HF 630

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; modifying special
assessment and property tax deferment provisions on
certain qualified property; amending Laws 1998,
chapter 389, article 3, section 41; Laws 1998, chapter
389, article 3, section 42, subdivision 2, as amended.

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

Section 1.

Laws 1998, chapter 389, article 3, section 41,
is amended to read:

Sec. 41 new text begin SPECIAL ASSESSMENT DEFERRAL AUTHORIZED.
new text end

Notwithstanding Minnesota Statutes, chapter 429, a city may
defer the payment of any special assessment levied against a
property qualifying under section 38 as determined by the city.
new text begin Any special assessment, the payment of which has been deferred
by the city, must be paid in full or a payment agreement may be
approved by the city if the ownership of property is transferred
to any person or any entity. Payment or a payment agreement
must be made within 60 days of the transfer of ownership.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 2.

Laws 1998, chapter 389, article 3, section 42,
subdivision 2, as amended by Laws 2002, chapter 377, article 4,
section 24, is amended to read:

Subd. 2.

Recapture.

(a) Property or any portion thereof
qualifying under section 38 is subject to additional taxes if:

(1) ownership of the property is transferred to anyone
other than the spouse or child of the current owner;

(2) the current owner or the spouse or child of the current
owner has not conveyed or entered into a contract before July 1,
2007, to convey new text begin for ownership or public easement rights, (i) a
portion of new text end the property to deleted text begin a deleted text end new text begin one or more new text end nonprofit deleted text begin foundation
deleted text end new text begin foundations new text end or deleted text begin corporation operating deleted text end new text begin corporations; and (ii) a
portion of the property to one or more local governments; and
those entities shall separately or jointly operate new text end the property
as an art park providing the services included in section 38,
clauses (2) to (5) new text begin , and may also use some of the property for
other public purposes as determined by the local governments new text end ; or

(3) the nonprofit foundation or corporation to which new text begin a
portion of new text end the property was transferred ceases to provide the
services included in section 38, clauses (2) to (5), earlier
than ten years following the effective date of the deleted text begin conveyance
deleted text end new text begin conveyances new text end or of the execution of the deleted text begin contract deleted text end new text begin contracts new text end to
convey.

(b) The additional taxes are imposed at the earlier of (1)
the year following transfer of ownership to anyone other than
the spouse or child of the current owner or a nonprofit
foundation or corporation new text begin or local government new text end operating the
property as an art park new text begin and used for other public purposes new text end , or
(2) for taxes payable in 2008, or new text begin (3) new text end in the event the nonprofit
foundation or corporation to which new text begin a portion of new text end the property was
conveyed ceases to provide the required services within ten
years after the conveyance, for taxes payable in the year
following the year when it ceased to do so.

new text begin The county board, with the approval of the city council,
shall determine the amount of the additional taxes due on the
portion of property which is no longer utilized as an art park;
provided, however, that new text end the additional taxes deleted text begin are equal to deleted text end new text begin must
not be greater than new text end the difference between the taxes determined
new text begin on that portion of the property utilized as an art park new text end under
sections 39 and 40 and the amount determined under subdivision 1
for all years that the property qualified under section 38. deleted text begin The
additional taxes must be extended against the property on the
tax list for the current year; provided, however, that deleted text end No
interest or penalties may be levied on the additional deleted text begin taxes if
timely paid deleted text end new text begin amount provided that it is paid within 30 days of
the county's notice new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end