The proposed legislation aims to broaden the definition of "ranch" for property tax purposes in Colorado, thereby expanding eligibility for agricultural land classification and its associated tax benefits. The key changes are as follows:
Expanded Definition of "Ranch":
Current Definition:
Applies to parcels used exclusively for grazing livestock with the primary intent of monetary profit.
Proposed Change:
Includes parcels used for both grazing and raising livestock, encompassing a wider range of agricultural activities.
Revised Definition of "Livestock":
Current Definition:
Limited to domestic animals used for food, breeding, draft, or profit.
Proposed Change:
Adopts a more comprehensive definition that includes all animals, aligning with general property tax terminology.
These amendments aim to support small-scale agricultural producers by reducing their property tax obligations, thereby encouraging diverse agricultural activities and benefiting local economies.
Summary
Water Resources and Agriculture Review Committee. The bill
broadens the definition of ranch for purposes of property taxation to include a parcel of land used for grazing or raising livestock for the primary purpose of obtaining a monetary profit rather than a parcel of land used only for grazing livestock for the primary purpose of obtaining a monetary profit. The bill also eliminates the limited definition of livestock included in the definition of ranch and replaces it with the general definition of livestock used for property tax purposes that includes all animals.
