HF 825

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 04:38pm

A bill for an act
relating to taxation; payment in lieu of taxes; increasing payments; modifying
valuation; requiring a report; amending Minnesota Statutes 2022, section 477A.12,
subdivisions 1, 3, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2022, 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) deleted text begin $2 deleted text end new text begin $3 new text end , 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) deleted text begin $2 deleted text end new text begin $3 new text end , multiplied by the number of acres of commissioner-administered other natural
resources land in the county; deleted text begin and
deleted text end

(8) new text begin $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;
new text end

new text begin (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; and
new text end

new text begin (10) 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 beginning with aids payable in 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, section 477A.12, subdivision 3, is amended to read:

Subd. 3.

Determination of appraised value.

For the purposes of this section, the
appraised value of acquired natural resources land is the purchase price until the next six-year
appraisal required under this subdivision. The appraised value of acquired natural resources
land received as a donation is the value determined for the commissioner of natural resources
by a licensed appraiser, or the county assessor's estimated market value if no appraisal is
done. The appraised value must be determined by the county assessor every six years new text begin , except
that the appraised value shall not be less than the most recent appraised value new text end . All reappraisals
shall be done in the same year as county assessors are required to assess exempt land under
section 273.18.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024.
new text end

Sec. 3.

Minnesota Statutes 2022, section 477A.12, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Adjustment. new text end

new text begin The commissioner shall annually adjust the amounts in subdivision
1, clauses (1) to (10), as provided in section 270C.22, subdivision 1, except as provided in
this subdivision. To determine the dollar amounts for payments in calendar year 2025, the
commissioner shall determine the percentage change in the index for the 12-month period
ending on August 31, 2024, and increase each of the unrounded dollar amounts in section
477A.12, subdivision 1, by that percentage change. For each subsequent year, the
commissioner shall increase the dollar amounts by the percentage change in the index from
August 31 of the year preceding the statutory year, to August 31 of the year preceding the
taxable year. The commissioner shall round the amounts as adjusted to the nearest tenth of
a cent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024.
new text end

Sec. 4. new text begin STUDY OF STATE-OWNED LAKESHORE.
new text end

new text begin No later than January 31, 2024, the commissioner of revenue, in consultation with the
Department of Natural Resources and counties, must produce a report on valuation methods
used to value the acreage and shoreline areas within all commissioner-administered and
county-administered other natural resources land, as defined in Minnesota Statutes, section
477A.11, subdivision 4. The report must comply with the requirements of Minnesota Statutes,
sections 3.195 and 3.197. The report must include, by county, the most recent assessed
value and acreage, and the assessed value and acreage for the two most recent assessments,
as required under Minnesota Statutes, section 273.18, paragraph (b), aggregated by parcels
containing shoreline and by parcels not containing shoreline area. Counties must report to
the commissioner of revenue any necessary data by September 30, 2023. The commissioner
must provide a copy of the report to the chairs and ranking minority members of the
legislative committees with jurisdiction over taxes and property taxation by January 31,
2024.
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