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BILL N0.49, DRAFT 3 (ADMINISTRATION PROPOSAL) <br /> PURPOSE <br /> 1. Not to increase tax revenues for the County. <br /> 2. To make County's real property tax system fairer. <br /> 3. To support agriculture industry through property tax incentives. <br /> 4. To close loopholes that enable some non-farmers to take advantage of tax provisions <br /> intended to help the agriculture industry. <br /> 5. Not to inadvertently have a negative impact on those who should benefit from them. <br /> GUIDING PRINCIPLES OR GOALS FOR AGRICULTURAL TAXATION <br /> 1. Keep prime agricultural land in agricultural use. <br /> 2. Encourage new agricultural uses. <br /> 3. Return agricultural lands to agricultural use. <br /> 4. Promote agriculture industry/employment. <br /> 5. Promote equitable taxation. <br /> 6. Promote General Plan goals/policies: <br /> • Encourage efforts to solve problems of the ag industry in the County. <br /> • Ensure that development of important ag lands be primarily for ag use. <br /> • Support efforts to provide tax/other incentives to enhance competitive capabilities of <br /> commercial farms/ranches. <br /> • Discourage speculative residential development on ag lands. <br /> DESIRED OUTCOMES <br /> Establish sound definition; Simplify ag program and improve rules; Prevent obvious abuse; <br /> Simplify enforcement. <br /> PROPOSED CHANGES IN AGRICULTURAL TAX PROGRAM VIA BILL NO. 49, DRAFT 3 <br /> AGRICULTURAL USE PROGRAM. Revises the Non-dedicatedAgricu/taro/ Use Program by <br /> establishing a definition for non-dedicated agricultural use assessment that allows commercial <br /> or non-commercial ag activities to apply and qualify. Preferentia/ taxing would be at twice the <br /> Ag Use Rate Values (Exhibit A). Remains ayear-to year program and breach occurs with a <br /> subdivision of less than 5 acres or a rezoning to a non-ag zoning. An exception to breach <br /> would be when rezoning is requested by someone other than the owner. Ro//back would be for <br /> 2 years plus the current year instead of a 10-year lookback. <br /> AG DEDICATION PROGRAM. E/iminates the 20-yearAg Dedication Program and revises the <br /> 14 yearAg Dedication Program by establishing a definition for commercial agricultural use <br /> dedication that allows commercial ag activities to apply and qualify. Commercial agricultural <br /> use means the use of property on a continuous and regular basis that demonstrates the owner <br /> is engaged in commercial activities that generate income, monetary gain or economic benefit <br /> worth a minimum $2,000 gross income per year. Preferential taxing would be at the existing <br /> Ag Use Rate Values (Exhibit A). Breach would occur if there is no ag use for 6 consecutive <br /> months unless part of an approved farm plan instead of the existing 12 consecutive months. <br /> <br /> While the existing dedication program has no exceptions, Bill 49 includes exceptions to allow <br /> land impacted by natural disaster, land that can no longer be used for dedication, death or <br /> <br /> disability of the primary farmer. Ro//backwould be according to the number of years in the <br /> <br /> program rather than for the total dedication. (5 years =all; 6 years = 4 years rollback; 7 years <br /> = 3 years rollback; 8, 9 years = 2 years rollback) <br /> 8/24/2004 <br /> <br />