H.F. No. 10, 1st Engrossment - 86th Legislative Session (2009-2010) Posted on Feb 12, 2009
1.1A bill for an act1.2relating to property taxation; repealing the 2008 changes to the Green Acres law;
1.3amending Minnesota Statutes 2008, section 273.111, subdivisions 3, 4, 8, 9, 11,
1.411a; Laws 2008, chapter 366, article 6, section 52; repealing Minnesota Statutes
1.52008, section 273.111, subdivision 3a.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2008, section 273.111, subdivision 3, is amended to read:
1.8 Subd. 3. Requirements. (a) Real estate consisting of ten acres or more or a nursery
1.9or greenhouse, and qualifying for classification as class 2a or 2b under section
1.11to agricultural use, and meets the requirements in subdivision 6, and either:
1.12 (1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the
1.13owner or is real estate which is farmed with the real estate which contains the homestead
1.15 (2) has been in possession of the applicant, the applicant's spouse, parent, or sibling,
1.16or any combination thereof, for a period of at least seven years prior to application for
1.17benefits under the provisions of this section, or is real estate which is farmed with the
1.18real estate which qualifies under this clause and is within four townships or cities or
1.19combination thereof from the qualifying real estate; or
1.20 (3) is the homestead of an individual who is part of an entity described in paragraph
1.21(b), clause (1), (2), or (3); or
1.22 (4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor,
1.23partnership, or corporation which also owns the nursery or greenhouse operations on the
1.24parcel or parcels, provided that only the acres used to produce nursery stock qualify
1.25for treatment under this section.
2.1 (b) Valuation of real estate under this section is limited to parcels owned by
2.2individuals except for:
2.3 (1) a family farm entity or authorized farm entity regulated under section
2.4 (2) a poultry entity other than a limited liability entity in which the majority of the
2.5members, partners, or shareholders are related and at least one of the members, partners,
2.6or shareholders either resides on the land or actively operates the land; and
2.7 (3) corporations that derive 80 percent or more of their gross receipts from the
2.8wholesale or retail sale of horticultural or nursery stock.
2.9 The terms in this paragraph have the meanings given in section
2.11 (c) Land that previously qualified for tax deferment under this section and no longer
2.12qualifies because it is not primarily used for agricultural purposes but would otherwise
2.14for a period of at least three years will not be required to make payment of the previously
2.15deferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to
2.16the expiration of the three-year period requires payment of deferred taxes as follows: sale
2.17in the year the land no longer qualifies requires payment of the current year's deferred
2.18taxes plus payment of deferred taxes for the two prior years; sale during the second year
2.19the land no longer qualifies requires payment of the current year's deferred taxes plus
2.20payment of the deferred taxes for the prior year; and sale during the third year the land
2.21no longer qualifies requires payment of the current year's deferred taxes. Deferred taxes
2.22shall be paid even if the land qualifies pursuant to subdivision 11a. When such property is
2.23sold or no longer qualifies under this paragraph, or at the end of the three-year period,
2.24whichever comes first, all deferred special assessments plus interest are payable in equal
2.25installments spread over the time remaining until the last maturity date of the bonds issued
2.26to finance the improvement for which the assessments were levied. If the bonds have
2.27matured, the deferred special assessments plus interest are payable within 90 days. The
2.28provisions of section
2.29Penalties are not imposed on any such special assessments if timely paid.
2.35EFFECTIVE DATE.This section is effective the day following final enactment.
3.1 Sec. 2. Minnesota Statutes 2008, section 273.111, subdivision 4, is amended to read:
3.2 Subd. 4. Determination of value.
3.3in subdivision 3 shall upon timely application by the owner, in the manner provided
3.4in subdivision 8, be determined solely with reference to its appropriate agricultural
3.5classification and value notwithstanding sections
3.6Furthermore, the assessor shall not consider any added values resulting from
3.7nonagricultural factors. In order to account for the presence of nonagricultural influences
3.8that may affect the value of agricultural land, the commissioner of revenue shall develop a
3.9fair and uniform method of determining agricultural values for each county in the state
3.10that are consistent with this subdivision. The commissioner shall annually assign the
3.11resulting values to each county, and these values shall be used as the basis for determining
3.12the agricultural value for all properties in the county qualifying for tax deferment under
3.19EFFECTIVE DATE.This section is effective for assessment year 2009 and
3.21 Sec. 3. Minnesota Statutes 2008, section 273.111, subdivision 8, is amended to read:
3.22 Subd. 8. Application. Application for deferment of taxes and assessment under this
3.23section shall be filed by May 1 of the year prior to the year in which the taxes are payable.
3.24Any application filed hereunder and granted shall continue in effect for subsequent years
3.25until the property no longer qualifies. The application must be filed with the assessor of
3.26the taxing district in which the real property is located on the form prescribed by the
3.27commissioner of revenue. The assessor may require proof by affidavit or otherwise
3.28that the property qualifies under
3.29applicant to provide a copy of the appropriate schedule or form showing farm income that
3.30is attested to by the applicant as having been included in the most recently filed federal
3.31income tax return of the applicant.
3.32EFFECTIVE DATE.This section is effective the day following final enactment.
3.33 Sec. 4. Minnesota Statutes 2008, section 273.111, subdivision 9, is amended to read:
4.1 Subd. 9. Additional taxes. When real property which is being, or has been valued
4.2and assessed under this section no longer qualifies under
4.3the portion no longer qualifying shall be subject to additional taxes, in the amount equal to
4.4the difference between the taxes determined in accordance with subdivision 4, and the
4.5amount determined under subdivision 5. Provided, however, that the amount determined
4.6under subdivision 5 shall not be greater than it would have been had the actual bona fide
4.7sale price of the real property at an arm's-length transaction been used in lieu of the market
4.8value determined under subdivision 5. Such additional taxes shall be extended against
4.9the property on the tax list for the current year, provided, however, that no interest or
4.10penalties shall be levied on such additional taxes if timely paid, and provided further, that
4.11such additional taxes shall only be levied with respect to the last three years that the said
4.12property has been valued and assessed under this section.
4.13EFFECTIVE DATE.This section is effective the day following final enactment.
4.14 Sec. 5. Minnesota Statutes 2008, section 273.111, subdivision 11, is amended to read:
4.15 Subd. 11. Special local assessments. The payment of special local assessments
4.16levied after June 1, 1967, for improvements made to any real property described in
4.17subdivision 3 together with the interest thereon shall, on timely application as provided
4.18in subdivision 8, be deferred as long as such property meets the conditions contained in
4.21deferred pursuant to this subdivision, the governmental unit shall file with the county
4.22recorder in the county in which the property is located a certificate containing the legal
4.23description of the affected property and of the amount deferred. When such property
4.24no longer qualifies under
4.25assessments plus interest shall be payable in equal installments spread over the time
4.26remaining until the last maturity date of the bonds issued to finance the improvement
4.27for which the assessments were levied. If the bonds have matured, the deferred special
4.28assessments plus interest shall be payable within 90 days. The provisions of section
4.30levied on any such special assessments if timely paid.
4.31EFFECTIVE DATE.This section is effective the day following final enactment.
4.32 Sec. 6. Minnesota Statutes 2008, section 273.111, subdivision 11a, is amended to read:
5.1 Subd. 11a. Continuation of tax treatment upon sale. (a) When real property
5.3special assessments plus interest shall be extended against the property provided the
5.4property continues to qualify pursuant to
5.5the new owner files an application for continued deferment within 30 days after the sale.
5.6(b) For purposes of meeting the income requirements of subdivision 6, the property
5.7purchased shall be considered in conjunction with other qualifying property owned by
5.9EFFECTIVE DATE.This section is effective the day following final enactment.
5.10 Sec. 7. Laws 2008, chapter 366, article 6, section 52, is amended to read:
5.11 Sec. 52. REPEALER.
5.12(a) Minnesota Statutes 2006, section 272.027, subdivision 3, is repealed.
5.13(b) Minnesota Statutes 2006, section 273.11, subdivision 14, is repealed.
5.15EFFECTIVE DATE.This section is effective the day following final enactment.
5.16 Sec. 8. LAND REMOVED FROM PROGRAM.
5.17Any land that had been enrolled in the Minnesota Agricultural Property Tax Law
5.18under Minnesota Statutes 2008, section 273.111, and that was removed from the program
5.19between May 21, 2008, and the effective date of this section, must be reinstated to the
5.20program at the request of the owner provided that the eligibility requirements under
5.21Minnesota Statutes 2008, section 273.111, subdivisions 3 and 6, are met.
5.22EFFECTIVE DATE.This section is effective the day following final enactment.
5.23 Sec. 9. REVIVAL.
5.24Pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 273.111,
5.25subdivision 6, is revived, effective the day following final enactment.
5.26EFFECTIVE DATE.This section is effective the day following final enactment.
5.27 Sec. 10. REPEALER.
5.28Minnesota Statutes 2008, section 273.111, subdivision 3a, is repealed.
5.29EFFECTIVE DATE.This section is effective the day following final enactment.