1.1 	A bill for an act
1.2 	relating to property taxation; repealing the 2008 changes to the Green Acres law; 
1.3 	amending Minnesota Statutes 2008, section 273.111, subdivisions 3, 4, 8, 9, 11, 
1.4 	11a; Laws 2008, chapter 366, article 6, section 52; repealing Minnesota Statutes 
1.5 	2008, section 273.111, subdivision 3a.
1.6 	BE 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 
1.9 	or greenhouse, and qualifying for classification as class 2a or 2b under section 273.13, 
1.10 	shall be entitled to valuation and tax deferment under this section if it is primarily devoted 
1.11 	to 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 
1.13 	owner or is real estate which is farmed with the real estate which contains the homestead 
1.14 	property; or 
1.15 	(2) has been in possession of the applicant, the applicant's spouse, parent, or sibling, 
1.16 	or any combination thereof, for a period of at least seven years prior to application for 
1.17 	benefits under the provisions of this section, or is real estate which is farmed with the 
1.18 	real estate which qualifies under this clause and is within four townships or cities or 
1.19 	combination 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, 
1.23 	partnership, or corporation which also owns the nursery or greenhouse operations on the 
1.24 	parcel or parcels, provided that only the acres used to produce nursery stock qualify 
1.25 	for treatment under this section. 
2.1 	(b) Valuation of real estate under this section is limited to parcels owned by 
2.2 	individuals except for: 
2.3 	(1) a family farm entity or authorized farm entity regulated under section 500.24; 
2.4 	(2) a poultry entity other than a limited liability entity in which the majority of the 
2.5 	members, partners, or shareholders are related and at least one of the members, partners, 
2.6 	or 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 
2.8 	wholesale or retail sale of horticultural or nursery stock. 
2.9 	The terms in this paragraph have the meanings given in section 500.24, where 
2.10 	applicable.
2.11 	(c) Land that previously qualified for tax deferment under this section and no longer 
2.12 	qualifies because it is not primarily used for agricultural purposes but would otherwise 
2.13 	qualify under Minnesota Statutes 2006, section 273.111, subdivisionsubdivisions 3 and 6, 
2.14 	for a period of at least three years will not be required to make payment of the previously 
2.15 	deferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to 
2.16 	the expiration of the three-year period requires payment of deferred taxes as follows: sale 
2.17 	in the year the land no longer qualifies requires payment of the current year's deferred 
2.18 	taxes plus payment of deferred taxes for the two prior years; sale during the second year 
2.19 	the land no longer qualifies requires payment of the current year's deferred taxes plus 
2.20 	payment of the deferred taxes for the prior year; and sale during the third year the land 
2.21 	no longer qualifies requires payment of the current year's deferred taxes. Deferred taxes 
2.22 	shall be paid even if the land qualifies pursuant to subdivision 11a. When such property is 
2.23 	sold or no longer qualifies under this paragraph, or at the end of the three-year period, 
2.24 	whichever comes first, all deferred special assessments plus interest are payable in equal 
2.25 	installments spread over the time remaining until the last maturity date of the bonds issued 
2.26 	to finance the improvement for which the assessments were levied. If the bonds have 
2.27 	matured, the deferred special assessments plus interest are payable within 90 days. The 
2.28 	provisions of section 429.061, subdivision 2, apply to the collection of these installments. 
2.29 	Penalties are not imposed on any such special assessments if timely paid. 
2.30 	(d) Land that is enrolled in the reinvest in Minnesota program under sections 
2.31 	103F.501 to 103F.535, the federal Conservation Reserve Program as contained in Public 
2.32 	Law 99-198, or a similar state or federal conservation program does not qualify for 
2.33 	valuation and assessment deferral under this section. This paragraph applies to land that 
2.34 	has not qualified under this section for taxes payable in 2009 or previous years.

2.35 	EFFECTIVE 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. (a) The value of any real estate described 
3.3 	in subdivision 3 shall upon timely application by the owner, in the manner provided 
3.4 	in subdivision 8, be determined solely with reference to its appropriate agricultural 
3.5 	classification and value notwithstanding sections 272.03, subdivision 8, and 273.11. 
3.6 	Furthermore, the assessor shall not consider any added values resulting from 
3.7 	nonagricultural factors. In order to account for the presence of nonagricultural influences 
3.8 	that may affect the value of agricultural land, the commissioner of revenue shall develop a 
3.9 	fair and uniform method of determining agricultural values for each county in the state 
3.10 	that are consistent with this subdivision. The commissioner shall annually assign the 
3.11 	resulting values to each county, and these values shall be used as the basis for determining 
3.12 	the agricultural value for all properties in the county qualifying for tax deferment under 
3.13 	this section.
3.14 	(b) In the case of property qualifying for tax deferment only under subdivision 3a, 
3.15 	the value shall be based on the value in effect for assessment year 2008, multiplied by 
3.16 	the ratio of the total taxable market value of all property in the county for the current 
3.17 	assessment year divided by the total taxable market value of all property in the county 
3.18 	for assessment year 2008.

3.19 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
3.20 	thereafter.

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 
3.23 	section shall be filed by May 1 of the year prior to the year in which the taxes are payable. 
3.24 	Any application filed hereunder and granted shall continue in effect for subsequent years 
3.25 	until the property no longer qualifies. The application must be filed with the assessor of 
3.26 	the taxing district in which the real property is located on the form prescribed by the 
3.27 	commissioner of revenue. The assessor may require proof by affidavit or otherwise 
3.28 	that the property qualifies under subdivisionsubdivisions 3 and 6 and may require the 
3.29 	applicant to provide a copy of the appropriate schedule or form showing farm income that 
3.30 	is attested to by the applicant as having been included in the most recently filed federal 
3.31 	income tax return of the applicant.

3.32 	EFFECTIVE 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 
4.2 	and assessed under this section no longer qualifies under subdivisionsubdivisions 3 and 6, 
4.3 	the portion no longer qualifying shall be subject to additional taxes, in the amount equal to 
4.4 	the difference between the taxes determined in accordance with subdivision 4, and the 
4.5 	amount determined under subdivision 5. Provided, however, that the amount determined 
4.6 	under subdivision 5 shall not be greater than it would have been had the actual bona fide 
4.7 	sale price of the real property at an arm's-length transaction been used in lieu of the market 
4.8 	value determined under subdivision 5. Such additional taxes shall be extended against 
4.9 	the property on the tax list for the current year, provided, however, that no interest or 
4.10 	penalties shall be levied on such additional taxes if timely paid, and provided further, that 
4.11 	such additional taxes shall only be levied with respect to the last three years that the said 
4.12 	property has been valued and assessed under this section.

4.13 	EFFECTIVE 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 
4.16 	levied after June 1, 1967, for improvements made to any real property described in 
4.17 	subdivision 3 together with the interest thereon shall, on timely application as provided 
4.18 	in subdivision 8, be deferred as long as such property meets the conditions contained in 
4.19 	subdivisionsubdivisions 3 or 3aand 6 or is transferred to an agricultural preserve under 
4.20 	sections 473H.02 to 473H.17. If special assessments against the property have been 
4.21 	deferred pursuant to this subdivision, the governmental unit shall file with the county 
4.22 	recorder in the county in which the property is located a certificate containing the legal 
4.23 	description of the affected property and of the amount deferred. When such property 
4.24 	no longer qualifies under subdivisionsubdivisions 3 or 3a and 6, all deferred special 
4.25 	assessments plus interest shall be payable in equal installments spread over the time 
4.26 	remaining until the last maturity date of the bonds issued to finance the improvement 
4.27 	for which the assessments were levied. If the bonds have matured, the deferred special 
4.28 	assessments plus interest shall be payable within 90 days. The provisions of section 
4.29 	429.061, subdivision 2, apply to the collection of these installments. Penalty shall not be 
4.30 	levied on any such special assessments if timely paid. 

4.31 	EFFECTIVE 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 
5.2 	qualifying under subdivisionsubdivisions 3 and 6 is sold, no additional taxes or deferred 
5.3 	special assessments plus interest shall be extended against the property provided the 
5.4 	property continues to qualify pursuant to subdivisionsubdivisions 3 and 6, and provided 
5.5 	the 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 
5.7 	purchased shall be considered in conjunction with other qualifying property owned by 
5.8 	the purchaser.

5.9 	EFFECTIVE 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.
5.14 	(c)Minnesota Statutes 2006, section 273.111, subdivision 6, is repealed.

5.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.16 	Sec. 8. LAND REMOVED FROM PROGRAM.
 5.17 	Any land that had been enrolled in the Minnesota Agricultural Property Tax Law 
5.18 	under Minnesota Statutes 2008, section 273.111, and that was removed from the program 
5.19 	between May 21, 2008, and the effective date of this section, must be reinstated to the 
5.20 	program at the request of the owner provided that the eligibility requirements under 
5.21 	Minnesota Statutes 2008, section 273.111, subdivisions 3 and 6, are met.

5.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.23 	Sec. 9.  REPEALER.
 5.24 	Minnesota Statutes 2008, section 273.111, subdivision 3a, is repealed.

5.25 	EFFECTIVE DATE. This section is effective the day following final enactment.