HF1522 (Legislative Session 94 (2025-2026))
Property taxes; definition of agricultural land modified for agricultural property classification.
Related bill: SF1498
AI Generated Summary
This bill proposes modifications to the definition of agricultural land for property tax classification purposes in Minnesota. Key provisions include:
- Agricultural Homestead Classification (Class 2a): The bill clarifies that agricultural homestead property consists of agricultural land that is homesteaded and includes any contiguous rural vacant land under the same ownership.
- Classification Rates:
- The classification rate for agricultural homestead property remains 0.5% of the market value up to the first-tier valuation limit, and 1% for values exceeding that limit.
- Class 2a non-homestead property and Class 2b rural vacant land typically retain a classification rate of 1% of market value.
- Expanded Definition of Agricultural Land:
- Land must be at least 10 contiguous acres used for agricultural purposes or used for intensive livestock and poultry confinement (excluding solely pastures/grazing land).
- Includes enrolled conservation program land and buffers that provide environmental benefits.
- Land less than 10 acres can qualify if used intensively for agriculture, such as grain drying/storage, nursery production, or market farming.
- Market Farming:
- Includes cultivation of fruits, vegetables, and other agricultural products for local markets.
- Properties under 11 acres with a residence may qualify if they meet income thresholds (gross income of at least $5,000 as shown on tax filings or through a financial plan).
- Leased Agricultural Land: Land leased for agricultural purposes remains classified as agricultural.
- Supremacy Over Local Zoning Policies: This classification supersedes local policies that impose minimum or maximum farm acreage restrictions.
- Definition of Agricultural Products: Expands to include livestock, dairy, poultry, aquaculture, tree farming, maple syrup production, and game bird breeding, among others.
- Mixed-Use Properties: If a parcel is used for both agriculture and commercial/industrial purposes, the agricultural portion retains its classification while the rest is assessed differently.
- Other Property Classifications:
- Airport Landing Areas (Class 2d): Privately owned public airports licensed by the state may qualify for a reduced classification rate.
- Commercial Aggregate Deposits (Class 2e): Land with non-active commercial aggregate deposits (e.g., gravel, sand) can be classified separately at 1% of market value if specific conditions are met.
- Active mining on land changes its classification to reflect industrial use.
The bill ensures a more comprehensive and flexible classification system for agricultural properties while maintaining tax incentives for working farms and conservation efforts.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 25, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| February 25, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| March 26, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"New definitions and qualifications for specific types of agricultural land, including managed forest land and land with a commercial aggregate deposit."
],
"removed": [],
"summary": "This bill modifies the definition of agricultural land for property tax classification under section 273.13, subdivision 23.",
"modified": [
"Changes classification rates and criteria for agricultural and related land types."
]
},
"citation": "273.13",
"subdivision": "subdivision 23"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 273.11, subdivision 23 for defining the first tier valuation limit of agricultural homestead property.",
"modified": [
"Utilizes the certified limit for agricultural homestead property in tax calculations."
]
},
"citation": "273.11",
"subdivision": "subdivision 23"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references sections 103F.501 to 103F.535 regarding the Reinvest in Minnesota program.",
"modified": [
"Eligibility for agricultural classification based on enrollment in this conservation program."
]
},
"citation": "103F.501 to 103F.535",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 97A.105 regarding the licensing of game farms.",
"modified": [
"Defines agricultural products to include those from licensed game farms."
]
},
"citation": "97A.105",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 97A.115 concerning shooting preserves.",
"modified": [
"Defines agricultural products to include those used on licensed shooting preserves."
]
},
"citation": "97A.115",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 360.018 for the licensing of public airports.",
"modified": [
"Classification criteria for airport landing areas require licensing as per section 360.018."
]
},
"citation": "360.018",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 273.1115, subdivision 6 for the aggregate preservation program opt-out.",
"modified": [
"Defines classification rate and eligibility linked to participation in this program."
]
},
"citation": "273.1115",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 17.47 regarding zoning for aquaculture.",
"modified": [
"Includes aquacultural products as agricultural when conducted on properly zoned land."
]
},
"citation": "17.47",
"subdivision": ""
}
]