A Bill for an Act
Page 1, Line 101Concerning clarification of definitions used in connection
Page 1, Line 102with the taxation of agricultural property.
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://leg.colorado.gov/.)
Water Resources and Agriculture Review Committee. The bill broadens the definition of "ranch" for purposes of property taxation to mean a parcel of land that is predominantly used for grazing livestock for the primary purpose of obtaining a monetary profit. A ranch must operate through a pasture-based operation, which is newly defined as a method of livestock management where pasture-grazed livestock have regular access to open pasture and derive a majority of their diet through grazing.
The bill also broadens the definition of "farm" for purposes of property taxation to mirror the predominant use language in the definition of "ranch". With this change, a farm means a parcel of land that is predominantly used to produce agricultural products that originate from the land's productivity for the primary purpose of obtaining a monetary profit.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly
Page 2, Line 3finds and declares that:
Page 2, Line 4(a) In Colorado, since at least 1967, the classification of property
Page 2, Line 5as agricultural land has helped support agriculture producers through
Page 2, Line 6reductions in property tax obligations;
Page 2, Line 7(b) Under current law, enacted in 1983, the classification applies
Page 2, Line 8to land that is used for grazing livestock or producing agricultural
Page 2, Line 9products;
Page 2, Line 10(c) Rising land prices make it difficult for producers to purchase
Page 2, Line 11large tracts of land. As a result, entry into agriculture is increasingly
Page 2, Line 12occurring through smaller-scale operations, which are more financially
Page 2, Line 13feasible.
Page 2, Line 14(d) Smaller farms and ranches are using pasture-based operations
Page 2, Line 15to produce agricultural products for profit, including pasturing livestock
Page 2, Line 16like chickens and pigs, to meet consumer demands for locally sourced
Page 2, Line 17food, support their agricultural businesses, supply food to other small
Page 2, Line 18businesses, and generate significant economic activity locally and
Page 2, Line 19statewide.
Page 2, Line 20(2) Therefore, it is in the best interest of the state and is the
Page 2, Line 21intention of the general assembly that the classification of agricultural
Page 2, Line 22property extend to producers that predominantly use their land to produce
Page 3, Line 1agricultural products and predominantly pasture their land to graze
Page 3, Line 2livestock, which will save these producers money, encourage more
Page 3, Line 3agricultural activity, and benefit the economy of local communities and
Page 3, Line 4of the state.
Page 3, Line 5SECTION 2. In Colorado Revised Statutes, 39-1-102, amend
Page 3, Line 6(3.5) and (13.5) as follows:
Page 3, Line 739-1-102. Definitions.
Page 3, Line 8As used in articles 1 to 13 of this title 39, unless the context
Page 3, Line 9otherwise requires:
Page 3, Line 10(3.5) "Farm" means a parcel of land
whichPage 3, Line 11predominantly used to produce agricultural products that originate from
Page 3, Line 12the land's productivity for the primary purpose of obtaining a monetary
Page 3, Line 13profit.
Page 3, Line 14(13.5) (a) "Ranch" means a parcel of land
whichPage 3, Line 15predominantly used for grazing livestock for the primary purpose of
Page 3, Line 16obtaining a monetary profit through a pasture-based operation.
Page 3, Line 17(b) For the purposes of this subsection (13.5):
Page 3, Line 18(I) "Livestock" means domestic animals
whichPage 3, Line 19food for human or animal consumption, breeding, draft, or profit; and
Page 3, Line 20(II) "Pasture-based operation" means a method of
Page 3, Line 21livestock management where pasture-grazed livestock have
Page 3, Line 22regular access to open pasture and derive a majority of their
Page 3, Line 23diet through grazing.
Page 3, Line 24SECTION 3. Act subject to petition - effective date -
Page 3, Line 25applicability. (1) This act takes effect January 1, 2027; except that, if a
Page 3, Line 26referendum petition is filed pursuant to section 1 (3) of article V of the
Page 3, Line 27state constitution against this act or an item, section, or part of this act
Page 4, Line 1within the ninety-day period after final adjournment of the general
Page 4, Line 2assembly, then the act, item, section, or part will not take effect unless
Page 4, Line 3approved by the people at the general election to be held in November
Page 4, Line 42026 and, in such case, will take effect January 1, 2027, or on the date of
Page 4, Line 5the official declaration of the vote thereon by the governor, whichever is
Page 4, Line 6later.
Page 4, Line 7(2) This act applies to property tax years commencing on or after
Page 4, Line 8the applicable effective date of this act.