SB 163 — AN ACT TO AMEND TITLE 9 OF THE DELAWARE CODE RELATING TO FARMS.

Lawson DELAWARE& STATERep. SENATE 151st GENERAL ASSEMBLY SENATE AMENDMENT NO.

3Dorsey TOWalker SENATESens. BILL NO.

163Ennis, AMENDHocker, SenateLopez, BillPettyjohn, No.Richardson, Wilson;

163Reps. by deleting line 11 in its entirety.

FURTHERCollins, AMENDGray, SenateSpiegelman, BillYearick No.DELAWARE STATE SENATE 151st GENERAL ASSEMBLY SENATE BILL NO.

163 onAN linesACT 24TO andAMEND 25TITLE by9 removingOF “andTHE inDELAWARE determiningCODE whetherRELATING theTO minimumFARMS. acreage requirements are requirement is met,” and inserting in lieu thereof the following:

“andBE inIT determiningENACTED whetherBY theTHE minimumGENERAL acreageASSEMBLY requirementsOF areTHE met,”.STATE OF DELAWARE:

FURTHERSection AMEND1. Senate Bill No.

163Amend on§ line8333, 33Title by9 deletingof “the $Delaware ”Code by making deletions as itshown appearsby thereinstrike through and insertinginsertions inas lieushown thereofby “underline §as ”.follows:

FURTHER§ AMEND8333. Senate Bill No.

163Criteria byfor insertingagricultural, thehorticultural, followingor afterforestry lineland 58:use.

“Section(a) 3.Land shall be deemed to be is actively devoted to agricultural, horticultural horticultural, or forestry use when:

Thiswhen Actall does not apply to a person’s or property’s eligibility for United States Department of Agricultural loan programs or the Delawarefollowing Agriculturalcriteria Landsare Preservationmet: program.".

SYNOPSIS(1) ThisThe Amendmentuse doesresults allin $1,000 or more of agricultural, horticultural, or forestry products being produced and sold during the following:applicable year.

1.For the purposes of this section, “applicable year” means the calendar year immediately before the February 1 that an application is due under § 8334(3) of this title.

Removes(2) languageThe relatingowner toof acreagethe requirements.land filed a Schedule F (Profit or Loss from Farming) form with the United States Department of Treasury, Internal Revenue Service, for the applicable year.

2.(3) The use is on at least 10 acres.

Clarifies(1) thatNot thisless Actthan does10 notacres applyare toin asuch person’suse, and the gross sales of agricultural, horticultural or property’sforestry eligibilityproducts forproduced Unitedthereon Statestogether Departmentwith any agricultural program payments and sales of Agriculturalcommodities loanreceived under government entitlement programs orhave averaged at least $1,000 per year within a 2-year period of time immediately preceding the Delawaretax Agriculturalyear Landsin Preservationissue, program.or there is clear evidence of anticipated yearly gross sales and such payments amounting to at least $1,000 per year, within a 2-year period of time;

3.or (2) Less than 10 acres are in such use and the gross sales of agricultural, horticultural or forestry products produced thereon together with any agricultural program payments and sales of commodities received under government entitlement programs shall have averaged at least $10,000 per year within a 2-year period of time immediately preceding the tax year in issue, or there is clear evidence of anticipated yearly gross sales and such payments amounting to at least $10,000 per year within a 2-year period of time.

MakesIn acomputing technicalsuch correctionanticipated toyearly correctgross asales typographicalfor error.land under 10 acres in such use, the maximum amount computed from future sales of forestry products shall be not more than $2,000 annually.

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06/02/2021 02:39 PM (b) In applying these the criteria under this section, and in determining whether the minimum acreage requirements are requirement is met, all contiguous parcels of land held by identical owners in identical proportions of ownership and in identical legal form of title, shall be are considered as a single unit.

Section 2.

Amend § 8334, Title 9 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 8334.

Eligibility for valuation under §§ 8330-8337.

Land which is actively devoted to agricultural, horticultural or forest use shall be and eligible for valuation, assessment assessment, and taxation as provided in this section when it meets all of the following qualifications:

(1) It has been so devoted for at least the 2 successive years immediately preceding the tax year for which valuation under this section is requested;

The land use meets the criteria under $ 8333 of this title.

(2) The area of such land:

(a) Is not less than 10 acres in such use, and the gross sales of agricultural, horticultural or forestry products produced thereon together with any agricultural program payments and sales of commodities received under government entitlement programs have averaged at least $1,000 per year within a 2-year period of time immediately preceding the tax year in issue, or there is clear evidence of anticipated yearly gross sales and such payments amounting to at least $1,000 per year, within a 2-year period of time;

or (b) Is less than 10 acres in such use and the gross sales of agricultural, horticultural or forestry products produced thereon together with any agricultural program payments and sales of commodities received under government entitlement programs shall have averaged at least $10,000 per year within a 2-year period of time immediately preceding the tax year in issue, or there is clear evidence of anticipated yearly gross sales and such payments amounting to at least $10,000 per year within a 2-year period of time.

In computing such anticipated yearly gross sales for land under 10 acres in such use, the maximum amount computed from future sales of forestry products shall not be more than $2,000 annually.

[Repealed.] In applying these criteria, and in determining whether the minimum acreage requirements are met, all contiguous parcels of land held by identical owners in identical proportions of ownership and in identical legal form of title, shall be considered as a single unit.

(3) Application by the owner of such land for valuation under this section is submitted The owner of the land submits an application for valuation under this section and the application meets all of the following:

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