Lawmakers raise cap on agricultural land values
Air Date:02/01/2012
A proposal to increase the cap on agricultural land values has passed the state senate. When assessments of ag land changed to a productivity value system lawmakers put a cap of ten percent so landowners wouldn’t see a dramatic increase in their taxes from year to year. House Bill 1003 changes that cap based on a three tiered system ranging from 15 percent to 25 percent. Senator Larry Rhoden spoke in favor of the measure. He says when lawmakers instituted the original cap they didn’t know producers would see such high commodity prices. Rhoden says these high commodity prices have dramatically increased the value of agricultural land.
“In some cases that increase has been greater than ten percent; 17 percent in some areas. So what’s happened in those areas? Where the values have appreciated based on production, by say 17 percent, with a ten percent cap they’re actually getting farther behind,” says Rhoden.
House Bill 1003 passed the senate with a vote of 30 to 5. It now goes to the Governor.
By Jackelyn Severin
Right click here for audio.
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