IN HB1065

Exempts property annexed by a municipality (with owner consent) from property tax liability for municipal purposes if the property is classified as agricultural for zoning purposes or assessed as agricultural property under Department of Local Government Finance rules

Limits the property tax exemption to a maximum of 10 years for annexation ordinances adopted after June 30, 2006

Prohibits changes to the zoning classification of annexed territory without the property owner's consent

Applies retroactively to January 1, 2011, with exemptions taking effect for property taxes first due and payable after December 31, 2011

Provides that properties meeting agricultural assessment criteria that were previously annexed but not exempt will receive the exemption for up to 10 years or until the property no longer qualifies