SF 2108

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/04/2025 09:49 a.m.

A bill for an act
relating to taxation; payment in lieu of taxation; establishing definitions;
establishing payments for other lakeshore land; amending Minnesota Statutes
2024, sections 477A.11, subdivision 4, by adding a subdivision; 477A.12,
subdivision 1; 477A.14, subdivision 1.

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

Section 1.

Minnesota Statutes 2024, section 477A.11, subdivision 4, is amended to read:

Subd. 4.

Other natural resources land.

"Other natural resources land" means any land,
other than acquired natural resource land or wildlife management land, presently owned in
fee title by the state and administered by the commissioner, or any tax-forfeited land, other
than platted lots within a city or those lands described under subdivision 3, clause (2), which
is owned by the state and administered by the commissioner or by the county in which it is
located. new text begin Other natural resources land excludes other lakeshore land defined in subdivision
9.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2024, section 477A.11, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Other lakeshore land. new text end

new text begin "Other lakeshore land" means parcels of other natural
resources land under subdivision 4 abutting lakes identified by a Department of Natural
Resources Division of Waters Lake Number.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2024, section 477A.12, subdivision 1, is amended to read:

Subdivision 1.

Types of land; payments.

The following amounts are annually
appropriated to the commissioner of natural resources from the general fund for transfer to
the commissioner of revenue. The commissioner of revenue shall pay the transferred funds
to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage
as of July 1 of each year prior to the payment year, are:

(1) $5.133 multiplied by the total number of acres of acquired natural resources land or,
at the county's option three-fourths of one percent of the appraised value of all acquired
natural resources land in the county, whichever is greater;

(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the
county's option, three-fourths of one percent of the appraised value of all transportation
wetland in the county, whichever is greater;

(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at
the county's option, three-fourths of one percent of the appraised value of all wildlife
management land in the county, whichever is greater;

(4) 50 percent of the dollar amount as determined under clause (1), multiplied by the
number of acres of military refuge land in the county;

(5) $3, multiplied by the number of acres of county-administered other natural resources
land in the county;

(6) $5.133, multiplied by the total number of acres of land utilization project land in the
county;

(7) $3, multiplied by the number of acres of commissioner-administered other natural
resources land in the county;

(8) $0.18, multiplied by the total number of acres in the county eligible for payment
under clauses (1) to (7), provided that the total number of acres in the county eligible for
payment under clauses (1) to (7) is equal to or greater than 25 percent of the total acreage
in the county;

(9) $0.08, multiplied by the total number of acres in the county eligible for payment
under clauses (1) to (7), provided that the total number of acres in the county eligible for
payment under clauses (1) to (7) is equal to or greater than ten percent, but less than 25
percent of the total acreage in the county; deleted text begin and
deleted text end

new text begin (10) $5.133, multiplied by the total number of acres of other lakeshore land or
three-fourths of one percent of the appraised value of other lakeshore land in the county,
whichever is greater; and
new text end

deleted text begin (10) deleted text end new text begin (11) new text end without regard to acreage, and notwithstanding the rules adopted under section
84A.55, $300,000 for local assessments under section 84A.55, subdivision 9, that shall be
divided and distributed to the counties containing state-owned lands within a conservation
area in proportion to each county's percentage of the total annual ditch assessments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026.
new text end

Sec. 4.

Minnesota Statutes 2024, section 477A.14, subdivision 1, is amended to read:

Subdivision 1.

General distribution.

Except as provided in subdivisions 2 and 3, 40
percent of the total payment to the county shall be deposited in the county general revenue
fund to be used to provide property tax levy reduction. The remainder shall be distributed
by the county in the following priority:

(1) 64.2 cents, for each acre of county-administered other natural resources land shall
be deposited in a resource development fund to be created within the county treasury for
use in resource development, forest management, game and fish habitat improvement, and
recreational development and maintenance of county-administered other natural resources
land. Any county receiving less than $5,000 annually for the resource development fund
may elect to deposit that amount in the county general revenue fund;

(2) within 30 days of receipt of the payment to the county, the county treasurer shall pay
a township with land that qualifies for payment under section 477A.12, subdivision 1,
clauses (1), (2), deleted text begin and deleted text end (5) to (7), new text begin and (10), new text end ten percent of the payment the county received for
such land within that township. Payments for natural resources lands not located in an
organized township shall be deposited in the county general revenue fund. Payments to
counties and townships pursuant to this paragraph shall be used to provide property tax levy
reduction, except that of the payments for natural resources lands not located in an organized
township, the county may allocate the amount determined to be necessary for maintenance
of roads in unorganized townships; and

(3) any remaining funds shall be deposited in the county general revenue fund. Provided
that, if the distribution to the county general revenue fund exceeds $35,000, the excess shall
be used to provide property tax levy reduction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026.
new text end