Agenda Item 9
September 20, 2016
Robert H. Drummer, Senior Legislative Attorney
Bill 31-16, Taxation - Urban Agricultural Tax
Credit - Established
The Office of Management and Budget (OMB) and the Department of Finance sent the
Fiscal and Economic Impact Statement after the publication ofthe Public Hearing packet. See
OMB noted that there are approximately 36,300 taxable properties between lh and 5 acres that are
not zoned as agricultural properties. However, OMB could not determine how many of these
properties are currently used for "urban agricultural purposes." Ifeach ofthese properties qualified
for the tax credit, which is unlikely, the total loss of tax revenue could be $436.4 million in FY17.
The large potential tax credit discussed in the FEIS points out the need to better define and possibly
limit the eligibility for the tax credit.
This packet contains:
Fiscal and Economic Impact Statement
F:\LAW\BILLS\163 I Urban Agricultural Tax Credit\PH-Addendum Memo.Docx