HF4044 Summary

• Establishes a $5 per certified acre property tax credit for class 2a and 2b agricultural property in specified counties and townships that are certified under the Minnesota agricultural water quality certification program.

• Eligible properties must be located in Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Wabasha, or Winona Counties; specific townships in Dakota County; or specific townships in Rice County.

• County auditors determine tax reductions and certify amounts to the Commissioner of Revenue; the credit reduces net tax capacity-based property tax payable to each local taxing jurisdiction.

• Commissioner of Revenue reimburses non-school taxing jurisdictions in two equal installments on October 31 and December 26; school district reimbursements paid through the Commissioner of Education.

• Commissioner of Revenue must report annually by February 1 on participation, outcomes, and trends by county or township, including number of taxpayers and acres receiving credit, certified acres, and estimated nitrogen reduction benefits.

• Credit effective for taxes payable beginning in 2025; sufficient amounts annually appropriated from general fund to Commissioner of Revenue and Commissioner of Education.