Signed by Governor Pete Ricketts

Vote Smart's Synopsis:

Vote to pass a bill that reduces the valuation of agricultural land to decrease the taxation paid to school districts.

Highlights:

• Establishes all real property in this state, not expressly exempt therefrom, are subject to taxation and shall be valued at its actual value (Sec. 1-1).

• Establishes agricultural land and horticultural land constitute a separate and distinct class of property for purposes of property taxation, are subject to taxation, unless expressly exempt from taxation, and will be valued at 75% of its actual value, except that for school district taxes levied to pay the principal and interest on bonds that are approved by a vote of the people on or after the operative date of this act, such land will be valued at 50% of its actual value (Sec. 1-2).

• Specifies school district taxes levied to pay the principal and interest on bonds that are approved by a vote of the people on or after the operative date of this act, such land shall be valued at 50% of its special valuation (Sec. 1-3).

• Establishes historically significant real property which meets the qualifications for historic rehabilitation valuation will be valued for taxation as provided (Sec. 1-4).

• Classifies the following properties (Sec. 1-5):

• Converted property means tangible personal property which is compulsorily or involuntarily converted as a result of its destruction in whole or in part, theft, seizure, requisition, or condemnation, or the threat or imminence thereof, and no gain or loss is recognized for federal or state income tax purposes by the holder of the property as a result of the conversion; and

• Replacement property means tangible personal property acquired within two years after the close of the calendar year in which tangible personal property was converted and which is, except for the date of construction or manufacture, substantially the same as the converted property.

• Requires the commission to have the power to increase or decrease the value of a class or subclass of real property in any county or taxing authority or of real property valued by the state so that all classes or subclasses of real property in all counties fall within an acceptable range (Sec. 2-1).

• Specifies an acceptable range is the percentage of variation from a standard for valuation as measured by an established indicator of central tendency of assessment. Acceptable ranges are (Sec. 2-2):

• For agricultural land and horticultural land, 69%-75% of actual value, except that for school district taxes levied to pay the principal and interest on bonds that are approved by a vote of the people on or after the operative date of this act, the acceptable range is 44%-50% of actual value; 

• For lands receiving special valuation, 69%-75% of special valuation, except that for school district taxes levied to pay the principal and interest on bonds that are approved by a vote of the people on or after the operative date of this act, the acceptable range is 44%-50% of special valuation; and 

• For all other real property, 92%-100% of actual value.

Full Bill Text