HF 2655

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxes; property; providing for the 
  1.3             extension of the deferral of property taxes and 
  1.4             special assessments on certain property dedicated to 
  1.5             the arts; changing a definition; amending Laws 1998, 
  1.6             chapter 389, article 3, section 42. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1998, chapter 389, article 3, section 42, 
  1.9   is amended to read: 
  1.10     Sec. 42.  [TRANSFER OF PROPERTY; PAYMENT OF DEFERRED 
  1.11  TAXES.] 
  1.12     Subdivision 1.  [ADDITIONAL TAX.] The assessor shall make a 
  1.13  separate determination of the market value and net tax capacity 
  1.14  of a property qualifying under section 38 as if sections 39 and 
  1.15  40 did not apply.  The tax based upon the appropriate local tax 
  1.16  rate applicable to such property in the taxing district shall be 
  1.17  recorded on the property assessment records. 
  1.18     Subd. 2.  [RECAPTURE.] (a) Property or any portion thereof 
  1.19  qualifying under section 38 is subject to additional taxes if (1)
  1.20  ownership of the property is transferred to anyone other than 
  1.21  the spouse or child of the current owner, or (2) the current 
  1.22  owner or the spouse or child of the current owner has not 
  1.23  conveyed or entered into a contract before July 1, 2002 2007, to 
  1.24  convey the property to a nonprofit foundation or corporation 
  1.25  created to own and operate operating the property as an art park 
  1.26  providing the services included in section 38, clauses (2) to 
  2.1   (5).  
  2.2      (b) The additional taxes are imposed at the earlier of (1) 
  2.3   the year following transfer of ownership to anyone other than 
  2.4   the spouse or child of the current owner or a nonprofit 
  2.5   foundation or corporation created to own and operate operating 
  2.6   the property as an art park, or (2) for taxes payable in 2003 
  2.7   2008.  The additional taxes are equal to the difference between 
  2.8   the taxes determined under sections 39 and 40 and the amount 
  2.9   determined under subdivision 1 for all years that the property 
  2.10  qualified under section 38.  The additional taxes must be 
  2.11  extended against the property on the tax list for the current 
  2.12  year; provided, however, that no interest or penalties may be 
  2.13  levied on the additional taxes if timely paid. 
  2.14     Subd. 3.  [CURRENT OWNER.] For purposes of this section, 
  2.15  "current owner" means the owner of property qualifying under 
  2.16  section 38 on the date of final enactment of this act or that 
  2.17  owner's spouse or child.  
  2.18     Subd. 4.  [NONPROFIT FOUNDATION OR CORPORATION.] For 
  2.19  purposes of this act, "nonprofit foundation or corporation" 
  2.20  means a nonprofit entity created to own and operate as defined 
  2.21  under section 501(c)(3) of the Internal Revenue Code that is 
  2.22  operating the property as an art park providing the services 
  2.23  included in section 38, clauses (2) to (5). 
  2.24     [EFFECTIVE DATE.] This section is effective the day 
  2.25  following final enactment.