Green Acres applies to property classified as 2a agricultural, while Rural Preserve applies to property classified as 2b but is part of an agricultural homestead.
The assessor determines two values on property enrolled in either program: the estimated market value and the agricultural value.
Taxes are calculated by the assessor on both market values, but paid on the lower agricultural value. 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.
What is Estimated Market Value?
Estimated market value is the value the land has at its highest and best use on an open-market, arm’s-length transaction. Minnesota law requires assessors to value property at its estimated market value.
What is Agricultural Value?
Agricultural value is the value without regard to non-agricultural influences. Each year, the Department of Revenue studies statewide sales of agricultural property that are relatively unaffected by non-agricultural market influences. The department uses these sales to calculate the counties’ agricultural values.
What about Special Assessments?
Special local assessments may be deferred while the property qualifies for either program.
The deferred special assessments are due when the entire enrolled parcel is withdrawn from the program.