HF363

HF363 (Legislative Session 94 (2025-2026))

Property tax credit established for certain acres certified under the Minnesota agricultural water quality certification program, and money appropriated.

Related bill: SF1269

AI Generated Summary

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:

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

Bill text versions

Introduction PDF file
1st Engrossment PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 12, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
February 23, 2025	House	Floor	Action	Author added
March 31, 2025	House	Floor	Action	Committee report, to adopt as amended and re-refer to	Legacy Finance

Citations

[
  {
    "analysis": {
      "added": [
        "Specifies new credit payments to be made to school districts."
      ],
      "removed": [],
      "summary": "Amends section 273.1392 to address reimbursement payments to school districts for tax reductions under certain credits.",
      "modified": []
    },
    "citation": "273.1392"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends section 273.1393 regarding how credits reduce tax obligations.",
      "modified": [
        "Clarifies the application process of credits reducing net tax capacity for local jurisdictions."
      ]
    },
    "citation": "273.1393"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends section 275.065, subdivision 3, related to property taxation processes.",
      "modified": [
        "Adjustments to reporting requirements for tax-related data."
      ]
    },
    "citation": "275.065 subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends section 276.04, subdivision 2, concerning tax statements and payments.",
      "modified": [
        "Updates to timing and method concerning how tax statement information is handled under the new water quality credit."
      ]
    },
    "citation": "276.04 subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends section 270C.85, subdivision 2, relating to the administration of taxation data.",
      "modified": [
        "Includes new certification procedures for tax reduction reporting."
      ]
    },
    "citation": "270C.85 subdivision 2"
  }
]