House Bill 78

Chair's Name: Larry O�Neal

Committee: Ways & Means

House Sponsor: Richard Royal

HB 78 allows property subject to a conservation use covenant to still be used for �agritourism�. �Agritourism� is defined to include activities such as educational or entertainment-oriented farm tours (including activities where admission is charged), as well as selling farm or dairy products to visitors.

The committee substitute received a Do Pass recommendation from the Ways & Means Committee and comes to the House Floor under the Open Rule. 

Chairman O�Neal�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

This bill allows farms/dairies/farm or dairy production facilities that are subject to a conservation use covenant to generate revenues from visitors at their facilities without changing their status with regard to favorable ad valorem taxation (Taxed at 40% of current use value rather than 40% of fair market value).  Currently, these activities may constitute a breach of the conservation use covenant which would result in a loss of that favorable tax status.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

To enable the agriculture and dairy facilities that are designated conservation use properties to create additional revenues from visitors to their facilities while keeping their favorable tax status.

THIS LEGISLATION:

�         Reduces the Tax Burden on our Citizens:

This allows farms and dairy production facilities to create additional revenues and maintain their favorable ad valorem tax status.

�         Other:

Farms/dairy facilities will not be discouraged from allowing visitors to their facilities which may result in educational benefits.