Agricultural Property Tax Definitions

SENATE BILL 26-010

BY SENATOR(S) Roberts and Pelton B., Catlin, Amabile, Baisley, Ball, Bright, Carson, Cutter, Exum, Frizell, Gonzales J., Hinrichsen, Jodeh, Kipp, Kirkmeyer, Liston, Michaelson Jenet, Pelton R., Rich, Simpson, Snyder, Wallace, Weissman, Zamora Wilson, Coleman; also REPRESENTATIVE(S) McCluskie and McCormick, Martinez, Soper, Duran, Goldstein, Lieder, Lindsay, Lukens, Marshall, Mauro, Nguyen, Richardson, Rutinel, Smith, Stewart K., Story, Taggart, Titone, Weinberg.

CONCERNING CLARIFICATION OF DEFINITIONS USED IN CONNECTION WITH THE TAXATION OF AGRICULTURAL PROPERTY.

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

SECTION 1. Legislative declaration. (1) The general assembly finds and declares that: (a) In Colorado, since at least 1967, the classification of property as agricultural land has helped support agriculture producers through reductions in property tax obligations; (b) Under current law, enacted in 1983, the classification applies to land that is used for grazing livestock or producing agricultural products;

Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act.

(c) Rising land prices make it difficult for producers to purchase large tracts of land. As a result, entry into agriculture is increasingly occurring through smaller-scale operations, which are more financially feasible. (d) Smaller farms and ranches are using pasture-based operations to produce agricultural products for profit, including pasturing livestock like chickens and pigs, to meet consumer demands for locally sourced food, support their agricultural businesses, supply food to other small businesses, and generate significant economic activity locally and statewide. (2) Therefore, it is in the best interest of the state and is the intention of the general assembly that the classification of agricultural property extend to producers that predominantly use their land to produce agricultural products and predominantly pasture their land to graze livestock, which will save these producers money, encourage more agricultural activity, and benefit the economy of local communities and of the state. SECTION 2. In Colorado Revised Statutes, 39-1-102, amend (3 .5) and (13.5) as follows: 39-1-102. Definitions. As used in articles 1 to 13 of this title 39, unless the context otherwise requires: (3 .5) "Farm" means a parcel ofland which THAT is PREDOMINANTLY used to produce agricultural products that originate from the land's productivity for the primary purpose of obtaining a monetary profit. (13.5) (a)

"Ranch" means a parcel of land which THAT is

PREDOMINANTLY used for grazing livestock for the primary purpose of

obtaining a monetary profit THROUGH A PASTURE-BASED OPERATION. (b) For the purposes of this subsection (13.5): (I) "Livestock" means domestic animals which THAT are used for food for human or animal consumption, breeding, draft, or profit; AND

(II) "PASTURE-BASED OPERATION" MEANS A METHOD OF LIVESTOCK MANAGEMENT WHERE PASTURE-GRAZED LIVESTOCK HA VE REGULAR ACCESS TO OPEN PASTURE AND DERIVE A MAJORITY OF THEIR DIET THROUGH GRAZING.

SECTION 3. Act subject to petition - effective date applicability. (1) This act takes effect January 1, 2027; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within the ninety-day period after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect January 1, 2027, or on the date of the official declaration of the vote thereon by the governor, whichever is later.

(2) This act applies to property tax years commencing on or after the applicable effective date of this act.

Julie McCluskie SPEAKER OF THE HOUSE OF REPRESENTATIVES

James Rashad Coleman, Sr. PRESIDENT OF THE SENATE

Vanessa Reilly CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES

Esther van Mourik SECRETARY OF THE SENATE

APPROVED on Monday March 9th 2026 at 12:20pm (Date and Time)

Jared S. Polis GOVERNOR OF THE STATE OF COLORADO