HB3418 Summary

• Establishes municipal urban agricultural areas allowing municipalities to create designated zones where qualifying farmers can grow, raise, or process agricultural products and receive tax benefits.

• Defines qualifying farmers as small/medium-sized, beginning, limited resource, or socially-disadvantaged farmers, with definitions to be established by the Department of Agriculture through rulemaking.

• Creates urban agricultural area committees composed of 5 members (1 from municipal board, 4 appointed residents) to review applications and oversee designation, modification, and dissolution of these areas.

• Provides tax abatement eligibility for property within urban agricultural areas used by qualifying farmers, allowing municipalities to abate taxes under Section 18-165 of the Property Tax Code.

• Allows utility rate reductions by authorizing municipalities to permit water, electricity, and utility providers to offer wholesale rates or reduced connection charges to qualifying farmers in urban agricultural areas.