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Urban Agriculture

Tax Incentives for Urban Agriculture

What is an urban agriculture incentive zone

The Urban Agriculture Incentive Zone (UAIZ) Ordinance is a City program that provides property owners of vacant, unimproved, or blighted property the option of entering into a voluntary agreement with the City to keep the property in active agricultural use for a period of five years in exchange for a property tax benefit. This program is tied to the California Urban Agriculture Incentive Zone Act, which has been in effect since 2014.

The City’s program was originally set to expire in 2019. In 2017, however, State legislatures extended the sunset date of the Urban Agriculture Incentive Zone Act to 2029. As a result, the City’s UAIZ Ordinance remains in effect.

Tax incentives to promote urban agriculture

The City of Sacramento Community Development Department will re-launch the Urban Agriculture Incentive Zone Program in August this year. The purpose of the program is to promote urban agricultural use of otherwise vacant, unimproved, and blighted parcels by providing tax-incentives for properties that produce food and agricultural products.

How can I participate?

An Urban Agriculture Incentive Zone Agreement (“UAIZ agreement”) is a voluntary contractual agreement between the City and a landowner whereby the property owner agrees to maintain the entire parcel in active agricultural production for a period of five years in exchange for reduced property taxes during the contract period.

Can I participate if I don't own property?

Yes, if you can find a property owner of eligible property (see below) who is willing to enter into a contractual agreement with the City to maintain the entire parcel in active agricultural production for a period of five years.

How can I determine if my property is eligible?

Property owners may apply for a UAIZ Agreement if their property meets the following criteria:

  • It is at least 0.10 acres (4,356 sq. ft.) and not more than 3 acres (130,680 sq. ft.) in size;
  • The entire property must be dedicated to urban agriculture;
  • It is blighted, unimproved, or vacant;
  • It was blighted, unimproved, or vacant but has been converted to an urban agriculture use;
  • It does not include any dwelling units;
  • It includes only structures that are accessory to the agricultural activity, including, but not limited to toolsheds, greenhouses, produce stands; and,
  • It has a metered water service connection or approved water well;
  • Any land use approvals which are required for the use have been approved.

Please note that urban agriculture activity must commence on the property within 30 days of execution of a UAIZ agreement or it will be terminated. Therefore, in cases where a land use approval is required in order to commence the agriculture activity, it must be approved prior to submitting an application for a UAIZ agreement. This is because land use approvals are often discretionary (not guaranteed), and may take more than a month to complete the process). If you have questions, email them to Planning Helpline.

Application packet

The next application window will open in September 2024. We recommend reviewing the application packet ahead of time to ensure you qualify for this program. 

Urban Agriculture Incentive Zone Application Packet

Please sign up for email updates a the bottom of this webpage to be notified when the application window opens.

Informational session

On September 14, 2023, City staff held an informational session covering the details of the program and application process for the Urban Agriculture Incentive Zone (UAIZ) Program. A recording of the informational session recording and slides can be found at the links below:

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