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"Green Acres" is a tax deferral program for certain agricultural property, according to Minnesota Statute 273.111. This program is designed to assist farmers where the highest and best use value is greater than an agricultural value.
How do I qualify?If you own agricultural property and that property is devoted to the 'production for sale of agricultural products', you may be eligible for the "Green Acres" Program.
The requirements are:- The property must be used primarily for agricultural use/purposes. IF the property is primarily agricultural use, the following must also be met:
- The property must be at least ten acres in size.
- The applicant must be able to verify an agricultural income of at least $300 plus $10 per tillable acre.
- The property must be homestead,farmed in conjunction with the homestead property; or the property must have been in the applicantís family for at least seven years.
- "Green Acre" applications are made to, and approved by, the County Assessor. Proper documentation to verify agricultural income must be submitted with the application. Call the Assessor for the application form.
The Assessor determines two values on "Green Acres" property:
- The 'actual market value' based on the highest and best use sales ofsimilar property.
- The 'agricultural value' based on sales of agricultural property in non-metropolitan counties from the southern border of Dakota County to the Iowa border.
Taxes are calculated on both market values, but paid on the lower, agricultural value, each year.
The difference between the tax calculated on agricultural market value and the actual market value is deferred until the property is sold or no longer qualifies for the program.
When the property is sold, or no longer qualifies, the deferred tax may be due for three years, on the part sold or no longer qualifying.
What about Special, Local Assessments?Special Local Assessments are deferred while the property qualifies for "Green Acres", however, when the property sells all deferred special assessments are due.
What else should I know about "Green Acres"?If a property enrolled in "Green Acres" is sold to another person who may qualify for continuation of the "Green Acres" program, it is critical the new owner apply to the County Assessor within thirty days of their purchase. If the classification on the property changes from agricultural to another primary use, the three-year deferred tax may, in certain instances, be forgiven. Call the Assessor for additional information on specific circumstances.
