HF 2113

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:58am

A bill for an act
relating to taxation; property; providing a property valuation reduction for land
constituting a riparian buffer; proposing coding for new law in Minnesota
Statutes, chapter 273.

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

Section 1.

new text begin [273.114] PRESERVATION OF RIPARIAN BUFFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following
definitions apply.
new text end

new text begin (b) "Riparian buffer" means a strip or area of deep-rooted, original native perennial
vegetation or vegetation restored with plants or seeds that originate from sources as close
to the site as possible, including trees, adjacent to public waters that extends a minimum
of 50 and a maximum of 100 feet landward from the ordinary high water level.
new text end

new text begin (c) "Public waters" has the same meaning as defined in section 103G.005,
subdivision 15, excluding "wetlands," as defined under section 103G.005, subdivision 19,
and "public waters wetlands," as defined under section 103G.005, subdivision 15a.
new text end

new text begin (d) "Ordinary high water level" means the boundary of public waters, and shall be an
elevation delineating the highest water level which has been maintained for a sufficient
period of time to leave evidence upon the landscape, commonly that point where the
natural vegetation changes from predominantly aquatic to predominantly terrestrial. For
watercourses, the ordinary high water level is the elevation of the top of the bank of
the channel. For reservoirs and flowages, the ordinary high water level is the operating
elevation of the normal summer pool.
new text end

new text begin (e) "Buffer maintenance" means:
new text end

new text begin (1) inspecting the buffer periodically and identifying, repairing, and reseeding any
eroded or damaged areas;
new text end

new text begin (2) preventing or addressing any soil compaction from vehicles, livestock, and
impervious surfaces that could inhibit infiltration or disrupt water flow patterns;
new text end

new text begin (3) controlling weeds and managing any grazing livestock so as to minimize the
removal or alteration of the perennial plant community; and
new text end

new text begin (4) refraining from applying fertilizers, pesticides, or animal wastes to the buffer
area, except to establish native vegetation.
new text end

new text begin Subd. 2. new text end

new text begin Requirements. new text end

new text begin (a) Land constituting a riparian buffer that is classified
as class 2a or class 2b under section 273.13, subdivision 23, is entitled to valuation and
tax deferment under this section if a covenant has been filed with the county assessor and
recorded in the county where the property is located.
new text end

new text begin (b) The covenant must state that the buffer will be maintained in a natural state and
that annual buffer maintenance will be performed. The landowner must file an affidavit
with the county assessor at least once every three years stating that the buffer has been
maintained according to the definition in subdivision 1. If a landowner fails to meet this
requirement, the assessor must issue a written warning. If an affidavit is not filed within
90 days of the written warning, the land shall be immediately removed from the program.
All deferred taxes on the property during the current owner's time of ownership shall be
extended against the property on the tax list for the current year, provided that no interest
or penalties shall be levied on the additional taxes if timely paid.
new text end

new text begin (c) Land qualifying under this subdivision shall be liable only for the taxes
determined based on the valuation prescribed in subdivision 3. All special assessments
levied against the land after the property has been enrolled in the program shall be deferred
until the property is withdrawn or becomes ineligible to continue in the program.
new text end

new text begin (d) Real estate may not be enrolled for valuation and deferment under this section
and section 273.111, 273.112, or 273.117 concurrently. Land enrolled under section
273.111 that is withdrawn for enrollment under this subdivision shall not be required to
pay additional taxes under section 273.111, subdivision 3a or 9.
new text end

new text begin Subd. 3. new text end

new text begin Determination of value. new text end

new text begin (a) Land for which an irrevocable covenant has
been recorded must be valued at 25 percent of the average value per acre of class 2b
rural vacant land in the surrounding area.
new text end

new text begin (b) Land for which a revocable covenant has been recorded must be valued at 75
percent of the average value per acre of class 2b rural vacant land in the surrounding
area, provided that the covenant does not allow for its termination until at least 20 years
from the date that it was originally recorded.
new text end

new text begin (c) For the purposes of this subdivision, "surrounding area" means the city or
township where the property is located, provided that there are at least ten other parcels
containing class 2b land in the city or township; otherwise, "surrounding area" means the
city or township where the property is located and all adjoining cities and townships
within the same county.
new text end

new text begin Subd. 4. new text end

new text begin Separate determination of market value and tax. new text end

new text begin The assessor shall
make a separate determination of the market value of the real estate based on its highest
and best use. The tax based upon that value and the appropriate local tax rate applicable to
the property in the taxing district shall be recorded on the property assessment records.
new text end

new text begin Subd. 5. new text end

new text begin Application and covenant agreement. new text end

new text begin (a) Application for deferment of
taxes and assessments under this subdivision shall be filed by May 1 of the year prior to
the year in which the taxes are payable. Any application filed under this subdivision and
granted shall continue in effect for subsequent years until the termination of the covenant
agreement under paragraph (b). The application must be filed with the county assessor on
a form prescribed by the commissioner of revenue. The assessor may require proof by
affidavit or otherwise that the property qualifies under subdivision 1.
new text end

new text begin (b) The owner of the property must sign a covenant agreement that is filed with the
county assessor and recorded in the county where the property is located. The covenant
agreement must include all of the following:
new text end

new text begin (1) legal description of the area to which the covenant applies;
new text end

new text begin (2) name and address of the owner;
new text end

new text begin (3) a statement that the land described in the covenant must be kept in a natural state,
and that annual buffer maintenance will be performed, for the duration of the covenant;
new text end

new text begin (4) in the case of a revocable covenant under subdivision 3, paragraph (b), a
statement that the landowner may terminate the covenant agreement by notifying the
county assessor in writing four years in advance of the date of proposed termination,
provided that the notice of intent to terminate may not be given at any time before the land
has been subject to the covenant for a period of 16 years;
new text end

new text begin (5) a statement that the covenant is binding on the owner or the owner's successor or
assigns and runs with the land; and
new text end

new text begin (6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as
described in subdivision 2.
new text end

new text begin (c) Once a revocable covenant has been terminated, the property covered by
the covenant can never be reenrolled under this subdivision unless it has been sold or
otherwise transferred to a different owner.
new text end

new text begin Subd. 6. new text end

new text begin Additional taxes. new text end

new text begin Upon termination of a covenant agreement in
subdivision 5, paragraph (b), clause (4), the land to which the covenant applied shall
be subject to additional taxes in the amount equal to the difference between the taxes
determined in accordance with subdivision 3 and the amount determined under subdivision
4, provided that the amount determined under subdivision 4 shall not be greater than it
would have been had the actual bona fide sale price of the real property at an arm's-length
transaction been used in lieu of the market value determined under subdivision 4. The
additional taxes shall be extended against the property on the tax list for the current year,
provided that no interest or penalties shall be levied on the additional taxes if timely paid
and that the additional taxes shall only be levied with respect to the last seven years that
the property has been valued and assessed under this section.
new text end

new text begin Subd. 7. new text end

new text begin Cross-compliance with agricultural chemical and water laws. new text end

new text begin (a)
Property enrolled under this subdivision whose owner or tenant is subject to a final
enforcement action for a violation of chapter 18B, 18C, 103E, 103F, 103G, or 103H,
or any rule adopted under these chapters including but not limited to the agricultural
shoreland use standards in Minnesota Rules, chapter 6120, shall be immediately removed
from the program. All deferred taxes on the property during the current owner's time
of ownership shall be extended against the property on the tax list for the current year,
provided that no interest or penalties shall be levied on the additional taxes if timely paid.
new text end

new text begin (b) For the purposes of this subdivision, "final enforcement action" means any
administrative, civil, or criminal penalty or action other than an initial verbal or written
warning. An enforcement action is not final until the action is upheld upon completion or
expiration of any applicable review or appeal procedure or period provided by law.
new text end

new text begin Subd. 8. new text end

new text begin Lien. new text end

new text begin Any additional taxes imposed under subdivision 6 or 7 shall be a lien
upon the property assessed to the same extent and for the same duration as other taxes
imposed on the property in this state. The tax shall be annually extended by the county
auditor and if and when payable shall be collected and distributed in the manner provided
by law for the collection and distribution of other property taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2010 and
thereafter, for taxes payable in 2011 and thereafter.
new text end