HF363

This Minnesota legislative bill proposes the introduction of a tax credit called the "Agricultural Water Quality Credit" for properties involved in agriculture that are certified under the Minnesota agricultural water quality certification program. Here are the key points of the bill:

1. Eligibility: To qualify for the credit, the agricultural property must be designated as class 2a or 2b and must be certified by the Commissioner of Agriculture or a certifying agent. The property must also be located in one of the specified counties (Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Wabasha, or Winona).

2. Credit Amount: The bill sets the credit at $5 per certified acre.

3. Administration: County auditors are responsible for determining the tax reductions for eligible properties and certifying this information to the state’s Commissioner of Revenue. The credit from each property will then be used to reduce the property tax payable to local taxing jurisdictions proportionately.

4. Reimbursement: The state will reimburse local taxing jurisdictions (excluding school districts) directly for any tax reductions granted under this program. School district reimbursements will be handled through the Commissioner of Education.

5. Funding: Necessary funds for these payments will be annually appropriated from the state's general fund to the respective commissioners handling the reimbursements.

Overall, the bill aims to provide financial incentives to agricultural property owners who participate in water quality enhancement, helping to improve environmental outcomes in specified counties of Minnesota.