Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 240 (2025GS)

Sponsor

Rep. Shipp, Rex P.

Final action

Governor Signed 3/24/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• allows for land to qualify for urban farming assessment based on gross sales in addition to qualifying based on agricultural production;
• provides for land to continue to qualify for urban farming assessment based on gross sales upon failing to meet certain timing requirements;
• requires an applicant for urban farming assessment to submit documentation to the county assessor demonstrating the land meets the agricultural production or gross sales requirements;
• clarifies that a portion of land may qualify for urban farming assessment even if other portions of the land do not qualify;
• repeals the requirement for an owner of land approved for urban farming assessment to submit an annual renewal application;
• establishes circumstances under which a county assessor may request additional information from an owner of land approved for urban farming assessment; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

9
59-2-1702
59-2-1703
59-2-1704
59-2-1706
59-2-1707
0
Urban Farming Assessment Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Rex P. Shipp
Senate Sponsor: Keven J. Stratton
LONG TITLE
General Description:
This bill modifies provisions related to property tax assessment under the Urban Farming 
Assessment Act.
Highlighted Provisions:
This bill:
allows for land to qualify for urban farming assessment based on gross sales in addition to 
qualifying based on agricultural production;
provides for land to continue to qualify for urban farming assessment based on gross sales 
upon failing to meet certain timing requirements;
requires an applicant for urban farming assessment to submit documentation to the county 
assessor demonstrating the land meets the agricultural production or gross sales 
requirements;
clarifies that a portion of land may qualify for urban farming assessment even if other 
portions of the land do not qualify;
repeals the requirement for an owner of land approved for urban farming assessment to 
submit an annual renewal application;
establishes circumstances under which a county assessor may request additional 
information from an owner of land approved for urban farming assessment; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill has retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-2-1702
, as last amended by Laws of Utah 2021, Chapter 384
59-2-1703
, as last amended by Laws of Utah 2024, Chapter 89
59-2-1704
, as enacted by Laws of Utah 2012, Chapter 197
59-2-1706
, as enacted by Laws of Utah 2012, Chapter 197
59-2-1707
, as last amended by Laws of Utah 2023, Chapter 189
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
59-2-1702
 is amended to read:
59-2-1702
. Definitions.
As used in this part:
(1)
"Actively devoted to urban farming" means that:
(a)
land is devoted to active urban farming activities; and
(b)
(i)
the land produces greater than 50% of the average agricultural production per 
acre:
(i)
(A)
as determined under Section 
59-2-1703
; and
(ii)
(B)
for the given type of land and the given county or area
.
; or
(ii)
agricultural production on the land generates annual gross sales of at least $1,000 
for each quarter-acre of land devoted to active urban farming activities.
(2)
"Rollback tax" means the tax imposed under Section 
59-2-1705
.
(3)
"Urban farming" means:
(a)
cultivating food or other marketable crop or engaging in livestock production, 
including grazing; and
(b)
performing the activity described in Subsection 
(3)(a)
 with a reasonable expectation 
of profit and from irrigated land located in a county that has adopted an ordinance 
governing urban farming in accordance with Section 
59-2-1714
.
(4)
"Withdrawn from this part" means that land that has been assessed under this part is no 
longer assessed under this part or eligible for assessment under this part for any reason 
including that:
(a)
an owner voluntarily requests that the land be withdrawn from this part;
(b)
the land is no longer actively devoted to urban farming;
(c)
(i)
the land has a change in ownership; and
(ii)
(A)
the new owner fails to apply for assessment under this part as required by 
Section 
59-2-1707
; or
(B)
an owner applies for assessment under this part, as required by Section 
59-2-1707
, but the land does not meet the requirements of this part to be 
assessed under this part;
(d)
(i)
the legal description of the land changes; and
(ii)
(A)
an owner fails to apply for assessment under this part, as required by 
Section 
59-2-1707
; or
(B)
an owner applies for assessment under this part, as required by Section 
59-2-1707
, but the land does not meet the requirements of this part to be 
assessed under this part;
(e)
the owner of the land fails to file an application as provided in Section 
59-2-1707
; or
(f)
except as provided in Section 
59-2-1703
, the land fails to meet a requirement of 
Section 
59-2-1703
.
Section 2, Section 
59-2-1703
 is amended to read:
59-2-1703
. Qualifications for urban farming assessment.
(1)
(a)
For general property tax purposes, land may be assessed on the basis of the value 
that the land has for agricultural use if the land:
(i)
is actively devoted to urban farming;
(ii)
is at least one contiguous acre, but less than five acres, in size; and
(iii)
(A)
has been actively devoted to urban farming for at least two successive 
years immediately preceding the tax year for which the land is assessed under 
this part; or
(B)
was assessed under Part 5, Farmland Assessment Act, for the preceding tax 
year.
(b)
Land that is not actively devoted to urban farming may not be assessed as provided 
in Subsection (1)(a), even if the land is part of a parcel that includes land actively 
devoted to urban farming.
(2)
(a)
In determining whether land 
is actively devoted to urban farming
meets the 
production requirement in Subsection 
59-2-1702(1)(b)(i)
, production per acre for a 
given county or area and a given type of land shall be determined by using the first 
applicable of the following:
(i)
production levels reported in the current publication of Utah Agricultural Statistics;
(ii)
current crop budgets developed and published by Utah State University; or
(iii)
the highest per acre value used for land assessed under the Farmland Assessment 
Act for the county in which the property is located.
(b)
A county assessor may not assess land actively devoted to urban farming on the basis 
of the value that the land has for agricultural use under this part unless an owner
annually
 files documentation with the county assessor:
(i)
on a form provided by the county assessor;
(ii)
demonstrating to the satisfaction of the county assessor that the land meets
:
(A)
the production 
levels required under this part
requirement in Subsection 
59-2-1702(1)(b)(i)
; or
(B)
the gross sales requirement in Subsection 
59-2-1702(1)(b)
(ii)
; and
(iii)
except as provided in Subsection 
59-2-1707
(2)(c)(i), no later than January 30 
for each
of the
 tax year in which the owner applies for assessment under this part.
(3)
Notwithstanding Subsection (1)(a)(ii), a county board of equalization may grant a 
waiver of the acreage requirements of Subsection (1)(a)(ii):
(a)
on appeal by an owner; and
(b)
if the owner submits documentation to the county assessor demonstrating to the 
satisfaction of the county assessor that:
(i)
the failure to meet the acreage requirements of Subsection (1)(a)(ii) arose solely as 
a result of an acquisition by a governmental entity by:
(A)
eminent domain; or
(B)
the threat or imminence of an eminent domain proceeding;
(ii)
the land is actively devoted to urban farming; and
(iii)
no change occurs in the ownership of the land.
(4)
(a)
Notwithstanding Subsection (1) and except as provided in Subsection (4)(d), land 
for urban farming that is intentionally allowed to lay fallow for one or more growing 
seasons qualifies for assessment under this part if the fallowing is conducted:
(i)
during periods of limited water supply;
(ii)
as part of a prudent farm management practice, including crop rotation, rotational 
grazing, or soil water management; or
(iii)
to facilitate voluntary participation in a water management or agricultural water 
optimization program.
(b)
If the owner of land assessed under this part fallows the land during any period in a 
calendar year, the owner may, on or before December 31 of the year in which the 
land is fallowed, provide to the county assessor written notice that:
(i)
identifies the land that was fallowed during any period of the calendar year in 
which the notice is provided, including the acreage of the fallowed land;
(ii)
demonstrates how the fallowed land qualifies under Subsection (4)(a); and
(iii)
specifies whether the owner intends to fallow the land during any period in the 
following calendar year, and, if so, the intended duration of the fallowing period.
(c)
(i)
If a written notice under Subsection (4)(b) indicates that the owner intends to 
fallow the land during any period in the following calendar year, the county 
assessor may, within 45 days of receiving the written notice, require the owner to 
submit to the county assessor a land management plan in a form prescribed by the 
county assessor that:
(A)
identifies the owner's objectives in fallowing the land for the intended 
duration of the fallowing period;
(B)
provides adequate assurances to the county assessor that the fallowed land will 
become actively devoted to urban farming upon the expiration of the intended 
fallowing period; and
(C)
includes any other information required by the county assessor.
(ii)
If the owner submits to the county assessor a land management plan for fallowed 
land that meets the requirements of Subsection (4)(c)(i), the county assessor may 
not require the owner to submit a new or additional land management plan for the 
same land within three years from the day on which the owner submitted the plan.
(d)
Fallowed land is withdrawn from this part if:
(i)
the county assessor determines that the land does not qualify under Subsection 
(4)(a);
(ii)
the owner fails to return the fallowed land to active urban farming upon the 
expiration of the intended fallowing period as specified in the written notice; or
(iii)
the owner fails to comply with the requirements of Subsection (4)(c), if a land 
management plan is required.
(5)
Notwithstanding Subsection 
(1)
, land that has been assessed under this part for meeting 
the gross sales requirement in Subsection 
59-2-1702(1)(b)(ii)
 is not withdrawn from this 
part solely as a result of failing to meet the requirement of Subsection (1)(a)(iii)(A) if 
the land met the gross sales requirement in Subsection 
59-2-1702(1)(b)
(ii) for at least 
one of the three years immediately preceding the tax year for which the land is being 
assessed.
Section 3, Section 
59-2-1704
 is amended to read:
59-2-1704
. Indicia of value for urban farming assessment -- Inclusion of fair 
market value on certain property tax notices.
(1)
The county assessor shall consider only those indicia of value that the land has for 
agricultural use as determined by the commission when assessing land:
(a)
that meets the requirements of Section 
59-2-1703
 to be assessed under this part; and
(b)
for which the owner has:
(i)
made a timely application in accordance with Section 
59-2-1707
 for assessment 
under this part
 for the tax year for which the land is being assessed
; and
(ii)
obtained approval of the application described in Subsection 
(1)(b)(i)
 from the 
county assessor.
(2)
In addition to the value determined in accordance with Subsection 
(1)
, the fair market 
value assessment shall be included on the notices described in:
(a)
Section 
59-2-919.1
; and
(b)
Section 
59-2-1317
.
(3)
The county board of equalization shall review the agricultural use value and fair market 
value assessments each year as provided under Section 
59-2-1001
.
Section 4, Section 
59-2-1706
 is amended to read:
59-2-1706
. Land included as urban farming.
(1)
(a)
Land under a structure used in or related to urban farming, including a barn, shed, 
silo, crib, or greenhouse, or under a facility used in or related to urban farming, 
including a lake, dam, pond, stream, or irrigation ditch, is included in determining the 
total area of land actively devoted to urban farming.
(b)
The land described in Subsection 
(1)(a)
 shall be included in determining if the land 
meets the 
urban farming production requirements of Subsection 
59-2-1703(2)(a)
production requirement in Subsection 
59-2-1702(1)(b)(i)
 or the gross sales 
requirement in Subsection 
59-2-1702(1)(b)(ii)
, as applicable
.
(2)
(a)
Except as provided in this part, land under a residence and land used in connection 
with residential use may not be included in determining the total area of land actively 
devoted to urban farming.
(b)
Land described in Subsection 
(2)(a)
 shall be valued, assessed, and taxed in 
accordance with this chapter other than this part.
(c)
The exclusion from assessment under this part of land described in Subsection 
(2)(a)
that is part of a parcel does not disqualify any remaining portion of the land that 
meets the requirements of Section 
59-2-1703
 from assessment under this part.
Section 5, Section 
59-2-1707
 is amended to read:
59-2-1707
. Application -- Signed statement -- Consent to creation of a lien -- 
Consent to audit and review -- Notice.
(1)
For land to be assessed
Before a county assessor may assess land
 under this part, an 
owner of land eligible for assessment under this part shall submit 
annually
an 
application described in Subsection 
(2)
 to the county assessor of the county in which the 
land is located
:
.
(a)
an application described in Subsection 
(2)
; or
(b)
a renewal application described in Subsection 
(3)
 if:
(i)
the land was assessed under this part for the preceding tax year; and
(ii)
there have been no changes to the eligibility information provided in the most 
recently submitted application described in Subsection 
(2)
, other than the 
information described in Subsection 
59-2-1703(2)(b)
.
(2)
An application required by Subsection 
(1)
 shall:
(a)
be on a form:
(i)
approved by the commission; and
(ii)
provided to an owner:
(A)
by the county assessor; and
(B)
at the request of an owner;
(b)
provide for the reporting of information related to this part;
(c)
be submitted by:
(i)
May 1 of the tax year in which assessment under Subsection 
(1)
 is requested if the 
land was not assessed under this part in the year before the application is 
submitted; or
(ii)
the date otherwise required by this part for land that before the application being 
submitted has been assessed under this part;
(d)
be signed by all of the owners of the land that under the application would be 
assessed under this part;
(e)
be accompanied by the prescribed fees made payable to the county recorder;
(f)
include a certification by an owner that the facts set forth in the application or signed 
statement are true;
(g)
include a statement that the application constitutes consent by the owners of the land 
to the creation of a lien upon the land as provided in this part; and
(h)
be recorded by the county recorder.
(3)
A renewal application required by Subsection 
(1)
 shall:
(a)
be on a form:
(i)
approved by the commission; and
(ii)
provided to an owner:
(A)
by the county assessor; and
(B)
at the request of an owner;
(b)
provide for the reporting of the information described in Subsection 
59-2-1703(2)(b)
;
(c)
be submitted on or before January 30 of the tax year in which the owner requests 
assessment under this part;
(d)
be signed by all of the owners of the land;
(e)
be accompanied by the prescribed fees made payable to the county recorder;
(f)
include a certification by an owner that the following are true:
(i)
the facts set forth in the renewal application or signed statement; and
(ii)
other than the information described in Subsection 
59-2-1703(2)(b)
, the facts set 
forth in the most recently submitted application described in Subsection 
(2)
, as of 
the date the renewal application is submitted;
(g)
include a statement that the renewal application constitutes consent by the owners of 
the land to the creation of a lien upon the land as provided in this part; and
(h)
be recorded by the county recorder.
(4)
(3)
An application described in Subsection 
(2)
or a renewal application described in 
Subsection 
(3)
constitutes consent by the owners of the land to the creation of a lien 
upon the land as provided in this part.
(5)
(4)
(a)
If the county determines that a timely filed application 
or a timely filed 
renewal application 
is incomplete, the county shall:
(i)
notify the owner of the incomplete application
 or renewal application
; and
(ii)
allow the owner to complete the application 
or renewal application 
within 30 
days from the day on which the county provides notice to the owner.
(b)
An application that has not been completed within 30 days of the day of the notice 
described in Subsection 
(5)(a)
 shall be
(4)(a) is
 considered denied.
(6)
(5)
(a)
Except as provided in Subsections 
(1)
 through 
(3)
, a
Once the application 
required by Subsection (1) has been approved, the
 county assessor may
 not require 
an 
:
(i)
require, by written request of the county assessor, the owner to submit a new 
application or a signed statement that verifies that the land qualifies for 
assessment under this part; or
(ii)
except as provided in Subsection 
(5)(b)
, require no 
additional signed statement or 
application for assessment under this part.
(b)
Notwithstanding Subsection 
(6)(a)
, a
A
 county 
assessor 
shall require that
:
(i)
an owner provide notice if land is withdrawn from this part as provided in Section 
59-2-1705
.
; and
(ii)
a new owner submit an application in accordance with this section.
(c)
An owner shall submit an application or signed statement required under Subsection 
(5)(a)
 by the date specified in the written request of the county assessor for the 
application or signed statement.
(7)
(6)
A certification under Subsection 
(2)(f)
or 
(3)(f)
is considered as if made under 
oath and subject to the same penalties as provided by law for perjury.
(8)
(7)
(a)
An owner applying for participation under this part or a purchaser or lessee 
that signs a statement under Subsection 
(9)
(8)
 is considered to have given consent 
to a field audit and review by:
(i)
the commission;
(ii)
the county assessor; or
(iii)
the commission and the county assessor.
(b)
The consent described in Subsection 
(8)(a)
(7)(a)
 is a condition to the acceptance of 
an application or signed statement.
(9)
(8)
An owner of land eligible for assessment under this part, because a purchaser or 
lessee actively devotes the land to agricultural use as required by Section 
59-2-1703
, 
may qualify the land for assessment under this part by submitting, with the application 
described in Subsection 
(2)
 or the renewal application described in Subsection 
(3)
, a 
signed statement from that purchaser or lessee certifying those facts that would be 
necessary to meet the requirements of Section 
59-2-1703
 for assessment under this part.
Section 6. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
Section 7. 
Retrospective operation.
This bill has retrospective operation for a taxable year beginning on or after January 1, 
2025.
3-13-25 3:08 PM