96-085
Response
June 17, 1996
Request
XXXXX
Tax
Policy Analyst
Utah
State Tax Commission
210
North 1950 West
Salt
Lake City, UT 84134
Re: XXXXX/Greenbelt Status
Advisory Opinion
Dear
XXXXX:
The
XXXXX recently (XXXXX) applied to the Utah Division of Wildlife Resources for a
"CHA" (Commercial Hunting Area) permit to enable us to raise ring
necked pheasants on XXXXX acres of land owned by the XXXXX in Salt Lake County.
(See plat maps, etc. enclosed.) For many years, the XXXXX has leased grazing
rights on its property to enable it to qualify for "Greenbelt" tax
status. It is the XXXXX goal to substantially improve the pheasant habitat on
the 1750.42 acres (outlined in yellow on the enclosed plat). When approved for
the CHA, we expect ultimately the released (15% mandatory unharvested)
pheasants will naturally breed and propagate and the continued raising and
release of 500-plus birds per year will result in a significant improvement of
the quantity and quality of the hunting on the XXXXX. We hope to discontinue
the cattle grazing, but we do not want to lose our "greenbelt" tax
classification We do not have to eliminate the grazing to raise the pheasants,
but we believe the habitat will be more suitable for both waterfowl nesting and
the pheasant operation if the grazing practice is suspended, and I believe the
pheasant operation, when implemented as planned, will serve to qualify the
XXXXX for the Greenbelt tax classification desired When I discussed this
question with XXXXX and XXXXX, they suggested that I request an advisory
opinion from the State Tax Commission relative to this matter.
This
letter will serve as XXXXX written request for you to issue a firm ruling on
behalf of the State of Utah as to whether or not the contemplated pheasant
program (without the cattle grazing) will qualify for "Greenbelt" tax
classification. I have enclosed copies of our application for Certificate of
Registration, as well as copies of the regulations, etc., with which we will
fully comply. If you have questions regarding this request, please call me at
XXXXX or XXXXX at XXXXX.
Thank
you in advance for your assistance and cooperation with this matter.
Sincerely,
XXXXX
XXXXX
Advisory
Opinion - greenbelt designation
Dear
XXXXX
We
have received your request for an opinion as to the eligibility of land owned
by XXXXX for valuation under the Farmland Assessment Act (FAA). We have never issued a decision on this
specific issue, but we may have the opportunity to do so in the future. We know of at least one county that is
reevaluating hunting clubs for continued FAA eligibility. If those clubs are removed from FAA status,
that action may give rise to appeals before the Commission. We prefer that our decision on this matter
arise from appeal proceedings after we have had the opportunity to hear
arguments on all sides of the issue.
Therefore, we decline to make a definitive policy statement here that
may prejudice those future appeals.
However, we offer the following tentative guidance to help you evaluate
your own situation:
Utah
law allows for land to be assessed based on the value that the land has for
agricultural use if the land “is actively devoted to agricultural use.” §59-2-503 Utah Code Ann. “Agricultural use” means “land devoted to
the raising of useful plants and animals with a reasonable expectation of
profit. . . .” §59-2-502 (1) Utah Code
Ann.
Land
actively devoted to the production or raising of game birds appears to qualify as
an agricultural use within the meaning of the Farmland Assessment Act. We are not convinced that land actively
devoted to use as a commercial hunting club or sports area qualifies. Therefore, we suggest that you consider only
a portion of the land used to produce, incubate or raise the birds before
release to be eligible under the Farmland Assessment Act unless you are also
conducting qualifying agricultural activities on the remaining portion of the
land.
Please
contact us again if you have any further questions.
For
the Commission,
Alice
Shearer
Commissioner