HB 5189 Summary

• Modifies farmland development rights agreement processes by allowing automatic renewal upon written owner request if compliance requirements are met, with renewal terms of at least 7 years.

• Establishes procedures for relinquishing farmland from development rights agreements, including relinquishment of up to 2 acres for existing structures or up to 2 acres for new farm residence construction, subject to local zoning approval.

• Creates lien mechanisms on relinquished property to recover allocated tax credits from the previous 7 years, with interest at 6% annually, payable upon sale or conversion to prohibited use.

• Expands tax credit eligibility to include owners of farmland subject to agricultural conservation easements and purchases of development rights, allowing credits when property taxes exceed 3.5% of household or business income.

• Increases annual administrative funding cap for the agricultural preservation fund from $1,000,000 to $1,400,000 and establishes fund spending hierarchy prioritizing administration, then local grants, then development rights purchases once $5,000,000 threshold is met.