CSHB 455(CRA)-MUNICIPAL TAXATION OF AGRICULTURAL LAND    MR. JOHN MANLEY, staff to Representative Harris, sponsor of HB 455, 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.