Green Acres is a property tax deferral program for certain agricultural property, according to Minnesota Statute 273.111.
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 and sloughs, are most likely not eligible for Green Acres, but these acres may be eligible for Rural Preserve.
The property must:
- Be at least 10 acres in size.
- Be primarily devoted to agricultural use.
- 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.
To apply for the program, complete the Green Acres Application Form and Addendum Form and send them to:
Dakota County Assessing Services Office
1590 West Highway 55
Hastings MN 55033-2343
Proper documentation to verify agricultural use may be requested, along with the application. Each year, the filing deadline is May 1.
You can also send applications to firstname.lastname@example.org.
How the program works
The Assessor determines two values on Green Acres property:
1. The ‘actual market value’ based on sales of similar property.
2. The ‘agricultural value’ based on sales of agricultural property in non-metropolitan counties as determined by the Minnesota 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.
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.