SF1633

SF1633 (Legislative Session 94 (2025-2026))

Class 2c managed forest lands classification eligibility clarification provision

Related bill: HF2109

AI Generated Summary

This bill (S.F. No. 1633) seeks to amend Minnesota Statutes 2024, section 273.13, subdivision 23, to clarify the eligibility criteria for class 2c managed forest land classification. The bill primarily focuses on property tax classifications, particularly agricultural, rural vacant, and managed forest lands.

Key provisions include:

Class 2c Managed Forest Land Clarification:
- Specifies that class 2c land must be between 20 and 1,920 acres statewide per taxpayer.
- Requires the land to be managed under a qualifying forest management plan as defined in chapter 290C but not enrolled in the Sustainable Forest Resource Management Incentive Program.
- Establishes a classification rate of 0.65% of market value.
- Requires property owners to apply with the assessor and provide necessary documentation for eligibility.
- Requires concurrence from the Commissioner of Natural Resources on eligibility, with annual verification supplied to county assessors.
- States that having a minor ancillary nonresidential structure does not disqualify land from this classification.
Refinements to Class 2 Agricultural Land Classifications:
- Consolidates definitions and criteria for agricultural homesteads, rural vacant land, and land meeting the qualifications of the 2c managed forest classification.
- Addresses valuation tiers, structures on agricultural land, eligibility for tax benefits, and allowable uses for properties under this classification.
Inclusion of Agricultural Conservation Uses:
- Confirms eligibility for agricultural classification for land enrolled in conservation programs such as Reinvest in Minnesota and federal conservation programs.
- Includes land used for buffer strips, old-growth restoration, and similar environmental benefits.
Handling of Mixed-Use Land:
- Outlines how assessors should classify land used partly for agricultural purposes and partly for commercial or industrial purposes.
- Defines applicable uses such as wholesale, retail, processing, and packaging of agricultural products.
Other Provisions:
- Clarifies definitions related to agricultural land, including land used for livestock, horticulture, forestry, and conservation programs.
- Maintains existing classification rates for various subcategories of class 2 properties, such as rural vacant land, airport landing areas, and aggregate resource lands.

The bill aims to provide clearer guidelines for land classification, ensuring consistent tax treatment for managed forest lands while maintaining tax benefits for conservation and agricultural use.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 19, 2025	Senate	Floor	Action	Introduction and first reading
February 19, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends the classification of agricultural and rural lands under section 273.13, subdivision 23.",
      "modified": [
        "Clarifies eligibility and classification rates for class 2a, 2b, and 2c properties.",
        "Specifies the criteria and management plans required for class 2c managed forest lands."
      ]
    },
    "citation": "273.13, subdivision 23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References first tier valuation limit related to agricultural homestead property.",
      "modified": []
    },
    "citation": "273.11, subdivision 23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relates to the requirements of forest management plans under chapter 290C for class 2c managed forest lands.",
      "modified": []
    },
    "citation": "290C"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines forest management plans as per section 290C.02, subdivision 7.",
      "modified": []
    },
    "citation": "290C.02, subdivision 7"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relates to the definition of contiguous acreage under section 272.193.",
      "modified": []
    },
    "citation": "272.193"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mentions qualification details under section 273.111, although not determinative for qualification.",
      "modified": []
    },
    "citation": "273.111"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the game farm licensing requirements under section 97A.105.",
      "modified": []
    },
    "citation": "97A.105"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to licensing under section 97A.115 for use on a shooting preserve.",
      "modified": []
    },
    "citation": "97A.115"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Explains public airport licensing as per section 360.018 necessary for classification of airport landing areas.",
      "modified": []
    },
    "citation": "360.018"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mentions the aggregate preservation program and conditions for opting out under section 273.1115, subdivision 6.",
      "modified": []
    },
    "citation": "273.1115, subdivision 6"
  }
]