This bill introduces 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. Eligible properties must be classified as class 2a or 2b and certified by the commissioner of agriculture, with the credit amount set at $5 per certified acre. The commissioner is tasked with notifying county assessors about the certified acres, and the bill outlines a reimbursement process for local taxing jurisdictions and school districts, with payments sourced from the clean water fund. The provisions of this credit will take effect for property taxes payable in 2026.

In addition to establishing the new credit, the bill amends several sections of the Minnesota Statutes to integrate this credit into the existing property tax framework. It updates the computation of net property taxes and mandates that tax statements include information about the Agricultural Water Quality Credit, which is now recognized as a credit that reduces gross property taxes. Furthermore, the bill allows taxing districts to include notices in property tax statements regarding budget deliberation schedules, promoting taxpayer engagement in local budget processes. These changes will also take effect for property taxes payable starting in 2026.

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