Dayton-Smith Tax Bill would provide agricultural property tax relief to Minnesota farmers across the state
Tax relief would benefit Greater Minnesota schools by reducing the property tax burden on rural landowners
ST. PAUL, MN – Lt. Governor Tina Smith today visited Glyndon to urge the Minnesota Legislature to pass property tax relief for Minnesota farmers struggling with the perfect storm of rising land values, falling commodity prices, and aging schools. If approved by the Legislature, approximately 74,000 farmers would be eligible for the credit – saving them nearly $34 million in property taxes. The Ag property tax credit was included in Governor Dayton and Lt. Governor Smith’s
2017 Tax Bill, which was unveiled earlier this month.
“Right now, the cost of much-needed school improvements in greater Minnesota communities disproportionately falls on farmers,” said Lt. Governor Smith. “Our agricultural property tax relief will keep more money in the pockets of Minnesota farmers, while supporting strong schools, so all Minnesota students have the opportunity to learn.”
Over the last ten years, property taxes for Minnesota farmers have increased by 114 percent. This problem has been compounded by low commodity prices and rising agricultural land values. In many rural communities, school district levies disproportionately affect farmers, making it challenging for schools to secure the funding for basic needs.
In 2016, the majority of levy referendums put to rural voters failed, while the majority posed to urban voters passed. This puts students in school districts like Barnesville and Dilworth-Glyndon-Felton, where referendums recently failed, at a disadvantage to their metro peers.
Tax Cuts for Minnesota’s Farmers
Governor Dayton and Lt. Governor Smith are dedicated to supporting Minnesota’s farmers and agricultural industry. Other provisions that aid farmers in the 2017 Tax Bill include:
• Investing in 21st Century Classrooms – All Minnesota students need a world-class education, no matter where they live. However, in school districts without high-value land, the burden of paying for modern schools can fall disproportionately on just a few businesses, farms, or homeowners. Governor Dayton and Lt. Governor Smith have proposed a $62 million investment over four years to help school districts repay school bond levies without overly burdening private property owners.
• Water Quality Buffer Aid – To help alleviate the cost of compliance with state water quality requirements, the Dayton-Smith Tax Bill includes a proposal that provides eligible farmers and landowners $40 per acre each year for each tillable acre converted to a water quality buffer strip. Payments would be made for five years starting in 2019.
• Farmland Estate Tax Reforms – Governor Dayton and Lt. Governor Smith’s 2017 Tax Bill includes a reform to eliminate the recapture tax paid on inherited farmland subject to the estate tax when the farmland was acquired by the government through eminent domain.
About Governor Dayton and Lt. Governor Smith’s Tax Bill
Governor Mark Dayton and Lt. Governor Tina Smith’s 2017 Tax Bill would provide $300 million in tax cuts for more than 450,000 hardworking Minnesotans, while protecting the state’s long-term fiscal health. The Dayton-Smith Tax Bill also would reduce taxes for Minnesota farmers and landowners to help build an economy that works for everyone, everywhere in Minnesota. And their proposal would eliminate tax loopholes for corporations – leveling the playing field for businesses.
For more information on the Dayton-Smith 2017 Tax Bill,
click here.
