Bill > SF1498

This bill modifies the definition of agricultural land for property tax classification purposes in Minnesota, specifically expanding the ways small parcels of land can qualify for agricultural classification. The bill introduces new criteria for parcels less than 11 acres to be classified as agricultural land, particularly for market farming. Under the new provisions, these smaller parcels can be classified as agricultural if the owner can demonstrate agricultural income of at least $5,000 through a federal Schedule F tax form or by providing a farm financial plan from an approved agricultural financial management program. The bill clarifies that "market farming" means cultivating fruits or vegetables or producing agricultural products for sale to local markets. The changes aim to provide more flexibility for small-scale farmers and agricultural producers in how their land is classified for property tax purposes, potentially offering tax benefits to smaller agricultural operations that might not have been previously recognized. The modifications will be effective beginning with the 2025 assessment year, giving farmers and local assessors time to understand and implement the new guidelines.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1498&ssn=0&y=2025