HF 1351

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; property; increasing the income 
  1.3             requirements for new applicants under the green acres 
  1.4             program; providing for the classification of property 
  1.5             which is used for both residential and agricultural 
  1.6             purposes; amending Minnesota Statutes 1994, sections 
  1.7             273.111, subdivision 6; and 273.13, subdivision 23. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 273.111, 
  1.10  subdivision 6, is amended to read: 
  1.11     Subd. 6.  Real property shall be considered to be in 
  1.12  agricultural use provided that annually: 
  1.13     (1) at least 33-1/3 percent of the total family income of 
  1.14  the owner is derived therefrom, or the total production income 
  1.15  including rental from the property is $300 $600 plus $10 $20 per 
  1.16  tillable acre; and 
  1.17     (2) it is devoted to the production for sale of 
  1.18  agricultural products as defined in section 273.13, subdivision 
  1.19  23, paragraph (e). 
  1.20     Slough, wasteland, and woodland contiguous to or surrounded 
  1.21  by land that is entitled to valuation and tax deferment under 
  1.22  this section is considered to be in agricultural use if under 
  1.23  the same ownership and management. 
  1.24     Sec. 2.  Minnesota Statutes 1994, section 273.13, 
  1.25  subdivision 23, is amended to read: 
  1.26     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  2.1   land including any improvements that is homesteaded.  The market 
  2.2   value of the house and garage and immediately surrounding one 
  2.3   acre of land has the same class rates as class 1a property under 
  2.4   subdivision 22.  The value of the remaining land including 
  2.5   improvements up to $115,000 has a net class rate of .45 percent 
  2.6   of market value and a gross class rate of 1.75 percent of market 
  2.7   value.  The remaining value of class 2a property over $115,000 
  2.8   of market value that does not exceed 320 acres has a net class 
  2.9   rate of one percent of market value, and a gross class rate of 
  2.10  2.25 percent of market value.  The remaining property over the 
  2.11  $115,000 market value in excess of 320 acres has a class rate of 
  2.12  1.5 percent of market value, and a gross class rate of 2.25 
  2.13  percent of market value.  
  2.14     (b) Class 2b property is (1) real estate, rural in 
  2.15  character and used exclusively for growing trees for timber, 
  2.16  lumber, and wood and wood products; (2) real estate that is not 
  2.17  improved with a structure and is used exclusively for growing 
  2.18  trees for timber, lumber, and wood and wood products, if the 
  2.19  owner has participated or is participating in a cost-sharing 
  2.20  program for afforestation, reforestation, or timber stand 
  2.21  improvement on that particular property, administered or 
  2.22  coordinated by the commissioner of natural resources; (3) real 
  2.23  estate that is nonhomestead agricultural land; or (4) a landing 
  2.24  area or public access area of a privately owned public use 
  2.25  airport.  Class 2b property has a net class rate of 1.5 percent 
  2.26  of market value, and a gross class rate of 2.25 percent of 
  2.27  market value.  
  2.28     (c) Except as provided in this subdivision, agricultural 
  2.29  land as used in this section means contiguous acreage of ten 
  2.30  acres or more, primarily used during the preceding year for 
  2.31  agricultural purposes.  Agricultural use may include pasture, 
  2.32  timber, waste, unusable wild land, and land included in state or 
  2.33  federal farm or conservation programs.  "Agricultural purposes" 
  2.34  as used in this section means the raising or cultivation of 
  2.35  agricultural products. 
  2.36     Land enrolled in the Reinvest in Minnesota program under 
  3.1   sections 103F.505 to 103F.531 or the federal Conservation 
  3.2   Reserve Program as contained in Public Law Number 99-198, and 
  3.3   consisting of a minimum of ten acres shall be classified as 
  3.4   agricultural; provided however, that the income derived on the 
  3.5   land from those programs shall not be included in determining 
  3.6   total production income under section 273.111, subdivision 6. 
  3.7      (d) Real estate of less than ten acres used principally for 
  3.8   raising or cultivating agricultural products, shall be 
  3.9   considered as agricultural land, if it is not used primarily for 
  3.10  residential purposes. 
  3.11     If the assessor determines that the real estate contains 
  3.12  both a primary residential use and an agricultural use of at 
  3.13  least ten acres, the assessor shall determine the classification 
  3.14  of each portion of the property according to its use. 
  3.15     Agricultural use for purposes of this paragraph shall apply 
  3.16  only to lands used (1) principally for raising or cultivating 
  3.17  agricultural products as defined in paragraph (e) or (2) land 
  3.18  included in a state or federal farm or conservation program 
  3.19  consisting of at least ten acres.  Any building located on the 
  3.20  property, excluding the house and garage, shall be classified 
  3.21  agricultural only to the extent that the building or any portion 
  3.22  thereof classified as agricultural property is primarily used 
  3.23  for agricultural purposes.  
  3.24     If the owner occupies the residential dwelling for 
  3.25  homestead purposes, any land on that parcel which is determined 
  3.26  by the assessor to have an agricultural use shall be classified 
  3.27  as agricultural homestead even if all or a portion of the 
  3.28  agricultural use of that property is leased or used by another 
  3.29  person for agricultural purposes.  
  3.30     If the assessor determines that the primary use of the 
  3.31  property is residential, the property shall not be eligible to 
  3.32  receive the benefits under section 273.111, provided that any 
  3.33  property which is currently enrolled in the program under 
  3.34  section 273.111 prior to June 1, 1995, shall not be terminated 
  3.35  from the program due to the property's split classification 
  3.36  allowed under this section. 
  4.1      The property classification as determined by the assessor 
  4.2   under this paragraph supersedes, for property tax purposes only, 
  4.3   any locally administered agricultural policies or land use 
  4.4   restrictions that define minimum or maximum farm acreage. 
  4.5      (e) The term "agricultural products" as used in this 
  4.6   subdivision includes:  
  4.7      (1) livestock, dairy animals, dairy products, poultry and 
  4.8   poultry products, fur-bearing animals, horticultural and nursery 
  4.9   stock described in sections 18.44 to 18.61, fruit of all kinds, 
  4.10  vegetables, forage, grains, bees, and apiary products by the 
  4.11  owner; 
  4.12     (2) fish bred for sale and consumption if the fish breeding 
  4.13  occurs on land zoned for agricultural use; 
  4.14     (3) the commercial boarding of horses if the boarding is 
  4.15  done in conjunction with raising or cultivating agricultural 
  4.16  products as defined in clause (1); 
  4.17     (4) property which is owned and operated by nonprofit 
  4.18  organizations used for equestrian activities, excluding racing; 
  4.19  and 
  4.20     (5) game birds and waterfowl bred and raised for use on a 
  4.21  shooting preserve licensed under section 97A.115.  
  4.22     (f) If a parcel used for agricultural purposes is also used 
  4.23  for commercial or industrial purposes, including but not limited 
  4.24  to:  
  4.25     (1) wholesale and retail sales; 
  4.26     (2) processing of raw agricultural products or other goods; 
  4.27     (3) warehousing or storage of processed goods; and 
  4.28     (4) office facilities for the support of the activities 
  4.29  enumerated in clauses (1), (2), and (3), 
  4.30  the assessor shall classify the part of the parcel used for 
  4.31  agricultural purposes as class 1b, 2a, or 2b, whichever is 
  4.32  appropriate, and the remainder in the class appropriate to its 
  4.33  use.  The grading, sorting, and packaging of raw agricultural 
  4.34  products for first sale is considered an agricultural purpose.  
  4.35  A greenhouse or other building where horticultural or nursery 
  4.36  products are grown that is also used for the conduct of retail 
  5.1   sales must be classified as agricultural if it is primarily used 
  5.2   for the growing of horticultural or nursery products from seed, 
  5.3   cuttings, or roots and occasionally as a showroom for the retail 
  5.4   sale of those products.  Use of a greenhouse or building only 
  5.5   for the display of already grown horticultural or nursery 
  5.6   products does not qualify as an agricultural purpose.  
  5.7      The assessor shall determine and list separately on the 
  5.8   records the market value of the homestead dwelling and the one 
  5.9   acre of land on which that dwelling is located.  If any farm 
  5.10  buildings or structures are located on this homesteaded acre of 
  5.11  land, their market value shall not be included in this separate 
  5.12  determination.  
  5.13     (g) To qualify for classification under paragraph (b), 
  5.14  clause (4), a privately owned public use airport must be 
  5.15  licensed as a public airport under section 360.018.  For 
  5.16  purposes of paragraph (b), clause (4), "landing area" means that 
  5.17  part of a privately owned public use airport properly cleared, 
  5.18  regularly maintained, and made available to the public for use 
  5.19  by aircraft and includes runways, taxiways, aprons, and sites 
  5.20  upon which are situated landing or navigational aids.  A landing 
  5.21  area also includes land underlying both the primary surface and 
  5.22  the approach surfaces that comply with all of the following:  
  5.23     (i) the land is properly cleared and regularly maintained 
  5.24  for the primary purposes of the landing, taking off, and taxiing 
  5.25  of aircraft; but that portion of the land that contains 
  5.26  facilities for servicing, repair, or maintenance of aircraft is 
  5.27  not included as a landing area; 
  5.28     (ii) the land is part of the airport property; and 
  5.29     (iii) the land is not used for commercial or residential 
  5.30  purposes. 
  5.31  The land contained in a landing area under paragraph (b), clause 
  5.32  (4), must be described and certified by the commissioner of 
  5.33  transportation.  The certification is effective until it is 
  5.34  modified, or until the airport or landing area no longer meets 
  5.35  the requirements of paragraph (b), clause (4).  For purposes of 
  5.36  paragraph (b), clause (4), "public access area" means property 
  6.1   used as an aircraft parking ramp, apron, or storage hangar, or 
  6.2   an arrival and departure building in connection with the airport.
  6.3      Sec. 3.  [EFFECTIVE DATE.] 
  6.4      Section 1 is effective for new applications filed with the 
  6.5   county June 1, 1995, and thereafter.  Renewal of property which 
  6.6   was enrolled in the Minnesota agricultural property tax program 
  6.7   under Minnesota Statutes, section 273.111, prior to June 1, 
  6.8   1995, shall continue to be subject to the $300 plus $10 per 
  6.9   tillable acre production income limitation in Minnesota 
  6.10  Statutes, section 273.111, subdivision 6.  Section 2 is 
  6.11  effective for the 1995 assessment and thereafter, for taxes 
  6.12  payable in 1996 and thereafter.