Two values are determined on Green Acres property: - The Assessor determines the ‘actual market value’ based on sales of similar property.
- The Minnesota Department of Revenue determines the ‘agricultural value’ based on sales of agricultural property in Southwestern Minnesota.
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.