SF2626 (Legislative Session 94 (2025-2026))
Definition modification of agricultural products for class 2 agricultural property classification
Related bill: HF2654
AI Generated Summary
Purpose
The purpose of this bill is to modify the definition of agricultural products for property tax classification purposes in Minnesota. This change is intended to clarify and potentially expand what qualifies as agricultural land under state tax law, influencing property classification and related tax rates.
Main Provisions
Agricultural Homestead Classification: The bill distinguishes between class 2a agricultural land (agricultural land and buildings) and class 2b rural vacant land (land not used for agriculture) for homestead classification purposes. Class 2a land is taxed based on a percentage of market value with a lower rate if it qualifies as part of an agricultural homestead.
Redefinition of Agricultural Products: The bill expands the definition of agricultural products to include various activities and items such as livestock, dairy, and poultry products, horticultural stock, and certain forestry and conservation activities. This also includes aquacultural practices, horse boarding with specific conditions, and the breeding of certain game birds and insects.
Inclusion of Forestry and Conservation Activities: The bill recognizes land used for conservation programs and managed forest land under specific management plans. Such properties may qualify for a reduced tax classification rate.
Special Considerations for Mixed Use: If agricultural land is also used for non-agricultural commercial or industrial activities, the land will be partially reclassified based on its use.
Additional Land Classifications: The bill introduces classifications for various types of land related to airport operations and commercial aggregate deposits, impacting how these lands are assessed for tax purposes.
Significant Changes
The bill ensures that more properties, particularly those part of conservation programs or mixed-use agricultural activities, can be classified under preferred agricultural tax rates.
Criteria for what constitutes agricultural land and its uses have been broadened, potentially allowing more landowners to benefit from agricultural classifications under state taxation rules.
Relevant Terms
agricultural land, homestead classification, conservation program, rural vacant land, forestry, aquaculture, land tax classification, agricultural products, nursery stock, market farming, property tax, commercial aggregate deposit, intensive livestock operation, conservation reserve program.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 16, 2025 | Senate | Floor | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references the method to determine the first tier valuation limit for agricultural homestead property as outlined in section 273.11, subdivision 23.",
"modified": []
},
"citation": "273.11, subdivision 23"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Chapter 290C is referred to in relation to the sustainable forest management incentive program.",
"modified": []
},
"citation": "290C"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The Reinvest in Minnesota program is described in sections 103F.501 to 103F.535.",
"modified": []
},
"citation": "103F.501 to 103F.535"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The federal Conservation Reserve Program is included by reference to Public Law 99-198.",
"modified": []
},
"citation": "Public Law 99-198"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Contiguous acreage is defined by referencing the tax parcel description in section 272.193.",
"modified": []
},
"citation": "272.193"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The classification determination in this section is noted as not being determinative for qualification under section 273.111.",
"modified": []
},
"citation": "273.111"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 97A.105 is referenced in relation to the licensing of game farms for raising game birds.",
"modified": []
},
"citation": "97A.105"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Shooting preserves licensed under section 97A.115 are mentioned regarding game birds and waterfowl use.",
"modified": []
},
"citation": "97A.115"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Licensing for public airports is governed by section 360.018, which is referenced for class 2d airport landing area qualification.",
"modified": []
},
"citation": "360.018"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 273.1115 is mentioned regarding the aggregate resource preservation property tax program.",
"modified": []
},
"citation": "273.1115"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 14.386 is referred to in noting the exemption of definitions from rulemaking procedures.",
"modified": []
},
"citation": "14.386"
}
]