Show Pros Cons of Use Assessment Farmland Taxation Amendment Argued Adoption of the constitutional amendment permitting prefer prefer- assessment of farmland would according to its opponents 1 increase taxes for forthe forthe the general taxpayer 2 en- en encourage encourage courage land specula ton and artificially push up land prices 3 continue many of the discriminatory lY taxing practices of the past 4 be astep a step lead ing to a classified property tax 5 create added administrative and 6 hinder order order- orderly ly urban growth These were an an- an analyzed in a research study of farmland assessment prepared by Utah Foundation the vate tax research organization utah voters will decide a proposal to amend the State to permit preferential treatment of agricultural land It will appear on the 1968 election election ballot as proposition number Dumber four our FAVORABLE ARGUMENTS The Foundation report also listed arguments advanced by supporters of the proposition 1 it would equalize farm costs 2 it would offset high property requirements in modern farm farm- farming ing operations 3 it would help keep farmers on the land 4 it would assure a food supply near major urban centers 5 it would preserve open spaces near urban areas and 6 it would help control land develop development ment and head off urban sprawl Foundation analysts that the present legal policy in Utah along with most other states states is that all property should be assessed uniformly according to its market value usually interpreted to be the highest and best use t tAs As a practical matter the reports that most most agricultural land ass ass- assessments assessments in utah were based on agricultural use value rather than market value despite the statutory and court requirements This procedure procedure dure of the past has resulted In inequities not only between farm property and other class class- classes es of property but also among farmers living in different sec sec- sections of the state The report points out that the average ratio of assessment to selling price for land parcels of three acres or more varies from 70 per cent in Weber County to per cent in Sanpete County In Uintah County the average assessment ratio for such parcels was 1147 per percent percent cent Throughout the state the average ratio of assessment to market value for parcels in excess of three acres was per cent This compares with an average average assessment ratio of per cent for residential property and per cent for locally assessed com c o m mer m e r- r rc c cia i a I 1 property SPLIT RESPONSE The study notes that ap proximately twelve years ago Maryland became the first state to legally permit preferential assessment of farmland This practice has since spread to about nine other states On the theother theother other hand efforts to obtain have failed in ten states during this period If the proposal should be ap- ap approved approved proved by the voters at the 1968 general elections it would authorize th the l to tn pro pro- provide vide for the assessment of farm property according to its value for agricultural use without regard to the value It may have for other purposes The exact nature and form of such preferential legislation however would be determined by the legislature itself The Foundation study observes es that preferential assessment of farmland falls into four main categories 1 1 Plain preferential assess assess- assessment ment which is outright abate abate- abatement ment of the difference between the tax that would apply if as as- as assessments are bas based d on agri agri- agri agricultural cultural use value rather than market value 2 Tax deferral where the dif dif dif- difference ference is merely deferred until the property is sold or the theland theland land use changes Usually there is a limit for which the c deferred taxes are arc payable such as thre three five or seven years 3 Planning and zoning where the preferential assess assess- assessment ment and tax treatment apply only in areas which have been designated as agricultural or open space areas by an appropriate governmental agency 4 Easement of covenant where the special tax treatment applies only to properties whose Individual land owners contract with governmental units limit limit- limiting ing future development rights of their property to conform with area planning |