SF 1228

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; establishing a sustainable 
  1.3             forest property tax program; providing for payments of 
  1.4             refunds to certain property owners; repealing the tree 
  1.5             growth tax law; appropriating money; amending 
  1.6             Minnesota Statutes 2000, section 289A.01; proposing 
  1.7             coding for new law as Minnesota Statutes, chapter 
  1.8             290C; repealing Minnesota Statutes 2000, sections 
  1.9             270.31; 270.32; 270.33; 270.34; 270.35; 270.36; 
  1.10            270.37; 270.38; and 270.39. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2000, section 289A.01, is 
  1.13  amended to read: 
  1.14     289A.01 [APPLICATION OF CHAPTER.] 
  1.15     This chapter applies to laws administered by the 
  1.16  commissioner under chapters 290, 290A, 290C, 291, and 297A, and 
  1.17  sections 298.01 and 298.015.  Unless otherwise specified in 
  1.18  chapter 290C, the sustainable forest tax refund shall be 
  1.19  administered as if it were a homeowner property tax refund under 
  1.20  chapter 290A. 
  1.21     [EFFECTIVE DATE.] This section is effective for taxes 
  1.22  levied in 2002, payable in 2003, and thereafter. 
  1.23     Sec. 2.  [290C.01] [DEFINITIONS.] 
  1.24     Subdivision 1.  [APPLICATION.] When used in sections 
  1.25  290C.01 to 290C.12, the terms in this section have the meanings 
  1.26  given them. 
  1.27     Subd. 2.  [CLAIMANT.] "Claimant" means a person as defined 
  1.28  in section 290.01, subdivision 2, who owns forest land in 
  2.1   Minnesota, who has a forest resources management plan prepared 
  2.2   by a plan writer approved by the commissioner of natural 
  2.3   resources for the prior year, and who files a claim authorized 
  2.4   by this chapter. 
  2.5      Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
  2.6   commissioner of revenue. 
  2.7      Subd. 4.  [CURRENT USE VALUE.] "Current use value" means 
  2.8   the value of forest land that is determined by capitalizing net 
  2.9   annual income from the land. 
  2.10     Subd. 5.  [FOREST LAND.] "Forest land" means land 
  2.11  containing a minimum of 20 contiguous acres of which at least 50 
  2.12  percent of the acres are forested and upon which land there are 
  2.13  no delinquent ad valorem property taxes owing at the time forest 
  2.14  resources management plan is certified. 
  2.15     Subd. 6.  [FOREST RESOURCES MANAGEMENT PLAN.] "Forest 
  2.16  resources management plan" means a plan that meets the minimum 
  2.17  requirements and standards established by the commissioner of 
  2.18  natural resources for management of forest resources. 
  2.19     Subd. 7.  [NET ANNUAL INCOME.] "Net annual income" means 90 
  2.20  percent of the product of the countywide weighted-average annual 
  2.21  net timber growth rate for that county using the most current 
  2.22  information published by the USDA-Forest Service North Central 
  2.23  Research Station, multiplied by the countywide weighted-average 
  2.24  stumpage values for that county using the most current 
  2.25  information published by the department of natural resources. 
  2.26     Subd. 8.  [PROPERTY TAXES PAYABLE.] "Property taxes payable"
  2.27  means the property tax, exclusive of special assessments, 
  2.28  penalties, and interest, on a claimant's forest land payable 
  2.29  after reductions under sections 273.135; 273.1382; 273.1391; and 
  2.30  273.42, subdivision 2; and any other state property tax credits 
  2.31  in any calendar year. 
  2.32     Subd. 9.  [TIMBER HARVESTING AND FOREST MANAGEMENT 
  2.33  GUIDELINES.] "Timber harvesting and forest management guidelines"
  2.34  means guidelines developed under section 89A.05 and adopted by 
  2.35  the Minnesota forest resources council in 1998. 
  2.36     [EFFECTIVE DATE.] This section is effective for taxes 
  3.1   levied in 2002, payable in 2003, and thereafter. 
  3.2      Sec. 3.  [290C.02] [ELIGIBILITY REQUIREMENTS.] 
  3.3      (a) Property may be enrolled in the sustainable forest tax 
  3.4   program under this chapter if conditions in paragraphs (b) to 
  3.5   (f) are met. 
  3.6      (b) Property consists of at least 20 contiguous acres and 
  3.7   at least 50 percent of the land must be forested during the 
  3.8   enrollment. 
  3.9      (c) A forest resource management plan for the property must 
  3.10  be prepared by a preparer approved by the commissioner of 
  3.11  natural resources and implemented during the period in which the 
  3.12  land is enrolled. 
  3.13     (d) Timber harvesting and forest management guidelines must 
  3.14  be used in conjunction with any timber harvesting or forest 
  3.15  management activities conducted on the land during the period in 
  3.16  which the land is enrolled. 
  3.17     (e) The land must be enrolled for a minimum of eight years. 
  3.18     (f) There are no delinquent property taxes on the property. 
  3.19     [EFFECTIVE DATE.] This section is effective for taxes 
  3.20  levied in 2002, payable in 2003, and thereafter. 
  3.21     Sec. 4.  [290C.03] [APPLICATION PROCEDURE.] 
  3.22     A landowner wishing to enroll property in the sustainable 
  3.23  forest tax program must complete, sign, and submit an 
  3.24  application to the commissioner on a form prescribed by the 
  3.25  commissioner.  The commissioner shall notify the landowner, in 
  3.26  writing, within 90 days of receipt of the application whether 
  3.27  the application for enrollment in the sustainable forest tax 
  3.28  program has been approved.  The application, together with the 
  3.29  commissioner's approval of it, constitutes an agreement between 
  3.30  the commissioner and the landowner.  The agreement shall be 
  3.31  deemed a covenant running with the land and must be recorded in 
  3.32  the office of the county recorder by the county auditor prior to 
  3.33  enrollment in the sustainable forest tax program.  The expense 
  3.34  of the recording must be paid by the owner of the land making 
  3.35  the application.  The land is enrolled in the sustainable forest 
  3.36  tax program beginning with taxes levied in the calendar year 
  4.1   immediately following the year in which the agreement was 
  4.2   established. 
  4.3      [EFFECTIVE DATE.] This section is effective for taxes 
  4.4   levied in 2002, payable in 2003, and thereafter. 
  4.5      Sec. 5.  [290C.04] [ANNUAL CERTIFICATION.] 
  4.6      Each owner of property enrolled in the sustainable forest 
  4.7   tax program shall annually certify to the commissioner on forms 
  4.8   provided by the commissioner that all requirements and 
  4.9   conditions for enrollment as specified in section 290C.02 are 
  4.10  currently being met for all lands enrolled.  Failure to certify 
  4.11  annual compliance in accordance with the requirements of the 
  4.12  commissioner shall result in immediate removal from the 
  4.13  sustainable forest tax program.  If an owner willfully 
  4.14  misrepresents in the annual certification process that all 
  4.15  conditions and requirements for enrollment are being met, the 
  4.16  commissioner shall immediately remove the land in question from 
  4.17  the sustainable forest tax program.  Land removed from the 
  4.18  sustainable forest tax program under this section is subject to 
  4.19  the removal penalties prescribed in section 290C.12. 
  4.20     [EFFECTIVE DATE.] This section is effective for taxes 
  4.21  levied in 2003, payable in 2003, and thereafter. 
  4.22     Sec. 6.  [290C.05] [CALCULATION OF CURRENT USE VALUES.] 
  4.23     By December 1 each year, the commissioner, in consultation 
  4.24  with the University of Minnesota department of forest resources, 
  4.25  shall determine a per acre current use forest land value for 
  4.26  each county.  This value must be determined by dividing per acre 
  4.27  net annual income by the capitalization rate as determined 
  4.28  annually by the commissioner.  
  4.29     [EFFECTIVE DATE.] This section is effective for taxes 
  4.30  levied in 2002, payable in 2003, and thereafter. 
  4.31     Sec. 7.  [290C.06] [CALCULATION OF ESTIMATED MARKET VALUE.] 
  4.32     The commissioner shall calculate an estimated market value 
  4.33  per acre for all property enrolled in the sustainable forest tax 
  4.34  program.  Calculation of this value must be determined by using 
  4.35  the average estimated market value per acre for land classified 
  4.36  as class 2b timberland as defined in section 273.13, subdivision 
  5.1   23, for the city or town in which the property is located.  If 
  5.2   the city or town in which the property is located does not 
  5.3   contain land classified as class 2b timberland, the countywide 
  5.4   average per acre estimated market value for class 2b timberland 
  5.5   shall be used to determine per acre estimated market value for 
  5.6   the property.  If the county in which the property is located 
  5.7   does not contain any property classified as class 2b timberland, 
  5.8   the county assessor shall provide the department a per acre 
  5.9   estimated market value for wooded land for each city or town in 
  5.10  which property enrolled in the program is located. 
  5.11     [EFFECTIVE DATE.] This section is effective for taxes 
  5.12  levied in 2002, payable in 2003, and thereafter. 
  5.13     Sec. 8.  [290C.07] [ANNUAL REFUND; APPROPRIATION.] 
  5.14     Subdivision 1.  [ANNUAL REFUND.] An owner of lands enrolled 
  5.15  in the sustainable forest tax program is entitled to an annual 
  5.16  refund.  The department shall annually determine the amount of 
  5.17  the refund, which is the difference between (1) the per acre 
  5.18  estimated market value as determined in section 290C.06, 
  5.19  multiplied by the class rate for class 2b timberland, multiplied 
  5.20  by the local tax rate levied in the city or town in which the 
  5.21  property is located, and (2) the lessor of one-third of the per 
  5.22  acre estimated market value as determined in section 290C.06 or 
  5.23  a per acre current use value as determined in section 290C.05, 
  5.24  multiplied by the class rate for class 2b timberland, multiplied 
  5.25  by the local tax rate levied in the city or town in which the 
  5.26  property is located.  The total amount of annual refund for each 
  5.27  property must be determined by multiplying the per acre refund 
  5.28  determined in this section by the number of acres enrolled. 
  5.29     Subd. 2.  [APPROPRIATION.] The amount necessary to pay the 
  5.30  refunds under this section is annually appropriated to the 
  5.31  commissioner of revenue from the general fund. 
  5.32     [EFFECTIVE DATE.] This section is effective for taxes 
  5.33  levied in 2002, payable in 2003, and thereafter. 
  5.34     Sec. 9.  [290C.08] [ONE CLAIMANT PER PARCEL.] 
  5.35     When forest land is owned by two or more persons, the 
  5.36  owners must determine which person may claim the refund.  No 
  6.1   more than one claimant per parcel is entitled to relief under 
  6.2   this chapter. 
  6.3      [EFFECTIVE DATE.] This section is effective for taxes 
  6.4   levied in 2002, payable in 2003, and thereafter. 
  6.5      Sec. 10.  [290C.09] [TIME OF PAYMENT.] 
  6.6      A claimant must receive payment of the refund after August 
  6.7   15 and before August 30 or 120 days after receipt of the 
  6.8   application, whichever is later. 
  6.9      [EFFECTIVE DATE.] This section is effective for taxes 
  6.10  levied in 2002, payable in 2003, and thereafter. 
  6.11     Sec. 11.  [290C.10] [INTEREST.] 
  6.12     Refunds not paid within the period specified in section 
  6.13  290C.07 bear interest after August 30 or 120 days after the 
  6.14  refund claim was made, whichever is later. 
  6.15     [EFFECTIVE DATE.] This section is effective for taxes 
  6.16  levied in 2002, payable in 2003, and thereafter. 
  6.17     Sec. 12.  [290C.11] [REMOVAL FOR PROPERTY TAX DELINQUENCY.] 
  6.18     The commissioner shall immediately remove any property 
  6.19  enrolled in the sustainable forest tax program for which taxes 
  6.20  are determined to be delinquent as provided in chapter 279.  
  6.21  Lands terminated from the sustainable forest tax program under 
  6.22  this section are not entitled to any refunds provided in this 
  6.23  chapter and are subject to removal penalties prescribed in 
  6.24  section 290C.12. 
  6.25     [EFFECTIVE DATE.] This section is effective for taxes 
  6.26  levied in 2002, payable in 2003, and thereafter. 
  6.27     Sec. 13.  [290C.12] [WITHDRAWAL PROCEDURES.] 
  6.28     An owner of property enrolled in the sustainable forest tax 
  6.29  program for a minimum of four years may notify the commissioner 
  6.30  of the intent to terminate enrollment.  Within 90 days of 
  6.31  receipt of notice to terminate enrollment, the commissioner 
  6.32  shall inform the owner, in writing, acknowledging receipt of 
  6.33  this notice and indicating the effective date of termination 
  6.34  from the sustainable forest tax program.  Termination of 
  6.35  enrollment in the sustainable forest tax program occurs on 
  6.36  January 1 of the fifth calendar year that begins after receipt 
  7.1   by the commissioner of the termination notice.  After the 
  7.2   commissioner issues to the owner an effective date of 
  7.3   termination, an owner wishing to continue the property's 
  7.4   enrollment in the sustainable forest tax program beyond the 
  7.5   termination date must apply for enrollment as prescribed in 
  7.6   section 290C.03. 
  7.7      [EFFECTIVE DATE.] This section is effective for taxes 
  7.8   levied in 2002, payable in 2003, and thereafter. 
  7.9      Sec. 14.  [290C.13] [PENALTIES FOR REMOVAL.] 
  7.10     If the commissioner determines that property enrolled in 
  7.11  the sustainable forest tax program is in violation of the 
  7.12  conditions for enrollment as specified in section 290C.02, the 
  7.13  commissioner shall notify the owner of the commissioner's intent 
  7.14  to remove the property from enrollment in the sustainable forest 
  7.15  tax program.  The owner has 90 days to appeal this 
  7.16  determination.  The appeal must be made in writing to the 
  7.17  commissioner.  The commissioner shall notify the owner within 60 
  7.18  days as to the outcome of the appeal.  If the commissioner 
  7.19  determines the property is to be removed from the sustainable 
  7.20  forest tax program, its owner is liable for payment to the 
  7.21  commissioner in the amount equal to the tax benefit received 
  7.22  under this chapter for the previous four year period, plus 
  7.23  interest.  The owner has 90 days to satisfy the payment levied 
  7.24  by the commissioner for removal of land from the sustainable 
  7.25  forest tax program under this section. 
  7.26     [EFFECTIVE DATE.] This section is effective for taxes 
  7.27  levied in 2002, payable in 2003, and thereafter. 
  7.28     Sec. 15.  [REPEALER.] 
  7.29     Minnesota Statutes 2000, sections 270.31; 270.32; 270.33; 
  7.30  270.34; 270.35; 270.36; 270.37; 270.38; and 270.39, are repealed.
  7.31     [EFFECTIVE DATE.] This section is effective for taxes 
  7.32  levied in 2002, payable in 2003, and thereafter.