Success at last!

• Equine business interests score with passage of legislation protecting agricultural classification for horse boarding property
  

When the dust finally settled after the legislative session ended, equine property and business owners scored a legislative victory with passage of the Minnesota Horse Council's bill protecting agricultural classification for horse boarding property.

Our bill was added to the omnibus tax bill, HF 3729, and was signed into law on May 27, 2010. Minn. Stat. 273.13 Subd. 23(i) containing the list of agricultural products qualifying property of 10 acres or more for agricultural classification is amended to read:

(3) the commercial boarding of horses, which may include related horse training and riding instruction, if the boarding is done in conjunction with on property that is also used for raising pasture to graze horses or raising or cultivating other agricultural products as defined in clause (1)

These changes are effective for the assessment year 2010 for taxes payable in 2011.

The amendment to the horse boarding clause of the agricultural property classification statute was the result of a year-long study by the Minnesota Department of Revenue ordered by the Legislature in 2009.

Many thanks are in order to recognize the teamwork required to change a law. The Minnesota Horse Council sponsored this effort with insight from Dan Ramberg, owner of Woodloch Stables in Hugo and author of the original legislation granting agricultural classification to horse boarding stables 15 years ago. Sen. Ray Vandeveer and Rep. Bob Dettmer carried our bills in the Senate and House. The Minnesota Stable Owners Association, which formed early this year in part because of the property tax classification problem, rallied members to call their legislators and speak up on behalf of equine business interests. And the Department of Revenue, which had been criticized for failing to ensure statewide uniformity, coordinated a thorough statewide study that facilitated a constructive and ultimately successful dialogue about the proper place of equestrian property within the framework of Minnesota's agricultural property tax policy. Thanks to everyone for helping make this happen.

Stay tuned for more information about the impact of this new legislation on Green Acres eligibility for equestrian property as well as newly passed legislation amending the State agricultural code to include a definition of horses as livestock. And don't forget to thank the Minnesota Horse Council for recognizing and addressing the need for legislative change. We have demonstrated that equine business conditions can be improved and real change can happen when we work together toward a common goal and dedicate the time and attention required to follow through.

Allison Eklund

Is your horse farm a "real farm?"

If the "Great Recession" has been hard on your equine business, you are not alone. Increased property taxes, land use and zoning disputes, and other land related issues have arisen with greater frequency and severe consequences for equestrian landowners. It has never been more important to understand your property rights.

At the 2010 Minnesota Horse Expo, I will present a daily seminar on property law and related issues of importance to equine landowners. These seminars are scheduled in the Ramberg Building at 3pm on Friday and Saturday and at 12pm on Sunday.

The Minnesota Horse Expo is a nonprofit organization solely owned by the Minnesota Horse Council to raise funds for the benefit of Minnesota's horse industry. The Expo is your best opportunity to connect with horse enthusiasts and explore the diversity of Minnesota's equine businesses. As staff attorney for the Expo I will be there every day, all day, and available by phone. I hope to see you at my favorite pan-equestrian event of the year!

2010 Minnesota Horse Expo

And now, we wait.

Last Wednesday, March 24 our horse boarding property tax bill received a hearing in the Minnesota House of Representatives. As in the Senate, I testified on behalf of the Minnesota Horse Council with its President, Mark Ward. Our chief author in the House is Rep. Bob Dettmer of Forest Lake, and we owe him our thanks for carrying this bill and inviting bipartisan support.

Our proposed legislation has no opposition and a growing number of co-authors from both sides of the aisle. This is in large part due to the hard work done in advance over several months of participation in the Minnesota Department of Revenue's study work-group in which the peculiar problems of property tax classification of equine property were thoroughly explored and discussed. Our bill resulted from this effort and MDOR has supported it --and us-- by reassuring legislators that the new language would clarify the standard for agricultural classification applicable to commercial horse boarding property. We are all reaching for statewide uniformity, and the new language would help accomplish that.

Our bill in both houses of the Legislature has been "laid aside" for possible inclusion in an omnibus tax bill. Because of the broad and noncontroversial support it enjoys, we are hopeful that our bill would be included in a technical or non-controversial tax bill that both parties could endorse and that the Governor would sign. There is little left we can do, except to call our State Senators and Representatives to thank them for paying attention to this important issue and to encourage their continued support for its passage into law.

For up-to-the-minute status reports on our bill's progress, you may subscribe to "Bill Tracker" at our Legislature's web site. Here are some easy links:

Bill Search and Status
Text of HF 3107
Text of SF 2685

Thanks to you, too for your interest and support!