This bill establishes a new agricultural water quality credit for property owners in designated counties of Minnesota who are part of the Minnesota agricultural water quality certification program. The credit is valued at $5 per certified acre for properties classified as 2a or 2b under section 273.13. The commissioner of agriculture will notify county assessors of the certified acres, and county auditors will determine the tax reductions, certifying these amounts to the commissioner of revenue. The reimbursement process for local taxing jurisdictions and school districts is also outlined, with payments sourced from the clean water fund. The bill amends several sections of the Minnesota Statutes to incorporate this credit into the deductions from gross property taxes, ensuring it is included in the calculation of net property taxes, with an effective date for implementation set for property taxes payable in 2026.

Furthermore, the bill modifies existing property tax law by allowing taxing districts to include notices in property tax statements to inform taxpayers about budget deliberation schedules and encourage their participation in hearings. In cases involving multiple taxing districts, the county treasurer or auditor will coordinate the inclusion of these notices to present them in a consolidated manner. The new provisions regarding notice inclusion will also take effect for property taxes payable starting in 2026, providing time for counties and taxing districts to prepare for these changes.

Statutes affected:
Introduction: 273.1392, 273.1393, 275.065, 276.04
1st Engrossment: 273.1392, 273.1393, 275.065, 276.04