Agricultural Land Valuation According To Colorado Revised Statues
To be classified as having agricultural classification within Boulder County, you must meet defined Colorado Revised Statues (CRS 39-1-102).
CRS prescribes that the actual value of agricultural lands, exclusive of buildings, shall be determined by consideration of the earning or productive capacity of the land over a reasonable time period. These earnings are capitalized into actual value.
In 1969, individuals representing the agricultural community met with the Colorado Tax Commission (now called the Division of Property Taxation) to establish criteria to carry out the law. They agreed upon the following provisions:
- Earning or productive capacity would be determined by measuring the landlord’s net income.
- A reasonable time period would be the current ten-year average.
The State Board of Equalization approved these provisions. Colorado assessors have used them since 1970. A constitutional amendment passed by the electorate in 1982 preserves the production formula approach to value.
- Because the method for valuing agricultural land is based on production, the assessor must periodically review the land to verify the continued use for agricultural purposes.
- To ensure your property is classified properly, the assessor may request additional information from you. This information could be a copy of your previous year’s income tax form (1040-F), a grazing lease, or an agricultural land classification questionnaire. The assessor may also conduct a physical inspection of your land. The Assessor will request what participation you have in the agricultural operation.
- Note: The classification of your property will not be based solely on the information you supply on the questionnaire and all responses will be treated as confidential information.
Agricultural Property Owner’s Role
- Once classified as agricultural land for valuation purposes, the assessor must verify typical crop yields and expenses of the landlord.
- You may also be asked to provide additional information from your farm records.
Applying for Agricultural Classification
If you believe your property is incorrectly classified and should be classified as agricultural property, you may:
- Complete an agricultural land classification questionnaire.
- Attach supporting documentation and FAX to 303-441-4996 or mail to:
Boulder County Assessor’s Office
PO Box 471
Boulder, CO 80306-0471
All information supplied is treated as confidential information.
In order to make an informed decision on the proper classification, all information will be analyzed but the classification of your property will not be based solely on the information you supply.