SF 99

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

  1.1                          A bill for an act 
  1.2             relating to taxation; adjusting the computation of the 
  1.3             net tax capacity of agricultural property; increasing 
  1.4             and extending the application of the educational 
  1.5             agricultural credit; adjusting the computation of the 
  1.6             homestead and agricultural credit aid payments; 
  1.7             amending Minnesota Statutes 2000, sections 273.13, 
  1.8             subdivision 23; 273.1382, subdivision 1b; and 
  1.9             273.1398, subdivision 1a. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 273.13, 
  1.12  subdivision 23, is amended to read: 
  1.13     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  1.14  land including any improvements that is homesteaded.  The market 
  1.15  value of the house and garage and immediately surrounding one 
  1.16  acre of land has the same class rates as class 1a property under 
  1.17  subdivision 22.  The value of the remaining land including 
  1.18  improvements up to $115,000 has a net class rate of 0.35 percent 
  1.19  of market value.  The value of class 2a property over $115,000 
  1.20  of market value up to and including $600,000 $750,000 market 
  1.21  value has a net class rate of 0.8 0.5 percent of market value.  
  1.22  The remaining property over $600,000 $750,000 market value has a 
  1.23  class rate of 1.20 one percent of market value. 
  1.24     (b) Class 2b property is (1) real estate, rural in 
  1.25  character and used exclusively for growing trees for timber, 
  1.26  lumber, and wood and wood products; (2) real estate that is not 
  1.27  improved with a structure and is used exclusively for growing 
  2.1   trees for timber, lumber, and wood and wood products, if the 
  2.2   owner has participated or is participating in a cost-sharing 
  2.3   program for afforestation, reforestation, or timber stand 
  2.4   improvement on that particular property, administered or 
  2.5   coordinated by the commissioner of natural resources; (3) real 
  2.6   estate that is nonhomestead agricultural land; or (4) a landing 
  2.7   area or public access area of a privately owned public use 
  2.8   airport.  Class 2b property has a net class rate of 1.20 one 
  2.9   percent of market value. 
  2.10     (c) Agricultural land as used in this section means 
  2.11  contiguous acreage of ten acres or more, used during the 
  2.12  preceding year for agricultural purposes.  "Agricultural 
  2.13  purposes" as used in this section means the raising or 
  2.14  cultivation of agricultural products or enrollment in the 
  2.15  Reinvest in Minnesota program under sections 103F.501 to 
  2.16  103F.535 or the federal Conservation Reserve Program as 
  2.17  contained in Public Law Number 99-198.  Contiguous acreage on 
  2.18  the same parcel, or contiguous acreage on an immediately 
  2.19  adjacent parcel under the same ownership, may also qualify as 
  2.20  agricultural land, but only if it is pasture, timber, waste, 
  2.21  unusable wild land, or land included in state or federal farm 
  2.22  programs.  Agricultural classification for property shall be 
  2.23  determined excluding the house, garage, and immediately 
  2.24  surrounding one acre of land, and shall not be based upon the 
  2.25  market value of any residential structures on the parcel or 
  2.26  contiguous parcels under the same ownership. 
  2.27     (d) Real estate, excluding the house, garage, and 
  2.28  immediately surrounding one acre of land, of less than ten acres 
  2.29  which is exclusively and intensively used for raising or 
  2.30  cultivating agricultural products, shall be considered as 
  2.31  agricultural land.  
  2.32     Land shall be classified as agricultural even if all or a 
  2.33  portion of the agricultural use of that property is the leasing 
  2.34  to, or use by another person for agricultural purposes. 
  2.35     Classification under this subdivision is not determinative 
  2.36  for qualifying under section 273.111. 
  3.1      The property classification under this section supersedes, 
  3.2   for property tax purposes only, any locally administered 
  3.3   agricultural policies or land use restrictions that define 
  3.4   minimum or maximum farm acreage. 
  3.5      (e) The term "agricultural products" as used in this 
  3.6   subdivision includes production for sale of:  
  3.7      (1) livestock, dairy animals, dairy products, poultry and 
  3.8   poultry products, fur-bearing animals, horticultural and nursery 
  3.9   stock described in sections 18.44 to 18.61, fruit of all kinds, 
  3.10  vegetables, forage, grains, bees, and apiary products by the 
  3.11  owner; 
  3.12     (2) fish bred for sale and consumption if the fish breeding 
  3.13  occurs on land zoned for agricultural use; 
  3.14     (3) the commercial boarding of horses if the boarding is 
  3.15  done in conjunction with raising or cultivating agricultural 
  3.16  products as defined in clause (1); 
  3.17     (4) property which is owned and operated by nonprofit 
  3.18  organizations used for equestrian activities, excluding racing; 
  3.19     (5) game birds and waterfowl bred and raised for use on a 
  3.20  shooting preserve licensed under section 97A.115; 
  3.21     (6) insects primarily bred to be used as food for animals; 
  3.22  and 
  3.23     (7) trees, grown for sale as a crop, and not sold for 
  3.24  timber, lumber, wood, or wood products. 
  3.25     (f) If a parcel used for agricultural purposes is also used 
  3.26  for commercial or industrial purposes, including but not limited 
  3.27  to:  
  3.28     (1) wholesale and retail sales; 
  3.29     (2) processing of raw agricultural products or other goods; 
  3.30     (3) warehousing or storage of processed goods; and 
  3.31     (4) office facilities for the support of the activities 
  3.32  enumerated in clauses (1), (2), and (3), 
  3.33  the assessor shall classify the part of the parcel used for 
  3.34  agricultural purposes as class 1b, 2a, or 2b, whichever is 
  3.35  appropriate, and the remainder in the class appropriate to its 
  3.36  use.  The grading, sorting, and packaging of raw agricultural 
  4.1   products for first sale is considered an agricultural purpose.  
  4.2   A greenhouse or other building where horticultural or nursery 
  4.3   products are grown that is also used for the conduct of retail 
  4.4   sales must be classified as agricultural if it is primarily used 
  4.5   for the growing of horticultural or nursery products from seed, 
  4.6   cuttings, or roots and occasionally as a showroom for the retail 
  4.7   sale of those products.  Use of a greenhouse or building only 
  4.8   for the display of already grown horticultural or nursery 
  4.9   products does not qualify as an agricultural purpose.  
  4.10     The assessor shall determine and list separately on the 
  4.11  records the market value of the homestead dwelling and the one 
  4.12  acre of land on which that dwelling is located.  If any farm 
  4.13  buildings or structures are located on this homesteaded acre of 
  4.14  land, their market value shall not be included in this separate 
  4.15  determination.  
  4.16     (g) To qualify for classification under paragraph (b), 
  4.17  clause (4), a privately owned public use airport must be 
  4.18  licensed as a public airport under section 360.018.  For 
  4.19  purposes of paragraph (b), clause (4), "landing area" means that 
  4.20  part of a privately owned public use airport properly cleared, 
  4.21  regularly maintained, and made available to the public for use 
  4.22  by aircraft and includes runways, taxiways, aprons, and sites 
  4.23  upon which are situated landing or navigational aids.  A landing 
  4.24  area also includes land underlying both the primary surface and 
  4.25  the approach surfaces that comply with all of the following:  
  4.26     (i) the land is properly cleared and regularly maintained 
  4.27  for the primary purposes of the landing, taking off, and taxiing 
  4.28  of aircraft; but that portion of the land that contains 
  4.29  facilities for servicing, repair, or maintenance of aircraft is 
  4.30  not included as a landing area; 
  4.31     (ii) the land is part of the airport property; and 
  4.32     (iii) the land is not used for commercial or residential 
  4.33  purposes. 
  4.34  The land contained in a landing area under paragraph (b), clause 
  4.35  (4), must be described and certified by the commissioner of 
  4.36  transportation.  The certification is effective until it is 
  5.1   modified, or until the airport or landing area no longer meets 
  5.2   the requirements of paragraph (b), clause (4).  For purposes of 
  5.3   paragraph (b), clause (4), "public access area" means property 
  5.4   used as an aircraft parking ramp, apron, or storage hangar, or 
  5.5   an arrival and departure building in connection with the airport.
  5.6      [EFFECTIVE DATE.] This section is effective for taxes 
  5.7   levied in 2001, payable in 2002, and thereafter. 
  5.8      Sec. 2.  Minnesota Statutes 2000, section 273.1382, 
  5.9   subdivision 1b, is amended to read: 
  5.10     Subd. 1b.  [EDUCATION AGRICULTURAL CREDIT.] Property 
  5.11  classified as class 2a agricultural homestead or class 2b 
  5.12  agricultural nonhomestead or timberland is eligible for 
  5.13  education agricultural credit.  The credit is equal to 70 the 
  5.14  sum of 75 percent, in the case of agricultural homestead 
  5.15  property up to $600,000 in market value, or 63 percent, in the 
  5.16  case of all other agricultural property or timberland, of the 
  5.17  property's net tax capacity times the education credit tax rate 
  5.18  determined in subdivision 1, plus 33.3 percent of the property's 
  5.19  net tax capacity times the total school district levy other than 
  5.20  the levy certified under section 126C.13, subdivision 2 or 3.  
  5.21  The portion of class 2a property consisting of the house, 
  5.22  garage, and surrounding one acre of land is not eligible for the 
  5.23  credit under this subdivision, nor does its market value count 
  5.24  towards the valuation threshold contained in this subdivision. 
  5.25     [EFFECTIVE DATE.] This section is effective for taxes 
  5.26  levied in 2001, payable in 2002, and thereafter. 
  5.27     Sec. 3.  Minnesota Statutes 2000, section 273.1398, 
  5.28  subdivision 1a, is amended to read: 
  5.29     Subd. 1a.  [TAX BASE DIFFERENTIAL.] (a) For aids payable in 
  5.30  2000 2002, the tax base differential is: 
  5.31     (1) 0.45 0.3 percent of the assessment year 1998 2000 
  5.32  taxable market value of class 2a agricultural homestead 
  5.33  property, excluding the house, garage, and surrounding one acre 
  5.34  of land, between $115,000 and $600,000 and over 320 acres, minus 
  5.35  the value over $600,000 that is less than 320 acres; plus 
  5.36     (2) 0.5 percent of the assessment year 1998 taxable market 
  6.1   value of noncommercial seasonal recreational residential 
  6.2   property over $75,000 in value; plus 
  6.3      (3) for purposes of computing the fiscal disparity 
  6.4   adjustment only, 0.2 percent of the assessment year 1998 taxable 
  6.5   market value of class 3 commercial-industrial property over 
  6.6   $150,000, 0.7 percent of the value between $600,000 and 
  6.7   $750,000, and 0.2 percent of the value in excess of $750,000; 
  6.8   plus 
  6.9      (2) 0.2 percent of the 2000 taxable market value of class 
  6.10  2b property. 
  6.11     (b) For the purposes of the distribution of homestead and 
  6.12  agricultural credit aid for aids payable in 2000 a calendar 
  6.13  year, the commissioner of revenue shall may use the best 
  6.14  information available as of June 30, 1999, of the previous year 
  6.15  to make an estimate of the value described in paragraph (a), 
  6.16  clause (1) any value described in this subdivision for which 
  6.17  data is not available.  The commissioner shall adjust the 
  6.18  distribution of homestead and agricultural credit aid for aids 
  6.19  payable in 2001 and subsequent years if new information 
  6.20  regarding the value described in paragraph (a), clause (1), 
  6.21  becomes available after June 30, 1999. 
  6.22     [EFFECTIVE DATE.] This section is effective for aids 
  6.23  payable in 2002 and thereafter.