HF 278

as introduced - 90th Legislature (2017 - 2018) Posted on 01/19/2017 06:50pm

A bill for an act
relating to agriculture; requiring the commissioner of agriculture to facilitate
creation of an organic agriculture production and demonstration zone; providing
a property tax credit for property within the zone; amending Minnesota Statutes
2016, section 273.1384, subdivision 2; proposing coding for new law in Minnesota
Statutes, chapter 17.

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

Section 1.

new text begin [17.1165] ORGANIC AGRICULTURE PRODUCTION AND
DEMONSTRATION ZONE.
new text end

new text begin (a) The commissioner of agriculture, in consultation with interested parties, must solicit
proposals for the acquisition or dedication of a large tract of land zoned for agricultural
purposes to serve as an organic agriculture production and demonstration zone. The zone
must be of sufficient size to buffer organic agricultural production on site from conventional
agricultural production on adjacent parcels and to demonstrate on a commercial scale the
production of nontraditional crops and the incorporation of cover crops.
new text end

new text begin (b) Once the commissioner selects a proposal, the commissioner must assist the proposer
with acquisition of the property, recruitment of agricultural producers, acquisition of adequate
crop insurance for participating producers, and the development of markets for the
nontraditional crops and cover crops grown in the zone.
new text end

new text begin (c) No later than January 15 each year, the commissioner must report activities and
outcomes under this section to the legislative committees with jurisdiction over agriculture
policy and finance.
new text end

Sec. 2.

Minnesota Statutes 2016, section 273.1384, subdivision 2, is amended to read:

Subd. 2.

Agricultural deleted text begin homestead deleted text end market value credit.

new text begin (a) new text end Property classified as
agricultural homestead under section 273.13, subdivision 23, paragraph (a), is eligible for
an agricultural credit. The credit is computed using the property's agricultural credit market
value, defined for this purpose as the property's market value excluding the market value
of the house, garage, and immediately surrounding one acre of land. The credit is equal to
0.3 percent of the first $115,000 of the property's agricultural credit market value plus 0.1
percent of the property's agricultural credit market value in excess of $115,000, subject to
a maximum credit of $490. In the case of property that is classified as part homestead and
part nonhomestead solely because not all the owners occupy or farm the property, not all
the owners have qualifying relatives occupying or farming the property, or solely because
not all the spouses of owners occupy the property, the credit must be initially computed as
if that nonhomestead agricultural land was also classified as agricultural homestead and
then prorated to the owner-occupant's percentage of ownership.

new text begin (b) Property classified as class 2a under section 273.13, subdivision 23, that is used for
organic production as defined in section 31.92, subdivision 3a, is eligible for an agricultural
credit equal to $....... times the number of acres. Land eligible under this paragraph is the
land located within the organic agriculture production and demonstration zone established
under section 17.1165. In order to qualify for the credit under this paragraph, an application
must be filed with the county assessor by June 30 of the assessment year for taxes payable
in the following year. The commissioner must prescribe the form of the application and the
supporting documents that must be submitted with the application. The credit under this
paragraph is in addition to any credit for which the property is eligible under paragraph (a).
new text end

new text begin (c) In no case shall the credit under paragraphs (a) and (b) exceed the total property tax
payable on the agricultural land.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
For taxes payable in 2018 only, the application deadline under paragraph (b) is August 31,
2017.
new text end