Citations Affected: IC 6-1.1-6.9.
Synopsis: Farmland assessment. Allows a county executive to
designate an area in which certain land may be classified and assessed
as farm preservation land. Allows classification upon application to the
township assessor and assessment thereafter at $1 per acre. Requires
payment to a county farmland preservation fund of the property tax
benefit received over a period of up to ten years if the land is
withdrawn from the classification.
Effective: January 1, 2002 (retroactive).
January 14, 2002, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
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 farm preservation land 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 farm preservation land, the land 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 land that is classified as farm preservation land is encouraged to:
(1) mark the land with at least four (4) signs; and
(2) place the signs on the boundaries of the land at the points that are the most conspicuous to the public.
Sec. 10. If the owner of land that is classified as farm preservation land wishes to have the land withdrawn from the classification, the owner shall file a withdrawal request in duplicate with the township assessor on forms prescribed by the department of local government finance. 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 farm preservation land from the classification if the township assessor finds that the land no longer qualifies under sections 2 and 3 of this chapter. 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 farm preservation land 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 from the classification. In addition, when land is withdrawn from the classification, the owner of the land shall make a notation of the withdrawal in the records of the county recorder.
Sec. 13. (a) If land that is classified as farm preservation land 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:
(A) the period of classification; or
(B) 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 county auditor shall establish the county farmland preservation fund for receipt of amounts paid under subsection (a). The county farmland preservation fund may be used by the county only for farmland preservation activities.
(c) 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 farmland preservation 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 farm preservation land does not release any person acquiring an interest in the land from any obligation or liability imposed under this chapter.