HF363

HF363 (Legislative Session 94 (2025-2026))

Property tax credit established for certain acres certified under the Minnesota agricultural water quality certification program, and money appropriated.

Related bill: SF1269

AI Generated Summary

Purpose of the Bill

This bill aims to encourage agricultural practices that improve water quality in Minnesota by providing a tax credit to landowners who have certified acres under the Minnesota Agricultural Water Quality Certification Program.

Main Provisions

Eligibility for Tax Credit: To qualify for the agricultural water quality credit, a property must be classified as class 2a or 2b agricultural property and must be certified by the Commissioner of Agriculture or a designated certifying agent. Additionally, it must be located in one of the following Minnesota counties: Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Wabasha, or Winona.
Credit Amount: Eligible properties receive a credit of $5 per certified acre.
Certification Process: The Commissioner of Agriculture is required to inform county assessors about the location of certified acres.
Reimbursement and Payment: County auditors will determine and certify the tax reductions yearly and report them to the Commissioner of Revenue. These reductions will be reimbursed to local taxing jurisdictions and school districts in equal installments in October and December.

Significant Changes to Existing Law

New Tax Credit: The bill adds a new tax credit for agricultural properties that meet specific water quality certification standards, incentivizing environmentally-friendly practices.
Appropriation from Clean Water Fund: Funding to support these tax credits will come from the clean water fund, with payments to be distributed by the Commissioner of Revenue and the Commissioner of Education.

Relevant Terms

agricultural water quality, tax credit, certified acres, Minnesota Agricultural Water Quality Certification Program, clean water fund, environmental incentives, property tax reduction, Commissioner of Agriculture, class 2a and 2b property

Bill text versions

Introduction PDF file
1st Engrossment PDF file
1st Engrossment PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 12, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
February 12, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
February 23, 2025	House	Floor	Action	Author added
March 31, 2025	House	Floor	Action	Committee report, to adopt as amended and re-refer to	Legacy Finance
March 31, 2025	House	Floor	Action	Committee report, to adopt as amended and re-refer to	Legacy Finance

Citations

[
  {
    "analysis": {
      "added": [
        "A specific requirement for separate reporting of tax reductions."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislative text amends the notification requirements for property tax levies under section 275.065, subdivision 3.",
      "modified": [
        "Adjusts timeline for notifications to align with new payment schedules."
      ]
    },
    "citation": "275.065",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "New procedural guidelines for integration with agricultural water quality credits."
      ],
      "removed": [
        "Previous generic guidelines for tax statement layouts."
      ],
      "summary": "This legislative text modifies procedures related to the preparation of tax statements under section 276.04, subdivision 2.",
      "modified": [
        "Updated to include credit adjustments within statements."
      ]
    },
    "citation": "276.04",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Clarifies processes for incorporating agricultural water quality credits into state aid calculations."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends the distribution of state aid to school districts under section 273.1392.",
      "modified": [
        "Revises distribution methodology to account for new credit amounts."
      ]
    },
    "citation": "273.1392",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Instructions for proportionate distribution of agricultural water quality credits."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill modifies the requirements for the application of property tax credits under section 273.1393.",
      "modified": [
        "Service fees adjusted for alignment with property tax credits."
      ]
    },
    "citation": "273.1393",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Mandates reporting of agricultural credit amounts as separate items."
      ],
      "removed": [
        "Standard reporting processes for existing property tax credits."
      ],
      "summary": "The text alters requirements for reports made by county auditors to the commissioner under section 270C.85, subdivision 2.",
      "modified": [
        "Clarifies expectation for detailed accuracy and necessary corrections."
      ]
    },
    "citation": "270C.85",
    "subdivision": "subdivision 2"
  }
]