HF 3374

as introduced - 86th Legislature (2009 - 2010) Posted on 03/03/2010 04:47pm

A bill for an act
relating to property taxation; limiting the growth in market value for agricultural
properties; establishing a onetime credit for certain agricultural properties;
amending Minnesota Statutes 2008, section 273.11, subdivision 1a.

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

Section 1.

Minnesota Statutes 2008, section 273.11, subdivision 1a, is amended to read:

Subd. 1a.

Limited market value.

new text begin (a) new text end In the case of all property classified as
agricultural deleted text begin homestead or nonhomestead deleted text end new text begin under section 273.13, subdivision 23, paragraph
(a), (b), or (c) new text end , deleted text begin residential homestead or nonhomestead, timber, or noncommercial seasonal
residential recreational, deleted text end the assessor shall compare the value with the taxable portion of
the value determined in the preceding assessment.

deleted text begin For assessment years 2004, 2005, and 2006, the amount of the increase shall not
exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25
percent of the difference between the current assessment and the preceding assessment.
deleted text end

deleted text begin For assessment year 2007, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

deleted text begin For assessment year 2008, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

new text begin (b) For assessment year 2010, the amount of increase shall not exceed the greater
of (1) 20 percent of the value of the 2008 assessment, or (2) 33 percent of the difference
between the 2010 assessment and the 2008 assessment.
new text end

new text begin (c) For assessment years 2011, 2012, and 2013, the amount of the increase shall not
exceed (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the
difference between the current assessment and the preceding assessment.
new text end

new text begin (d) For assessment year 2014, the amount of the increase shall not exceed (1) 15
percent of the value of the preceding year, or (2) 50 percent of the difference between the
current assessment and the preceding assessment.
new text end

deleted text begin This limitation deleted text end new text begin (e) The limitations in this subdivision new text end shall not apply to increases
in value due to improvements. For purposes of this subdivision, the term "assessment"
means the value prior to any exclusion under subdivision 16.

The provisions of this subdivision shall be in effect through assessment year deleted text begin 2008 deleted text end
new text begin 2014 new text end as provided in this subdivision.

For purposes of the assessment/sales ratio study conducted under section 127A.48,
and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A,
126C, 127A, and 477A, market values and net tax capacities determined under this
subdivision and subdivision 16 deleted text begin , deleted text end shall be used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2010 assessment.
new text end

Sec. 2. new text begin 2011 SUPPLEMENTAL AGRICULTURAL CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin Any property that is enrolled under Minnesota Statutes,
section 273.111, for taxes payable in 2009 and 2010, and that is under the same ownership
for taxes payable in 2009, 2010, and 2011, is eligible for a credit for taxes payable in 2011,
provided that the taxes on the property payable in 2010 exceed the taxes on the property
payable in 2009 by at least 25 percent. In the case of agricultural homestead property, the
portion of the property consisting of the house, garage, and surrounding one acre of land is
not eligible for the credit under this section.
new text end

new text begin Subd. 2. new text end

new text begin Amount. new text end

new text begin The amount of the credit is the amount by which the net taxes
payable in 2010 exceed the net taxes payable in 2009 by more than 25 percent. The credit
may not exceed the net tax liability on the property for taxes payable in 2011. For taxes
payable in 2011 only, the auditor must reduce the property tax of each eligible property by
the amount of the credit.
new text end

new text begin Subd. 3. new text end

new text begin Settlement. new text end

new text begin When the county auditor issues settlement payments to the
taxing jurisdictions within the county, the settlements shall reflect the tax liability before
subtraction of the credit under this section.
new text end

new text begin Subd. 4. new text end

new text begin Special levy. new text end

new text begin For taxes payable in 2011, the county may levy an amount
equal to its credit obligation determined under this section. This levy is in addition to all
levies otherwise authorized under Minnesota Statutes, sections 275.70 to 275.74.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 only.
new text end