1.1 A bill for an act
1.2 relating to taxation; property; establishing a credit for certain acres certified under
1.3 the Minnesota agricultural water quality certification program; appropriating
1.4 money; amending Minnesota Statutes 2024, sections 273.1392; 273.1393; 275.065,
1.5 subdivision 3; 276.04, subdivision 2; proposing coding for new law in Minnesota
1.6 Statutes, chapter 273.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [273.1388] AGRICULTURAL WATER QUALITY CREDIT.
1.9 Subdivision 1.Eligibility.(a) A property is eligible for an agricultural water quality
1.10credit under this section if the property is:
1.11 (1) class 2a or 2b property under section 273.13, subdivision 23;
1.12 (2) certified by the commissioner of agriculture or a certifying agent under sections
1.1317.9891 to 17.993; and
1.14 (3) located in Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Wabasha, or
1.15Winona County.
1.16 (b) The commissioner of agriculture must annually notify county assessors of the location
1.17of each certified acre in the assessor's county.
1.18 Subd. 2.Credit amount.The amount of the agricultural water quality credit is $5 per
1.19certified acre.
1.20 Subd. 3.Credit reimbursement.The county auditor must determine the tax reductions
1.21allowed under this section within the county for each taxes payable year and must certify
1.22that amount to the commissioner of revenue as part of the data required under section
1Section 1.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 363
NINETY-FOURTH SESSION
Authored by Jacob; Anderson, P. H.; Burkel; Nelson; Gander and others02/13/2025
The bill was read for the first time and referred to the Committee on Taxes
Adoption of Report: Amended and re-referred to the Committee on Legacy Finance04/01/2025 2.1270C.85, subdivision 2. Any prior year adjustments must also be certified as part of the
2.2data required under section 270C.85, subdivision 2. The commissioner must review the
2.3certifications for accuracy, and may make such changes as are deemed necessary or return
2.4the certification to the county auditor for correction. The credit under this section must be
2.5used to proportionately reduce the net tax capacity based property tax payable to each local
2.6taxing jurisdiction as provided in section 273.1393.
2.7 Subd. 4.Payment.(a) The commissioner of revenue shall reimburse each local taxing
2.8jurisdiction, other than school districts, for the tax reductions granted under this section in
2.9two equal installments on October 31 and December 26 of the taxes payable year for which
2.10the reductions are granted, including in each payment the prior year adjustments certified
2.11under section 270C.85, subdivision 2, for that taxes payable year.
2.12 (b) The commissioner of revenue shall certify the total of the tax reductions granted
2.13under this section for each taxes payable year within each school district to the commissioner
2.14of education, and the commissioner of education must pay the reimbursement amounts to
2.15each school district as provided in section 273.1392.
2.16 Subd. 5.Appropriation.An amount sufficient to make the payments required by this
2.17section to taxing jurisdictions other than school districts is annually appropriated from the
2.18clean water fund to the commissioner of revenue. An amount sufficient to make the payments
2.19required by this section for school districts is annually appropriated from the clean water
2.20fund to the commissioner of education.
2.21 EFFECTIVE DATE.This section is effective beginning with property taxes payable
2.22in 2026.
2.23 Sec. 2. Minnesota Statutes 2024, section 273.1392, is amended to read:
2.24 273.1392 PAYMENT; SCHOOL DISTRICTS.
2.25 The amounts of bovine tuberculosis credit reimbursements under section 273.113;
2.26conservation tax credits under section 273.119; disaster or emergency reimbursement under
2.27sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and, 273.1387,
2.28and 273.1388; aids and credits under section 273.1398; enterprise zone property credit
2.29payments under section 469.171; metropolitan agricultural preserve reduction under section
2.30473H.10; and electric generation transition aid under section 477A.24 for school districts,
2.31shall be certified to the Department of Education by the Department of Revenue. The
2.32amounts so certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.
2.33 EFFECTIVE DATE.This section is effective July 1, 2026.
2Sec. 2.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT 3.1 Sec. 3. Minnesota Statutes 2024, section 273.1393, is amended to read:
3.2 273.1393 COMPUTATION OF NET PROPERTY TAXES.
3.3 Notwithstanding any other provisions to the contrary, "net" property taxes are determined
3.4by subtracting the credits in the order listed from the gross tax:
3.5 (1) disaster credit as provided in sections 273.1231 to 273.1235;
3.6 (2) powerline credit as provided in section 273.42;
3.7 (3) agricultural preserves credit as provided in section 473H.10;
3.8 (4) enterprise zone credit as provided in section 469.171;
3.9 (5) disparity reduction credit;
3.10 (6) conservation tax credit as provided in section 273.119;
3.11 (7) the school bond credit as provided in section 273.1387;
3.12 (8) agricultural credit as provided in section 273.1384;
3.13 (9) taconite homestead credit as provided in section 273.135;
3.14 (10) supplemental homestead credit as provided in section 273.1391; and
3.15 (11) the bovine tuberculosis zone credit, as provided in section 273.113.; and
3.16 (12) the agricultural water quality credit as provided in section 273.1388.
3.17 The combination of all property tax credits must not exceed the gross tax amount.
3.18 EFFECTIVE DATE.This section is effective beginning with property taxes payable
3.19in 2026.
3.20 Sec. 4. Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:
3.21 Subd. 3.Notice of proposed property taxes.(a) The county auditor shall prepare and
3.22the county treasurer shall deliver after November 10 and on or before November 24 each
3.23year, by first class mail to each taxpayer at the address listed on the county's current year's
3.24assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
3.25the treasurer may send the notice in electronic form or by electronic mail instead of on paper
3.26or by ordinary mail.
3.27 (b) The commissioner of revenue shall prescribe the form of the notice.
3.28 (c) The notice must inform taxpayers that it contains the amount of property taxes each
3.29taxing authority proposes to collect for taxes payable the following year. In the case of a
3Sec. 4.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT 4.1town, or in the case of the state general tax, the final tax amount will be its proposed tax.
4.2The notice must clearly state for each city that has a population over 500, county, school
4.3district, regional library authority established under section 134.201, metropolitan taxing
4.4districts as defined in paragraph (i), and fire protection and emergency medical services
4.5special taxing districts established under section 144F.01, the time and place of a meeting
4.6for each taxing authority in which the budget and levy will be discussed and public input
4.7allowed, prior to the final budget and levy determination. The taxing authorities must provide
4.8the county auditor with the information to be included in the notice on or before the time it
4.9certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
4.10meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
4.11must provide a website address and a telephone number for the taxing authority that taxpayers
4.12may call if they have questions related to the notice and an address where comments will
4.13be received by mail, except that no notice required under this section shall be interpreted
4.14as requiring the printing of a personal telephone number or address as the contact information
4.15for a taxing authority. If a taxing authority does not maintain a website or public offices
4.16where telephone calls can be received by the authority, the authority may inform the county
4.17of the lack of a public website or telephone number and the county shall not list a website
4.18or telephone number for that taxing authority.
4.19 (d) The notice must state for each parcel:
4.20 (1) the market value of the property as determined under section 273.11, and used for
4.21computing property taxes payable in the following year and for taxes payable in the current
4.22year as each appears in the records of the county assessor on November 1 of the current
4.23year; and, in the case of residential property, whether the property is classified as homestead
4.24or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
4.25values apply and that the values are final values;
4.26 (2) the items listed below, shown separately by county, city or town, and state general
4.27tax, agricultural homestead credit under section 273.1384, school building bond agricultural
4.28credit under section 273.1387, agricultural water quality credit under section 273.1388,
4.29voter approved school levy, other local school levy, and the sum of the special taxing
4.30districts, and as a total of all taxing authorities:
4.31 (i) the actual tax for taxes payable in the current year; and
4.32 (ii) the proposed tax amount.
4Sec. 4.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT 5.1 If the county levy under clause (2) includes an amount for a lake improvement district
5.2as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
5.3must be separately stated from the remaining county levy amount.
5.4 In the case of a town or the state general tax, the final tax shall also be its proposed tax
5.5unless the town changes its levy at a special town meeting under section 365.52. If a school
5.6district has certified under section 126C.17, subdivision 9, that a referendum will be held
5.7in the school district at the November general election, the county auditor must note next
5.8to the school district's proposed amount that a referendum is pending and that, if approved
5.9by the voters, the tax amount may be higher than shown on the notice. In the case of the
5.10city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
5.11from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
5.12the St. Paul Library Agency must be listed separately from the remaining amount of the
5.13city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
5.14listed separately from the remaining amount of the county's levy. In the case of a parcel
5.15where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
5.16applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
5.17capacity subject to the areawide tax must each be stated separately and not included in the
5.18sum of the special taxing districts; and
5.19 (3) the increase or decrease between the total taxes payable in the current year and the
5.20total proposed taxes, expressed as a percentage.
5.21 For purposes of this section, the amount of the tax on homesteads qualifying under the
5.22senior citizens' property tax deferral program under chapter 290B is the total amount of
5.23property tax before subtraction of the deferred property tax amount.
5.24 (e) The notice must clearly state that the proposed or final taxes do not include the
5.25following:
5.26 (1) special assessments;
5.27 (2) levies approved by the voters after the date the proposed taxes are certified, including
5.28bond referenda and school district levy referenda;
5.29 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
5.30in November of the levy year as provided under section 275.73;
5.31 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
5.32after the date the proposed taxes are certified;
5Sec. 4.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT 6.1 (5) amounts necessary to pay tort judgments against the taxing authority that become
6.2final after the date the proposed taxes are certified; and
6.3 (6) the contamination tax imposed on properties which received market value reductions
6.4for contamination.
6.5 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
6.6county treasurer to deliver the notice as required in this section does not invalidate the
6.7proposed or final tax levy or the taxes payable pursuant to the tax levy.
6.8 (g) If the notice the taxpayer receives under this section lists the property as
6.9nonhomestead, and satisfactory documentation is provided to the county assessor by the
6.10applicable deadline, and the property qualifies for the homestead classification in that
6.11assessment year, the assessor shall reclassify the property to homestead for taxes payable
6.12in the following year.
6.13 (h) In the case of class 4 residential property used as a residence for lease or rental
6.14periods of 30 days or more, the taxpayer must either:
6.15 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
6.16or lessee; or
6.17 (2) post a copy of the notice in a conspicuous place on the premises of the property.
6.18 The notice must be mailed or posted by the taxpayer by November 27 or within three
6.19days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
6.20of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
6.21notice must be mailed in order to fulfill the requirements of this paragraph.
6.22 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
6.23districts" means the following taxing districts in the seven-county metropolitan area that
6.24levy a property tax for any of the specified purposes listed below:
6.25 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
6.26473.521, 473.547, or 473.834;
6.27 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
6.28 (3) Metropolitan Mosquito Control Commission under section 473.711.
6.29 For purposes of this section, any levies made by the regional rail authorities in the county
6.30of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
6.31shall be included with the appropriate county's levy.
6Sec. 4.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT 7.1 (j) The governing body of a county, city, or school district may, with the consent of the
7.2county board, include supplemental information with the statement of proposed property
7.3taxes about the impact of state aid increases or decreases on property tax increases or
7.4decreases and on the level of services provided in the affected jurisdiction. This supplemental
7.5information may include information for the following year, the current year, and for as
7.6many consecutive preceding years as deemed appropriate by the governing body of the
7.7county, city, or school district. It may include only information regarding:
7.8 (1) the impact of inflation as measured by the implicit price deflator for state and local
7.9government purchases;
7.10 (2) population growth and decline;
7.11 (3) state or federal government action; and
7.12 (4) other financial factors that affect the level of property taxation and local services
7.13that the governing body of the county, city, or school district may deem appropriate to
7.14include.
7.15 The information may be presented using tables, written narrative, and graphic
7.16representations and may contain instruction toward further sources of information or
7.17opportunity for comment.
7.18 EFFECTIVE DATE.This section is effective beginning with property taxes payable
7.19in 2026.
7.20 Sec. 5. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:
7.21 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
7.22the tax statements. The commissioner of revenue shall prescribe the form of the property
7.23tax statement and its contents. The tax statement must not state or imply that property tax
7.24credits are paid by the state of Minnesota. The statement must contain a tabulated statement
7.25of the dollar amount due to each taxing authority and the amount of the state tax from the
7.26parcel of real property for which a particular tax statement is prepared. The dollar amounts
7.27attributable to the county, the state tax, the voter approved school tax, the other local school
7.28tax, the township or municipality, and the total of the metropolitan special taxing districts
7.29as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
7.30amounts due all other special taxing districts, if any, may be aggregated except that any
7.31levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
7.32Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
7.33under the appropriate county's levy. If the county levy under this paragraph includes an
7Sec. 5.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT 8.1amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
8.2the amount attributable for that purpose must be separately stated from the remaining county
8.3levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
8.4an amount for public library service under section 134.07, the amount attributable for that
8.5purpose may be separated from the remaining county levy amount. The amount of the tax
8.6on homesteads qualifying under the senior citizens' property tax deferral program under
8.7chapter 290B is the total amount of property tax before subtraction of the deferred property
8.8tax amount. The amount of the tax on contamination value imposed under sections 270.91
8.9to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
8.10amount of any special assessments, may be rounded to the nearest even whole dollar. For
8.11purposes of this section whole odd-numbered dollars may be adjusted to the next higher
8.12even-numbered dollar.
8.13 (b) The property tax statements for manufactured homes and sectional structures taxed
8.14as personal property shall contain the same information that is required on the tax statements
8.15for real property.
8.16 (c) Real and personal property tax statements must contain the following information
8.17in the order given in this paragraph. The information must contain the current year tax
8.18information in the right column with the corresponding information for the previous year
8.19in a column on the left:
8.20 (1) the property's estimated market value under section 273.11, subdivision 1;
8.21 (2) the property's homestead market value exclusion under section 273.13, subdivision
8.2235;
8.23 (3) the property's taxable market value under section 272.03, subdivision 15;
8.24 (4) the property's gross tax, before credits;
8.25 (5) for agricultural properties, the credits under sections 273.1384 and, 273.1387, and
8.26273.1388;
8.27 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
8.28273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
8.29received under section 273.135 must be separately stated and identified as "taconite tax
8.30relief"; and
8.31 (7) the net tax payable in the manner required in paragraph (a).
8.32 (d) If the county uses envelopes for mailing property tax statements and if the county
8.33agrees, a taxing district may include a notice with the property tax statement notifying
8Sec. 5.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT 9.1taxpayers when the taxing district will begin its budget deliberations for the current year,
9.2and encouraging taxpayers to attend the hearings. If the county allows notices to be included
9.3in the envelope containing the property tax statement, and if more than one taxing district
9.4relative to a given property decides to include a notice with the tax statement, the county
9.5treasurer or auditor must coordinate the process and may combine the information on a
9.6single announcement.
9.7 EFFECTIVE DATE.This section is effective beginning with property taxes payable
9.8in 2026.
9Sec. 5.
REVISOR MS H0363-1HF363 FIRST ENGROSSMENT