SF1498

SF1498 (Legislative Session 94 (2025-2026))

Definition modification of agricultural land for agricultural property classification

Related bill: HF1522

AI Generated Summary

This legislative bill proposes changes to how agricultural land is classified for property tax purposes in Minnesota. It modifies definitions and tax rates within different classifications related to agricultural, forest, and rural lands. Specifically, the bill:

Defines Agricultural Homesteads (Class 2a) - Land that includes a residential homestead along with any contiguous rural vacant land under the same ownership, modifying tax rates based on the value and usage of the land.
Adds Details to Other Agricultural Classes (Classes 2b and 2c) - Provides definitions for rural vacant land and managed forest land, outlining specific conditions under which these lands qualify for different taxation rates.
Clarifies Definitions and Tax Rates - Establishes clearer definitions of agricultural purposes, including intensive livestock operations and specific land uses such as market farming. It stipulates minimum acreages and economic criteria for agricultural classifications.
Allows Inclusion of Additional Land Types - Identifies specific land features, like wooded areas and other landforms adjacent to agricultural parcels, that should be classified together with agricultural land for tax purposes.
Addresses Multi-Use Parcels - Describes how land used for both agricultural and commercial or industrial purposes should be classified.
Adjustments for Special Situations - Includes provisions for properties such as privately owned public use airports, lands with specific types of structures, and lands engaged in certain agricultural programs or activities.
Process and Documentation Requirements - Details the processes, declarations, and documentation required from landowners to qualify for specific classifications and the reduced tax rates associated.

The overall goal is to align tax classifications more closely with the current uses of land and to recognize various agricultural and conservation efforts. This proposal could affect property tax calculations, land use planning, and financial planning for landowners engaged in agriculture and related activities in Minnesota.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 16, 2025	Senate	Floor	Action	Introduction and first reading
February 16, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Clarifying what constitutes class 2a, 2b, 2c, and 2d property, including definitions for each subclassification."
      ],
      "removed": [
        "No specific removal of requirements, but adjustments in classification criteria and rates."
      ],
      "summary": "This bill modifies the classification and definition of agricultural land under section 273.13, specifically affecting classification rates and eligibility.",
      "modified": [
        "Adjusted classification rates for different types of agricultural land, including those used for conservation programs and sustainable forest management."
      ]
    },
    "citation": "273.13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section referenced for defining valuation limits under the agricultural homestead property classification.",
      "modified": [
        "Referenced to determine first tier valuation limits for agricultural homestead property."
      ]
    },
    "citation": "273.11"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference for qualifying determinations in relation to other agricultural classifications not being affected.",
      "modified": [
        "Clarifies that this classification does not determine qualification for section 273.111 tax relief."
      ]
    },
    "citation": "273.111"
  },
  {
    "analysis": {
      "added": [
        "Allows agricultural land classification based on enrollment in these conservation programs."
      ],
      "removed": [],
      "summary": "References the Reinvest in Minnesota program as qualifying land use for agricultural classification purposes.",
      "modified": []
    },
    "citation": "103F.501 to 103F.535"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of aquacultural products in agricultural products for classification."
      ],
      "removed": [],
      "summary": "Defines aquacultural products qualifying for the agricultural classification.",
      "modified": []
    },
    "citation": "17.47"
  },
  {
    "analysis": {
      "added": [
        "Specifies the licensing report requirement for game farms to qualify."
      ],
      "removed": [],
      "summary": "Included to define qualifying game bird and waterfowl production facilities for agricultural classification.",
      "modified": []
    },
    "citation": "97A.105"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference for shooting preserve license in relation to game birds and waterfowl classification.",
      "modified": []
    },
    "citation": "97A.115"
  },
  {
    "analysis": {
      "added": [
        "Defines agricultural products to include maple syrup production under certain licenses."
      ],
      "removed": [],
      "summary": "Reference for licensing requirements related to maple syrup production.",
      "modified": []
    },
    "citation": "28A"
  },
  {
    "analysis": {
      "added": [
        "Sets criteria for land with commercial aggregate deposits and the process for changing classification."
      ],
      "removed": [],
      "summary": "Referenced for aggregate preservation program opt-out and land classification.",
      "modified": [
        "Details on how active mining affects classification and enrollment in this tax program."
      ]
    },
    "citation": "273.1115"
  }
]