04/24/2002 03:38 PM Senate RES

      CSHB 455(CRA)-MUNICIPAL TAXATION OF AGRICULTURAL LAND                                                                 
                                                                                                                              
MR. JOHN  MANLEY, staff  to Representative  Harris, sponsor  of HB
,  told members  that land  classified as  agricultural in  the                                                              
state is  being assessed  at more  than free  market value  rather                                                              
than at the value commensurate with  the restrictions that are put                                                              
on  the  land.  This  bill  would   correct  that  discrepancy  by                                                              
directing that the  land be assessed based on what  it can produce                                                              
under its restrictions.                                                                                                         
                                                                                                                                
SENATOR ELTON  said he was assuming  that the state  assessor when                                                              
valuing land in  municipalities would value it  at the agriculture                                                              
rate also.                                                                                                                      
                                                                                                                                
CHAIRMAN TORGERSON said  this bill only applies to  state land but                                                              
his  question is  on  other than  state  land. Municipalities  get                                                              
partial  exemptions depending  on how  much of  the land is  being                                                              
farmed. He asked if Mr. Rob Wells knew the technical answer.                                                                    
                                                                                                                                
MR. ROB WELLS,  Director, Division of Agriculture,  DNR, explained                                                              
that this  bill only deals with  land that the state  conveys with                                                              
agricultural  restrictions.  The division  has  worked with  Steve                                                              
Vansant  in the Assessors  Office  who has testified  that  he can                                                              
work  with this  legislation.  It does  not  preclude a  municipal                                                              
assessor  from determining  the value  of  the land,  but it  does                                                              
require, when the  state conveys agriculture lands  with covenants                                                              
or other  restrictions, that the  assessor recognize that  when he                                                              
does his assessment every January 1.                                                                                            
                                                                                                                                
CHAIRMAN  TORGERSON asked  if the  bill  doesn't affect  municipal                                                              
property right now for the most part.                                                                                           
                                                                                                                                
MR. WELLS  said that is correct.  He added, "It does  affect state                                                              
agriculture lands  that are  in municipalities…It relieves  people                                                              
with [agricultural]  restricted lands  from filling out  an annual                                                              
application  to  a municipality  for  the exemption,  because,  in                                                              
fact,  they  are restricted  to  [agriculture]  uses by  the  very                                                              
conveyance."                                                                                                                    
                                                                                                                                
SENATOR TAYLOR moved CSHB 455(CRA)  from committee with individual                                                              
recommendations. There were no objections and it was so ordered.