S.B. 237 Enrolled

1

URBAN FARMING AMENDMENTS
2 2014 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: J. Stuart Adams
5 House Sponsor: Steve Eliason
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Urban Farming Assessment Act.
10 Highlighted Provisions:
11 This bill:
12 . amends the definition of "urban farming" to include certain counties of the second
13 class;
14 . states that land may be assessed on the basis of value that the land has for
15 agricultural use if, among other things, the land is at least two contiguous acres in
16 size;
17 . states that land that is withdrawn from assessment under the Urban Farming
18 Assessment Act is subject to a rollback tax for the previous five years; and
19 . makes technical changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 59-2-1702 , as enacted by Laws of Utah 2012, Chapter 197
27 59-2-1703 , as enacted by Laws of Utah 2012, Chapter 197
28 59-2-1705 , as enacted by Laws of Utah 2012, Chapter 197
29

30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-2-1702 is amended to read:
32 59-2-1702. Definitions.
33 As used in this part:
34 (1) "Actively devoted to urban farming" means that:
35 (a) land is devoted to active urban farming activities;
36 (b) the land produces greater than 50% of the average agricultural production per acre:
37 (i) as determined under Section 59-2-1703 ; and
38 (ii) for the given type of land and the given county or area.
39 (2) "Rollback tax" means the tax imposed under Section 59-2-1705 .
40 (3) (a) Subject to Subsection (3)(b), "urban farming" means cultivating food:
41 (i) with a reasonable expectation of profit from the sale of the food; and
42 (ii) from irrigated land located in a county:
43 (A) of the first class[.], as defined in Section 17-50-501 ; or
44 (B) of the second class, as defined in Section 17-50-501 , if the county is at least 98%
45 urban, as determined by the United States Census Bureau.
46 (b) "Urban farming" does not include:
47 (i) cultivating food derived from an animal; or
48 (ii) grazing.
49 (4) "Withdrawn from this part" means that land that has been assessed under this part is
50 no longer assessed under this part or eligible for assessment under this part for any reason
51 including that:
52 (a) an owner voluntarily requests that the land be withdrawn from this part;
53 (b) the land is no longer actively devoted to urban farming;
54 (c) (i) the land has a change in ownership; and
55 (ii) (A) the new owner fails to apply for assessment under this part as required by
56 Section 59-2-1707 ; or
57 (B) an owner applies for assessment under this part, as required by Section 59-2-1707 ,

58 but the land does not meet the requirements of this part to be assessed under this part;
59 (d) (i) the legal description of the land changes; and
60 (ii) (A) an owner fails to apply for assessment under this part, as required by Section
61 59-2-1707 ; or
62 (B) an owner applies for assessment under this part, as required by Section 59-2-1707 ,
63 but the land does not meet the requirements of this part to be assessed under this part;
64 (e) the owner of the land fails to file an application as provided in Section 59-2-1707 ;
65 or
66 (f) except as provided in Section 59-2-1703 , the land fails to meet a requirement of
67 Section 59-2-1703 .
68 Section 2. Section 59-2-1703 is amended to read:
69 59-2-1703. Qualifications for urban farming assessment.
70 (1) (a) For general property tax purposes, land may be assessed on the basis of the
71 value that the land has for agricultural use if the land:
72 (i) is actively devoted to urban farming;
73 (ii) is at least two contiguous acres, but less than five acres, in size; and
74 (iii) has been actively devoted to urban farming for at least two successive years
75 immediately preceding the tax year for which the land is assessed under this part.
76 (b) Land that is not actively devoted to urban farming may not be assessed as provided
77 in Subsection (1)(a), even if the land is part of a parcel that includes land actively devoted to
78 urban farming.
79 (2) (a) In determining whether land is actively devoted to urban farming, production
80 per acre for a given county or area and a given type of land shall be determined by using the
81 first applicable of the following:
82 (i) production levels reported in the current publication of Utah Agricultural Statistics;
83 (ii) current crop budgets developed and published by Utah State University; or
84 [(iii) other acceptable standards of agricultural production designated by the
85 commission by rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative

86 Rulemaking Act, using:]
87 [(A) information provided annually to the commission by the county assessor in a
88 county where urban farming occurs; and]
89 [(B) other information the commission determines is appropriate.]
90 (iii) the highest per acre value used for land assessed under the Farmland Assessment
91 Act for the county in which the property is located.
92 (b) A county assessor may not assess land actively devoted to urban farming on the
93 basis of the value that the land has for agricultural use under this part unless an owner annually
94 files documentation with the county assessor:
95 (i) on a form provided by the county assessor;
96 (ii) demonstrating to the satisfaction of the county assessor that the land meets the
97 production levels required under this part; and
98 (iii) except as provided in Subsection 59-2-1707 (2)(c)(i), no later than January 30 for
99 each tax year in which the owner applies for assessment under this part.
100 (3) Notwithstanding Subsection (1)(a)(ii), a county board of equalization may grant a
101 waiver of the acreage requirements of Subsection (1)(a)(ii):
102 (a) on appeal by an owner; and
103 (b) if the owner submits documentation to the county assessor demonstrating to the
104 satisfaction of the county assessor that:
105 (i) the failure to meet the acreage requirements of Subsection (1)(a)(ii) arose solely as a
106 result of an acquisition by a governmental entity by:
107 (A) eminent domain; or
108 (B) the threat or imminence of an eminent domain proceeding;
109 (ii) the land is actively devoted to urban farming; and
110 (iii) no change occurs in the ownership of the land.
111 Section 3. Section 59-2-1705 is amended to read:
112 59-2-1705. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
113 Interest -- Notice -- Collection -- Distribution -- Appeal to county board of equalization.

114 (1) Except as provided in this section or Section 59-2-1710 , land that is withdrawn
115 from this part is subject to a rollback tax imposed as provided in this section.
116 (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
117 within 120 days after the day on which the land is withdrawn from this part.
118 (b) An owner who fails to notify the county assessor under Subsection (2)(a) that land
119 is withdrawn from this part is subject to a penalty equal to the greater of:
120 (i) $10; or
121 (ii) 2% of the rollback tax due for the last year of the rollback period.
122 (3) (a) The county assessor shall determine the amount of the rollback tax by
123 computing the difference for the rollback period described in Subsection (3)(b) between:
124 (i) the tax paid while the land was assessed under this part; and
125 (ii) the tax that would have been paid had the property not been assessed under this
126 part.
127 (b) For purposes of this section, the rollback period is a time period that:
128 (i) begins on the later of:
129 (A) the date the land is first assessed under this part; or
130 (B) [10] five years preceding the day on which the county assessor mails the notice
131 required by Subsection (5); and
132 (ii) ends the day on which the county assessor mails the notice required by Subsection
133 (5).
134 (4) (a) The county treasurer shall:
135 (i) collect the rollback tax; and
136 (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
137 on the property has been satisfied by:
138 (A) preparing a document that certifies that the rollback tax lien on the property has
139 been satisfied; and
140 (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
141 for recording.

142 (b) The rollback tax collected under this section shall:
143 (i) be paid into the county treasury; and
144 (ii) be paid by the county treasurer to the various taxing entities pro rata in accordance
145 with the property tax levies for the current year.
146 (5) (a) The county assessor shall mail to an owner of the land that is subject to a
147 rollback tax a notice that:
148 (i) the land is withdrawn from this part;
149 (ii) the land is subject to a rollback tax under this section; and
150 (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
151 30 days after the day on which the county assessor mails the notice.
152 (b) (i) The rollback tax is due and payable on the day the county assessor mails the
153 notice required by Subsection (5)(a).
154 (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
155 is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
156 the county assessor mails the notice required by Subsection (5)(a).
157 (6) (a) Subject to Subsection (6)(b), the rollback tax and interest imposed under
158 Subsection (7) are a lien on the land assessed under this part.
159 (b) The lien described in Subsection (6)(a) shall:
160 (i) arise upon the imposition of the rollback tax under this section;
161 (ii) end on the day on which the rollback tax and interest imposed under Subsection (7)
162 are paid in full; and
163 (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
164 (7) (a) A delinquent rollback tax under this section shall accrue interest:
165 (i) from the date of delinquency until paid; and
166 (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
167 of the year in which the delinquency occurs.
168 (b) A rollback tax that is delinquent on September 1 of any year shall be included on
169 the notice required by Section 59-2-1317 , along with interest calculated on that delinquent

170 amount through November 30 of the year in which the notice under Section 59-2-1317 is
171 mailed.
172 (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
173 amendment to this part is not subject to the rollback tax if the owner of the land notifies the
174 county assessor that the land is withdrawn from this part in accordance with Subsection (2).
175 (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
176 an event other than an amendment to this part, whether voluntary or involuntary, is subject to
177 the rollback tax.
178 (9) Except as provided in Section 59-2-1710 , land that becomes exempt from taxation
179 under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
180 meets the requirements of Section 59-2-1703 to be assessed under this part.
181 (10) (a) Subject to Subsection (10)(b), an owner of land may appeal to the county
182 board of equalization:
183 (i) a decision by a county assessor to withdraw land from assessment under this part; or
184 (ii) the imposition of a rollback tax under this section.
185 (b) An owner shall file an appeal under Subsection (10)(a) no later than 45 days after
186 the day on which the county assessor mails the notice required by Subsection (5).