HF 2812

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/09/2023 12:49pm

A bill for an act
relating to taxation; tax-forfeited land sales; modifying apportionment of the net
proceeds from the sale of tax-forfeited land; amending Minnesota Statutes 2022,
sections 282.05; 282.08.

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

Section 1.

Minnesota Statutes 2022, section 282.05, is amended to read:

282.05 PROCEEDS APPORTIONED.

The net proceeds received from the sale or rental of forfeited lands shall be apportioned
to the general funds of the state or municipal subdivision thereof, in the manner provided
in section 282.08 new text begin , clauses (1) to (4) new text end .

Sec. 2.

Minnesota Statutes 2022, section 282.08, is amended to read:

282.08 APPORTIONMENT OF PROCEEDS deleted text begin TO TAXING DISTRICTS deleted text end .

The net proceeds from the sale or rental of any parcel of forfeited land, or from the sale
of products from the forfeited land, must be apportioned by the county auditor deleted text begin to the taxing
districts interested in the land deleted text end , as follows:

(1) the portion required to pay any amounts included in the appraised value under section
282.01, subdivision 3, as representing increased value due to any public improvement made
after forfeiture of the parcel to the state, but not exceeding the amount certified by the
appropriate governmental authority must be apportioned to the governmental subdivision
entitled to it;

(2) the portion required to pay any amount included in the appraised value under section
282.019, subdivision 5, representing increased value due to response actions taken after
forfeiture of the parcel to the state, but not exceeding the amount of expenses certified by
the Pollution Control Agency or the commissioner of agriculture, must be apportioned to
the agency or the commissioner of agriculture and deposited in the fund from which the
expenses were paid;

(3) the portion of the remainder required to discharge any special assessment chargeable
against the parcel for drainage or other purpose whether due or deferred at the time of
forfeiture, must be apportioned to the governmental subdivision entitled to it; deleted text begin and
deleted text end

(4) deleted text begin any balance must be apportioned as follows: deleted text end new text begin the portion required to pay the sum of
all unpaid county costs of the property tax delinquency and forfeiture process incurred or
expended in connection with the parcel, including the service fee assessed pursuant to section
279.092, the cost of giving notice pursuant to section 281.23, subdivision 8, the costs of
protecting the premises from waste or trespass, and any other costs, must be apportioned
to the county; and
new text end

new text begin (5) any balance must be returned to the person or entity that owned the property prior
to its forfeiture.
new text end

deleted text begin (i) The county board may annually by resolution set aside no more than 30 percent of
the receipts remaining to be used for forest development on tax-forfeited land and dedicated
memorial forests, to be expended under the supervision of the county board. It must be
expended only on projects improving the health and management of the forest resource.
deleted text end

deleted text begin (ii) The county board may annually by resolution set aside no more than 20 percent of
the receipts remaining to be used for the acquisition and maintenance of county parks or
recreational areas as defined in sections 398.31 to 398.36, to be expended under the
supervision of the county board.
deleted text end

deleted text begin (iii) Any balance remaining must be apportioned as follows: county, 40 percent; town
or city, 20 percent; and school district, 40 percent, provided, however, that in unorganized
territory that portion which would have accrued to the township must be administered by
the county board of commissioners.
deleted text end