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HF 696

as introduced - 89th Legislature (2015 - 2016) Posted on 02/09/2015 02:06pm

KEY: stricken = removed, old language. underscored = added, new language.



Version List Authors and Status

Current Version - as introduced

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
2014, section 273.1384, subdivision 2; proposing coding for new law in
Minnesota Statutes, chapter 17.


Section 1.


(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

(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.

(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.

Sec. 2.

Minnesota Statutes 2014, section 273.1384, subdivision 2, is amended to read:

Subd. 2.

Agricultural homestead market value credit.

(a) 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.

(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 of revenue
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).

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


This section is effective beginning with taxes payable in
2016. For taxes payable in 2016 only, the application deadline under paragraph (b)
is August 31, 2015.

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