Colorado lawmakers advance property tax exemptions for more agricultural land

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Colorado lawmakers could consider a bill next year that would broaden what constitutes a ranch for property tax exemption purposes, increasing the number of properties that would be eligible for an agricultural land classification.

It is 1 of 8 bills the Legislature’s Water Resources and Agriculture Review Committee voted through on Wednesday. The bills need final approval from the Legislative Council before they can be introduced when the Legislature reconvenes in January.

The ranch bill would expand the definition to include land used for chicken and pig commercial farming. It currently applies to land used for cattle, sheep and growing hay.

“Essentially, these are folks who are engaged in farming just as much as people who are raising cattle and sheep are, and those folks are getting an exemption or getting the ag status,” Sen. Dylan Roberts, a Frisco Democrat, said.

Agricultural land is typically valued below land used for other property tax purposes.

The bill made it through the committee vote, but lawmakers raised concerns about an initial fiscal report that predicts a $5.3 million hit to school finance in the 2026-2027 fiscal year that the state would need to backfill. It would also reduce local government property tax by about $14.9 million. If more property owners are incentivized to use their land to fit the definition and obtain an agricultural classification, the budget impact could increase.

“I’m struggling with this one. I really like the idea and the thought of it — and I will say that this is something that some other states who are in economically sound situations have been able to implement — I just worry that we will not be in a position to fully do what we want to do with our state budget,” Sen. Janice Marchman, a Loveland Democrat, said.

Roberts said he does not think the exemption would be used as often as the state fiscal report assumes, and he plans to work with analysts to get the number lower.

The committee also approved a bill that would keep personal information private in depredation claims as people seek compensation for animals killed by predators such as reintroduced wolves. Roberts, who brought the bill forward, said fear of public attention and pestering from activists and media has created a chilling effect for people to claim reimbursement.

Here are six other bills the committee voted in favor of:

A bill to remove a plumbing licensure requirement for people who inspect, test or repair backflow prevention devices. Those devices protect clean water from wastewater contamination.
A bill to update gendered and outdated language in the agriculture-related section of state statute.
A bill to ratify Colorado as a member of the Interstate Mining Compact and create a new permit type for mining waste removal.
A bill to redefine some agricultural buildings so they are exempt from energy use reporting requirements.
A bill to continue the Wildlife Habitat Stamp Program indefinitely.
A bill to create a task force to study water funding from severance taxes.