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Legislature > House of Representatives > House Research > Taxes > Major State Aids & Taxes

Major State Aids & Taxes: Market Value Agricultural Credit

Program Description

The 2001 Legislature created a new market value agricultural credit for all agricultural homestead property. The credit took effect for taxes payable in 2002 and was enhanced by the 2002 Legislature for taxes payable in 2003 and thereafter.

For agricultural homestead property with a taxable market value of $115,000 or less, the credit is equal to 0.3 percent of the taxable market value of the property. For agricultural homestead property with a value between $115,000 and $345,000, the credit is equal to $345 minus 0.05 percent of the value over $115,000. For property with a value over $345,000, the credit is equal to $230. This credit does not apply to the value of the house, garage, and one acre of agricultural homestead property.

Payable 2013 Aid Amount and Reporting: $23.0 million

For taxes payable 2003 to 2006 and 2008 to 2011, the state did not fully compensate local governments for the credit computed on each taxpayer's tax statement due to state budget shortfalls. The taxpayers still received the credit. Throughout these web pages, the credit amounts shown are after the reductions in compensation resulting from state budget shortfalls.

In payable 2007 and 2012 to 2013, the state paid the full aamount of the credit to local governments. In payable 2013, the amount of the credit was $23.0 million.

Market Value Agricultural Credit: Payable 2013
Amount
(thousands)
Percent of
Total
Northern Regions Northwest (1)
Headwaters (2)
Arrowhead (3)
West Central (4)
Five (5)
East Central (7E)
$1,553
854
921
2,514
2,007
1,808
6.8%
3.7
4.0
10.9
8.7
7.9
Southern Regions Six East (6E)
Upper MN Valley (6W)
Central MN (7W)
Southwest (8)
Nine (9)
Southeastern MN (10)
1,292
908
2,081
2,008
2,227
3,611
5.6
3.9
9.0
8.7
9.7
15.7
Total Nonmetro $21,783 94.7%
Metro Region Hennepin County
Ramsey County
Remaining Metro
164
2
1,059
0.7
0.0
4.6
Total Metro $1,224 5.3%
State Total $23,007 100.0%

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March 2017

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