SF2626

SF2626 (Legislative Session 94 (2025-2026))

Definition modification of agricultural products for class 2 agricultural property classification

Related bill: HF2654

AI Generated Summary

Purpose of the Bill

This bill aims to amend the definition of agricultural products for property tax classification purposes. It is designed to adjust the classification criteria for agricultural properties in Minnesota to ensure accurate tax classification based on how the land is used.

Main Provisions

Agricultural Homestead and Land Classification: The bill specifies conditions under which agricultural land falls under different classes, namely Class 2a (agricultural), Class 2b (rural vacant land), and introduces Class 2d and 2e to cover airport lands and land with commercial aggregate deposits.
Classification Rates: It maintains classification rates, where Class 2a land linked to an agricultural homestead is taxed at 0.5% for the first tier of market value and 1% thereafter. Similarly, Class 2b land and certain Class 2c managed forests have specified rates, reflecting their land usage.
Intensive Usage Criteria: Particularly for land under ten acres, the bill defines what qualifies for agricultural classification based on intensive uses such as grain drying, machinery storage, nurseries, and market farming.
Expanded Definitions: "Agricultural products" include a broad array of activities like livestock production, horticulture, aquaculture, equestrian activities, and the breeding of game birds or insects, as well as tree production and maple syrup extraction.
Additional Use and Activities: The bill describes how properties that also serve commercial or industrial purposes alongside agricultural uses should be classified. This includes operations like wholesale/retail sales or product processing.
Conservation Program Enrollment: The bill details how areas enrolled in conservation programs can maintain their agricultural classification.

Significant Changes

Updated Agricultural Definition: Expands what constitutes agricultural products and land use, especially in terms of size requirements and specific activities eligible for agricultural classification.
Specific Conveyances for Minor Structures: Provides clearer definitions around how minor nonresidential structures affect land classification and emphasizes conservation and local program integrations.
Intensity of Use for Small Acres: Introduces criteria for the classification of small-acre parcels based on intensive agricultural use, directly influencing how such parcels are taxed.

Relevant Terms

Agricultural homestead
Classification rates
Rural vacant land
Intensive livestock operation
Conservation programs
Market farming
Managed forest land
Commercial aggregate deposit

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": [
        "Additional lands and uses under the definition of agricultural homestead."
      ],
      "removed": [
        "Previous restrictions on minor ancillary nonresidential structures that disqualified properties."
      ],
      "summary": "This bill modifies the definition and classification rates of agricultural property under section 273.13.",
      "modified": [
        "Classification rate adjustments for various types of agricultural land."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 23"
  },
  {
    "analysis": {
      "added": [
        "Links agricultural classification to conservation program enrollments."
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to the Reinvest in Minnesota program as referenced in section 103F.501.",
      "modified": [
        "Amendment allows certain properties to maintain agricultural status."
      ]
    },
    "citation": "103F.501",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Includes land in conservation programs to qualify for agricultural classification."
      ],
      "removed": [
        ""
      ],
      "summary": "Extends provisions of land conservation for agricultural classification as per section 103F.535.",
      "modified": [
        "Requirements for inclusion in agricultural valuation related to conservation efforts."
      ]
    },
    "citation": "103F.535",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Defines contiguous parcel requirements for agricultural property."
      ],
      "removed": [
        ""
      ],
      "summary": "Definition and importance of contiguous tax parcels for agricultural classification under section 272.193.",
      "modified": [
        "Clarifies tax parcel contiguity and classification process."
      ]
    },
    "citation": "272.193",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Detailed provisions for first tier classification limits."
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to the certified limits for first tier agricultural property valuation under section 273.11.",
      "modified": [
        "Certification and valuation limits for agricultural homesteads."
      ]
    },
    "citation": "273.11",
    "subdivision": "subdivision 23"
  },
  {
    "analysis": {
      "added": [
        "Aquacultural products included in agricultural product definitions."
      ],
      "removed": [
        ""
      ],
      "summary": "Definitions relating to aquacultural products per section 17.47.",
      "modified": [
        "Land zoning requirements adjusted for aquacultural activities."
      ]
    },
    "citation": "17.47",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Qualifies game birds raised on licensed game farms as agricultural products."
      ],
      "removed": [
        ""
      ],
      "summary": "References game farm licensing requirements from section 97A.105.",
      "modified": [
        "Licensing report requirements for game bird breeding."
      ]
    },
    "citation": "97A.105",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Mentions shooting preserve licensing requirements under section 97A.115.",
      "modified": [
        "Allows game birds for shooting preserves in agricultural classification."
      ]
    },
    "citation": "97A.115",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Licensed maple syrup producers included as part of agricultural products."
      ],
      "removed": [
        ""
      ],
      "summary": "Maple syrup production licensing referenced under chapter 28A.",
      "modified": [
        "Expands agricultural product definition to include maple syrup activities."
      ]
    },
    "citation": "28A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Commercial aggregate deposits to be classified independently."
      ],
      "removed": [
        ""
      ],
      "summary": "Changes to the aggregate resource preservation tax program under section 273.1115.",
      "modified": [
        "Requirement changes for removing land from preservation programs."
      ]
    },
    "citation": "273.1115",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [
        "Private airport lands included under specific classifications."
      ],
      "removed": [
        ""
      ],
      "summary": "Land classification for airports under section 360.018.",
      "modified": [
        "Descriptions of qualified airport areas for tax classification."
      ]
    },
    "citation": "360.018",
    "subdivision": ""
  }
]