HF 527

as introduced - 87th Legislature (2011 - 2012) Posted on 02/17/2011 09:40am

A bill for an act
relating to taxation; modifying the Minnesota rural preserve property tax
program; amending Minnesota Statutes 2010, section 273.114, subdivisions 2, 5,
6; repealing Minnesota Statutes 2010, section 273.114, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 273.114, subdivision 2, is amended to read:

Subd. 2.

Requirements.

Class 2a or 2b property that had been assessed under
Minnesota Statutes 2006, section 273.111, or that is part of an agricultural homestead
under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is entitled to
valuation and tax deferment under this section if:

(1) the land consists of at least ten acres;

deleted text begin (2) a conservation assessment plan for the land must be prepared by an approved
plan writer and implemented during the period in which the land is subject to valuation
and deferment under this section;
deleted text end

deleted text begin (3) the land must be enrolled for a minimum of eight years;
deleted text end

deleted text begin (4) deleted text end new text begin (2) new text end there are no delinquent property taxes on the land; and

deleted text begin (5) deleted text end new text begin (3) new text end the property is not also enrolled for valuation and deferment under section
273.111 or 273.112, or chapter 290C or 473H.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 273.114, subdivision 5, is amended to read:

Subd. 5.

Application deleted text begin and covenant agreement deleted text end .

deleted text begin (a) deleted text end Application for deferment
of taxes and assessment under this section shall be filed by May 1 of the year prior to
the year in which the taxes are payable. Any application filed under this subdivision
and granted shall continue in effect for subsequent years until the deleted text begin termination of the
covenant agreement under paragraph (b) deleted text end new text begin property is withdrawn or no longer qualifies new text end . The
application must be filed with the assessor of the taxing district in which the real property
is located on the form prescribed by the commissioner of revenue. The assessor may
require proof by affidavit or otherwise that the property qualifies under subdivision 2.

deleted text begin (b) The owner of the property must sign a covenant agreement that is filed with the
county recorder and recorded in the county where the property is located. The covenant
agreement must include all of the following:
deleted text end

deleted text begin (1) legal description of the area to which the covenant applies;
deleted text end

deleted text begin (2) name and address of the owner;
deleted text end

deleted text begin (3) a statement that the land described in the covenant must be kept as rural preserve
land, which meets the requirements of subdivision 2, for the duration of the covenant;
deleted text end

deleted text begin (4) a statement that the landowner may terminate the covenant agreement by
notifying the county assessor in writing three years in advance of the date of proposed
termination, provided that the notice of intent to terminate may not be given at any time
before the land has been subject to the covenant for a period of five years;
deleted text end

deleted text begin (5) a statement that the covenant is binding on the owner or the owner's successor or
assigns and runs with the land; and
deleted text end

deleted text begin (6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as
described in subdivision 2.
deleted text end

deleted text begin (c) After a covenant under this section has been terminated, the land that had been
subject to the covenant is ineligible for subsequent valuation under this section for a
period of three years after the termination.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 273.114, subdivision 6, is amended to read:

Subd. 6.

Additional taxes.

deleted text begin Upon termination of a covenant agreement in
subdivision 5, paragraph (b), the land to which the covenant applied deleted text end new text begin When real property
which is being, or has been valued and assessed under this section no longer qualifies
under subdivision 2, the portion no longer qualifying new text end shall be subject to additional taxes
in the amount equal to the difference between the taxes determined in accordance with
subdivision 3 and the amount determined under subdivision 4, provided that the amount
determined under subdivision 4 shall not be greater than it would have been had the
actual bona fide sale price of the real property at an arm's-length transaction been used in
lieu of the market value determined under subdivision 4. The additional taxes shall be
extended against the property on the tax list for the current year, provided that no interest
or penalties shall be levied on the additional taxes if timely paid and that the additional
taxes shall only be levied with respect to the current year plus two prior years that the
property has been valued and assessed under this section.

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 273.114, subdivision 1, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end