SF 447

Introduction - 87th Legislature (2011 - 2012)

Posted on 02/23/2012 08:46 a.m.

A bill for an act
relating to taxation; eliminating the sustainable forest incentive program;
amending Minnesota Statutes 2010, sections 88.49, subdivisions 5, 9a; 273.114,
subdivision 2; repealing Minnesota Statutes 2010, sections 13.4967, subdivision
2b; 88.491, subdivision 2; 290C.01; 290C.02; 290C.03; 290C.04; 290C.05;
290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; 290C.12;
290C.13.

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

Section 1.

Minnesota Statutes 2010, section 88.49, subdivision 5, is amended to read:

Subd. 5.

Cancellation.

Upon the failure of the owner faithfully to fulfill and
perform such contract or any provision thereof, or any requirement of sections 88.47 to
88.53, or any rule adopted by the commissioner thereunder, the commissioner may cancel
the contract in the manner herein provided. The commissioner shall give to the owner, in
the manner prescribed in section 88.48, subdivision 4, 60 days' notice of a hearing thereon
at which the owner may appear and show cause, if any, why the contract should not be
canceled. The commissioner shall thereupon determine whether the contract should be
canceled and make an order to that effect. Notice of the commissioner's determination
and the making of the order shall be given to the owner in the manner provided in section
88.48, subdivision 4. On determining that the contract should be canceled and no appeal
therefrom be taken, the commissioner shall send notice thereof to the auditor of the county
and to the town clerk of the town affected and file with the recorder a certified copy of the
order, who shall forthwith note the cancellation upon the record thereof, and thereupon the
land therein described shall cease to be an auxiliary forest and, together with the timber
thereon, become liable to all taxes and assessments that otherwise would have been levied
against it had it never been an auxiliary forest from the time of the making of the contract,
any provisions of the statutes of limitation to the contrary notwithstanding, less the amount
of taxes paid under the provisions of section 88.51, subdivision 1, together with interest on
such taxes and assessments at six percent per annum, but without penalties.

The commissioner may in like manner and with like effect cancel the contract upon
written application of the owner.

deleted text begin The commissioner shall cancel any contract if the owner has made successful
application under sections 290C.01 to 290C.11, the Sustainable Forest Incentive Act, and
has paid to the county treasurer the difference between the amount which would have been
paid had the land under contract been subject to the Minnesota Tree Growth Tax Law and
the Sustainable Forest Incentive Act from the date of the recording of the contract and
the amount actually paid under section 88.51, subdivisions 1 and 2. This tax difference
must be calculated based on the years the lands would have been taxed under the Tree
Growth Tax Law and the Sustainable Forest Incentive Act. The sustainable forest tax
difference is net of the incentive payment of section 290C.07. If the amount which would
have been paid, had the land under contract been under the Minnesota Tree Growth Tax
Law and the Sustainable Forest Incentive Act from the date of the filing of the contract,
is less than the amount actually paid under the contract, the cancellation shall be made
without further payment by the owner.
deleted text end

When the execution of any contract creating an auxiliary forest shall have been
procured through fraud or deception practiced upon the county board or the commissioner
or any other person or body representing the state, it may be canceled upon suit brought by
the attorney general at the direction of the commissioner. This cancellation shall have the
same effect as the cancellation of a contract by the commissioner.

Sec. 2.

Minnesota Statutes 2010, section 88.49, subdivision 9a, is amended to read:

Subd. 9a.

Land trades with governmental units.

Notwithstanding subdivisions
6 and 9, deleted text begin or section 88.491, subdivision 2, deleted text end if an owner trades land under auxiliary forest
contract for land owned by a governmental unit and the owner agrees to use the land
received in trade from the governmental unit for the production of forest products, upon
resolution of the county board, no taxes and assessments shall be levied against the land
traded, except that any current or delinquent annual taxes or yield taxes due on that land
while it was under the auxiliary forest provision must be paid prior to the land exchange.
deleted text begin The land received from the governmental unit in the land trade automatically qualifies for
inclusion in the Sustainable Forest Incentive Act.
deleted text end

Sec. 3.

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;

(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;

(3) the land must be enrolled for a minimum of eight years;

(4) there are no delinquent property taxes on the land; and

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

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

new text begin Minnesota Statutes 2010, sections 13.4967, subdivision 2b; 88.491, subdivision 2;
290C.01; 290C.02; 290C.03; 290C.04; 290C.05; 290C.055; 290C.06; 290C.07; 290C.08;
290C.09; 290C.10; 290C.11; 290C.12; and 290C.13, new text end new text begin are repealed.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment. Covenants entered into prior
to that date are terminated on the day following final enactment.
new text end