SB 134

This bill makes the following changes involving farmland preservation

agreements and farmland preservation tax credits:

1. Decreases the minimum required length of a farmland preservation

agreement between the Department of Agriculture, Trade and Consumer Protection

and a farmland owner to 10 years from 15 years. Under current law, a farmland

owner who enters into a farmland preservation agreement with DATCP may be

eligible to receive farmland preservation tax credits for his or her qualifying acres

of farmland.

2. Requires DATCP to include in a report submitted to the Board of Agriculture,

Trade and Consumer Protection, the Joint Committee on Finance, the standing

committees of the legislature with jurisdiction over agriculture, the Department of

Revenue, and the Department of Administration a review of the tax credit amounts

for qualifying acres for the farmland preservation tax credit and recommendations

for the tax credit levels for qualifying acres of farmland. Current law requires

DATCP to submit a report about farmland and the farmland preservation program

once every two years to the board, DOR, and DOA.

3. Under the farmland preservation tax credit, increases from $7.50 to $10 the

amount that may be claimed, per qualifying acre, for qualifying acres that are located

in a farmland preservation zoning district but are not subject to a farmland

preservation agreement.

4. Under the farmland preservation tax credit, increases from $5 to $10 the

amount that may be claimed, per qualifying acre, for qualifying acres that are subject

to a farmland preservation agreement but are not located in a farmland preservation

zoning district.

5. Under the farmland preservation tax credit, increases from $10 to $12.50 the

amount that may be claimed, per qualifying acre, for qualifying acres that are located

in a farmland preservation zoning district and are subject to a farmland preservation

agreement.

6. Adds a new category of farmland that qualifies for the farmland preservation

tax credit. A credit of $10 per acre may be claimed for farmland that is located in a

farmland preservation area, but only to the extent that the acres are covered by an

agricultural conservation easement.

The bill also indexes the farmland preservation tax credit dollar amounts

described above for inflation.