Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF1498

Introduced
2/17/25  

Caption

Definition modification of agricultural land for agricultural property classification

Impact

The proposed modifications would impact state property tax laws significantly, particularly by changing how various types of agricultural and rural lands are assessed. For instance, class 2a and class 2b classifications are now defined more expansively, which could relieve some tax burdens from farmers and landowners using their properties for agricultural purposes. It would also streamline the process by which assessors classify such lands, thus encouraging agricultural activity and potentially stimulating rural economic growth.

Summary

SF1498 introduces amendments to Minnesota Statutes section 273.13 concerning the classification of agricultural land for property taxation purposes. The bill aims to modify the definitions relating to agricultural homesteads and agricultural properties, ultimately making it easier for landowners to obtain favorable tax classifications. This change is particularly relevant for properties that include agricultural buildings and other land dedicated to farming activities, as it now allows for a more inclusive definition of what constitutes agricultural land, thereby expanding the range of properties eligible for lower tax rates.

Conclusion

Overall, SF1498 represents a significant step towards modernizing agricultural property tax classifications in Minnesota. While proponents herald it as a necessary measure to support farmers and agriculturalists, ongoing discussions and further amendments may be needed to address the local government concerns raised during committee deliberations and ensure a balanced approach to rural development.

Contention

During discussions surrounding SF1498, there were notable points of contention regarding the implications of increased agricultural land classifications. Critics expressed concerns that expanding the definitions might lead to inadequate tax revenues for local governments, which depend heavily on property taxes to fund essential services. Supporters of the bill, however, argued that this legislation would ultimately support local economies by ensuring that agricultural operations could thrive without the hindrance of excessive taxation.

Companion Bills

MN HF1522

Similar To Property taxes; definition of agricultural land modified for agricultural property classification.

Previously Filed As

MN SF4828

Agricultural land for agricultural property classification definition modification

MN HF4562

Definition of agricultural land modified for agricultural property classification purposes.

MN HF4481

Property tax classifications consolidated, classification rates modified, definition of referendum market value modified, state general levy on seasonal residential recreational property eliminated, and other property tax provisions modified.

MN SF4701

Property tax classification consolidation

MN SF973

First-tier valuation limit modification for agricultural homestead properties

MN SF696

Classification of community land trust property modification

MN SF1957

Property classifications and class rates modification and appropriation

MN HF1029

Property tax provisions modified, first-tier valuation limit for agricultural homestead properties modified, homestead resort property tier limits modified, homestead market value exclusion modified, and state general levy reduced.

MN SF1348

Property tax refunds modification

MN SF1897

Homestead resort properties tier property tax tier limits modification

Similar Bills

MN HF1522

Property taxes; definition of agricultural land modified for agricultural property classification.

MN SF1633

Class 2c managed forest lands classification eligibility clarification provision

MN HF2109

Property tax; eligibility for class 2c managed forest lands classification clarified.

MN HF4562

Definition of agricultural land modified for agricultural property classification purposes.

MN SF4828

Agricultural land for agricultural property classification definition modification

MN HF2654

Definition of agricultural products modified for class 2 agricultural property classification.

MN SF2626

Definition modification of agricultural products for class 2 agricultural property classification

MN SF4701

Property tax classification consolidation