HF 3828

as introduced - 89th Legislature (2015 - 2016) Posted on 04/06/2016 12:11pm

A bill for an act
relating to taxation; property; providing a property tax reduction for land
constituting a riparian buffer; appropriating money; amending Minnesota
Statutes 2014, section 273.1393; proposing coding for new law in Minnesota
Statutes, chapter 273.

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

Section 1.

[273.1387] RIPARIAN BUFFER CREDIT.

Subdivision 1.

Definition.

For the purposes of this section, "riparian buffer" means
land subject to the requirements of section 103F.48.

Subd. 2.

Requirements; application.

(a) Land constituting a riparian buffer that is
classified under section 273.13, subdivision 23, and that is not enrolled in a conservation
program that provides income to the landowner, is entitled to a credit under this section.
In order to receive the credit, the landowner must file an application with the assessor. The
application must specifically identify the land meeting the requirements of this section.
The application must be received prior to April 1 in order for the credit to be in effect for
taxes payable in the following year, except that an application may be filed through June
30, 2016, for the credit to be in effect for taxes payable in 2017. Once an application has
been accepted, further applications are not required in order to receive the credit in future
years, unless use or ownership of the land has changed. The form of the application must
be prescribed by the commissioner of revenue.

(b) A landowner whose property receives the credit must file an affidavit with
the county assessor at least once every three years verifying that the buffer has been
maintained according to the requirements of section 103F.48.

Subd. 3.

Valuation of land subject to buffer requirement.

The assessor must not
reduce the value of any land eligible for a credit under this section due to any restrictions
on the use of the land under section 103F.48.

Subd. 4.

Amount of credit.

Land meeting the requirements of subdivision 2 is
eligible for a credit equal to 100 percent of net taxes payable.

Subd. 5.

Credit reimbursements.

The county auditor shall determine the tax
reductions allowed under subdivision 4 within the county for each taxes payable year and
shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
lists submitted by the county auditors under section 275.29. Any prior year adjustments
shall also be certified on the abstracts of tax lists. The commissioner shall review the
certifications for accuracy, and may make such changes as are deemed necessary or return
the certification to the county auditor for correction. The credit under this section must be
used to proportionately reduce the net tax capacity-based property tax payable to each
local taxing jurisdiction as provided in section 273.1393.

Subd. 6.

Payment.

(a) The commissioner of revenue shall reimburse each local
taxing jurisdiction, other than school districts, for the tax reductions granted under
subdivision 4, in two equal installments on October 31 and December 26 of the taxes
payable year for which the reductions are granted, including in each payment the prior
year adjustments certified on the abstracts for that taxes payable year. The reimbursements
related to tax increments shall be issued in one installment each year on December 26.

(b) The commissioner of revenue shall certify the total of the tax reductions
granted under subdivision 4 for each taxes payable year within each school district
to the commissioner of education, and the commissioner of education shall pay the
reimbursement amounts to each school district as provided in section 273.1392.

Subd. 7.

Appropriation.

An amount sufficient to make the payments required by
this section to taxing jurisdictions other than school districts is annually appropriated from
the clean water fund to the commissioner of revenue. An amount sufficient to make the
payments required by this section for school districts is annually appropriated from the
clean water fund to the commissioner of education.

EFFECTIVE DATE.

This section is effective beginning with taxes payable in 2017
for buffer land bordering public waters, as defined under Minnesota Statutes, section
103G.005, subdivision 15, and effective beginning with taxes payable in 2018 for other
land qualifying under this section.

Sec. 2.

Minnesota Statutes 2014, section 273.1393, is amended to read:

273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) riparian buffer credit under section 273.1387;

(8) agricultural credit as provided in section 273.1384;

(8) (9) taconite homestead credit as provided in section 273.135;

(9) (10) supplemental homestead credit as provided in section 273.1391; and

(10) (11) the bovine tuberculosis zone credit, as provided in section 273.113.

The combination of all property tax credits must not exceed the gross tax amount.

EFFECTIVE DATE.

This section is effective for taxes payable in 2018 and
thereafter.