Bill > HF1698

This bill amends Minnesota property tax law to create a new exemption for property owned by nonprofit conservation organizations that is leased for grazing activities which support the organization's conservation objectives. Currently, when tax-exempt property is leased or used by a private entity for profit, it becomes subject to taxation. The bill adds a specific exemption to this rule for nonprofit conservation organizations leasing land for grazing that aligns with their conservation goals. This means that if a nonprofit land conservation group owns property and leases it to a farmer or rancher for grazing, and that grazing supports the organization's broader environmental preservation mission, the leased property would remain tax-exempt. The change will take effect for property taxes payable in 2026, giving local governments and tax assessors time to implement the new provision. The bill represents a nuanced approach to supporting conservation efforts by providing a tax incentive that allows nonprofits to generate some revenue from their land while maintaining its conservation purpose.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1698&ssn=0&y=2025