§ 480-A — Taxation of forest land

New York § 480-A

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2: Private Property
• Art. 4: Exemptions

Text

§ 480-a. Taxation of forest land. 1. As used in this section:\n (a) "Approved management plan" shall mean:\n (i) a plan approved by the department for the management of an\neligible tract which shall contain requirements and standards to ensure\nthe continuing production of a merchantable forest crop selected by the\nowner. Every approved management plan shall set forth requirements and\nstandards relating to stocking, cutting, forest management access, and\nany specified use of the eligible tract other than for the production of\na merchantable forest crop which is desired by the owner and compatible\nwith or supportive of the continuing production of a merchantable forest\ncrop. Such plan shall include provisions accommodating endangered and\nthreatened animals and plants. Such plan must be prepared by or under\nthe direct supervision of a forester who may be the owner or an agent of\nthe owner, including an industrial forester or a cooperating consultant\nforester; or\n (ii) participation in a forest certification program (such as Forest\nStewardship Council certification, Sustainable Forestry Initiative;\nAmerican Tree Farm Program, etc.) recognized in the regulations of the\ndepartment.\n (b) "Commitment" shall mean a declaration to the department made on an\nannual basis by the owner of a certified eligible tract committing such\ntract to continued forest crop production for the next succeeding ten\nyears under an approved management plan.\n (c) "Cooperating consultant forester" shall mean a qualified forester\nwho, or a qualified forestry consultant firm which, has entered into an\nagreement with the department under the New York state cooperating\nconsultant foresters program pursuant to section 9-0713 of the\nenvironmental conservation law.\n (d) "Department" shall mean the department of environmental\nconservation.\n (e) "Eligible tract" shall mean a tract of privately owned forest land\nof at least fifty contiguous acres, exclusive of any portion thereof not\ndevoted to the production of forest crops. Lands divided by federal,\nstate, county or town roads, easements or rights-of-way, or energy\ntransmission corridors or similar facilities will be considered\ncontiguous for purposes of this section, unless vehicular access for\nforest management purposes is precluded. Lands from which a merchantable\nforest crop has been cut or removed within three years prior to the time\nof application for certification under this section will be ineligible\nunless such cutting or removal was accomplished under a forest\nmanagement program designed to provide for the continuing production of\nmerchantable forest crops.\n (f) "Forest land" shall mean land exclusively devoted to and suitable\nfor forest crop production through natural regeneration or through\nforestation and shall be stocked with a stand of forest trees sufficient\nto produce a merchantable forest crop within thirty years of the time of\noriginal certification.\n (g) "Merchantable forest crop" shall mean timber or pulpwood,\nincluding veneer bolts, sawlogs, poles, posts and fuelwood, that is\nproduced on forest land, has a value in the market and may be sold.\n (h) "Stumpage value" shall mean the current market worth of a\nmerchantable forest crop as it stands at the time of sale, cutting,\nrequired cutting or removal.\n 2. (a) An owner of an eligible tract may make application to the\ndepartment for certification under this section on forms prescribed by\nthe department. If the department finds that such tract is an eligible\ntract it shall forward a certificate of approval to the owner thereof,\ntogether with the approved management plan, and a copy of a commitment\ncertified by the department for the eligible tract.\n (b) The department shall, after public hearings, adopt and promulgate\nrules and regulations necessary for the implementation of the\ndepartment's responsibilities pursuant to this section. Such regulations\nrelating to approved management plans or amendments thereto may provide\nfor alternative or contingent requirements and standards based on the\nsize and nature of the tract and other criteria consistent with\nenvironmentally and economically sound silvicultural practices.\n (c) Any tract certified pursuant hereto shall be subject to the\nprovisions of this section. The obligations of this section shall\ndevolve upon and the benefits inure to the owner, his heirs, successors\nand assigns.\n 3. (a) To qualify for a forest land exemption under this section the\nowner of a certified eligible tract shall:\n (i) file the certificate of approval in the office of the clerk of the\ncounty or counties in which such tract is situated. Such certificate\nshall specify that the tract described therein is committed to continued\nforest crop production for an initial period of ten years. Upon receipt\nof such certificate, the county clerk shall record the same in the books\nkept for the recording of deeds and shall index the same in the deed\nindex against the name of the owner of the property. Until notice of\nrevocation of the certificate of approval has been recorded and indexed\nas provided in subdivision seven or eight of this section, a certificate\nthat has been recorded and indexed pursuant to this subdivision shall\ngive notice that the certified tract is subject to the provisions of\nthis section; and\n (ii) prior to the taxable status date for the first assessment roll\nupon which such exemption is sought, file an initial application for\nexemption with the appropriate assessor on forms prescribed by the\ncommissioner. Such application must be accompanied by a certified\ncommitment issued by the department pursuant to subdivision two of this\nsection; and\n (iii) prior to the taxable status date for each subsequent assessment\nroll upon which such exemption is sought, file with the appropriate\nassessor a certified commitment of such tract to continued forest crop\nproduction for the next succeeding ten years under the approved\nmanagement plan. Application for such commitment shall be made by the\nowner of such tract to the department, and the commitment shall be\ncertified by the department.\n (b) If the assessor is satisfied that the requirements of this section\nare met, he or she shall approve the application and such eligible tract\nshall be exempt from taxation pursuant to subdivision four of this\nsection to be effective as of the first taxable status date occurring\nsubsequent to such approval, and shall continue to be so exempt\nthereafter upon receipt by the assessor of a certified commitment filed\nin accordance with subparagraph (iii) of paragraph (a) of this\nsubdivision and so long as the certification of the eligible tract shall\nnot be revoked by the department.\n (c) Failure on the part of the owner to file the certified commitment\nin any year following initial certification will result in the\ntermination of the forest land exemption under this section, if any,\napplicable to the property for that and succeeding taxable years for\nwhich no such commitments are filed. Failure to file a commitment will\nnot constitute a conversion of the tract or breach of the approved\nmanagement plan, pursuant to subdivision seven hereof, and the\ncommitment of the property to forest crop production under the approved\nmanagement plan shall remain in force for the next succeeding nine years\nfollowing the last taxable year for which a certified commitment was\nfiled.\n (d) Following failure to file a certified commitment in one or more\nyears, in order to obtain a forest land exemption under this section, an\nowner of a certified tract may submit a certified commitment to the\nassessor before the taxable status date in any subsequent year, except\nthat a new application under paragraph (a) of subdivision two of this\nsection and subparagraph (i) of paragraph (a) of this subdivision also\nshall be required if more than five years have elapsed since the owner's\nlast certified commitment was filed. Such new application also shall be\nrequired whenever, during the preceding year, the approved management\nplan has been amended with respect to the acreage or location of forest\nland committed to forest crop production under this section.\n 4. (a) Certified eligible tracts approved for exemption under this\nsection shall be exempt from taxation to the extent of eighty per centum\nof the assessed valuation thereof, or to the extent that the assessed\nvaluation exceeds the amount resulting from multiplying the latest state\nequalization rate or, where a special equalization rate has been\nestablished pursuant to section twelve hundred twenty-four of this\nchapter for the purposes of this section, the special equalization rate\nby forty dollars per acre, whichever is the lesser.\n (b) The assessed value of the exemption, if any, granted pursuant to\nthis section shall be entered by the assessor on the assessment roll in\nsuch manner as shall be prescribed by the commissioner.\n (c) Where a special equalization rate has been established by the\ncommissioner pursuant to section twelve hundred twenty-four of this\nchapter, the assessor is directed and authorized to recompute the forest\nland exemption on the assessment roll by applying such special\nequalization rate instead of the latest state equalization rate in\ncomputing the forest land exemption, and to make the appropriate\ncorrections on the assessment roll, subject to the provisions of title\ntwo of article twelve of this chapter. Upon completion of the final\nassessment roll or, where a special equalization rate has been\nestablished, upon recomputation of the forest land exemption, the\nassessor shall certify to the department each exemption granted pursuant\nto this section in a manner prescribed by the commissioner.\n 5. (a) Whenever any cutting of the merchantable forest crop on any\ncertified eligible tract is proposed during the period of commitment\npursuant to subdivision three of this section, the owner shall give not\nless than thirty days' notice to the department in a manner and upon\nsuch form as may be prescribed by the department. Such notice shall\ninclude information as to the stumpage value, amount and location of\nsuch cutting. The department shall, within fifteen days after receipt of\nsuch notice from the owner, certify the stumpage value, if any, to the\nowner and to the county treasurer of the county or counties in which the\ntract is situated. No later than thirty days after receipt of such\ncertification of value, the owner shall pay a six percentum tax on the\ncertified stumpage value of the merchantable forest crop to such county\ntreasurer.\n (b) Notwithstanding the provisions of paragraph (a) of this\nsubdivision, if the stumpage value of a merchantable forest crop will be\ndetermined with reference to a scale to be conducted after the\ncommencement of the proposed cutting, the owner may elect to be taxed in\naccordance with this paragraph. Such election shall be made not less\nthan thirty days in advance of commencement of the cutting, in such\nmanner and upon such form as may be prescribed by the department. Such\nnotice shall include information as to the estimated volume, scaling\nmethod, and the schedule and length of the cutting period, not to exceed\none year. If a proper election has been made in accordance with this\nparagraph, the department shall so notify the owner before any cutting\ntakes place on the eligible tract, and it shall certify the scaled\nstumpage value to the owner of the tract and to the county treasurer of\nthe county or counties when the cutting has concluded. No later than\nthirty days after the receipt of such certification of value, the owner\nshall pay a six per centum tax on the stumpage value of the merchantable\nforest crop to such county treasurer.\n (c) In the event that a tax required by this subdivision or by\nsubdivision six of this section shall not be timely paid, it shall be\nlevied and collected, together with any penalty or penalties determined\npursuant to subdivision seven of this section, in the same manner and at\nthe same time as other taxes imposed and levied on the next completed\ntax roll of such county or counties.\n (d) Notwithstanding the foregoing provisions of this subdivision and\nthe provisions of subdivision six of this section, the owner of any land\ncertified under this section may make all intermediate noncommercial\ncuttings, as prescribed in the approved management plan, and may\nannually cut, in accordance with sound forestry practices, ten standard\ncords or the equivalent for such owner's own use, without notice and\nfree of tax imposed by this section.\n 6. (a) The department may serve notice upon the owner of a certified\ntract directing such owner to make a cutting as prescribed in the\napproved management plan for such tract. Should such cutting involve the\nsale or utilization of a merchantable forest crop, not less than thirty\ndays in advance of cutting the owner shall give notice to the department\nof the stumpage value, amount and location of the cutting on a form\nprescribed by the department. The department shall within fifteen days\nafter receipt of such notice from the owner, certify the stumpage value,\nif any, to the owner and to the county treasurer of the county or\ncounties in which such tract is situated. No later than thirty days\nafter receipt of such certification of value, the owner shall pay a six\nper centum tax on the certified stumpage value to such county treasurer.\n (b) Any cutting of a merchantable forest crop under this subdivision\nmust be conducted within two years from the date of service of the\nnotice upon the owner issued by the department. Upon failure of the\nowner within such period to conduct such cutting, the department shall\ncertify to the owner and the county treasurer of the county or counties\nthe stumpage value of such merchantable forest crop. No later than\nthirty days after receipt of such certification of value, the owner\nshall pay a six per centum tax on the certified stumpage value to such\ncounty treasurer.\n (c) Any noncommercial cutting under this subdivision must be conducted\nwithin one year from the date of service of the notice upon the owner\nissued by the department.\n (d) If such owner, within the period prescribed by this subdivision,\nmakes such cuttings as directed by the department, the tract shall\ncontinue to be certified as long as the owner shall continue to comply\nwith the provisions of this section and manage the same in the manner\nprescribed in the approved management plan for such tract.\n 7. (a) The department shall, after notice and hearing, issue a notice\nof violation of this section for any certified tract whenever it finds\nthat:\n (i) any tract or portion thereof is converted to a use which precludes\nmanagement of the land for forest crop production; or\n (ii) the owner fails to give notice of a proposed cutting on such\ntract or fails to timely pay the appropriate tax on the stumpage value\nof the merchantable forest crop determined pursuant to subdivision five\nor six of this section; or\n (iii) the owner fails to comply with the approved management plan for\nsuch tract at any time during the commitment period; or\n (iv) the owner fails to make a timely cutting in accordance with the\nprovisions of subdivision six of this section after service of notice by\nthe department to make such a cutting.\n (b) Notwithstanding the finding of an occurrence described by\nsubparagraph (ii), (iii) or (iv) of paragraph (a) of this subdivision,\nthe department, upon prior notice to the appropriate assessor, may\ndetermine that a violation has not occurred if the failure to comply was\ndue to reasons beyond the control of the owner and such failure can be\ncorrected forthwith without significant effect on the overall purpose of\nthe management plan.\n (c) The owner of such tract, following the issuance of such notice by\nthe department for one or more of the reasons set forth in paragraph (a)\nof this subdivision, shall be subject to a penalty as provided in\nparagraph (d) or (e) of this subdivision, whichever applies. Penalties\nimposed by this section shall be subject to interest charges at the rate\nestablished pursuant to section nine hundred twenty-four-a of this\nchapter for each applicable year or, for years prior to nineteen hundred\neighty-four, at a rate of six per centum per annum compounded. Such\ninterest shall accrue in the year with reference to which a penalty, or\nportion thereof, is attributed.\n (d) Except as otherwise provided in paragraph (e) of this subdivision,\nthe penalty imposed under paragraph (c) of this subdivision shall be\ncomputed by multiplying by two and one-half the amount of taxes that\nwould have been levied on the forest land exemption entered on the\nassessment roll pursuant to subdivision four of this section for the\ncurrent year and any prior years in which such an exemption was granted,\nutilizing the applicable tax rate for the current year and for such\nprior years, not to exceed a total of ten years.\n (e) The penalty imposed under paragraph (c) of this subdivision\napplicable to converted land which constitutes only a portion of a\ncertified eligible tract shall be twice the amount determined under\nparagraph (d) of this subdivision. In calculating such penalty, only\nthat portion of the tract that was actually converted to a use that\nprecludes management of the land for forest crop production shall be\nused as the basis for determining the penalty.\n (f) A notice of violation issued under this subdivision shall be given\nby the department to the owner and to the county treasurer of the county\nor counties in which such tract is located, and the penalty and interest\ncharges shall be computed for each of the municipal corporations in\nwhich such tract is located by such county treasurer. Upon completion of\nthe computation of the penalty and interest, the county treasurer shall\ngive notice to the owner of the amount of the penalty and interest, and\nthe amount shall be entered on the next completed tax roll of such\ncounty or counties. Such penalties and interest shall be levied and\ncollected in the same manner and at the same time as other taxes are\nimposed and levied on such roll. Upon collection of such penalties and\ninterest, such county treasurer shall pay the amounts due to each of the\nappropriate municipal corporations.\n (g) Upon receipt of proof satisfactory to the department that all\npenalties, stumpage taxes and interest imposed by this section have been\nfully paid or satisfied, the department shall revoke the certificate of\napproval issued pursuant to subdivision two of this section, and notice\nof such revocation shall be given to the owner and to the county clerk\nof the county or counties in which the tract is located. Upon receipt of\nsuch notice of revocation, the county clerk shall record the same in the\nbooks kept for the recording of deeds and shall index the same in the\ndeed index against the name of the owner of the property. The county\nclerk shall also note on the face of the last certificate of approval or\ncertified commitment previously recorded pursuant to this section the\nword "REVOKED" followed by a reference to the liber and page where the\nnotice of revocation is recorded pursuant to this subdivision.\n (h) The certificate of approval of a certified tract for which no\nnotice of violation has been issued shall be revoked without penalty\nupon receipt of proof satisfactory to the department that nine years\nhave passed from the year of the last certified commitment filed with\nthe assessor by the owner pursuant to subdivision three of this section.\nNotice of such revocation shall be recorded and indexed as provided in\nparagraph (g) of this subdivision.\n (i) No fee, penalty or rollback of taxes otherwise due pursuant to\nthis section may be imposed upon the city of New York for failure to\ncomply with a certified management plan for an eligible tract that the\ncity acquires for watershed purposes.\n 8. (a) The owner of a certified tract shall not be subject to any\npenalty under this section that would otherwise apply because such tract\nor any portion thereof is converted to a use other than forest crop\nproduction by virtue of: (i) an involuntary taking by eminent domain or\nother involuntary proceeding, except a tax sale, or (ii) a voluntary\nproceeding, providing such proceeding involves the establishment of\nrights-of-way for public highway or energy transmission purposes wherein\nsuch corridors have been established subsequent to public hearing as\nneeded in the public interest and environmentally compatible, or (iii)\noil, gas or mineral exploration, development or extraction activity\nundertaken by an independent grantee pursuant to a lease or other\nconveyance of subsurface rights recorded more than ten years prior to\nthe date of the certificate of approval issued by the department under\nsubdivision two of this section, or (iv) where all or a substantial\nportion of the certified tract is destroyed or irreparably damaged by\nreason of an act of God or a natural disaster.\n (b) In the event the land so converted to a use other than forest crop\nproduction constitutes only a portion of such tract, the assessor shall\napportion the assessment, and enter that portion so converted as a\nseparately assessed parcel on the appropriate portion of the assessment\nroll. The assessor shall then adjust the forest land exemption\nattributable to the portion of the tract not so converted by subtracting\nthe proportionate part of the exemption of the converted parcel.\n (c) If the portion so converted divides the tract into two or more\nseparate parcels, such remaining parcels not so converted will remain\ncertified under this section, regardless of size, except that should any\nremaining parcel be no longer accessible for continued forest crop\nproduction, the department shall, after notice and hearing, revoke the\ncertification of the inaccessible parcel or parcels, and notice of such\nrevocation shall be recorded and indexed as provided in subdivision\nseven of this section. Such revocation shall not subject the owner of\nthe tract to penalty, but the exemption under this section shall no\nlonger apply to the tract or portion thereof no longer accessible.\n (d) The owner of a certified tract shall not be subject to penalty\nunder this section that would otherwise apply because the forest crop on\nthe certified tract or portion is, through no fault of the owner,\ndamaged or destroyed by fire, infestation, disease, storm, flood, or\nother natural disaster, act of God, accident, trespass or war. If a\nmerchantable forest crop is to be cut or removed in connection with\nnecessary salvage operations resulting from any such event, the owner\nshall give notice of cutting, the department shall certify the stumpage\nvalue, and stumpage tax shall be payable, collected and enforced as\nprovided in subdivisions five and seven of this section. Nothing in this\nparagraph shall be construed to subject any person to penalty under\nsubdivision seven of this section for immediate action taken in good\nfaith in the event of an emergency.\n 9. All stumpage tax, penalties and interest charges thereon collected\npursuant to subdivisions five, six and seven of this section shall be\napportioned to the applicable municipal corporations in which such tract\nis situated.\n 10. (a) Management plans approved pursuant to this section shall not\nbe deemed to authorize or permit any practice or activity prohibited,\nrestricted or requiring further approval under the environmental\nconservation law, or any other general or special law of the state, or\nany lawful rule or regulation duly promulgated thereunder.\n (b) No otherwise eligible tract, or portion thereof, shall be deemed\nto be ineligible for certification or qualification under this section,\nand no certificate of approval shall be revoked or penalty imposed,\nsolely on the ground that any such law, rule or regulation partially\nrestricts or requires further approval for forest crop production\npractices or activities on such tract or portion.\n