HF 4395

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/15/2018 04:56pm

A bill for an act
relating to taxation; property; providing a property tax credit for land constituting
a riparian buffer; appropriating money; amending Minnesota Statutes 2017
Supplement, section 273.1393; proposing coding for new law in Minnesota Statutes,
chapter 273.

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

Section 1.

new text begin [273.1388] RIPARIAN BUFFER CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "riparian buffer" means a buffer
required under section 103F.48, subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility requirements. new text end

new text begin Land may be enrolled in the program if all the
following conditions are met:
new text end

new text begin (1) the land is tillable land that was classified as 2a under section 273.13, subdivision
23, in the year prior to its conversion to a riparian buffer;
new text end

new text begin (2) a buffer is required to be maintained on the property according to section 103F.48,
subdivision 3, and the buffer is identified and mapped on a buffer-protection map established
and maintained by the commissioner of natural resources;
new text end

new text begin (3) the land is not enrolled in a conservation program that provides income to the
landowner;
new text end

new text begin (4) the land has not been compensated for damages under section 103E.315, subdivision
8, for purposes of installing a buffer; and
new text end

new text begin (5) the landowner is not subject to an enforcement action under section 103F.48,
subdivision 7, paragraph (c), relative to the land for which the credit is claimed.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) In order to initially qualify for a credit under this section, an
owner of agricultural land must file an application with the county auditor on a form
prescribed by the commissioner. The application must specifically identify the land meeting
the requirements of this section. Once an application has been made for land to receive a
credit under this section, no further applications for the land to receive the credit are required,
provided that the owner must notify the auditor if there has been any change in the status
of the land relative to the eligibility requirements under subdivision 2.
new text end

new text begin (b) An application must be received prior to April 1 in order for the credit to be in effect
for taxes payable in the following year, except that an application may be filed through June
15, 2018, for the credit to be in effect for taxes payable in 2019.
new text end

new text begin Subd. 4. new text end

new text begin Coordination with administrative entities. new text end

new text begin (a) By August 1, 2018, and May
1 of each year thereafter, the county auditor must notify the local soil and water conservation
district of the land within the district's jurisdiction for which an application for the credit
under this section has been received. By September 15, 2018, and August 1 of each year
thereafter, the soil and water conservation district must verify the accuracy of the land for
which the credit is being claimed.
new text end

new text begin (b) By August 1 of each year, the Board of Water and Soil Resources, or the county
agency or watershed district responsible for administering section 103F.48, must notify the
county auditor of any enforcement actions under section 103F.48, subdivision 7, paragraph
(c), for land for which the credit under this section is being claimed.
new text end

new text begin Subd. 5. new text end

new text begin Amount of credit. new text end

new text begin Land meeting the requirements of this section is eligible
for a credit at the rate of $50 per acre.
new text end

new text begin Subd. 6. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall determine the tax reductions
allowed under this section within the county for each taxes payable year and shall certify
that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted
by the county auditors under section 275.29. Any prior year adjustments shall also be
certified on the abstracts of tax lists. The commissioner shall review the certifications for
accuracy, and may make such changes as are deemed necessary or return the certification
to the county auditor for correction. The credit under this section must be used to
proportionately reduce the net tax capacity-based property tax payable to each local taxing
jurisdiction as provided in section 273.1393.
new text end

new text begin Subd. 7. new text end

new text begin Payment. new text end

new text begin (a) The commissioner of revenue shall reimburse each local taxing
jurisdiction, other than school districts, for the tax reductions granted under this section, in
two equal installments on October 31 and December 26 of the taxes payable year for which
the reductions are granted, including in each payment the prior year adjustments certified
on the abstracts for that taxes payable year. The reimbursements related to tax increments
shall be issued in one installment each year on December 26.
new text end

new text begin (b) The commissioner of revenue shall certify the total of the tax reductions granted
under this section for each taxes payable year within each school district to the commissioner
of education, and the commissioner of education shall pay the reimbursement amounts to
each school district as provided in section 273.1392.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by this
section to taxing jurisdictions other than school districts is annually appropriated from the
clean water fund to the commissioner of revenue. An amount sufficient to make the payments
required by this section for school districts is annually appropriated from the clean water
fund to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2019.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 273.1393, is amended to read:

273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are determined
by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) the school bond credit as provided in section 273.1387;

(8) new text begin riparian buffer credit under section 273.1388;
new text end

new text begin (9) new text end agricultural credit as provided in section 273.1384;

deleted text begin (9) deleted text end new text begin (10) new text end taconite homestead credit as provided in section 273.135;

deleted text begin (10) deleted text end new text begin (11) new text end supplemental homestead credit as provided in section 273.1391; and

deleted text begin (11) deleted text end new text begin (12) new text end the bovine tuberculosis zone credit, as provided in section 273.113.

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2019.
new text end