Minnesota farmers received some unwelcome news with their 2010 property tax statements -- increases from 20 percent to even 100 percent in some cases, the Monticello Times reported recently. A perfect storm of factors came together to cause these large increases, said John Hagen, assistant director in tax revenue for the Minnesota Department of Revenue. Hagen pointed to the elimination of "Limited Market Value," which capped the "captured value" of certain lands at a 15 percent increase. Secondly, the market for productive agricultural land is very strong still. Thirdly, because ag land is strong and residential/commercial land is weak, the strength of ag land is over-emphasized, he said. "These increases are highly unusual," Hagen said. "In 35 years, I've never seen anything like it." Hagen made his comments at a special meeting hosted by Sen. Amy Koch in Albertville on Jan. 22. Koch said changes are coming that will aid farmers with property taxes, including the new Rural Preserve Program. "I'm not sure why we need to create a new program (with Rural Preserve), but here we are," Kock said.

(Monticello (Minn.) Times, January 28, 2010)

(http://www.monticellotimes.com/…)