HOUSE BILL No. 1559
DIGEST OF INTRODUCED BILL
Synopsis: Property tax assessment of certain farmland. Adds a
provision to allow a person to apply to the township assessor for the
assessment of farmland referred to as a farmland preservation parcel at
$1 per acre if the parcel contains at least ten acres, does not contain a
dwelling or another usable building, and is assessed as agricultural
land. Requires payment to the county of the property tax benefit
received over a period of up to ten years if the land is withdrawn from
the farmland preservation parcel classification.
Effective: Upon passage; January 1, 2001 (retroactive).
January 11, 2001, read first time and referred to Committee on Ways and Means.
First Regular Session 112th General Assembly (2001)
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HOUSE BILL No. 1559
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-6.9; (01)IN1559.1.1. -->
IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2001 (RETROACTIVE)]:
Chapter 6.9. Assessment of Farmland Preservation Parcels
Sec. 1. As used in this chapter, "farmland preservation parcel"
refers to a parcel of land used for agricultural purposes.
Sec. 2. For the purpose of property taxation, certain parcels of
land may be classified as farmland preservation parcels and
assessed as provided in this chapter.
Sec. 3. A parcel of land may be classified as a farmland
preservation parcel if the parcel of land meets all of the following
(1) The parcel of land contains at least ten (10) acres.
(2) The parcel of land does not contain a dwelling or another
(3) The parcel of land is assessed as agricultural land under
Sec. 4. (a) A person who wishes to have a parcel of land
classified as a farmland preservation parcel must file an
application with the township assessor on forms prescribed by the
state board of tax commissioners.
(b) A deduction application filed under subsection (a) is
applicable for the assessment date of the year for which the
application is filed and for the assessment dates of subsequent
years until the parcel of land is withdrawn from the farmland
preservation parcel classification.
(c) If an error or omission affecting the eligibility of the
application is discovered by the township assessor, the township
assessor shall promptly notify the applicant of the deficiency and
allow the applicant to amend the application.
Sec. 5. If in the opinion of the township assessor an application
filed under section 4 of this chapter and the land for which
classification is requested comply with this chapter, the township
assessor shall approve the application. In addition, the township
assessor shall notify the auditor and the assessor of the county in
which the land is located that the application has been approved.
The township assessor shall return one (1) approved application
form to the applicant.
Sec. 6. If an application filed under section 4 of this chapter is
approved, the applicant shall record the approved application in
the applicant's name. If the applicant is a partnership, a
corporation, a limited liability company, or an association, the
applicant shall record the approved application in the name of the
partnership, corporation, limited liability company, or association.
When an approved application is properly recorded, the county
auditor shall enter the land for taxation at an assessed value
determined under section 7 of this chapter.
Sec. 7. Land that is classified under this chapter as a farmland
preservation parcel shall be assessed at one dollar ($1) per acre for
general property taxation purposes. However, ditch assessments on
the classified land shall be paid.
Sec. 8. If any oil, gas, stone, coal, or other mineral is obtained
from land that is classified as a farmland preservation parcel, the
parcel shall immediately be assessed for the oil, gas, stone, coal, or
other mineral wealth. The assessed value of the mineral wealth
shall then be placed on the tax duplicate.
Sec. 9. The owner of a parcel of land that is classified as a
farmland preservation parcel is encouraged to mark the parcel
with at least four (4) signs. The owner shall place the signs on the
boundaries of the parcel at the points that are the most
conspicuous to the public.
Sec. 10. If the owner of land that is classified as a farmland
preservation parcel wishes to have the land withdrawn from the
classification, the owner shall file a withdrawal request in duplicate
with the township assessor on forms prescribed by the state board
of tax commissioners. The township assessor shall withdraw the
land from the classification on receipt of the withdrawal forms.
Sec. 11. The township assessor shall withdraw land that is
classified as a farmland preservation parcel from the classification
if the township assessor finds that the land is no longer used for
agricultural purposes. If the township assessor withdraws land
under this section, the township assessor shall immediately notify
the owner that the land has been withdrawn from the classification.
Sec. 12. If land classified as a farmland preservation parcel is
withdrawn from the classification, the township assessor shall
immediately notify the recorder, the assessor, and the auditor of
the county in which the land is situated that the land has been
withdrawn. In addition, when land is withdrawn, the owner of the
land shall make a notation of the withdrawal in the records of the
Sec. 13. (a) If land that is classified as a farmland preservation
parcel is withdrawn from the classification, the owner shall pay an
amount equal to the sum of:
(1) the total property taxes that, if it were not for the
classification, would have been assessed on the land during the
lesser of the period of classification or the ten (10) year period
immediately preceding the date on which the land is
withdrawn from the classification; plus
(2) interest on the property taxes at the rate of ten percent
(10%) per year.
(b) The liability imposed by this section is a lien upon the land
withdrawn from the classification. When the amount is collected,
the amount shall be paid into the county general fund. If the
amount is not paid, the lien shall be treated in the same manner
that delinquent taxes on real property are treated.
Sec. 14. A conveyance of land that is classified as a farmland
preservation parcel does not release any person acquiring an
interest in the land from any obligation or liability imposed under
SOURCE: ; (01)IN1559.1.2. -->
SECTION 2. [EFFECTIVE UPON PASSAGE] (a)
added by this act, applies to property taxes first due and payable
after December 31, 2001.
(b) This SECTION expires January 1, 2003.
SOURCE: ; (01)IN1559.1.3. -->
SECTION 3. An emergency is declared for this act.