The Agriculture, Water and Natural Resources Committee voted unanimously Thursday to advance a bill that would expand property tax breaks for smaller farms and ranches by updating how Colorado law defines agricultural land.
A motion to refer Senate Bill 26-010 to the Committee of the Whole passed with a 12-0 vote and was carried in the Colorado House Speaker Julie McCluskie and Rep. Karen McCormick, both Democrats.
On Friday, it passed a second House reading with no amendments.
The bill refines the definitions of “farm” and “ranch” to make it easier for small, pasture-based livestock operations and small crop producers to qualify for tax advantages.
By broadening the definitions to apply to land that is “predominantly used” for farming or ranching, smaller farms and ranches will now be able to qualify for the property tax reductions that have historically supported the agricultural industry.
The updated definition of a “ranch” includes “pasture-based operations.” This means that producers managing smaller-scale operations who pasture livestock – such as chickens and pigs – for a monetary profit can now have their land classified as agricultural property for tax purposes, provided the animals derive a majority of their diet from grazing on open pasture.
McCluskie emphasized the economic pressures facing rural farmers and ranchers.
“This bill puts more money back into the pockets of the hardworking people who keep Coloradans fed,” she said.
McCormick highlighted the focus on local operations.
“Our bill puts our local farmers and ranchers first by lowering property taxes for smaller operations that use their land for grazing,” McCormick said.
The legislation previously cleared the Colorado Senate and the interim Water Resources and Agriculture Review Committee. It now moves to the Colorado House of Representatives for debate.
