Bill Text: MN SF222 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Minnesota rural preserve property tax program modification
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2011-03-28 - HF substituted on General Orders HF12 [SF222 Detail]
Download: Minnesota-2011-SF222-Engrossed.html
1.2relating to taxation; modifying the Minnesota rural preserve property tax
1.3program;amending Minnesota Statutes 2010, section 273.114, subdivisions 2, 5,
1.46; repealing Minnesota Statutes 2010, section 273.114, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 273.114, subdivision 2, is amended to read:
1.7 Subd. 2. Requirements. Class 2a or 2b property that had beenassessed properly
1.8classified under Minnesota Statutes 2006, section 273.111, or that is part of an agricultural
1.9homestead under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is
1.10entitled to valuation and tax deferment under this section if:
1.11(1) the land consists of at least ten acres;
1.12(2) a conservation assessment plan for the land must be prepared by an approved
1.13plan writer and implemented during the period in which the land is subject to valuation
1.14and deferment under this section;
1.15(3) the land must be enrolled for a minimum of eight years;
1.16(4) (2) there are no delinquent property taxes on the land; and
1.17(5) (3) the property is not also enrolled for valuation and deferment under section
1.18273.111 or 273.112, or chapter 290C or 473H.
1.19EFFECTIVE DATE.This section is effective the day following final enactment.
1.20 Sec. 2. Minnesota Statutes 2010, section 273.114, subdivision 5, is amended to read:
1.21 Subd. 5. Applicationand covenant agreement. (a) Application for deferment
1.22of taxes and assessment under this section shall be filed by May 1 of the year prior to
1.23the year in which the taxes are payable. Any application filed under this subdivision
2.1and granted shall continue in effect for subsequent years until thetermination of the
2.2covenant agreement under paragraph (b) property is withdrawn or no longer qualifies.
2.3The application must be filed with the assessor of the taxing district in which the real
2.4property is located on the form prescribed by the commissioner of revenue. Each
2.5application must include the most recent available aerial photograph or satellite image
2.6of the property provided by the Farm Service Agency of the United States Department
2.7of Agriculture that clearly delineates the land that is to be enrolled. The application
2.8form must contain a statement setting forth the consequences to the property owner of
2.9termination of qualification of property under the rural preserve program, together with a
2.10recommendation that land that is likely to be changed to a nonqualifying use during the
2.11period of enrollment should not be included in the application. The assessor may require
2.12proof by affidavit or otherwise that the property qualifies under subdivision 2.
2.13(b) The owner of the property must sign a covenant agreement that is filed with the
2.14county recorder and recorded in the county where the property is located. The covenant
2.15agreement must include all of the following:
2.16(1) legal description of the area to which the covenant applies;
2.17(2) name and address of the owner;
2.18(3) a statement that the land described in the covenant must be kept as rural preserve
2.19land, which meets the requirements of subdivision 2, for the duration of the covenant;
2.20(4) a statement that the landowner may terminate the covenant agreement by
2.21notifying the county assessor in writing three years in advance of the date of proposed
2.22termination, provided that the notice of intent to terminate may not be given at any time
2.23before the land has been subject to the covenant for a period of five years;
2.24(5) a statement that the covenant is binding on the owner or the owner's successor or
2.25assigns and runs with the land; and
2.26(6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as
2.27described in subdivision 2.
2.28(c) After a covenant under this section has been terminated, the land that had been
2.29subject to the covenant is ineligible for subsequent valuation under this section for a
2.30period of three years after the termination.
2.31EFFECTIVE DATE.This section is effective the day following final enactment.
2.32 Sec. 3. Minnesota Statutes 2010, section 273.114, subdivision 6, is amended to read:
2.33 Subd. 6. Additional taxes.Upon termination of a covenant agreement in
2.34subdivision 5, paragraph (b), the land to which the covenant applied When real property
2.35which is being, or has been valued and assessed under this section no longer qualifies
3.1under subdivision 2, the portion no longer qualifying shall be subject to additional taxes
3.2in the amount equal to the difference between the taxes determined in accordance with
3.3subdivision 3 and the amount determined under subdivision 4, provided that the amount
3.4determined under subdivision 4 shall not be greater than it would have been had the
3.5actual bona fide sale price of the real property at an arm's-length transaction been used in
3.6lieu of the market value determined under subdivision 4. The additional taxes shall be
3.7extended against the property on the tax list for the current year, provided that no interest
3.8or penalties shall be levied on the additional taxes if timely paid and that the additional
3.9taxes shall only be levied with respect to the current year plus two prior years that the
3.10property has been valued and assessed under this section.
3.11EFFECTIVE DATE.This section is effective the day following final enactment.
3.12 Sec. 4. REPEALER.
3.13Minnesota Statutes 2010, section 273.114, subdivision 1, is repealed.
3.14EFFECTIVE DATE.This section is effective the day following final enactment.
1.3program;amending Minnesota Statutes 2010, section 273.114, subdivisions 2, 5,
1.46; repealing Minnesota Statutes 2010, section 273.114, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 273.114, subdivision 2, is amended to read:
1.7 Subd. 2. Requirements. Class 2a or 2b property that had been
1.8classified under Minnesota Statutes 2006, section 273.111, or that is part of an agricultural
1.9homestead under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is
1.10entitled to valuation and tax deferment under this section if:
1.11(1) the land consists of at least ten acres;
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1.17
1.18273.111 or 273.112, or chapter 290C or 473H.
1.19EFFECTIVE DATE.This section is effective the day following final enactment.
1.20 Sec. 2. Minnesota Statutes 2010, section 273.114, subdivision 5, is amended to read:
1.21 Subd. 5. Application
1.22of taxes and assessment under this section shall be filed by May 1 of the year prior to
1.23the year in which the taxes are payable. Any application filed under this subdivision
2.1and granted shall continue in effect for subsequent years until the
2.2
2.3The application must be filed with the assessor of the taxing district in which the real
2.4property is located on the form prescribed by the commissioner of revenue. Each
2.5application must include the most recent available aerial photograph or satellite image
2.6of the property provided by the Farm Service Agency of the United States Department
2.7of Agriculture that clearly delineates the land that is to be enrolled. The application
2.8form must contain a statement setting forth the consequences to the property owner of
2.9termination of qualification of property under the rural preserve program, together with a
2.10recommendation that land that is likely to be changed to a nonqualifying use during the
2.11period of enrollment should not be included in the application. The assessor may require
2.12proof by affidavit or otherwise that the property qualifies under subdivision 2.
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2.31EFFECTIVE DATE.This section is effective the day following final enactment.
2.32 Sec. 3. Minnesota Statutes 2010, section 273.114, subdivision 6, is amended to read:
2.33 Subd. 6. Additional taxes.
2.34
2.35which is being, or has been valued and assessed under this section no longer qualifies
3.1under subdivision 2, the portion no longer qualifying shall be subject to additional taxes
3.2in the amount equal to the difference between the taxes determined in accordance with
3.3subdivision 3 and the amount determined under subdivision 4, provided that the amount
3.4determined under subdivision 4 shall not be greater than it would have been had the
3.5actual bona fide sale price of the real property at an arm's-length transaction been used in
3.6lieu of the market value determined under subdivision 4. The additional taxes shall be
3.7extended against the property on the tax list for the current year, provided that no interest
3.8or penalties shall be levied on the additional taxes if timely paid and that the additional
3.9taxes shall only be levied with respect to the current year plus two prior years that the
3.10property has been valued and assessed under this section.
3.11EFFECTIVE DATE.This section is effective the day following final enactment.
3.12 Sec. 4. REPEALER.
3.13Minnesota Statutes 2010, section 273.114, subdivision 1, is repealed.
3.14EFFECTIVE DATE.This section is effective the day following final enactment.
