Horse livestock bill laid over

Horses are considered livestock for agricultural purposes, but equine operations may mean something entirely different when it comes to assessing property taxes.

A bill laid over Feb. 9 by the House Agriculture and Rural Development Policy and Finance Committee aims to fix a discrepancy between the agriculture and property tax laws for horse breeders.

St. Michael horse breeder David Dayon was notified that he was being assessed at a higher commercial tax rate, rather than the lower agricultural rate, when he sought clarification from legislators.

HF539, sponsored by Rep. Bruce Anderson (R-Buffalo Township), would modify the agriculture classification law so these operations may qualify for a property tax rate reduction.

To be classified as agricultural, the operation must meet minimum criteria, such as 10 acres or more, turn a profit and be an agricultural pursuit.

There are about 13,000 horse farms in the state. The typical horse farm is 20 acres, according to Krishona Martinson, assistant professor and equine extension specialist at the University of Minnesota.

However, a provision in the bill that would allow for more intensive horse operations on fewer acres raised objections from committee members.

Rep. Rick Hansen (DFL-South St. Paul) said the bill needs to be amended so that urban residents can’t put a “pony in the backyard” and declare agricultural status and receive lower property tax rates, which could cause increased taxes for neighboring properties.

Sen. Doug Magnus (R-Slayton) sponsors a companion bill, SF396, which awaits action by the Senate Agriculture and Rural Economies Committee.