In La Plata County, Colorado, vast areas of previously agricultural lands have been subdivided into ranchettes of 3, 5, 10, 20, 35 acres in size over the last 25 years. Often these properties are still vacant, sold to an out-of-town owner who is planning to move here when they retire. Meanwhile, the taxation on the property was changed to “vacant land” from “agricultural” when a plat splitting it off from a much larger agricultural tract occurred. Agricultural lands are assessed at a significantly lower rate than vacant land. Depending on the size and location of your parcel and any special assessments for your particular property, you could easily cut your tax bill by hundreds or even thousands of dollars if you can have the taxation changed back to “agricultural”.
In La Plata County, the Oil and Gas industry has been picking up the lion’s share of our tax base for those 25 years and property taxes on “vacant” land might look downright reasonable to someone from Texas or California or Florida, used to paying that same amount quarterly or even monthly for their home there. However, this may change soon as changes in Oil and Gas regulations at the state level may cause our county industry tax yield to shrink. Property taxes for the average landowner will increase to meet the financial needs of the county and local taxing districts.
Property owners can take steps to change their taxation status back to “agricultural”. The process will take a few (usually two) years of application for the status change and providing proof that the change is warranted before the change is seen on the tax bill.
The easiest step is to enter in to a grazing lease with a local large animal owner. Owners of horses, cattle, sheep and goats are frequently looking for a near-by location (10 acres or more) to graze their animals for a few months. It allows their property to rest, or produce hay. The owner will check and repair your existing fencing and commit to having their animals on your property for a period of time annually. They will haul water to the animals if you have no irrigation water available but it is better if you do or if they have water they can deliver to your property through ditches. Usually the leases are simple, renew year to year automatically until canceled in writing and the Lessee pays the Lessor $1. Provided that the Lessee has their animals on your property for a few months every year, the Assessors office will grant the agricultural designation. We can connect landowners with local animal owners, draft the leases and work with the Assessors office annually to get your designation changed.
There are other methods, particularly useful when your property is within a subdivision that does not allow the grazing of large animals. Do you have irrigation water and can crops be grown on your property? There are individuals who would jump at the chance to grow produce on your property, have a community garden, install a moveable greenhouse. Can you plant a tree farm or fruit orchard? Irrigation water is key and without that there is little you can do to have your vacant land designation changed to agricultural. Restrictive covenants are often too restrictive for any agricultural use. If that is the case, think about how many of your neighbors are in the same situation. Covenants can be changed by a majority vote of the landowners. If most of your subdivision is still vacant, it might be worth a conversation with your neighbors about entering in to some sort of agricultural use together for a limited period of time.