"Green Acres" is a tax deferral program for certain agricultural property, according to Minnesota Statute
273.111, amended 2010 & 2011.
How do I qualify?If you own agricultural property and if that property is devoted to the 'production for sale of agricultural products', you may be eligible for the "Green Acres" Program. Non-productive acres, such as woods, waste, sloughs, are most likely not eligible for Green Acres, but these acres may be eligible for Rural Preserve.
The requirements are:
- The property must be at least ten acres in size.
- The property must be primarily devoted to agricultural use, and,
- The property must be homestead, farmed in conjunction with the homestead property; or the property must have been in the applicant’s family for at least seven years.
- Some farm entities may qualify.
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"Green Acre" applications are made to, and approved by, the County Assessor. Proper documentation to verify agricultural use may be requested, along with the application. Form found below.
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Filing deadline May 1.
How does "Green Acres" work?The Assessor determines two values on "Green Acres" property:
- The ‘actual market value’ based on sales of similar property.
- The ‘agricultural value’ based on sales of agricultural property in non-metropolitan counties is determined by the MN Department of Revenue.
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.
Metropolitan Agricultural Preserve Program
- Neither the 2008 nor the 2009 Legislature, made any changes to the Metro Ag Preserve Program. If your property is zoned long-term agricultural by the local community, with a maximum residential density of one house per forty acres - you may want to consider enrolling in this property tax program.
- Filing deadline changed to June 1st.
Click here for more information on Green Acres and other Property Tax Preference Programs for Rural Lands.
DOR Rural Preserve Property Tax Program Fact Sheet