Dear Neighbor,
I attended a national agricultural conference last week and was able to visit and interact with the chairs of ag committees from over 40 states and several Canadian provinces.
Of the many break-out sessions available, the one pertaining to property taxes on farm land was among the most-attended. It seems that most Midwestern states are facing the same challenge, namely rising taxes on ag land at a time when farm incomes are dropping. Minnesota is one of just a few states that establish their taxable values based on a market-value system. Others, such as Indiana and South Dakota, utilize a system based on soil productivity and income potential.
Regardless of how these taxes are levied, states face the same issue, namely the lag time from when the land is assessed to when the taxes are finally paid. So, in the current environment of dropping land values and plummeting farm income, property taxes on ag land are still going up.
This is an issue we need to address in Minnesota. The House's tax bill, which contains provisions that address taxes on agricultural land, in addition to changes in the statewide commercial property tax, is currently sitting in a conference committee, where it was left at the end of last year’s session. Hopefully, we can come to agreement and pass a bill during the upcoming session that provides significant tax relief to residents of our state, not just farmers but businesses and retired folks, as well.
Another interesting session at the conference was one where enforcement officials from Colorado discussed their state’s venture into both medical and recreational marijuana. I was amazed at how seemingly loose their requirement were. Persons, known as “care-givers,” can legally grow marijuana for up to five patients. In addition, on the retail side, Colorado residents can grow up to six plants on their own. And surprisingly, even though it’s legal to grow the stuff in Colorado, there is still a thriving “black market,” apparently because all the taxes assessed on the state and local level make the legal stuff more expensive!
I’ll comment more on these and other topics in my column, which will be sent to area newspapers next week.
Sincerely,
Paul