Subdivision lands-assessment.

04LSO-0065.L1

                                                    

FISCAL NOTE (HB0039)

 

 

The fiscal impact, in the form of revenue decrease to counties, is indeterminable.

 

There is a very significant difference in appraised value of land classified as agricultural land based on agricultural productivity compared with appraised market value of vacant land.

 

Ad Valorem staff estimates over 1,700 parcels currently are appraised at market value in “undeveloped subdivisions”.  An unknown number of these could potentially qualify for agricultural classification under this proposed legislation. It is also unknown what subdivisions would qualify, and there is a wide variation in appraised value between subdivisions. Further, the applicable tax districts and related mill levies are also unknown.

 

Also, soil type is needed to derive the value of lands that qualify as agricultural lands. Since properties that may qualify for this exemption are not currently considered agricultural properties, the soil type of these properties may not be known.

 

It is assumed that at least some “undeveloped subdivision” land will qualify for agricultural designation under the proposed legislation, resulting in valuation decreases for qualifying properties. Such valuation decreases would decrease property tax revenues collected by the counties, including local resources for school funding, and the 12 mill state share that goes to the School Foundation Program.

 

 

Prepared by:   Dean Temte, LSO     Phone:   777-7881

(Information provided by Wade Hall, Dept. of Revenue; phone 777-5235)