NY Producers Question about 480A or Ag Assessment

[Brokermike]

In part of my contemplation of making an offer on some land (with a tiny house) in Washington County I have a question for producers in NY about how they manage their property taxes on their sugarbush.

The bush in question will be about 100 acres of the 150 acre total parcel. Everything is completely wooded, though we hope to clear about 30 acres to raise some pastured pigs in the next few years.

Does anyone have any insight on what their experience has been utilizing the NYS 480A program or using an agriculture assessment value for their sugarbush. I've been on the NYS DEC website but it doesn't seem terribly helpful for maple producers.

Any personal experiences or thoughts?

[Brian Ryther]

The AG assessment is up to the desgression of you town tax assessor. You will need 10K in gross AG sales, and the department of soil and conservation will need to verrify that the soil is adaquit for AG activities.

[ToadHill]

I currently have most of my property in the 480a program. To participate you will be committing your property to timber management for 10 years and every year you must renew your commitment so you are always locked in for 10 years. If you want to get out of the program you will need to pay back taxes for what you saved and a hefty penalty. You can't develop the property or subdivide it. You will need at least 50 acres to be eligible. Maple production is considered an acceptable secondary use, but can't be the primary use of the property. You will need to get a forester to draw up a management plan to meet your goals and develop a schedule. When the schedule says you have to harvest a section you will need to have a forester mark the timber to be harvested. You will pay 6% of the stumpage value to the county in return for the tax break you are receiving (80% off your assessment on the eligible portions of the property). You can exclude portions of the property that you don't want to commit to the program such as the part you want to clear. Also, you will be required to paint the property lines every 10 years. If the property has a lot of valuable timber your savings won't be as great, but if it doesn't require much harvesting for awhile the saving can be quite significant. We own 777 acres of land with about 600 acres in the 480a program. We couldn't afford to own it if it wasn't for the 480a program. Let me know if you have any other questions. Also, don't forget that in NY if you build a new sugarhouse (maybe other ag buildings also) they can be tax exempt for 10 years. Let me know if you need the name of a good forester. I know a couple.

[Bucket Head]

Are there certain requirments for the ten year exemption on new sugarhouses? Do you need to own a certain amount of land? Irregardless of acreage, does it have to be "AG suitable" land? This does'nt apply to me, but would someone only having a couple of acres be able to get their sugarhouse tax free? Has anyone here been granted, or denied, this exemption? Could you share the process? Thanks.

Steve

[maple flats]

Yes, you need to have shown $10.000 ag sales average on your income tax returns for the past 2 years. I'm not sure about it being the local jurisdiction's disgression, I thought it was NYS law but I might be wrong. The first year is the hardest because you have a long form you must complete. After that renewing is just 1 page per taxable parcel. You do not need to show a profit but you must show the sales. Sales can be from Ag income from all parcels as well as leased parcels combined, the sales must come from your tax return.
After doing the initail paperwork it is well worth it. My taxes were cut to about 25% of original.

[ToadHill]

Here's a link to a brochure that should answer your questions.

http://209.23.127.116/www-nyfb-org/img/document_files/Real%20Property%20Tax.pdf

Here's the link to the application form.

http://www.tax.ny.gov/pdf/current_forms/orpts/rp483_fill_in.pdf

[Brokermike]

That's very helpful. It seems 480a might be the way to go since I doubt I'll meet the income requirements in the first year as we'll be building a house, a barn, and a new sugarhouse. Which means I won't have time to get all of the taps online.

[ToadHill]

You have to make a choice between an Ag assessment or 480a for your property taxes and they last for as long as you participate in those programs. The 480a is only on the land and has nothing to do with buildings. Not sure about the Ag assessment and buildings.

The farm building exemption for new sugarhouses and other new farm buildings is in addition to either of those and it only lasts for 10 years.

[Brokermike]

Randy,

My wife and I aren't all that far away from you, do you guys have a time when your shop is open so that we might be able to stop by and check out your operation and pick your brain?

[ToadHill]

Brokermike, I sent you a private message.