HF2654 (Legislative Session 94 (2025-2026))
Definition of agricultural products modified for class 2 agricultural property classification.
Related bill: SF2626
AI Generated Summary
Purpose of the Bill
The primary aim of this Minnesota legislative bill is to modify the definition of agricultural products for tax purposes. This modification is intended to impact the classification of agricultural properties and potentially alter how they are taxed.
Main Provisions
- Agricultural Homestead Classification: This bill focuses on modifying classification rates for agricultural homesteads and distinguishes between different types of agricultural lands and activities.
- Definition Update: It introduces more detailed definitions of what qualifies as agricultural land, adding specificity about the types of activities and products that can be considered agricultural.
- Expanded Agricultural Products Definition: The bill broadens the definition of agricultural products to include a variety of farming activities and products, including traditional crops, livestock, aquaculture, and some commercial uses like the boarding of horses and growth of nursery stock.
- Tax Classification Adjustments: Tax rates are specified for different types of agricultural properties based on their use, such as Class 2a agricultural land and Class 2c managed forest land, which could affect the taxes owed by property owners.
Significant Changes to Existing Law
- Classification Tiers: Changes the criteria and classification rates for agricultural properties, potentially affecting the taxable value of these lands.
- Intensive Use Inclusions: Clarifies land use types eligible for agricultural classification, including intensive operations like livestock confinement and nursery stock cultivation.
- Conservation Program Participation: Encourages participation in conservation programs by including certain types of conservation land in the definition of agricultural land for tax purposes.
Relevant Terms
agricultural products, property classification, homestead, agricultural land, class 2a, class 2b, aquaculture, conservation program, nursery stock, forestry management, agricultural homestead, taxation.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| April 01, 2025 | House | Floor | Action | Author added | |
| April 02, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Additional details on property classification rates and associated agricultural uses.",
"Clarification on classification criteria for rural vacant land and managed forest land."
],
"removed": [],
"summary": "This bill modifies the definition of class 2 agricultural property in regards to agricultural products.",
"modified": [
"Adjusts classification rate percentages for agricultural properties.",
"Additional qualifications for property classifications under agricultural land definitions."
]
},
"citation": "273.13",
"subdivision": "subdivision 23"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to the Reinvest in Minnesota program under the context of agricultural purposes.",
"modified": []
},
"citation": "103F.501",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to the Reinvest in Minnesota program under the context of agricultural purposes.",
"modified": []
},
"citation": "103F.535",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to game farms licensed under this section as part of agricultural product classification.",
"modified": []
},
"citation": "97A.105",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to shooting preserves licensed under this section as part of agricultural product classification.",
"modified": []
},
"citation": "97A.115",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Use of licensed public airport under this section to qualify private airports for certain property classifications.",
"modified": []
},
"citation": "360.018",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to determining qualifications for aggregate resource preservation program participation.",
"modified": []
},
"citation": "273.1115",
"subdivision": "subdivision 6"
}
]