Text: SF00192 Text: SF00194 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 15E.200 SMALL FARMER LAND RENTAL
1 2 INCENTIVE PROGRAM.
1 3 1. There is established a small farmer land rental
1 4 incentive program to provide landowners with tax incentives to
1 5 rent agricultural land to small farmers at reduced rent. The
1 6 tax incentives are those provided in subsection 4. In order
1 7 for a landowner to receive the tax incentives, the landowner
1 8 and renter shall meet the requirements of subsections 2 and 3.
1 9 For purposes of this section, "agricultural land" and
1 10 "farming" mean the same as defined in section 175.2.
1 11 2. The landowner shall meet all of the following
1 12 requirements:
1 13 a. Is an individual who is at least fifty-five years old.
1 14 b. Has owned and actively farmed the land for at least the
1 15 last ten years.
1 16 c. Rents not more than two thousand acres under the
1 17 program.
1 18 d. Is a resident of the state during the time for which
1 19 incentives are granted.
1 20 e. The cash rent or value of the crop share rent shall be
1 21 not more than the fair market rental in the county where the
1 22 land is located minus ninety percent of the property tax
1 23 incentive received by the owner for the rented land.
1 24 3. The renter shall meet all of the following
1 25 requirements:
1 26 a. Is an individual who is at least eighteen years of age.
1 27 b. Has sufficient education, training, or experience in
1 28 the type of farming for which the land is rented.
1 29 c. Has access to the equipment and finances needed to farm
1 30 the rented land.
1 31 d. Maintains records of the farming operations on the
1 32 rented land which are separate from other farm operations.
1 33 e. Has not received a reduction in rent under this section
1 34 for more than ten years.
1 35 f. Does not farm more than one thousand acres. In
2 1 determining if a renter farms more than one thousand acres, a
2 2 renter who is a partner, shareholder, or member of a
2 3 partnership, S corporation, or limited liability company that
2 4 farms is deemed to farm a percentage of the acres farmed based
2 5 upon the renter's pro rata share of the earnings of the
2 6 partnership, S corporation, or limited liability company.
2 7 4. The tax incentives provided the qualified landowner
2 8 under this section are both of the following:
2 9 a. Exemption from property taxation of the land rented to
2 10 the qualified renter. The exemption applies to each fiscal
2 11 year beginning during the term of the rental agreement.
2 12 b. Exemption from income tax of the amount of the rent
2 13 received in each tax year beginning or ending during the term
2 14 of the rental agreement.
2 15 5. To receive the incentives a qualified landowner shall
2 16 make application to a three-member county review board
2 17 established by the county board of supervisors. The members
2 18 of the review board shall each be residents of the county and
2 19 from rural communities. Each member shall serve for a three-
2 20 year term or until replaced by the board of supervisors,
2 21 whichever is the earlier. A county review board shall review
2 22 each application received under this subsection to determine
2 23 if the landowner and renter both qualify for the program. If
2 24 the landowner and renter both qualify, the review board shall
2 25 approve the application and issue tax exemption certificates
2 26 to the landowner. The certificates shall be submitted to the
2 27 county assessor prior to the beginning of each fiscal year for
2 28 which the property is exempt and to the department of revenue
2 29 and finance at the time of filing the income tax return. The
2 30 county review board shall review the applications approved as
2 31 often as deemed necessary to assure continuing compliance with
2 32 this section.
2 33 EXPLANATION
2 34 This bill provides a property tax exemption for
2 35 agricultural land and an income tax exemption for the value
3 1 received for the rental of agricultural land, if the land is
3 2 rented to a small farmer by a landowner who meets certain
3 3 qualifications.
3 4 The landowner must be an individual who is at least 55
3 5 years old, has owned and actively farmed the land for at least
3 6 the last 10 years, is a resident of the state, rents not more
3 7 than 2,000 acres under the program, and the amount of rent
3 8 equals the fair rental value minus 90 percent of the property
3 9 taxes exempt.
3 10 The renter must be an individual who is at least 18 years
3 11 old, has sufficient education, training, or experience in the
3 12 type of farming for which the land is rented, has access to
3 13 the equipment and finances needed to farm, maintains separate
3 14 records from other farming operations, has not received a
3 15 reduction in the land rent under the program for more than 10
3 16 years, and does not farm more than 1,000 acres.
3 17 LSB 1444XS 80
3 18 mg/cl/14
Text: SF00192 Text: SF00194 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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