1     
GREENBELT PROPERTY AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jason Kyle

5     
Senate Sponsor: Ronald M. Winterton

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions of the Utah Farmland Assessment Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires a county or commission to waive the acreage requirement for agricultural
13     assessment if the assessed property fails to meet the acreage requirement because of
14     a qualified utility or governmental entity exercising eminent domain or threatening
15     eminent domain; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          59-2-503, as last amended by Laws of Utah 2013, Chapter 322
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 59-2-503 is amended to read:
27          59-2-503. Qualifications for agricultural use assessment.
28          (1) For general property tax purposes, land may be assessed on the basis of the value

29     that the land has for agricultural use if the land:
30          (a) is not less than five contiguous acres in area, except that land may be assessed on
31     the basis of the value that the land has for agricultural use:
32          (i) if:
33          (A) the land is devoted to agricultural use in conjunction with other eligible acreage;
34     and
35          (B) the land and the other eligible acreage described in Subsection (1)(a)(i)(A) have
36     identical legal ownership; or
37          (ii) as provided under [Subsection] Subsections (4) and (5); and
38          (b) except as provided in Subsection [(5)] (6) or [(6)] (7):
39          (i) is actively devoted to agricultural use; and
40          (ii) has been actively devoted to agricultural use for at least two successive years
41     immediately preceding the tax year for which the land is being assessed under this part.
42          (2) In determining whether land is actively devoted to agricultural use, production per
43     acre for a given county or area and a given type of land shall be determined by using the first
44     applicable of the following:
45          (a) production levels reported in the current publication of the Utah Agricultural
46     Statistics;
47          (b) current crop budgets developed and published by Utah State University; and
48          (c) other acceptable standards of agricultural production designated by the commission
49     by rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
50     Act.
51          (3) Land may be assessed on the basis of the land's agricultural value if the land:
52          (a) is subject to the privilege tax imposed by Section 59-4-101;
53          (b) is owned by the state or any of the state's political subdivisions; and
54          (c) meets the requirements of Subsection (1).
55          (4) Notwithstanding Subsection (1)(a), the commission or a county board of

56     equalization may grant a waiver of the acreage limitation for land upon:
57          (a) appeal by the owner; and
58          (b) submission of proof that[: (i)] 80% or more of the owner's, purchaser's, or lessee's
59     income is derived from agricultural products produced on the property in question[; or].
60          [(ii) (A) the failure to meet the acreage requirement arose solely as a result of an
61     acquisition by a governmental entity by:]
62          [(I) eminent domain; or]
63          [(II) the threat or imminence of an eminent domain proceeding;]
64          [(B) the land is actively devoted to agricultural use; and]
65          [(C) no change occurs in the ownership of the land.]
66          (5) Notwithstanding Subsection (1)(a), the commission or a county board of
67     equalization shall grant a waiver of the acreage limitation for land upon:
68          (a) appeal by the owner; and
69          (b) submission of proof that:
70          (i) the failure to meet the acreage requirement arose solely as a result of an acquisition
71     by a public utility or a governmental entity by:
72          (A) eminent domain; or
73          (B) the threat or imminence of an eminent domain proceeding; and
74          (ii) the land is actively devoted to agricultural use.
75          [(5)] (6) (a) The commission or a county board of equalization may grant a waiver of
76     the requirement that the land is actively devoted to agricultural use for the tax year for which
77     the land is being assessed under this part upon:
78          (i) appeal by the owner; and
79          (ii) submission of proof that:
80          (A) the land was assessed on the basis of agricultural use for at least two years
81     immediately preceding that tax year; and
82          (B) the failure to meet the agricultural production requirements for that tax year was

83     due to no fault or act of the owner, purchaser, or lessee.
84          (b) As used in Subsection [(5)(a)] (6)(a), "fault" does not include:
85          (i) intentional planting of crops or trees which, because of the maturation period, do
86     not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production
87     levels required for land actively devoted to agricultural use; or
88          (ii) implementation of a bona fide range improvement program, crop rotation program,
89     or other similar accepted cultural practices which do not give the owner, purchaser, or lessee a
90     reasonable opportunity to satisfy the production levels required for land actively devoted to
91     agricultural use.
92          [(6)] (7) Land that otherwise qualifies for assessment under this part qualifies for
93     assessment under this part in the first year the land resumes being actively devoted to
94     agricultural use if:
95          (a) the land becomes ineligible for assessment under this part only as a result of a split
96     estate mineral rights owner exercising the right to extract a mineral; and
97          (b) the land qualified for assessment under this part in the year immediately preceding
98     the year the land became ineligible for assessment under this part only as a result of a split
99     estate mineral rights owner exercising the right to extract a mineral.
100          [(7)] (8) Land that otherwise qualifies under Subsection (1) to be assessed on the basis
101     of the value that the land has for agricultural use does not lose that qualification by becoming
102     subject to a forest stewardship plan developed under Section 65A-8a-106 under which the land
103     is subject to a temporary period of limited use or nonuse.