What Is the Green Acres Tax Break?
The "Green Acres" tax break is a provision of Minnesota law designed to shield farmers from rapid increases in their property taxes caused by development on nearby land.
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History
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The Green Acres program began in the 1960s when it became apparent that development at the edge of urban areas was increasing the market value of agricultural land so much that farmers couldn't afford the property taxes and might be forced off the land.
Calculation
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Farmland covered by Green Acres is assessed for property taxes two ways: on its value as purely agricultural land, and on its market value were it to be sold for development.
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Deferment
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The farmer pays the tax based on the agricultural value. The difference between the tax assessments is deferred until the land is sold or no longer qualifies for Green Acres.
Sale
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When the land is sold--or disqualified--the deferred tax for the past three years must be paid.
Eligibility
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To qualify, a property must be at least 10 acres, be actively used for agriculture and meet at least one of four ownership criteria. See the Minnesota Department of Revenue fact sheet linked in the References section for those criteria.
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