HF 1883

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 01:33pm

A bill for an act
relating to taxation; property; providing for a limited market value credit for
agricultural land; appropriating money; amending Minnesota Statutes 2012,
sections 273.1231, subdivision 6; 273.1393; proposing coding for new law in
Minnesota Statutes, chapter 273.

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

Section 1.

Minnesota Statutes 2012, section 273.1231, subdivision 6, is amended to read:

Subd. 6.

Net tax.

"Net tax" means the market value and net tax capacity taxes
imposed on real and personal property under section 272.01, including the levy under
section 275.025, after the subtractions listed in section 273.1393, clauses (2) to deleted text begin (9) deleted text end new text begin (10) new text end .
Net tax excludes special assessments regardless of how computed.

Sec. 2.

new text begin [273.1387] LIMITED MARKET VALUE CREDIT; AGRICULTURAL
LAND.
new text end

new text begin Subdivision 1. new text end

new text begin Limited market value. new text end

new text begin For assessment years 2015 through 2018, for
all property classified as class 2a, productive agricultural land, or class 2b, rural vacant
land, the assessor must determine each property's limited market value equal to the lesser
of its taxable market value or 110 percent of its limited market value in the previous
assessment year. For assessment year 2014, the limited market value is the lesser of its
taxable market value or 110 percent of its taxable market value for assessment year 2013.
Any increase in a property's value due to new construction must be added to the property's
limited market value as otherwise determined. For any property whose classification has
changed from the previous year, the limited market value is equal to the taxable market
value. For agricultural homesteads, the portion of the property consisting of the house,
garage, and surrounding one acre of land is not subject to the provisions of this section.
new text end

new text begin Subd. 2. new text end

new text begin Tax rate calculations. new text end

new text begin Tax rates for all taxing jurisdictions shall be
determined based upon taxable market value without regard to subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Credit calculation. new text end

new text begin For payable years 2015 through 2019, the auditor
must compute a credit for each parcel of class 2a or 2b property equal to the local net
tax capacity tax rate multiplied by the difference between the property's taxable market
value and its limited market value.
new text end

new text begin Subd. 4. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall determine the tax
reductions allowed under subdivision 3 within the county for each payable year and shall
certify that amount to the commissioner of revenue as a part of the abstracts of tax lists
submitted by the county auditors under section 275.29. Any prior year adjustments
shall also be certified on the abstracts of tax lists. The commissioner shall review the
certifications for accuracy, and may make such changes as are deemed necessary, or return
the certification to the county auditor for correction. The credit under this section must be
used to proportionately reduce the net tax capacity-based property tax payable to each
local taxing jurisdiction as provided in section 273.1393.
new text end

new text begin Subd. 5. new text end

new text begin Payment. new text end

new text begin (a) The commissioner of revenue shall reimburse each local
taxing jurisdiction, other than school districts, for the tax reductions granted under
subdivision 3 in two equal installments on October 31 and December 26 of the payable
year for which the reductions are granted, including in each payment the prior year
adjustments certified on the abstracts for that payable year. The reimbursements related to
tax increments shall be issued in one installment each year on December 26.
new text end

new text begin (b) The commissioner of revenue shall certify the total amount of the tax reductions
granted under subdivision 3 for each payable year within each school district to the
commissioner of education. The commissioner of education shall pay the reimbursement
amounts to each school district as provided in section 273.1392.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by
this section to taxing jurisdictions other than school districts is annually appropriated
from the general fund to the commissioner of revenue. An amount sufficient to make the
payments required by this section for school districts is annually appropriated from the
general fund to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2015.
new text end

Sec. 3.

Minnesota Statutes 2012, section 273.1393, is amended to read:

273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) agricultural credit as provided in section 273.1384;

new text begin (8) limited market value credit as provided in section 273.1387;
new text end

deleted text begin (8) deleted text end new text begin (9) new text end taconite homestead credit as provided in section 273.135;

deleted text begin (9) deleted text end new text begin (10) new text end supplemental homestead credit as provided in section 273.1391; and

deleted text begin (10) deleted text end new text begin (11) new text end the bovine tuberculosis zone credit, as provided in section 273.113.

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2015.
new text end