Navigate Up
Sign In
Last Updated: 12/30/2013

Agricultural Homesteads First-Tier Valuation Limit

Contact Us

Property Tax Administrators

General 651-556-6091
Direct lines are listed at the bottom of each page when applicable
8:00 a.m.- 4:30 p.m. Mon.- Fri.

more

Top FAQs

Related Information

About This Page

The Department of Revenue annually adjusts the first-tier valuation limit for agricultural homestead property, as required by law. Agricultural homestead property includes the "house, garage and first acre" (HGA) and the balance of homestead property, which is divided into two tiers for determing net tax capacity. The first tier of value has a lower class rate (0.50%) than the remaining value above that limit. An increase in the first- tier valuation limit means more homesteaded farm value may be included in the 0.50% class rate for tax purposes. 

Class

Description

Net Tax Capacity (NTC)

Class Rate

2a
  Agricultural Homestead
      House, Garage, One Acre:
           first $500,000
           over $500,000
  Remainder of Farm:
           first $1,900,000
           over $1,900,000


1.00%
1.25%
 
0.50%
1.00%

 

The Department of Revenue calculates and certifies the first-tier valuation limit rounded to the nearest $10,000. Assessment data is used to calculate the new limit, which is the product of:

  • the first-tier limit for the preceding assessment year, and
  • the ratio of the statewide average taxable market value of agricultural property per acre in the preceding assessment year to that of the second preceding assessment year.

The table below shows the certified agricultural homestead first-tier valuation limit amounts from assessment year 2006 to now.1

​Assessment Year

​Valuation Limit

​2006 ​$690,000
​2007 ​$790,000
​2008 ​$890,000
​2009 ​$1,010,000
​2010 ​$1,140,000
​2011 ​$1,210,000
2012 $1,290,000
2013​ $1,500,000​
2014​ $1,900,000​

1 For the purposes of this calculation, “agricultural property” means all homestead class 2a property under Minnesota Statutes 273.13, subd. 23, and contiguous class 2b property under the same ownership  excluding the HGA .

Questions?

Drew Imes, 651-556-6084, drew.imes@state.mn.us