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7 LONG TITLE
8 General Description:
9 This bill addresses the applicability of fallow land to agricultural and urban farming
10 property tax assessment.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ allows for fallow land to qualify for agricultural and urban farming assessment;
15 ▸ requires landowners to provide written notice to the county assessor in each year
16 that land is fallowed;
17 ▸ allows a county assessor to require landowners to submit a land management plan if
18 a landowner intends to fallow land for more than one year; 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 59-2-503, as last amended by Laws of Utah 2023, Chapter 72
27 59-2-1703, as last amended by Laws of Utah 2023, Chapter 189
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29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 59-2-503 is amended to read:
31 59-2-503. Qualifications for agricultural use assessment.
32 (1) For general property tax purposes, land may be assessed on the basis of the value
33 that the land has for agricultural use if the land:
34 (a) is not less than five contiguous acres in area, except that land may be assessed on
35 the basis of the value that the land has for agricultural use:
36 (i) if:
37 (A) the land is devoted to agricultural use in conjunction with other eligible acreage;
38 and
39 (B) the land and the other eligible acreage described in Subsection (1)(a)(i)(A) have
40 identical legal ownership; or
41 (ii) as provided under Subsections (4) and (5); and
42 (b) except as provided in Subsection (6) or (7):
43 (i) is actively devoted to agricultural use; and
44 (ii) has been actively devoted to agricultural use for at least two successive years
45 immediately preceding the tax year for which the land is being assessed under this part.
46 (2) In determining whether land is actively devoted to agricultural use, production per
47 acre for a given county or area and a given type of land shall be determined by using the first
48 applicable of the following:
49 (a) production levels reported in the current publication of the Utah Agricultural
50 Statistics;
51 (b) current crop budgets developed and published by Utah State University; and
52 (c) other acceptable standards of agricultural production designated by the commission
53 by rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
54 Act.
55 (3) Land may be assessed on the basis of the land's agricultural value if the land:
56 (a) is subject to the privilege tax imposed by Section 59-4-101;
57 (b) is owned by the state or any of the state's political subdivisions; and
58 (c) meets the requirements of Subsection (1).
59 (4) Notwithstanding Subsection (1)(a), the commission or a county board of
60 equalization may grant a waiver of the acreage limitation for land upon:
61 (a) appeal by the owner; and
62 (b) submission of proof that 80% or more of the owner's, purchaser's, or lessee's
63 income is derived from agricultural products produced on the property in question.
64 (5) Notwithstanding Subsection (1)(a), the commission or a county board of
65 equalization shall grant a waiver of the acreage limitation for land upon:
66 (a) appeal by the owner; and
67 (b) submission of proof that:
68 (i) the failure to meet the acreage requirement arose solely as a result of an acquisition
69 by a public utility or a governmental entity by:
70 (A) eminent domain; or
71 (B) the threat or imminence of an eminent domain proceeding; and
72 (ii) the land is actively devoted to agricultural use.
73 (6) (a) The commission or a county board of equalization may grant a waiver of the
74 requirement that the land is actively devoted to agricultural use for the tax year for which the
75 land is being assessed under this part upon:
76 (i) appeal by the owner; and
77 (ii) submission of proof that:
78 (A) the land was assessed on the basis of agricultural use for at least two years
79 immediately preceding that tax year; and
80 (B) the failure to meet the agricultural production requirements for that tax year was
81 due to no fault or act of the owner, purchaser, or lessee.
82 (b) As used in Subsection (6)(a), "fault" does not include:
83 (i) intentional planting of crops or trees which, because of the maturation period, do
84 not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production
85 levels required for land actively devoted to agricultural use; or
86 (ii) implementation of a bona fide range improvement program, crop rotation program,
87 or other similar accepted cultural practices which do not give the owner, purchaser, or lessee a
88 reasonable opportunity to satisfy the production levels required for land actively devoted to
89 agricultural use.
90 (7) Land that otherwise qualifies for assessment under this part qualifies for assessment
91 under this part in the first year the land resumes being actively devoted to agricultural use if:
92 (a) the land becomes ineligible for assessment under this part only as a result of a split
93 estate mineral rights owner exercising the right to extract a mineral; and
94 (b) the land qualified for assessment under this part in the year immediately preceding
95 the year the land became 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.
97 (8) Land that otherwise qualifies under Subsection (1) to be assessed on the basis of the
98 value that the land has for agricultural use does not lose that qualification by becoming subject
99 to a forest stewardship plan developed under Section 65A-8a-106 under which the land is
100 subject to a temporary period of limited use or nonuse.
101 (9) (a) Notwithstanding Subsection (1) and except as provided in Subsection (9)(d),
102 land in agricultural use that is intentionally allowed to lay fallow for one or more growing
103 seasons qualifies for assessment under this part if the fallowing is conducted:
104 (i) during periods of limited water supply;
105 (ii) as part of a prudent farm management practice, including crop rotation, rotational
106 grazing, or soil water management; or
107 (iii) to facilitate voluntary participation in a water management or agricultural water
108 optimization program.
109 (b) If the owner of land assessed under this part fallows the land during any period in a
110 calendar year, the owner shall, on or before December 31 of the year in which the land is
111 fallowed, provide to the county assessor written notice that:
112 (i) identifies the land that was fallowed during any period of the year in which the
113 notice is provided, including the acreage of the fallowed land;
114 (ii) demonstrates how the land qualifies under Subsection (9)(a); and
115 (iii) specifies whether the owner intends to fallow the land during any period in the
116 following calendar year, and, if so, the intended duration of the fallowing period.
117 (c) (i) If the written notice under Subsection (9)(b) indicates that the owner intends to
118 fallow the land during any period in the following calendar year, the county assessor may,
119 within 45 days of receiving the written notice, require the owner to submit to the county
120 assessor a land management plan in a form prescribed by the county assessor that:
121 (A) identifies the owner's objectives in fallowing the land for the intended duration of
122 the fallowing period;
123 (B) provides adequate assurances to the county assessor that the fallowed land will
124 become actively devoted to agricultural use upon the expiration of the intended fallowing
125 period; and
126 (C) includes any other information required by the county assessor.
127 (ii) If the owner submits to the county assessor a land management plan for fallowed
128 land that meets the requirements of Subsection (9)(c)(i), the county assessor may not require
129 the owner to submit a new or additional land management plan for the same land within three
130 years from the day on which the owner submitted the plan.
131 (d) Fallowed land is withdrawn from this part if:
132 (i) the county assessor determines that the land does not qualify under Subsection
133 (9)(a);
134 (ii) the owner fails to comply with the written notice requirements of Subsection (9)(b),
135 including, if applicable, failing to return the fallowed land to active agricultural use upon the
136 expiration of the intended fallowing period as specified in the written notice; or
137 (iii) the owner fails to comply with the requirements of Subsection (9)(c), if a land
138 management plan is required.
139 Section 2. Section 59-2-1703 is amended to read:
140 59-2-1703. Qualifications for urban farming assessment.
141 (1) (a) For general property tax purposes, land may be assessed on the basis of the
142 value that the land has for agricultural use if the land:
143 (i) is actively devoted to urban farming;
144 (ii) is at least one contiguous acre, but less than five acres, in size; and
145 (iii) (A) has been actively devoted to urban farming for at least two successive years
146 immediately preceding the tax year for which the land is assessed under this part; or
147 (B) was assessed under Part 5, Farmland Assessment Act, for the preceding tax year.
148 (b) Land that is not actively devoted to urban farming may not be assessed as provided
149 in Subsection (1)(a), even if the land is part of a parcel that includes land actively devoted to
150 urban farming.
151 (2) (a) In determining whether land is actively devoted to urban farming, production
152 per acre for a given county or area and a given type of land shall be determined by using the
153 first applicable of the following:
154 (i) production levels reported in the current publication of Utah Agricultural Statistics;
155 (ii) current crop budgets developed and published by Utah State University; or
156 (iii) the highest per acre value used for land assessed under the Farmland Assessment
157 Act for the county in which the property is located.
158 (b) A county assessor may not assess land actively devoted to urban farming on the
159 basis of the value that the land has for agricultural use under this part unless an owner annually
160 files documentation with the county assessor:
161 (i) on a form provided by the county assessor;
162 (ii) demonstrating to the satisfaction of the county assessor that the land meets the
163 production levels required under this part; and
164 (iii) except as provided in Subsection 59-2-1707(2)(c)(i), no later than January 30 for
165 each tax year in which the owner applies for assessment under this part.
166 (3) Notwithstanding Subsection (1)(a)(ii), a county board of equalization may grant a
167 waiver of the acreage requirements of Subsection (1)(a)(ii):
168 (a) on appeal by an owner; and
169 (b) if the owner submits documentation to the county assessor demonstrating to the
170 satisfaction of the county assessor that:
171 (i) the failure to meet the acreage requirements of Subsection (1)(a)(ii) arose solely as a
172 result of an acquisition by a governmental entity by:
173 (A) eminent domain; or
174 (B) the threat or imminence of an eminent domain proceeding;
175 (ii) the land is actively devoted to urban farming; and
176 (iii) no change occurs in the ownership of the land.
177 (4) (a) Notwithstanding Subsection (1) and except as provided in Subsection (4)(d),
178 land for urban farming that is intentionally allowed to lay fallow for one or more growing
179 seasons qualifies for assessment under this part if the fallowing is conducted:
180 (i) during periods of limited water supply;
181 (ii) as part of a prudent farm management practice, including crop rotation, rotational
182 grazing, or soil water management; or
183 (iii) to facilitate voluntary participation in a water management or agricultural water
184 optimization program.
185 (b) If the owner of land assessed under this part fallows the land during any period in a
186 calendar year, the owner shall, on or before December 31 of the year in which the land is
187 fallowed, provide to the county assessor written notice that:
188 (i) identifies the land that was fallowed during any period of the calendar year in which
189 the notice is provided, including the acreage of the fallowed land;
190 (ii) demonstrates how the fallowed land qualifies under Subsection (4)(a); and
191 (iii) specifies whether the owner intends to fallow the land during any period in the
192 following calendar year, and, if so, the intended duration of the fallowing period.
193 (c) (i) If a written notice under Subsection (4)(b) indicates that the owner intends to
194 fallow the land during any period in the following calendar year, the county assessor may,
195 within 45 days of receiving the written notice, require the owner to submit to the county
196 assessor a land management plan in a form prescribed by the county assessor that:
197 (A) identifies the owner's objectives in fallowing the land for the intended duration of
198 the fallowing period;
199 (B) provides adequate assurances to the county assessor that the fallowed land will
200 become actively devoted to urban farming upon the expiration of the intended fallowing
201 period; and
202 (C) includes any other information required by the county assessor.
203 (ii) If the owner submits to the county assessor a land management plan for fallowed
204 land that meets the requirements of Subsection (4)(c)(i), the county assessor may not require
205 the owner to submit a new or additional land management plan for the same land within three
206 years from the day on which the owner submitted the plan.
207 (d) Fallowed land is withdrawn from this part if:
208 (i) the county assessor determines that the land does not qualify under Subsection
209 (4)(a);
210 (ii) the owner fails to comply with the notice requirements of Subsection (4)(b),
211 including, if applicable, failing to return the fallowed land to active urban farming upon the
212 expiration of the intended fallowing period as specified in the written notice; or
213 (iii) the owner fails to comply with the requirements of Subsection (4)(c), if a land
214 management plan is required.
215 Section 3. Effective date.
216 This bill takes effect on May 1, 2024.