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Committee hears bill to exempt government acquisitions from open‑space 'additional tax'
Summary
House Finance heard House Bill 2,140, which would exempt land sold or transferred to a governmental entity from the additional tax triggered when property is removed from an open‑space current‑use classification; sponsor Rep. Lowe said the change fixes an assessor dilemma when small road frontages are taken, and FutureWise signaled support while seeking language to preserve agricultural and open‑space uses.
House Finance on Thursday heard House Bill 2,140, a narrowly framed measure that would exempt land sold or transferred to a governmental entity from the "additional tax" owners pay when property is removed from an open‑space current‑use classification.
Committee staff Christina King summarized the proposal for members, saying the bill "exempts land sold or transferred to a governmental entity from additional tax when the land is removed from an open space classification in certain circumstances." She noted the measure caps the combined acreage affected at 20 percent of the classified property and includes statutory housekeeping changes such as an exemption from the tax‑preference performance statement and JLARC review; the Department of Revenue expects a one‑time rulemaking cost of about $30,000 in fiscal year 2027, and the overall state revenue impact was described as minimal but indeterminate.
Prime sponsor Representative Lowe told the committee the bill responds to a practical problem encountered by assessors and landowners when local governments acquire small strips of frontage for roadwork or other public improvements. "If we're gonna take land from a farmer, we're gonna take that 10 foot swath for the length of their property," Lowe said, "then we shouldn't also do 4 years of back taxes too." He described the bill as a targeted fix, not a broad change to current‑use law.
Bryce Yaden of FutureWise testified in support of the bill's intent but said his organization is working with the sponsor on narrow language changes to ensure land conveyed to local government does not become incompatible with adjacent agricultural or open‑space uses. "We support the intent of the bill and think it's a great idea," Yaden said, while asking for clarifying amendments to preserve the underlying use.
The committee took no action Thursday; the hearing record was left open for follow‑up and staff indicated fiscal details published later by the Department of Revenue would be added to the record.
