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HF 2758

as introduced - 88th Legislature (2013 - 2014) Posted on 03/06/2014 01:10pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/06/2014

Current Version - as introduced

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A bill for an act
relating to taxation; property; providing an agricultural credit for property used
for organic farming; amending Minnesota Statutes 2012, section 273.1384,
subdivision 2.

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

Section 1.

Minnesota Statutes 2012, section 273.1384, subdivision 2, is amended to read:


Subd. 2.

Agricultural deleted text begin homesteaddeleted text end market value credit.

new text begin (a) new text end Property classified as
agricultural homestead under section 273.13, subdivision 23, paragraph (a), is eligible
for an agricultural credit. The credit is computed using the property's agricultural credit
market value, defined for this purpose as the property's market value excluding the market
value of the house, garage, and immediately surrounding one acre of land. The credit is
equal to 0.3 percent of the first $115,000 of the property's agricultural credit market value
minus .05 percent of the property's agricultural credit market value in excess of $115,000,
subject to a maximum reduction of $115. In the case of property that is classified as part
homestead and part nonhomestead solely because not all the owners occupy or farm the
property, not all the owners have qualifying relatives occupying or farming the property,
or solely because not all the spouses of owners occupy the property, the credit must
be initially computed as if that nonhomestead agricultural land was also classified as
agricultural homestead and then prorated to the owner-occupant's percentage of ownership.

new text begin (b) Property classified as class 2a under section 273.13, subdivision 23, that is
used for organic production as defined in section 31.92, subdivision 3a, is eligible for an
agricultural credit equal to $5 times the number of acres. Land eligible under this paragraph
includes land that is farmed by a certified organic producer and land that is subjected to
a three-year period of transition from conventional to organic production as required to
obtain organic certification under federal law, as defined in section 31.92, subdivision 2b.
In order to qualify for the credit under this paragraph, an application must be filed with
the county assessor by June 30 of the assessment year for taxes payable in the following
year. The commissioner of revenue must prescribe the form of the application and the
supporting documents that must be submitted with the application. The credit under this
paragraph is in addition to any credit for which the property is eligible under paragraph (a).
new text end

new text begin (c) In no case shall the credit under paragraphs (a) and (b) exceed the total property
tax payable on the agricultural land.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in
2015. For taxes payable in 2015 only, the application deadline under Minnesota Statutes,
section 273.1384, subdivision 2, paragraph (b), is August 31, 2014.
new text end