First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0729.01 Bob Lackner x4350 SENATE BILL 13-132 SENATE SPONSORSHIP Grantham, HOUSE SPONSORSHIP Wilson, Senate Committees House Committees Agriculture, Natural Resources, & Energy Finance A BILL FOR AN ACT Concerning the authority of the county assessor to determine whether two acres or less of real property on which a residential improvement is located should be classified as agricultural land for property tax purposes. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Under current law, for purposes of classifying land for property tax purposes, agricultural land does not include 2 acres or less of land on which a residential improvement is located unless the improvement is integral to an agricultural operation conducted on the land. The bill modifies this requirement for property tax years commencing on or after January 1, 2014, by giving the assessor the authority to determine, in his or her sole discretion, whether 2 acres or less of land on which a residential improvement is located should be classified as agricultural land. The bill also gives the assessor the sole discretion to determine whether a residential improvement is integral to an agricultural operation. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 39-1-102, amend (1.6) (a) (I) as follows: 39-1-102. Definitions. As used in articles 1 to 13 of this title, unless the context otherwise requires: (1.6) (a) "Agricultural land", whether used by the owner of the land or a lessee, means one of the following: (I) (A) A parcel of land, whether located in an incorporated or unincorporated area and regardless of the uses for which such land is zoned, that was used the previous two years and presently is used as a farm or ranch, as defined in subsections (3.5) and (13.5) of this section, or that is in the process of being restored through conservation practices. Such land must have been classified or eligible for classification as "agricultural land", consistent with this subsection (1.6), during the ten years preceding the year of assessment. Such land must continue to have actual agricultural use. For property tax years commencing on or after January 1, 2014,"agricultural land" under this subparagraph (I) shall does not include two acres or less of land on which a residential improvement is located unless the improvement is integral to an agricultural operation conducted on such land; except that the assessor may make a determination, in his or her sole discretion, that two acres or less of land on which a residential improvement is located are classified as agricultural land. "Agricultural land" also includes the land underlying other improvements if such improvements are an integral part of the farm or ranch and if such other improvements and the land area dedicated to such other improvements are typically used as an ancillary part of the operation. The use of a portion of such land for hunting, fishing, or other wildlife purposes, for monetary profit or otherwise, shall not affect the classification of agricultural land. For purposes of this subparagraph (I), a parcel of land shall be "in the process of being restored through conservation practices" if: The land has been placed in a conservation reserve program established by the natural resources conservation service pursuant to 7 U.S.C. secs. 1 to 5506; or a conservation plan approved by the appropriate conservation district has been implemented for the land for up to a period of ten crop years as if the land has been placed in such a conservation reserve program. (B) For property tax years commencing on or after January 1, 2014, in the determination of the assessor, in his or her sole discretion, a residential improvement shall may be deemed to be "integral to an agricultural operation" for purposes of sub-subparagraph (A) of this subparagraph (I) if an individual occupying the residential improvement either regularly conducts, supervises, or administers material aspects of the agricultural operation or is the spouse or a parent, grandparent, sibling, or child of the individual. SECTION 2. Act subject to petition - effective date - applicability. (1) This act takes effect January 1, 2014; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within the ninety-day period after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. (2) This act applies to property tax years commencing on or after the applicable effective date of this act.