HB 1365-1_ Filed 02/23/2004, 08:46 Jackman
that Engrossed House Bill 1365 be amended to read as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation, agriculture and animals.
SOURCE: Page 14, line 25; (04)MO136533.14. -->
Page 14, between lines 25 and 26, begin a new paragraph and insert:
SOURCE: IC 6-1.1-6.9; (04)MO136533.4. -->
"SECTION 4. IC 6-1.1-6.9 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]:
Chapter 6.9. Assessment of Classified Farmland
Sec. 1. As used in this chapter, "farmland" refers to land
classified in the farmland protection program under IC 15-7-10.
Sec. 2. As used in this chapter, "recapture period" means the
(1) the period of classification of land as farmland; or
(2) the ten (10) year period immediately preceding the date
on which land is withdrawn from the farmland classification.
Sec. 3. As used in this chapter, "taxpayer" refers to the owner
Sec. 4. For each assessment date during the period of the
classification of land as farmland:
(1) the land shall be assessed using the lesser of:
(A) the assessed value finally determined for the current
year's assessment date; or
(B) the assessed value finally determined for the
assessment date that next succeeds the date of the
farmland classification under IC 15-7-10;
(2) assessing officials shall keep a record of the assessed
value that would apply if the land were not classified as
(3) ditch assessments on the farmland shall be paid; and
(4) oil, gas, stone, coal, or other mineral wealth obtained
from the farmland shall be assessed and placed on the tax
Sec. 5. The taxpayer shall record the approved application for
farmland classification under IC 15-7-10 in the county recorder's
office. After an approved application is properly recorded, the
county auditor shall enter the farmland for taxation at the
assessed value determined under section 4(1) of this chapter.
Sec. 6. If farmland is withdrawn from the farmland
(1) the Indiana land resources council established by
IC 15-7-9-4 shall immediately notify the assessor, auditor,
and recorder of the county in which the farmland is located
that the farmland has been withdrawn; and
(2) the taxpayer shall make a notation of the withdrawal in
the records of the county recorder.
Sec. 7. (a) If farmland is withdrawn, other than under
IC 15-7-10-11, from the farmland classification, the taxpayer shall
pay to the county treasurer an amount equal to the sum of:
(1) the remainder of:
(A) the total property taxes that, if it were not for the
farmland classification, would have been assessed to the
land during the recapture period; minus
(B) the total property taxes assessed to the farmland
during the recapture period that were paid; plus
(2) interest on the property taxes determined under
subdivision (1) at the rate of ten percent (10%) per year.
(b) Property taxes shall be determined under subsection (a)(1)
(1) the assessed value of the land as recorded under section
4(2) of this chapter; and
(2) the net tax rate for the taxing district in which the
farmland is located;
for each year for which the property taxes are determined.
(c) The liability imposed by this section is a lien on the land
withdrawn from the farmland classification. The county treasurer
shall deposit collections under this section in the farmland
protection program account established by IC 15-7-10-12. If the
liability is not satisfied, the lien is treated in the same manner
that delinquent taxes on real property are treated.
Sec. 8. A conveyance of farmland does not release a person
acquiring an interest in the land from an obligation or liability
imposed under this chapter.".
SOURCE: Page 37, line 10; (04)MO136533.37. -->
Page 37, between lines 10 and 11, begin a new paragraph and insert:
SOURCE: IC 15-7-10; (04)MO136533.18. -->
"SECTION 18. IC 15-7-10 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
Chapter 10. Farmland Protection Program
Sec. 1. As used in this chapter, "assistant commissioner"
refers to the assistant commissioner of agriculture appointed
under IC 4-4-22-20.
Sec. 2. As used in this chapter, "council" refers to the Indiana
land resources council established by IC 15-7-9-4.
Sec. 3. As used in this chapter, "designated area" refers to an
area of land set aside under section 8(c) of this chapter in a county
within which land may be designated as farmland eligible for the
Sec. 4. As used in this chapter, "farmland" includes the
(1) Acreage used for the production of:
(D) fibre; and
(E) oilseed crops.
(2) Acreage used to raise:
(B) dairy animals;
(C) dairy products;
(E) poultry products; and
(F) furbearing animals.
(3) Acreage used to:
(A) grow horticultural and nursery stock;
(B) grow fruits;
(C) grow vegetables;
(D) grow forage;
(E) grow timber;
(F) grow trees;
(G) raise fish and other aquaculture products;
(H) raise bees and apiary products; and
(I) grow other crops used for agricultural income.
(4) Areas including;
(B) land modifications;
(E) forest land;
(F) wildlife land;
(G) riparian areas;
(H) buffers; and
(I) other areas;
that enhance or depend on the inherent productivity of the
Sec. 5. As used in this chapter, "livestock" has the meaning set
forth in IC 4-4-3.2-1(b).
Sec. 6. As used in this chapter, "program" refers to the
farmland protection program established by section 7 of this
Sec. 7. The farmland protection program is established to
provide a voluntary tool to Indiana landowners to protect and
conserve rural lands, including the following:
(2) Other rural natural areas as defined by the council.
Sec. 8. (a) The council shall administer the program. The
council shall work with local agencies and organizations to
establish a cooperative relationship in land use practices and
policies. The council, after consulting with local agencies and
organizations, shall develop specific program guidelines and
policies to administer the program. The program must be
compatible with the federal Farm and Ranch Land Protection
Program (7 CFR 1491).
(b) The council may adopt rules under IC 4-22-2 to implement
(c) The council, working with local agencies and organizations,
shall establish criteria for designated areas of land on a county by
county basis. Only land within a designated area is eligible for the
program. Before establishing an area as a designated area, the
council shall hold a hearing in the county in which the land is
located. The council shall follow the procedures for public hearings
under IC 5-14-1.5-5. The council shall obtain the approval of the
local zoning authority having jurisdiction over the designated
area, or, if the designated area does not lie within the jurisdiction
of any local zoning authority, the county commissioners of the
county in which the designated area is located, before designating
an area as a designated area for purposes of this chapter.
(d) The council shall establish criteria for evaluating
applications for the program, including the following:
(1) Land must have been in an agriculture production or
conservation program at the time of application and for five
(5) years before the application.
(2) Land must be in a designated area.
(3) Land in:
(A) a locally recognized agricultural district;
(B) an agricultural protection zone;
(C) an agricultural security area; or
(D) any effective local agricultural protection initiative;
shall be given higher consideration.
(4) At least thirty-five (35) acres of working land must be
located within an agricultural area, with not more than one
(1) residence on a single or combined tract to meet acreage
requirements with either single or multiple owners.
(5) Larger tracts must be given priority.
(6) A scoring system similar to the federal Farm and Ranch
Land Protection Program (7 CFR 1491) shall be developed.
There shall be a minimum score requirement to qualify for
the program, including standards on:
(A) soil erosion;
(B) conservation plans with the federal Natural Resources
Conservation Service's quality criteria;
(C) landowner participation; and
(D) management plans.
(e) A consistent lack of compliance with environmental permits
and requirements shall disqualify a landowner from the program.
(f) Applications must be received by the council by January 1
of each year, beginning January 1, 2005. Contracts must be
entered into by March 1 of each year, beginning March 1, 2005.
(g) The council may reject an application for the program if the
council finds that the parcel proposed for protection was divided
from a larger parcel in a transaction intended to defeat the
purposes of the program.
Sec. 9. (a) A landowner may enroll in the program by entering
into a contract with the council for a period of ten (10) years, with
an unlimited number of automatic renewal periods of five (5)
years each. A landowner may give notice to the state of the
landowner's intention to terminate the contract at the end of the
contract period. If a landowner is going to terminate the contract,
the landowner must give six (6) months advance notice before the
expiration date of the contract.
(b) Contract conditions run with the land and must be recorded.
(c) During the term of the contract, one (1) residential building
lot may be split from the root parcel (which includes all contiguous
property under substantially common ownership at the time of
enrollment in the program) if the residential building lot is used
for the residence of an individual who is farming the land.
(d) A split may not be made from the root parcel for
manufacturing, industrial, or commercial lots unless the split is
in keeping with the purpose, principles, and objectives of the
Sec. 10. When a county government, local planning
commission, or other local entity engaged in planning for a local
community has developed standards for the preservation of
farmland, the council shall consider the standards when
Sec. 11. (a) A landowner may withdraw from the program when
proposing to enroll in an alternate land protection program of
equal or greater time period and conditions.
(b) An early withdrawal, except under subsection (a), from the
contract shall result in the loss of and pay back of any incentive
received from the program.
(c) Any violation of the contract shall disqualify the farmland
or the landowner from enrolling in the program for ten (10) years
after the time of confirmation of the violation.
Sec. 12. (a) The farmland protection program account is
established within the state general fund for the purpose of
providing money to match federal funds under 7 CFR 1491 to be
used for the protection of farmland in Indiana. The account shall
be administered by the council.
(b) The account consists of:
(1) money collected under IC 6-1.1-6.9-7;
(2) gifts and bequests; and
(c) The expenses of administering the account shall be paid
from money in the account.
(d) The treasurer of state shall invest the money in the account
not currently needed to meet the obligations of the account in the
same manner as other public money may be invested. Interest
that accrues from these investments shall be deposited in the
(e) Money in the account at the end of a state fiscal year does
not revert to the state general fund.
(f) Money in the account may be spent only after appropriation
by the general assembly.
Sec. 13. Owners of land in the program shall be given priority
for state grants or technical assistance given by the commissioner
of agriculture or the department of commerce.
SOURCE: IC 32-24-1-5.4; (04)MO136533.19. -->
SECTION 19. IC 32-24-1-5.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 5.4. (a) For purposes of this section, "protected
farmland" means land that is:
(1) included in an area designated as protected by the Indiana
land resources council under IC 15-7-10-8(c); and
(2) covered under a contract between the Indiana land
resources council and the landowner under IC 15-7-10-9.
(b) If land being condemned under this article is designated as
protected farmland under a contract entered into under
IC 15-7-10-9, the damages offered by the condemnor shall be two
hundred percent (200%) of:
(1) the fair market value offered under section 5 of this
(2) the award made by a court under this article.
(c) This section does not apply to land that is being condemned
(1) a highway;
(2) a road;
(3) a street; or
(4) a right-of-way under IC 32-24-4-1.".
SOURCE: Page 38, line 30; (04)MO136533.38. -->
Page 38, between lines 30 and 31, begin a new paragraph and insert:
SOURCE: ; (04)MO136533.24. -->
"SECTION 24. [EFFECTIVE JANUARY 1, 2005] IC 6-1.1-6.9, as
added by this act, applies only to property taxes first due and
payable after December 31, 2005.
Renumber all SECTIONS consecutively.
(Reference is to EHB 1365 as printed February 20, 2004.)