SB 10 — Agricultural Property Tax Definitions

NOTE:SENATE BILL 26-010 BY SENATOR(S) Roberts and Pelton B., Catlin, Amabile, Baisley, Ball, Bright, Carson, Cutter,Exum,Frizell, GonzalesJ., Hinrichsen, Jodeh, Kipp, Kirkmeyer, Liston, Michaelson Jenet, Pelton R., Rich, Simpson, Snyder, Wallace, Weissman, Zamora Wilson, Coleman;

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ToCONCERNING determineCLARIFICATION whetherOF theDEFINITIONS GovernorUSED hasIN signedCONNECTION theWITH billTHE orTAXATION takenOF otherAGRICULTURAL actionPROPERTY. on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

SENATEBe BILLit 26-010enacted BYby SENATOR(S)the RobertsGeneral andAssembly Peltonofthe B.,State Catlin,ofColorado: Amabile, Baisley, Ball, Bright,Carson,Cutter,Exum,Frizell,GonzalesJ.,Hinrichsen,Jodeh,Kipp, Kirkmeyer, Liston, Michaelson Jenet, Pelton R., Rich, Simpson, Snyder, Wallace, Weissman, Zamora Wilson, Coleman;

alsoREPRESENTATIVE(S)McCluskieandMcCormick,Martinez,Soper, Duran, Goldstein, Lieder, Lindsay, Lukens, Marshall, Mauro, Nguyen, Richardson, Rutinel, Smith, Stewart K., Story, Taggart, Titone, Weinberg.

C ONCERNING CLARIFICATION OF DEFINITIONS USED IN CONNECTION WITH THE TAXATION OF AGRICULTURAL PROPERTY .

Be it enacted by the General Assembly of the State of Colorado:

(a) InColorado,sinceIn atleast1967,theclassificationofColorado, propertyassince at least 1967, the classification ofproperty as agricultural land has helped support agriculture producers through reductions in property tax obligations;

Capital letters oror&boitalic bold & italic numbers indicate new material added to existing law;

dashes through words or numbers indicate deletionsdeletionsfrom from existing law andandsuch such material is notnotpart part of the act.

(d) Smallerfarmsandranchesareusingpasture-basedoperationstoSmallerfarms and ranches are usingpasture-based operations to produce agricultural products for profit, including pasturing livestock like chickens and pigs, to meet consumer demands for locally sourced food, supporttheiragriculturalbusinesses,supplyfoodtoothersmallbusinesses,supporttheiragricultural businesses, supply food to othersmall businesses, and generate significant economic activity locally and statewide.

(2) Therefore,itisinthebestinterestofthestateandistheintentionTherefore, it is inthe best interest ofthe state and is the intention of the general assembly that the classification of agricultural property extend to producers that predominantly use their land to produce agricultural products and predominantly pasture their land to graze livestock, which will save these producers money, encourage more agricultural activity, and benefit the economy ofoflocal local communities and of the state.

InColoradoRevisedStatutes,39-1-102,amend(3.5)In ColoradoRevised Statutes, 39-1-102, amend (3.5) and (13.5) as follows:

(3.5) "Farm"meansaparceloflandwhich"Farm" means aparcel ofland which THAT isPREDOMINANTLY used to produce agricultural products that originate from the land's productivity for the primary purpose ofofobtaining obtaining a monetary profit.

(13.5) (a) "Ranch" means a parcel of land which THAT is PREDOMINANTLY used for grazing livestock for the primary purpose of obtaining a monetary profit THROUGH A PASTUREPASTURE-BASED BASEDOPERATION. OPERATION .

(b) For the purposes ofofthis this subsection (13.5):

(I) "Livestock" means domestic animals which THAT are used for food for human or animal consumption, breeding, draft, or profit;ANDprofit; PAGE 2-SENATE BILL 26-010 (II) "PASTURE -BASEDOPERATION " MEANSAMETHODOFLIVESTOCK MANAGEMENTWHEREPASTURE GRAZEDLIVESTOCKHAVEREGULARACCESS TO OPEN PASTURE AND DERIVE A MAJORITY OF THEIR DIET THROUGH GRAZING .

AND PAGE 2-SENATE BILL 26-010 (II)"PASTURE-BASEDOPERATION" MEANS A METHOD OF LIVESTOCK MANAGEMENTWHERE PASTURE-GRAZED LIVESTOCKHA VEREGULAR ACCESS TO OPEN PASTURE AND DERIVE A MAJORITY OF THEIR DIET THROUGH GRAZING.

Act subject to petition - effective date - applicability.applicability(1) This act takes effect January 1, 2027;

(1)except Thisthat, if a referendumpetition is filed pursuantto section 1(3) ofarticle V ofthe state constitution against this act takesoran item, section, orpart ofthis act within the ninety-day period after final adjournment ofthe general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect January 1, 2027;2027, or on the date ofthe official declaration ofthe vote thereon by the governor, whichever is later.

exceptPAGE that,3-SENATE ifBILL a26-010 referendumpetitionisfiledpursuanttosection1(3)ofarticleVofthestate(2) constitutionThisactappliestopropertytaxyearscommencingonorafterthe againstapplicable thisactoranitem,section,orpartofeffective this act within the ninety-dayperiod after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved bythe people at the general election to be held in November 2026 and, in such case, will take effect January 1, 2027, or on the date ofofthis theact. official declaration of the vote thereon by the governor, whichever is later.

PAGEJames 3-SENATERashad BILLColeman, 26-010Sr. (2) Thisactappliestopropertytaxyearscommencingonorafterthe applicable effective date of this act.

____________________________Julie ____________________________McCl�ie JamesPRESIDENT RashadOF Coleman,SPEAKER Sr.OF THE HOUSE THE SENATE OF REPRESENTATIVES � Esther van Mourik \)��Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED Oh mond� \fYl&u-q➔h 2-02.& o...fzofVY'\ (Date and Time) Jared S.

JulieGOVE McCluskiePAGE PRESIDENT4-SENATE OFBILL SPEAKER26-010 OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ ____________________________ Esther van Mourik Vanessa Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 4-SENATE BILL 26-010