HOUSE BILL 22-1301
BY REPRESENTATIVE(S) Soper and Roberts, Holtorf, McLachlan,
Pelton, Rich, Titone, Will, Bernett, Bockenfeld, Exum, Herod, Hooton,
Jodeh, Lindsay, Lontine, McCluskie, Young, Geitner, McCormick, Mullica,
Neville, Valdez D.;
also SENATOR(S) Donovan and Simpson, Buckner, Ginal, Gonzales,
Jaquez Lewis, Kolker, Moreno, Pettersen, Scott, Sonnenberg, Fenberg.
C
ONCERNING THE TREATMENT OF CONTROLLED ENVIRONMENT
AGRICULTURAL FACILITIES FOR PROPERTY TAX PURPOSES
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 39-1-102, amend (1.1),
(1.3) introductory portion, and (1.3)(b); and add (3.3) and (6.2) as follows:
39-1-102. Definitions. As used in articles 1 to 13 of this title 39,
unless the context otherwise requires:
(1.1) (a) "Agricultural and livestock products" means plant or
animal products in a raw or unprocessed state that are derived from the
science and art of agriculture, regardless of the use of the product after its
sale and regardless of the entity that purchases the product. "Agriculture",
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. for the purposes of this subsection (1.1), means farming, ranching, animal
husbandry, and horticulture.
(b) O
N AND AFTER JANUARY 1, 2023, FOR THE PURPOSES OF THIS
SUBSECTION
(1.1), "AGRICULTURAL AND LIVESTOCK PRODUCTS " INCLUDES
CROPS GROWN WITHIN A CONTROLLED ENVIRONMENT AGRICULTURAL
FACILITY IN A RAW OR UNPROCESSED STATE FOR HUMAN OR LIVESTOCK
CONSUMPTION
. FOR THE PURPOSES OF THIS SUBSECTION (1.1)(b),
"
AGRICULTURAL AND LIVESTOCK PRODUCTS " DOES NOT INCLUDE
MARIJUANA
, AS DEFINED IN SECTION 18-18-102 (18)(a), OR ANY OTHER
NONFOOD CROP AGRICULTURAL PRODUCTS
.
(1.3) "Agricultural equipment which
THAT is used on the farm or
ranch
OR IN A CEA FACILITY in the production of agricultural products":
(b) Includes:
(I) Any mechanical system used on the farm or ranch for the
conveyance and storage of animal products in a raw or unprocessed state,
regardless of whether or not such mechanical system is affixed to real
property; and
(II) Silviculture personal property that is designed, adapted, and
used for the planting, growing, maintenance, or harvesting of trees in a raw
or unprocessed state;
AND
(III) ANY PERSONAL PROPERTY WITHIN A FACILITY , WHETHER
ATTACHED TO A BUILDING OR NOT
, THAT IS CAPABLE OF BEING REMOVED
FROM THE FACILITY
, AND IS USED IN DIRECT CONNECTION WITH THE
OPERATION OF A CONTROLLED ENVIRONMENT AGRICULTURAL FACILITY
,
WHICH FACILITY IS USED SOLELY FOR PLANTING, GROWING, OR HARVESTING
CROPS IN A RAW OR UNPROCESSED STATE
.
(3.3) "C
ONTROLLED ENVIRONMENT AGRICULTURAL FACILITY " OR
"CEA FACILITY" MEANS A NONRESIDENTIAL STRUCTURE AND RELATED
EQUIPMENT AND APPURTENANCES THAT COMBINES ENGINEERING
,
HORTICULTURAL SCIENCE, AND COMPUTERIZED MANAGEMENT TECHNIQUES
TO OPTIMIZE HYDROPONICS
, PLANT QUALITY, AND FOOD PRODUCTION
EFFICIENCY FROM THE LAND
'S WATER FOR HUMAN OR LIVESTOCK
CONSUMPTION
. THE SOLE PURPOSE OF GROWING CROPS IN A CEA FACILITY
PAGE 2-HOUSE BILL 22-1301 IS TO OBTAIN A MONETARY PROFIT FROM THE WHOLESALE OF PLANT -BASED
FOOD FOR HUMAN OR LIVESTOCK CONSUMPTION
.
(6.2) "H
YDROPONICS" MEANS A SYSTEM IN WHICH WATER SOLUBLE
PRIMARY OR SECONDARY PLANT NUTRIENTS OR MICR ONUTRIENTS
, OR A
COMBINATION OF SUCH NUTRIENTS
, ARE PLACED IN INTIMATE CONTACT WITH
A PLANT
'S ROOT SYSTEM THAT IS BEING GROWN IN WATER OR AN INERT
SUPPORTIVE MEDIUM THAT SUPPLIES PHYSICAL SUPPORT FOR THE ROOTS
.
SECTION 2. In Colorado Revised Statutes, amend 39-3-122 as
follows:
39-3-122. Agricultural equipment used in production of
agricultural products - CEA facilities - exemption. (1) Agricultural
equipment which
THAT is used on any farm or ranch in the production of
agricultural products shall be IS exempt from the levy and collection of
property tax.
(2) O
N AND AFTER JANUARY 1, 2023, BUT PRIOR TO JANUARY 2,
2028,
AGRICULTURAL EQUIPMENT THAT IS USED IN ANY CEA FACILITY IS
EXEMPT FROM THE LEVY AND COLLECTION OF PROPERTY TAX
.
SECTION 3. In Colorado Revised Statutes, add 39-5-134 as
follows:
39-5-134. Controlled environment agricultural facility -
valuation - affidavit - definition - repeal. (1) A
S USED IN THIS SECTION,
"
CONTROLLED ENVIRONMENT AGRICULTURAL FACILITY " OR "CEA FACILITY"
HAS THE SAME MEANING AS SPECIFIED IN SECTION 39-1-102 (3.3).
(2) A
CEA FACILITY IS VALUED FOR ASSESSMENT PURPOSES AS ALL
OTHER AGRICULTURAL PROPERTY USING THE COST
, MARKET, AND INCOME
APPROACHES TO VALUE
.
(3) I
F THE SOLE USE OF THE CEA FACILITY IS NOT THE GROWING OF
CROPS FOR HUMAN OR LIVESTOCK CONSUMPTION
, THEN THE PROPERTY IS
CLASSIFIED AND VALUED FOR ASSESSMENT PURPOSES BASED ON ACTUAL
USE
.
(4) A
S PART OF THE PERSONAL DECLARATION THE OWNER OF A CEA
PAGE 3-HOUSE BILL 22-1301 FACILITY SIGNS AND RETURNS TO THE C OUNTY ASSESSOR PURSUANT TO
SECTIONS
39-5-107 AND 39-5-108, THE OWNER SHALL INCLUDE AN
AFFIDAVIT EXECUTED BY THE OWNER IN WHICH THE OWNER AFFIRMS THAT
THE
CEA FACILITY MEETS THE REQUIREMENTS OF SECTION 39-1-102 (3.3),
INCLUDING THE REQUIREMENTS THAT THE FACILITY OPTIMIZES HYDROPONICS
AND THAT THE SOLE PURPOSE OF THE
CEA FACILITY IS TO OBTAIN A
MONETARY PROFIT FROM THE WHOLESALE OF PLANT
-BASED FOOD FOR
HUMAN OR LIVESTOCK CONSUMPTION
. IF THE CROP GROWN IN THE CEA
FACILITY IS HEMP, THE OWNER MUST ALSO INCLUDE A COPY OF A LICENSE TO
VERIFY TO THE ASSESSOR THAT THE CROP IS NOT MARIJUANA
.
(5) N
OTWITHSTANDING ANY OTHER PROVISION OF LAW , A CEA
FACILITY SHALL NOT VIOLATE THE TERMS AND CONDITIONS OF ANY
APPLICABLE WATER COURT DECREE ISSUED PURSUANT TO ARTICLE
92 OF
TITLE
37 AND SHALL NOT MATERIALLY INJURE WATER RIGHTS OR
CONDITIONAL WATER RIGHTS GRANTED UNDER ARTICLE
92 OF TITLE 37.
(6) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2029.
SECTION 4. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 4-HOUSE BILL 22-1301 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 5-HOUSE BILL 22-1301