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140 <br />25 <br />adopt a resolution of consideration for the area described in the annexation ordinance <br />for at least 36 months. <br />Applicability. The veto petition process does not apply to any owner of real property <br />located within any part of the annexation area that is completely surrounded by the <br />municipality's primary corporate limits (a "doughnut hole "). <br />III. Farm Property <br />HB 168 - Farms Exempt from City Annexation & ETJ (SL 2011 -363) makes a significant <br />additional amendment to the city - initiated annexation statutes. It provides that <br />property that is being used for "bona fide farm purposes" on the date of the "resolution <br />of intent to consider annexation' may not be annexed without the written consent of the <br />owner or owners. [It is not clear whether the General Assembly meant the resolution of <br />consideration or the resolution of intent.] The change applies to annexations of <br />property used for bona fide farm purposes that were initiated on or after June 27, 2011 <br />or are pending on that date. <br />Previously the annexation statutes implemented a "delayed annexation" process for <br />agricultural property subject to present use value taxation that allowed those lands to <br />be included in an annexation area for setting boundaries and for land use authority, but <br />not for taxation or other purposes until the property lost its use value status. Those <br />provisions were removed from the statutes by HB 845. <br />The new protections for farms are much broader. Land used for a qualifying bona fide <br />farm purpose may not be included in the annexation area for any purpose unless the <br />owner consents. Because the definition of bona fide farm is very broad, we anticipate a <br />great deal of uncertainty in application and more difficulty in avoiding the creation of <br />doughnut holes. (Please see the League's memo on Land Use for further discussion on <br />the definition of bona fide farms.) <br />IV. General Procedural Changes in City - Initiated Annexations <br />• The city - initiated annexation statutes are now one - size -fits -all. There is no <br />longer a distinction based on population of the municipality. <br />• The annexation process must begin with a resolution of consideration, <br />followed by a resolution of intent at least one year later. There is no <br />longer an option to begin with the resolution of intent and delay the <br />effective date. <br />