HF2654

HF2654 (Legislative Session 94 (2025-2026))

Definition of agricultural products modified for class 2 agricultural property classification.

Related bill: SF2626

AI Generated Summary

Purpose of the Bill

The main purpose of this bill is to modify the definition of agricultural products for classifying property as Class 2 agricultural property in Minnesota. This change aims to provide clarity regarding what qualifies as agricultural use and how these properties are assessed for tax purposes.

Main Provisions

Class 2 Agricultural Homestead Definition: The bill clarifies the types of lands and buildings that are considered as Class 2a property, including agricultural land, homesteads, and rural vacant lands that are contiguous under the same ownership.
Classification Rates:
- Class 2a agricultural homestead properties enjoy a classification rate of 0.5% for the first tier of valuation and 1% for values exceeding this tier.
- Class 2b rural vacant lands and other non-residential agricultural lands generally have a 1% classification rate.
Agricultural Purposes: The bill specifies what constitutes “agricultural purposes” (e.g., cultivation, raising livestock, storage of agricultural products) and establishes guidelines for qualifying lands used for intensive agricultural operations and conservation programs.
Property Size and Usage: The bill outlines the conditions under which smaller contiguous parcels used for specific agricultural operations can still be classified as agricultural land.

Significant Changes to Existing Law

Expanded Definition of Agricultural Products: The bill expands the definition to include livestock, aquaculture, nursery operations, market farming, and the boarding of horses under certain conditions. It also includes activities like greenhouse operations primarily used for growing plants.
Addition of Managed Forest Land: The bill specifies how managed forest land could be classified under a different subclass (Class 2c) which provides a reduced classification rate, given that the land is under a forest management plan.
Inclusion of Non-traditional Agricultural Activities: The bill includes several non-traditional agricultural activities as agricultural uses, such as commercial boarding of horses, production of maple syrup, and raising specific animals like game birds.

Relevant Terms

agricultural products, agricultural homestead, Class 2a, Class 2b, rural vacant land, classification rate, agricultural purposes, conservation program, managed forest land, aquaculture, boarding of horses, greenhouse operations, maple syrup, commercial aggregate deposit.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 23, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
March 23, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
April 01, 2025	House	Floor	Action	Author added
April 02, 2025	House	Floor	Action	Author added
April 02, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Includes aquacultural products and specific conditions under which horse boarding qualifies."
      ],
      "removed": [
        "Conditions that were previously required for qualifying agricultural purposes that are redundant with new definitions."
      ],
      "summary": "This bill modifies the definition of agricultural products for property tax purposes under section 273.13.",
      "modified": [
        "Adjusts definition of agricultural land to ensure precision in the classification of properties."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mentioned in the context of Reinvest in Minnesota program as it relates to property classification.",
      "modified": []
    },
    "citation": "103F.501",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mentioned in the context of Reinvest in Minnesota program as it relates to property classification.",
      "modified": []
    },
    "citation": "103F.535",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in the definition of agricultural products related to game farms.",
      "modified": []
    },
    "citation": "97A.105",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in defining agricultural products related to shooting preserves.",
      "modified": []
    },
    "citation": "97A.115",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines aquacultural products as part of agricultural classification.",
      "modified": []
    },
    "citation": "17.47",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced for licensing of public use airports in relation to property classification.",
      "modified": []
    },
    "citation": "360.018",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Provides details about aggregate preservation program for classifying certain lands.",
      "modified": []
    },
    "citation": "273.1115",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Discusses conditions and requirements for enrollment in an aggregate resource preservation program for tax purposes.",
      "modified": []
    },
    "citation": "273.1115",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines tax parcel concepts related to property classification.",
      "modified": []
    },
    "citation": "272.193",
    "subdivision": ""
  }
]