The State of Colorado has an Agricultural Land Classification designed to help legitimate farmers and ranchers continue agricultural operations on their land. When an agriculture property is purchased, the new owners must continue using the land in an agricultural endeavor in order to keep the agricultural classification. Properties that are not currently classified as agricultural can qualify using the process outlined in this section.
As of January 1, 2012, "residential land" also includes 2 acres or less of land on which a residential improvement is located and where the improvement is not integral to an agricultural operation conducted on the land; complete the Integral Use Activity Checklist (PDF).
Complete the Agricultural Land Classification Questionnaire (PDF) to request agricultural classification. The information submitted is used by the assessor to make the decision as to whether the land qualifies as agricultural land per the Colorado Statutes.
Actual Value Determined-When
The actual value of agricultural lands, exclusive of building improvements thereon, shall be determined by consideration of the earning or productive capacity of such lands during a reasonable period of time. (§ 39-1-103(5)(a), Colorado Revised Statutes (CRS))
Improvements & Water Rights - Valuation
(6.3) "Improvements" means all structures, buildings, fixtures, fences and water rights erected upon or affixed to land, whether or not title to such land has been acquired. (§ 39-1-102, CRS)
(1) Improvements shall be appraised and valued separately from land, except improvements other than buildings on land which is used solely and exclusively for agricultural purposes, in which case the land, water rights, and improvements other than buildings shall be appraised and valued as a unit. (§ 39-5-105, CRS)
Agricultural structures used as an ancillary part of the operation are typically valued using the cost approach. The actual value is multiplied by the statutory 29% assessment rate.
Hobby Farm / Small Acreage
If you are a hobby farm or a small acreage with agricultural improvements. Please contact the Assessor's Office by calling 303-621-3101 or by email prior to your request to qualify. An on-site inspection may be required for accurate classification.
For Your Information
Smaller parcels with agricultural improvements can actually have a higher tax implication if you are classified as agriculture.