99-009

Response May 12, 1999

REQUEST LETTER

January 13, 1999

Attention: Commissioners

RE: Advisory Opinion

Dear Honorable Commissioners:

The practice of this office has been to deny applications for assessment under the Farmland Assessment Act, and otherwise roll-back properties, for which no agreement between the owner and a purported user is provided

Should an application be approved, or no roll-back applied, where a property has been grazed by livestock owned by a stockman who refuses to come to any kind of an agreement with the owner of the property?

I would like your response as soon as possible since I am working against a statutory deadline of March 1, 1999. I can be reached at ##### should you require further information.

Respectfully yours,

NAME

RESPONSE LETTER

May 12, 1999

NAME

ADDRESS

RE: Advisory Opinion - Farmland Assessment Act (AFAA@) and Agreements Between Owners and Agricultural Producers

Dear NAME,

We have received your request for an advisory opinion concerning the FAA. You have specifically asked whether land can be assessed and taxed under the FAA when the land is grazed by livestock owned by a stockman who does not have an agreement in place with the owner of the land. As required by Utah Admin. Code R884-24P-26(F), the owner of the land has applied for FAA assessment and taxation.

To qualify for FAA assessment and taxation, land must be actively devoted to agricultural use. Utah Code Ann. '59‑2‑503. To establish whether the land meets this requirement, certain information must be provided to the county assessor. The information that must accompany the application is detailed in Utah Code Ann. '59‑2‑508, that provides in part as follows:

(1) The owner of land eligible for valuation as land in agricultural use must submit an application to the county assessor of the county in which the land is located.

(2) Any application for valuation, assessment, and taxation of land in agricultural use shall:

(a) be on a form prescribed by the commission and provided for the use of the applicants by the county assessor;

(b) provide for the reporting of information pertinent to this part;

...

(4) A certification by the owner that the facts set forth in the application are true is considered as if made under oath and subject to the same penalties as provided by law for perjury.

...

(6) Any owner of lands eligible for valuation, assessment, and taxation under this part due to the use of that land by, and the agricultural production qualifications of, a purchaser or lessee, may qualify those lands by submitting, together with the application under Subsection (2), an affidavit from that purchaser or lessee certifying those facts relative to the use of the land and the purchaser's or lessee's agricultural production of the land which would be necessary for qualification of those lands under this part.

Use by the Owner.

When the agricultural use that would qualify the land for FAA assessment and taxation is performed by the owner of the land, the owner is required to submit the FAA application required by subsection (2). In addition, a county assessor, pursuant to Utah Admin. Code R884-24P-26(H) (ARule 26"), may request any additional information needed to determine if the land qualifies for FAA assessment and taxation. With this information, you can then determine if the land qualifies for FAA assessment and taxation.

Use by a Purchaser or Lessee.

When the agricultural use that would qualify the land for FAA assessment and taxation is performed by a purchaser or lessee, subsection (6) requires the owner of the land not only to submit the FAA application that is required by subsection (2), but also an affidavit from the purchaser or lessee certifying those facts relative to the agricultural use of the land. While the owner is required to submit an affidavit completed by any purchaser or lessee along with the FAA application, the submission of a written contract between the owner of the land and a purchaser or lessee is not required by statute. Nevertheless, Rule 26 allows you to request any additional information that is needed for you to determine if the land qualifies for FAA assessment.

There may be circumstances where the agricultural user and the owner of the land have not entered into a formal contractual relationship with each other or have not yet agreed to certain terms. In such a case, an affidavit provided by the agricultural user of the land may provide sufficient information for you to determine if the land qualifies for FAA assessment and taxation under Section 503.

By phone, you described a situation in which there is no formal or informal agreement of any kind between the landowner and the owner of livestock. The cattle from time to time wander onto unfenced property owned by the landowner. In that case, it is clear that the land is not Aactively devoted to agricultural use@ and, accordingly, is not eligible for FAA assessment and taxation.

Please contact us if you have any other questions.

For the Commission,

R. Bruce Johnson

Commissioner