House Bill 321

Chair's Name: Larry O�Neal

Committee: Ways & Means

House Sponsor: Richard Royal

HB 321 clarifies the acreage limit for conservation use property when applied to family owned farms. Rather than allowing only 2000 acres of an entire family farm to be considered conservation use property, the new language will allow the 2000 acre limit to apply to each individual with an interest in the family farm.

This bill received a Do Pass recommendation from the Ways & Means Committee and comes to the House Floor under the Structured Rule. 

Chairman O�Neal�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

The purpose of HB 321 is to relax the 2000 acre limitation on family owned farm entities.  HB 321 allows each person that owns an interest in a family owned farm entity to own 2,000 acres of conservation use property, rather than only allowing a family owned farm entity a maximum of 2,000 acres total.  A person may allocate the lesser of their percentage interest in the total conservation use property or the unused portion of their allowed 2,000 acres so that more than 2,000 acres in total may be claimed as conservation use property.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

This bill codifies a court case: Effingham County Board of Tax Assessors v. Samwilka, Inc.

THIS LEGISLATION:

• Strengthens the Traditional Family Structure:

This bill benefits family owned farm entities specifically.

• Reduces the Tax Burden on our Citizens:

This bill eases the property tax burden on family owned farm entities by allowing more than 2,000 acres to be assessed at the favorable tax rate (40% of current use value rather than fair market value).