HF 4223

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; requiring property appraisals by the Department
of Transportation; amending Minnesota Statutes 2004, sections 117.036,
subdivisions 2, 3, by adding a subdivision; 273.11, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 117.036, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Department of Transportation appraisal. new text end

new text begin (a) If any publicly available
report, project plan, or other document produced by the Department of Transportation
identifies property proposed to be acquired for a transportation project, including
alternative transportation routes, upon request by the property owner the commissioner
of transportation shall obtain at least one appraisal of each parcel of land that is or could
be identified within the report, project plan, or other document. The appraisal must be
obtained in conjunction with the publication of the report, project plan, or other document.
To the extent that it is practicable for the property owner, each appraisal shall include only
the portion of the property proposed to be acquired. In making the appraisal, the appraiser
must confer with one or more of the owners of the property, if reasonably possible.
new text end

new text begin (b) If the Department of Transportation obtains an appraisal more than 12 months
before negotiation for direct purchase under subdivision 3, it must be replaced by an
adjusted appraisal. The adjusted appraisal is equal to the appraised property value plus the
increase in value from the quarter and year of the appraisal to the most recent quarter and
year for which data is available, using the house price index for the state of Minnesota as
published by the United States Department of Housing and Urban Development, Office of
Federal Housing Enterprise Oversight. The adjusted appraisal must be used in lieu of the
appraisal for the purposes of negotiation for direct purchase or any subsequent eminent
domain proceedings. Nothing in this subdivision prevents a new appraisal from being
obtained by the commissioner of transportation or the owner.
new text end

Sec. 2.

Minnesota Statutes 2004, section 117.036, subdivision 2, is amended to read:

Subd. 2.

Appraisal.

(a) Before commencing an eminent domain proceeding under
this chapter, the acquiring authority must obtain at least one appraisal for the property
proposed to be acquired new text begin if one has not been obtained under subdivision 1a new text end . In making the
appraisal, the appraiser must confer with one or more of the owners of the property, if
reasonably possible. At least 20 days before presenting a petition under section 117.055,
the acquiring authority must provide the owner with a copy of the appraisal new text begin or adjusted
appraisal new text end and inform the owner of the owner's right to obtain an appraisal under this
section.

(b) The owner may obtain an appraisal by a qualified appraiser of the property
proposed to be acquired. The owner is entitled to reimbursement for the reasonable costs
of the appraisal from the acquiring authority up to a maximum of $1,500 within 30
days after the owner submits to the acquiring authority the information necessary for
reimbursement, provided that the owner does so within 60 days after the owner receives
the appraisal new text begin or adjusted appraisal new text end from the authority under paragraph (a).

Sec. 3.

Minnesota Statutes 2004, section 117.036, subdivision 3, is amended to read:

Subd. 3.

Negotiation.

In addition to the appraisal requirements under subdivision
2, before commencing an eminent domain proceeding, the acquiring authority must
make a good faith attempt to negotiate personally with the owner of the property in
order to acquire the property by direct purchase instead of the use of eminent domain
proceedings. In making this negotiation, the acquiring authority must consider the
appraisals in its possession new text begin , excluding any appraisal that was subsequently replaced by an
adjusted appraisal under subdivision 1a, new text end and other information that may be relevant to a
determination of damages under this chapter.

Sec. 4.

Minnesota Statutes 2004, section 273.11, is amended by adding a subdivision to
read:

new text begin Subd. 23. new text end

new text begin Valuation of property; future transportation uses; capital gains
exemption. new text end

new text begin (a) The commissioner of transportation shall notify the assessor of each
county where the Department of Transportation has identified property proposed to
be acquired for a transportation project, including alternative transportation routes as
provided under section 117.036, subdivision 1a. The certification shall contain a detailed
listing of the specific parcels of property, or portions of the parcels that may be acquired
for the project or route, and the anticipated number of years before each of the parcels will
be acquired. The Department of Transportation must make information available to the
assessor to ensure that the parcels have been properly identified.
new text end

new text begin (b) Based upon the certification under paragraph (a), the assessor shall establish the
market value for tax purposes for each of the parcels of property as follows: (1) determine
the estimated market value of the property in the same manner as other similar property;
and (2) reduce the value in clause (1) by a uniform percentage each year so that at the end
of the number of years of the timeline for that specific parcel certified under paragraph (a),
the property's market value for tax purposes will be equal to 50 percent of the estimated
market value. If the property is subject to limited market value under subdivision 1a, the
adjustment under clause (2) shall be made to the property's limited market value.
new text end

new text begin (c) Capital gains on property sold pursuant to this section are exempt from income
tax under chapter 290.
new text end