Legislation that would restrict some of Colorado’s generous agricultural tax breaks is headed to Gov. John Hickenlooper’s desk after the House gave the bill the final OK today.
House Bill 1146 had attracted the support of county assessors and county commissioners who have long contended that agricultural land classifications across the state are creating inequities.
Under current law, property owners can receive an agricultural tax break merely by showing they tried to make a profit through agriculture. That’s a standard so lenient that some property owners qualify by letting cattle graze a few days out of the year.
Under the new standard, assessors can tax at a higher residential rate up to 2 acres of ag land, including the land underneath a residence, in certain instances. To protect real farming interests, the legislation restricts the higher residential tax rate to those instances when a residence isn’t considered integral to a farming operation.
State Rep. Tom Massey, a Republican from Poncha Springs, sponsored the legislation in the House. State Sen. Pat Steadman, a Democrat from Denver, was the Senate sponsor.
“I think it will be a tool for us to use for some of the smaller properties and some of these leased properties where the homes aren’t integral in the farming operation,” said Brad Hughes, the Montrose County assessor.
The legislation does nothing to address how developers and big businesses also use agricultural tax breaks to save millions annually by doing limited farming on large swaths of vacant land throughout the state.
Hughes said he and other assessors will continue pushing for future changes that could address how developers currently use ag classifications.
Christopher N. Osher: 303-954-1747 or cosher@denverpost.com
