Agricultural (Ag) Land Conversion

Last Updated: 1/22/2024

NYS Real Property Law Section 301(8)AML

EXTREMELY IMPORTANT NOTICE

The Agricultural Districts Law allows reduced property tax bills for land in agricultural production by limiting the property tax assessment of such land to its prescribed agricultural assessment value. 

Farmland that is taken out of agricultural production:

If farmland that is receiving an agricultural assessment is changed to nonagricultural use(within five years of last receiving an agricultural assessment if located in an agricultural district and within eight years if located outside an agricultural district), a charge to recapture the taxes saved for converting such land will be imposed.

A payment for conversion will be equal to five times the taxes saved in the most recent year that the land received an agricultural assessment.  In addition, interest of 6 percent per year compounded annually will be added to the payment amount for each year that the land received an agricultural assessment, not exceeding five years.  When only a portion of a parcel is converted, the assessor apportions the assessment and the agricultural assessment and determines the tax savings attributable to the converted portion.  The payment for conversion of the portion of the parcel is then computed.

90 Day Notice: Whenever a conversion occurs, the landowner shall notify the assessor within 90 days.  Failure to notify may result in a penalty of two times the payments owed to a maximum of $1,000.

The assessors determines whether a conversion has occurred on the basis of the facts of each case.  Conversion is defined as "an outward or affirmative act changing the use of agricultural land."  Non use of the property (for example, abandoning land or leaving it idle) disqualifies such land from receiving an agricultural assessment, but is not considered a conversion. 

Any questions or concerns should be directed to your Town’s Assessing Office