Introduced Version






HOUSE BILL No. 1248

_____


DIGEST OF INTRODUCED BILL



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county farmland preservation fund of the property tax benefit received over a period of up to ten years if the land is withdrawn from the classification.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).





Cherry, Goodin




    January 14, 2002, read first time and referred to Committee on Ways and Means.







Introduced

Second Regular Session 112th General Assembly (2002)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2001 General Assembly.

HOUSE BILL No. 1248



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-6.9; (02)IN1248.1.1. -->     SECTION 1. IC 6-1.1-6.9 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]:
     Chapter 6.9. Assessment of Farm Preservation Land
    Sec. 1. For purposes of property taxation, certain land may be classified as farm preservation land and assessed as provided in this chapter.
    Sec. 2.
A parcel of land or a part of a parcel of land may be classified as farm preservation land if the parcel or part of a parcel:
        (1) is located in an area designated by the county executive in an ordinance adopted under section 3 of this chapter;
        (2) consists of at least ten (10) contiguous acres;
        (3) is used for agricultural purposes;
        (4) does not contain a dwelling or another usable building; and
        (5) is assessed as agricultural land under IC 6-1.1-4-13.
    Sec. 3. (a) The county executive may adopt an ordinance to authorize the assessment of land under this chapter in an area in the county designated in the ordinance.
    (b) The county executive may designate in the ordinance adopted under subsection (a):
        (1) the area of the county;
        (2) the area of one (1) or more townships in the county;
        (3) an area less than a specified distance from land owned by:
            (A) the department of natural resources;
            (B) the United States Forest Service; or
            (C) the United States Fish and Wildlife Service; or
        (4) an area that meets other criteria specified in the ordinance.

    Sec. 4. (a) A person who wishes to have land classified as farm preservation land must file an application with the township assessor on forms prescribed by the department of local government finance.
    (b) An application filed under subsection (a):
        (1)
must include a letter of concurrence in the classification from the soil and water conservation district in which the land is located; and
        (2) 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 land is withdrawn from the farm preservation land classification.
    (c) If the township assessor discovers an error or omission affecting the eligibility of the application, 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 satisfy the requirements of this chapter, the township assessor shall:
        (1) approve the application;
        (2) notify the auditor and the assessor of the county in which the land is located that the application has been approved; and
        (3) 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 in the office of the recorder of the county in which the land is located. 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 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.

SOURCE: ; (02)IN1248.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)] (a) IC 6-1.1-6.9 , as added by this act, applies to property taxes first due and payable after December 31, 2002.
    (b) This SECTION expires January 1, 2004.

SOURCE: ; (02)IN1248.1.3. -->     SECTION 3. An emergency is declared for this act.