MN HF200

Commissioner of Agriculture and Commissioner of Revenue must conduct a study on valuing agricultural land for property tax purposes based on agricultural commodity value minus production costs, with report due by February 1, 2019.

Study must assess data availability for determining land productivity and commodity prices, analyze impacts on other property types and local governments, and identify non-productive agricultural properties requiring separate valuation approaches.

Study must compare production-based values to current property tax valuations, analyze land value volatility and tax shifts between property types, and examine administration, appeals processes, and effects on green acres and metropolitan agricultural preserves programs.

Study must identify other states with production-based valuation systems, with emphasis on neighboring states, and explore alternative agricultural land valuation methods beyond market value.

$100,000 appropriated from general fund in fiscal year 2018 to Commissioner of Revenue as one-time, non-recurring funding for report preparation; commissioners must seek input from University of Minnesota and stakeholder groups representing assessors and agricultural property owners.