| (1) |
For general property tax purposes, land may be assessed on the basis of the value that the land has for agricultural use if the land:
Terms Used In Utah Code 59-2-503- Actively devoted to agricultural use: means that the land in agricultural use produces in excess of 50% of the average agricultural production per acre:
| (a) | as determined under Section 59-2-503; and |
| (b) | for:| (i) | the given type of land; and |
| (ii) | the given county or area. See Utah Code 59-2-502- Identical legal ownership: means legal ownership held by:
| (a) | identical legal parties; or |
| (b) | identical legal entities. See Utah Code 59-2-502- Improvement: includes :
| (i) | an accessory to an item described in Subsection (18)(a) if the accessory is:| (A) | essential to the operation of the item described in Subsection (18)(a); and |
| (B) | installed solely to serve the operation of the item described in Subsection (18)(a); and |
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| (ii) | an item described in Subsection (18)(a) that is temporarily detached from the land for repairs and remains located on the land. See Utah Code 59-2-102- Land: includes :Utah Code 68-3-12.5
- Other eligible acreage: means land that is:
| (a) | five or more contiguous acres; |
| (b) | eligible for assessment under this part; and |
| (c) | | (i) | located in the same county as land described in Subsection 59-2-503(1)(a); or |
| (ii) | contiguous across county lines with land described in Subsection 59-2-503(1)(a) as provided in Section 59-2-512. See Utah Code 59-2-502- Property: means property that is subject to assessment and taxation according to its value. See Utah Code 59-2-102
- Public utility: means :
| (i) | the operating property of a railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline company, electrical corporation, sewerage corporation, or heat corporation where the company performs the service for, or delivers the commodity to, the public generally or companies serving the public generally, or in the case of a gas corporation or an electrical corporation, where the gas or electricity is sold or furnished to any member or consumers within the state for domestic, commercial, or industrial use; and |
| (ii) | the operating property of any entity or person defined under Section 54-2-1 except water corporations. See Utah Code 59-2-102- Split estate mineral rights owner: means a person that:
| (a) | has a legal right to extract a mineral from property; |
| (b) | does not hold more than a 25% interest in:| (i) | the land surface rights of the property where the wellhead is located; or |
| (ii) | an entity with an ownership interest in the land surface rights of the property where the wellhead is located; |
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| (c) | is not an entity in which the owner of the land surface rights of the property where the wellhead is located holds more than a 25% interest; and |
| (d) | does not have a relationship with an owner of the land surface rights of the property where the wellhead is located. See Utah Code 59-2-102- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
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| (a) |
is not less than five contiguous acres in area, except that land may be assessed on the basis of the value that the land has for agricultural use:
| (i) |
if:
| (A) |
the land is devoted to agricultural use in conjunction with other eligible acreage; and |
| (B) |
the land and the other eligible acreage described in Subsection (1)(a)(i)(A) have identical legal ownership; or |
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| (ii) |
as provided under Subsections (4) and (5); and |
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| (b) |
except as provided in Subsection (6) or (7):
| (i) |
is actively devoted to agricultural use; and |
| (ii) |
has been actively devoted to agricultural use for at least two successive years immediately preceding the tax year for which the land is being assessed under this part. |
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| (2) |
In determining whether land is actively devoted to agricultural use, production per acre for a given county or area and a given type of land shall be determined by using the first applicable of the following:
| (a) |
production levels reported in the current publication of the Utah Agricultural Statistics; |
| (b) |
current crop budgets developed and published by Utah State University; and |
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| (3) |
Land may be assessed on the basis of the land’s agricultural value if the land:
| (a) |
is subject to the privilege tax imposed by Section 59-4-101; |
| (b) |
is owned by the state or any of the state’s political subdivisions; and |
| (c) |
meets the requirements of Subsection (1). |
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| (4) |
Notwithstanding Subsection (1)(a), the commission or a county board of equalization may grant a waiver of the acreage limitation for land upon:
| (a) |
appeal by the owner; and |
| (b) |
submission of proof that 80% or more of the owner’s, purchaser’s, or lessee’s income is derived from agricultural products produced on the property in question. |
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| (5) |
Notwithstanding Subsection (1)(a), the commission or a county board of equalization shall grant a waiver of the acreage limitation for land upon:
| (a) |
appeal by the owner; and |
| (b) |
submission of proof that:
| (i) |
the failure to meet the acreage requirement arose solely as a result of an acquisition by a public utility or a governmental entity by:
| (B) |
the threat or imminence of an eminent domain proceeding; and |
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| (ii) |
the land is actively devoted to agricultural use. |
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| (6) |
| (a) |
The commission or a county board of equalization may grant a waiver of the requirement that the land is actively devoted to agricultural use for the tax year for which the land is being assessed under this part upon:
| (i) |
appeal by the owner; and |
| (ii) |
submission of proof that:
| (A) |
the land was assessed on the basis of agricultural use for at least two years immediately preceding that tax year; and |
| (B) |
the failure to meet the agricultural production requirements for that tax year was due to no fault or act of the owner, purchaser, or lessee. |
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| (b) |
As used in Subsection (6)(a), “fault” does not include:
| (i) |
intentional planting of crops or trees which, because of the maturation period, do not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production levels required for land actively devoted to agricultural use; or |
| (ii) |
implementation of a bona fide range improvement program, crop rotation program, or other similar accepted cultural practices which do not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production levels required for land actively devoted to agricultural use. |
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| (7) |
Land that otherwise qualifies for assessment under this part qualifies for assessment under this part in the first year the land resumes being actively devoted to agricultural use if:
| (a) |
the land becomes ineligible for assessment under this part only as a result of a split estate mineral rights owner exercising the right to extract a mineral; and |
| (b) |
the land qualified for assessment under this part in the year immediately preceding the year the land became ineligible for assessment under this part only as a result of a split estate mineral rights owner exercising the right to extract a mineral. |
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| (8) |
Land that otherwise qualifies under Subsection (1) to be assessed on the basis of the value that the land has for agricultural use does not lose that qualification by becoming subject to a forest stewardship plan developed under Section 65A-8a-106 under which the land is subject to a temporary period of limited use or nonuse. |
Amended by Chapter 72, 2023 General Session
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