Class 2 classification modification for agricultural land and market farming definition clarification

2025-2026 Regular Session Introduced by Warren Limmer

SF 4999 changes Class 2 property criteria for agricultural land and clarifies market farming, potentially altering property tax treatment for active farm operations.

Referred to Taxes

#agricultureandagriculturedepartment #taxation #taxation-property

Purpose and intent

SF 4999 seeks to modify how Class 2 property is determined for agricultural land and to clarify the definition of “market farming.” The bill appears to be aimed at aligning classification criteria with agricultural use and the practical realities of farming operations, potentially affecting property tax treatment for farmers and landowners.

Key provisions (as indicated by title and context)

Class 2 classification modification for agricultural land

Adjusts the criteria or process by which land used for agricultural purposes is classified as Class 2 for property tax purposes. The exact changes to criteria (e.g., land use tests, production occupancy, or use of land in agricultural activities) are implied by the title but would be detailed in the statutory language of the bill.

Market farming definition clarification

Provides a clarified or refined definition of “market farming.” This could affect eligibility for Class 2 classification by tying qualification more explicitly to farm market production, sale channels, or other characteristics associated with commercially marketed agriculture rather than solely with input production or hobby farming.

Who is affected

Farmers and agricultural landowners whose property classifications determine local property tax assessments.

Property tax administrators and assessors responsible for applying Class 2 criteria and the market farming definition.

Potential third-party stakeholders (e.g., land developers or rental operators) who may be impacted if classification criteria affect land value, tax burdens, or eligibility for certain agricultural programs.

Procedural and timeline aspects

Introduced and first reading on April 7, 2026.

Referred to the Taxes committee on the same day, indicating that the bill will be analyzed for tax policy implications and potential amendments before moving forward in the legislative process.

Sponsor: Co-sponsor Warren Limmer. The presence of a co-sponsor can signal bipartisan consideration, depending on committee actions and amendments.

Potential impacts and considerations

If the Class 2 criteria are broadened or clarified favorably toward active agricultural use, many operators could see changes in property tax assessments—potentially reducing taxes for compliant farms or ensuring more consistent treatment of farm lands.

Clarifying “market farming” can reduce ambiguity in classification, helping assessors and landowners determine eligibility and eligibility timelines more predictably.

There may be transitional provisions, effective dates, and grandfathering provisions typically included in tax-related bills; these details would be found in the full bill text and any committee amendments.

Note: This summary is based on the bill title, action history, and standard legislative drafting practices. The exact statutory language will define the precise criteria, definitions, eligibility requirements, application procedures, and effective dates.

Bill