HF1522 (Legislative Session 94 (2025-2026))
Property taxes; definition of agricultural land modified for agricultural property classification.
Related bill: SF1498
AI Generated Summary
This bill seeks to amend Minnesota’s property tax statutes by modifying the definition of agricultural land for classification purposes. Specifically, it restructures and clarifies the classification of agricultural properties, detailing various property types, classification rates, and requirements for qualification.
Key Provisions:
Agricultural Homesteads (Class 2a)
- Agricultural land that is homesteaded, including contiguous rural vacant land under the same ownership.
- The first-tier valuation limit is taxed at 0.5% of market value, with remaining property taxed at 1%.
- Includes non-contiguous rural land interspersed with agricultural land.
Agricultural Land (Class 2a)
- Defines agricultural land broadly to include sloughs, wooded areas, and other impractical-to-separate land, maintaining a classification rate of 1%.
- Land used primarily for agricultural purposes, such as grazing, crop production, machinery storage, and conservation programs, remains classified as agricultural.
Rural Vacant Land (Class 2b)
- Real estate that is unplatted, rural in character, and not used for agriculture.
- Certain structures do not disqualify land from classification.
- Has a classification rate of 1%.
Managed Forest Land (Class 2c)
- Includes 20–1,920 acres managed under a forest management plan but not enrolled in state incentive programs.
- Classified at a reduced rate of 0.65% if verified by the Department of Natural Resources.
Expanded Agricultural Definition
- Agricultural land can also include parcels under 10 acres if engaged in intensive farming, nurseries, or market farming.
- Includes maple syrup production, aquaculture, commercial boarding of horses, and game bird breeding under specific conditions.
Commercial and Mixed Use
- If agricultural property includes commercial or industrial use, the assessor must classify portions accordingly.
- Certain activities like grain drying or greenhouse production are deemed agricultural if primarily used for that purpose.
Aggregate Deposits (Class 2e)
- Non-active commercial aggregate deposits are taxed at 1% provided they meet zoning requirements.
- Owners must file affidavits certifying deposits and documenting mining conditions.
Other Considerations
- Clarifies that leasing or renting agricultural land does not change classification.
- Agricultural classification supersedes local zoning policies on farm acreage.
- Specifies market value determination methods for homestead dwellings.
By revising these classifications, the bill aims to provide clearer guidelines for assessors, promote fair taxation of agricultural properties, and ensure appropriate classification for specialized land uses.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 25, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| March 26, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Clarification on classification of certain agricultural lands, such as class 2a, 2b, and 2c."
],
"removed": [
"No previous classifications are explicitly removed, but the bill restructures existing provisions."
],
"summary": "This bill modifies the classification and tax rates of various types of agricultural land under section 273.13 subdivision 23.",
"modified": [
"Adjustments to market value criteria for determining agricultural land classifications."
]
},
"citation": "273.13 subdivision 23"
},
{
"analysis": {
"added": [
"N/A"
],
"removed": [
"N/A"
],
"summary": "The bill refers to section 273.11 subdivision 23 for first tier valuation limits related to agricultural homestead property.",
"modified": [
"References to valuation limits tied to section 273.11 subdivision 23."
]
},
"citation": "273.11 subdivision 23"
},
{
"analysis": {
"added": [
"Incorporation of conservation program criteria for classification."
],
"removed": [
"N/A"
],
"summary": "The bill includes a provision for agricultural land to be classified under various conservation programs, including those under sections 103F.501 to 103F.535.",
"modified": [
"Clarifications regarding land enrollments in conservation programs."
]
},
"citation": "103F.501 to 103F.535"
},
{
"analysis": {
"added": [
"Inclusion of game bird raising under agricultural product classifications."
],
"removed": [
"N/A"
],
"summary": "Game farm licensing for raising game birds under section 97A.105 is mentioned as part of the agricultural classification criteria.",
"modified": [
"Requirements for game farm licensing clarified."
]
},
"citation": "97A.105"
},
{
"analysis": {
"added": [
"References to shooting preserves for game birds under agricultural classifications."
],
"removed": [
"N/A"
],
"summary": "The bill references section 97A.115 for shooting preserve licenses as part of the agricultural product classification for game birds.",
"modified": [
"Specific criteria for shooting preserve classification clarified."
]
},
"citation": "97A.115"
},
{
"analysis": {
"added": [
"Inclusion of airport classification under specific licensing conditions."
],
"removed": [
"N/A"
],
"summary": "Class 2d airport landing areas are defined and licensed under section 360.018.",
"modified": [
"Clarification on licensing requirements for classifying airport landing areas."
]
},
"citation": "360.018"
},
{
"analysis": {
"added": [
"Definitions for contiguous parcel determination."
],
"removed": [
"N/A"
],
"summary": "The bill uses section 272.193 to define contiguous tax parcels for classification purposes.",
"modified": [
"Application of parcel determination rules based on existing statute."
]
},
"citation": "272.193"
},
{
"analysis": {
"added": [
"Reference to county options regarding aggregate preservation."
],
"removed": [
"N/A"
],
"summary": "This citation is referenced in regard to the aggregate preservation program, describing counties opting out.",
"modified": [
"Details on classification rates for commercial aggregate deposits."
]
},
"citation": "273.1115 subdivision 6"
}
]