HF 2308

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; expanding the 
  1.3             definition of properties qualifying for green acres; 
  1.4             amending Minnesota Statutes 1998, section 273.111, 
  1.5             subdivision 3. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 273.111, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [REQUIREMENTS.] (a) Real estate consisting of ten 
  1.10  acres or more or a nursery or greenhouse, and qualifying for 
  1.11  classification as class 1b, 2a, or 2b under section 273.13, 
  1.12  subdivision 23, paragraph (d), shall be entitled to valuation 
  1.13  and tax deferment under this section only if it is primarily 
  1.14  devoted to agricultural use, and meets the qualifications in 
  1.15  subdivision 6, and either:  
  1.16     (1) is the homestead of the owner, or of a surviving 
  1.17  spouse, child, or sibling of the owner or is real estate which 
  1.18  is farmed with the real estate which contains the homestead 
  1.19  property; or 
  1.20     (2) has been in possession of the applicant, the 
  1.21  applicant's spouse, parent, or sibling, or any combination 
  1.22  thereof, for a period of at least seven years prior to 
  1.23  application for benefits under the provisions of this section, 
  1.24  or is real estate which is farmed with the real estate which 
  1.25  qualifies under this clause and is within two townships or 
  2.1   cities or combination thereof from the qualifying real estate; 
  2.2   or 
  2.3      (3) is the homestead of a shareholder in a family farm 
  2.4   corporation as defined in section 500.24, notwithstanding the 
  2.5   fact that legal title to the real estate may be held in the name 
  2.6   of the family farm corporation; or 
  2.7      (4) is in the possession of a nursery or greenhouse or an 
  2.8   entity owned by a proprietor, partnership, or corporation which 
  2.9   also owns the nursery or greenhouse operations on the parcel or 
  2.10  parcels. 
  2.11     (b) Valuation of real estate under this section is limited 
  2.12  to parcels the ownership of which is in noncorporate entities 
  2.13  except for:  
  2.14     (1) family farm corporations organized pursuant to section 
  2.15  500.24; and 
  2.16     (2) corporations that derive 80 percent or more of their 
  2.17  gross receipts from the wholesale or retail sale of 
  2.18  horticultural or nursery stock.  
  2.19     Corporate entities who previously qualified for tax 
  2.20  deferment pursuant to this section and who continue to otherwise 
  2.21  qualify under subdivisions 3 and 6 for a period of at least 
  2.22  three years following the effective date of Laws 1983, chapter 
  2.23  222, section 8, will not be required to make payment of the 
  2.24  previously deferred taxes, notwithstanding the provisions of 
  2.25  subdivision 9.  Special assessments are payable at the end of 
  2.26  the three-year period or at time of sale, whichever comes first. 
  2.27     (c) Land that previously qualified for tax deferment under 
  2.28  this section and no longer qualifies because it is not primarily 
  2.29  used for agricultural purposes but would otherwise qualify under 
  2.30  subdivisions 3 and 6 for a period of at least three years will 
  2.31  not be required to make payment of the previously deferred 
  2.32  taxes, notwithstanding the provisions of subdivision 9.  Sale of 
  2.33  the land prior to the expiration of the three-year period 
  2.34  requires payment of deferred taxes as follows:  sale in the year 
  2.35  the land no longer qualifies requires payment of the current 
  2.36  year's deferred taxes plus payment of deferred taxes for the two 
  3.1   prior years; sale during the second year the land no longer 
  3.2   qualifies requires payment of the current year's deferred taxes 
  3.3   plus payment of the deferred taxes for the prior year; and sale 
  3.4   during the third year the land no longer qualifies requires 
  3.5   payment of the current year's deferred taxes.  Deferred taxes 
  3.6   shall be paid even if the land qualifies pursuant to subdivision 
  3.7   11a.  When such property is sold or no longer qualifies under 
  3.8   this paragraph, or at the end of the three-year period, 
  3.9   whichever comes first, all deferred special assessments plus 
  3.10  interest are payable in equal installments spread over the time 
  3.11  remaining until the last maturity date of the bonds issued to 
  3.12  finance the improvement for which the assessments were levied.  
  3.13  If the bonds have matured, the deferred special assessments plus 
  3.14  interest are payable within 90 days.  The provisions of section 
  3.15  429.061, subdivision 2, apply to the collection of these 
  3.16  installments.  Penalties are not imposed on any such special 
  3.17  assessments if timely paid. 
  3.18     Sec. 2.  [EFFECTIVE DATE.] 
  3.19     Section 1 is effective beginning for property taxes payable 
  3.20  in 2000.