LBO: open-space preferential valuation shifts taxes and data gaps hinder causal conclusions

The Legislative Budget Office presented evaluation findings for Minnesota’s open-space preferential valuation program, enacted in 1969, that grants preferential valuation and tax deferrals to qualifying private recreational and open-space properties. LBO staff reported 69 facilities (284 parcels) received deferrals in taxes payable year 2024, including 56 golf courses, 10 firearms/archery ranges and three ski areas; 59 of the facilities were in the Twin Cities metro area. The median deferred tax liability per facility was around $25,000 and the estimated shift impact in taxes payable year 2024 was $15.9 million.