessment value for each of the mineral
  and  organic soil groups which shall be applied uniformly throughout the
  state.  A  base  agricultural  assessment  value  shall  be   separately
  calculated  for  mineral  and organic soil groups in accordance with the
  procedure set forth in subdivision four of this  section  and  shall  be
  assigned  as  the  agricultural  assessment  value  of the highest grade
  mineral and organic soil group.
    b. The agricultural assessment values for the remaining  mineral  soil
  groups  shall  be  the product of the base agricultural assessment value
  and a percentage, derived from the productivity measurements  determined
  for  each  soil  and  related  soil  group  in conjunction with the land
  classification system, as follows:
 
                                              Percentage of
                                              Base Agricultural
      Mineral Soil Group                      Assessment Value
 
              1A                                     100
              1B                                      89
              2A                                      89
              2B                                      79
              3A                                      79
              3B                                      68
              4A                                      68
              4B                                      58
              5A                                      58
              5B                                      47
              6A                                      47
              6B                                      37
              7                                       37

              8                                       26
              9                                       16
              10                                       5
 
    c.  The  agricultural assessment values for the remaining organic soil
  groups shall be the product of the base  agricultural  assessment  value
  and a percentage, as follows:
 
                                              Percentage of
                                              Base Agricultural
      Organic Soil Group                      Assessment Value
 
              A                                      100
              B                                       65
              C                                       55
              D                                       35
 
    d. The agricultural assessment value for organic soil group A shall be
  two  times the base agricultural assessment value calculated for mineral
  soil group 1A.
    e. The agricultural assessment value for farm woodland  shall  be  the
  same as that calculated for mineral soil group seven.
    f.  Where  trees or vines used for the production of fruit are located
  on land used in agricultural production, the value  of  such  trees  and
  vines,  and  the  value  of  all posts, wires and trellises used for the
  production of fruit, shall be considered to be part of the  agricultural
  assessment value of such land.
    g.  The  agricultural  assessment  value  for  land and waters used in
  aquacultural enterprises shall  be  the  same  as  that  calculated  for
  mineral soil group 1A.
    4.  a.  The  base  agricultural  assessment value shall be 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 capitalized value of production per
  acre shall be calculated  by  dividing  the  product  of  the  value  of
  production per acre and the percentage of net profit by a capitalization
  rate  of  ten percent, representing an assumed investment return rate of
  eight percent and an assumed real property tax rate of two percent.
    b. The value of production per acre shall be the value  of  production
  divided by the number of acres harvested in New York state.
    c.  The  percentage  of  net  profit shall be adjusted net farm income
  divided by realized gross farm income.
    (i) Adjusted net farm income shall be the  sum  of  net  farm  income,
  taxes  on  farm  real  estate  and  the amount of mortgage interest debt
  attributable to farmland, less a management charge  of  one  percent  of
  realized  gross  farm  income  plus seven percent of adjusted production
  expenses.
    (ii) The amount of mortgage interest  debt  attributable  to  farmland
  shall be the product of the interest on mortgage debt and the percentage
  of farm real estate value attributable to land.
    (iii)  The  percentage  of farm real estate value attributable to land
  shall be  the  difference  between  farm  real  estate  value  and  farm
  structure value divided by farm real estate value.
    (iv)  Adjusted  production expenses shall be production expenses, less
  the sum of the taxes on farm real estate and the  interest  on  mortgage
  debt.

    d.  The  following  data,  required  for calculations pursuant to this
  subdivision, shall be as published by the United  States  department  of
  agriculture for all farming in New York state:
    (i)  Farm  real  estate value shall be the total value of farmland and
  buildings, including improvements.
    (ii) Farm structure value shall be the total value of farm  buildings,
  including improvements.
    (iii)  Interest  on  mortgage debt shall be the total interest paid on
  farm real estate debt.
    (iv) Net farm income shall be realized gross  income  less  production
  expenses, as adjusted for change in inventory.
    (v) Production expenses shall be the total cost of production.
    (vi)  Realized  gross  income shall be the total of cash receipts from
  farm marketings, government payments, nonmoney  income  and  other  farm
  income.
    (vii) Taxes on farm real estate shall be the total real property taxes
  on farmland and buildings, including improvements.
    (viii) Number of acres harvested including all reported crops.
    (ix)  Value  of  production  shall be the total estimated value of all
  reported crops.
    e. In the event that the data required  for  calculation  pursuant  to
  this  subdivision  is  not  published by the United States department of
  agriculture or is incomplete, such required data shall be obtained  from
  the New York state department of agriculture and markets.
    f.   Upon  completion  of  each  annual  calculation  of  agricultural
  assessment values, the state  board  of  real  property  services  shall
  publish  an  annual  report,  which  shall include a schedule of values,
  citations to data sources and presentation of all calculations.
    The state board of real property services shall thereupon certify  the
  schedule of agricultural assessment values and shall transmit a schedule
  of  such  certified  values  to each assessor. Beginning in the year two
  thousand six and every five years thereafter, the state  board  of  real
  property  services  shall transmit copies of such annual reports for the
  five  years  previous  to  such  transmittal,  to   the   governor   and
  legislature,  the advisory council on agriculture, and other appropriate
  state agencies and interested parties.
    g.  Notwithstanding  any  other  provision  of  this  section  to  the
  contrary,  in  no  event  shall  the  change  in  the  base agricultural
  assessment value for any given year  exceed  ten  percent  of  the  base
  agricultural assessment value of the preceding year.
    5.  a.  In carrying out their responsibilities under this section, the
  state board of real property services and the  commissioner  shall  keep
  the  advisory  council on agriculture fully apprised on matters relating
  to its duties and responsibilities.
    b. In doing so, the state board of  real  property  services  and  the
  commissioner  shall provide, in a timely manner, any materials needed by
  the advisory council on agriculture to carry  out  its  responsibilities
  under this section.