HF 2516

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; providing for deferral 
  1.3             of certain taxes and special assessments on certain 
  1.4             property dedicated to the arts. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [QUALIFIED PROPERTY.] 
  1.7      A contiguous property located within a county adjacent to a 
  1.8   county containing a city of the first class and within the 
  1.9   metropolitan area as defined in Minnesota Statutes, section 
  1.10  473.121, that was valued under Minnesota Statutes, section 
  1.11  273.111 for taxes payable in 1995, shall be valued and 
  1.12  classified under sections 2 and 3 and shall be eligible for 
  1.13  deferral of special assessments under section 4, provided it 
  1.14  meets the following conditions: 
  1.15     (1) the property does not exceed 60 acres; 
  1.16     (2) the property includes a sculpture garden open to the 
  1.17  public for free; 
  1.18     (3) the property includes an amphitheater used for live, 
  1.19  free art performances; 
  1.20     (4) the property is used for a summer youth art camp; 
  1.21     (5) the property is used for seminars for aspiring and 
  1.22  professional artists; 
  1.23     (6) the property includes the homestead of the owner; and 
  1.24     (7) the property has been owned by the owner for at least 
  1.25  40 years. 
  2.1      Sec. 2.  [CLASSIFICATION.] 
  2.2      Notwithstanding any law to the contrary, a property 
  2.3   qualifying under section 1 shall be classified as class 2a 
  2.4   property under Minnesota Statutes, section 273.13, subdivision 
  2.5   23. 
  2.6      Sec. 3.  [VALUATION.] 
  2.7      Notwithstanding Minnesota Statutes, section 273.111, 
  2.8   subdivisions 3 and 6, a property qualifying under section 1 
  2.9   shall be valued solely with reference to its agricultural value 
  2.10  as otherwise provided under Minnesota Statutes, section 273.111. 
  2.11     Sec. 4.  [SPECIAL ASSESSMENT DEFERRAL.] 
  2.12     Notwithstanding Minnesota Statutes, section 273.111, 
  2.13  subdivisions 3 and 6, a property qualifying under section 1 
  2.14  shall be eligible for deferral of both levied and pending 
  2.15  special assessments as otherwise provided under Minnesota 
  2.16  Statutes, section 273.111, subdivision 11.  Nothing in this 
  2.17  section requires the refund of special assessments already paid. 
  2.18     Sec. 5.  [TRANSFER OF PROPERTY; PAYMENT OF DEFERRED TAXES 
  2.19  AND SPECIAL ASSESSMENTS.] 
  2.20     Subdivision 1.  [ADDITIONAL TAX.] The assessor shall make a 
  2.21  separate determination of the market value and net tax capacity 
  2.22  of a property qualifying under section 1 as if sections 2 and 3 
  2.23  did not apply.  The tax based upon the appropriate local tax 
  2.24  rate applicable to such property in the taxing district shall be 
  2.25  recorded on the property assessment records. 
  2.26     Subd. 2.  [RECAPTURE.] (a) Property qualifying under 
  2.27  section 1 is subject to additional taxes if (1) ownership of the 
  2.28  property is transferred to anyone other than the spouse of the 
  2.29  current owner, or (2) the current owner or the spouse of the 
  2.30  current owner has not conveyed or entered into a contract to 
  2.31  convey the property to a nonprofit foundation or corporation 
  2.32  created to own and operate the property as an art park providing 
  2.33  services included in clauses (2) to (5) of section 1 before July 
  2.34  1, 2002.  
  2.35     (b) The additional taxes are imposed at the earlier of (1) 
  2.36  the year following transfer of ownership to anyone other than 
  3.1   the spouse of the current owner or a nonprofit foundation or 
  3.2   corporation created to own and operate the property as an art 
  3.3   park, or (2) 2003.  The additional taxes are equal to the 
  3.4   difference between the taxes determined under sections 2 and 3 
  3.5   and the amount determined under subdivision 1 for all years that 
  3.6   the property qualified under section 1.  The additional taxes 
  3.7   must be extended against the property on the tax list for the 
  3.8   current year; provided, however, that no interest or penalties 
  3.9   may be levied on the additional taxes if timely paid. 
  3.10     Subd. 3.  [PAYMENT OF DEFERRED SPECIAL 
  3.11  ASSESSMENTS.] Beginning with earlier of (1) the tax payable in 
  3.12  2003, or (2) the date ownership of the property is transferred 
  3.13  to anyone other than the spouse of the current owner or an 
  3.14  organization described in subdivision 2 for a property 
  3.15  qualifying under section 1, all deferred special assessments 
  3.16  plus interest are payable in equal installments spread over the 
  3.17  time remaining until the last maturity date of the bonds issued 
  3.18  to finance the improvement for which the assessments were 
  3.19  levied.  If the bonds have matured, the deferred special 
  3.20  assessments plus interest are payable within 90 days.  The 
  3.21  provisions of Minnesota Statutes, section 429.061, subdivision 
  3.22  2, apply to the collection of these installments.  Penalty may 
  3.23  not be levied on any such special assessments if timely paid. 
  3.24     Subd. 4.  [CURRENT OWNER.] For purposes of this section, 
  3.25  "current owner" means the owner of property qualifying under 
  3.26  section 1 on the date of final enactment of this act.  
  3.27     Sec. 6.  [EFFECTIVE DATE.] 
  3.28     Sections 1 to 5 are effective beginning with taxes payable 
  3.29  in 1998 and ending with taxes payable in 2003.