SB 10

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
PAGE 2-SENATE BILL 26-010
       (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.
PAGE 3-SENATE BILL 26-010
       (2) This act applies to property tax years commencing on or after the
applicable effective date of this act.
James Rashad Coleman, Sr.  Julie McCl�ie
PRESIDENT OF  SPEAKER OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
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Esther van Mourik
SECRETARY OF  CHIEF CLERK OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
       APPROVED Oh mond� \fYl&u--oh q➔h 2-02.& o...f \2; zofVY'\
                        (Date and Time)
                  Jared S.
                  GOVE
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