House committee advances bill to clarify agricultural property tax classification for pasture-based operations

A House committee on Thursday voted to advance a measure that clarifies who may qualify for Colorado’s agricultural property tax classification, explicitly adding pasture-based livestock operations to the definition used by county assessors.

Sponsors and agricultural groups said the change is intended to let small-scale producers — including some pasture-raised pigs and meat chickens — access the agricultural classification that reduces property valuation for farmland. "This bill modernizes the definitions of farm and ranch so that it will include smaller and pasture based operations," said Brandon Melnikov, testifying for the Colorado Farm Bureau. "It doesn't matter if you graze chickens or cattle, agriculture is agriculture." (Brandon Melnikov, Colorado Farm Bureau).

Why it matters: Agricultural property classification values land by the income it can generate for production rather than by market value, often producing a substantially lower taxable value. County assessors told the committee that precise statutory language is critical to consistent application across Colorado’s 64 counties.

What sponsors said: A sponsor said the bill updates long-standing definitions to reflect current ranching and farming practices, and thanked county assessors and agricultural organizations for helping shape language that adds the terms "pasture-based operation" and the qualifier "predominantly" to the statute to make expectations clearer for both producers and assessors.

Fiscal and administrative impacts: Legislative fiscal staff told the committee their analysis found a minimal aggregate statewide property-tax impact because many pasture-based operations already appear to be classified as agricultural. "I came to the conclusion that this is a minimal impact," fiscal analyst David Hanson said. County assessors and the Division of Property Taxation said they will update manuals, send bulletins, and add the language to training; the division estimated the additional work could be accommodated within existing resources.

Safeguards and limits: Weld County Assessor Brenda Dones, testifying for the Colorado Assessors Association, said the bill’s requirement that land be "predominantly" used for grazing and operated "for profit" is intended to prevent small backyard flocks or 4‑H projects from qualifying and to preserve the exemption’s integrity.

Vote and procedural next step: Representative McCormack moved the bill to the Committee of the Whole with a favorable recommendation; the roll call passed 12–0 with one excused. The committee recorded proponents’ and assessors’ testimony; no amendments were adopted.

What’s next: The bill will go to the Committee of the Whole for further consideration.