SF 1281

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; creating a credit for land 
  1.3             donated for conservation purposes; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 290. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [290.0676] [CREDIT FOR LAND DONATED FOR 
  1.7   CONSERVATION PURPOSES.] 
  1.8      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.9   section, the following terms have the meaning given. 
  1.10     (b) "Interest in real property" means a right in real 
  1.11  property, including, but not limited to, a fee simple, future 
  1.12  estate, mineral right, or easement, including a conservation 
  1.13  easement as provided in chapter 84C.  The dedication of a 
  1.14  less-than-fee interest in real property must qualify as a 
  1.15  charitable contribution under section 170(h) of the Internal 
  1.16  Revenue Code. 
  1.17     (c) "Fair market value" of an interest in real property 
  1.18  means the value as determined by a "qualified appraisal" 
  1.19  prepared by a "qualified appraiser" as those terms are defined 
  1.20  in Code of Federal Regulations, title 26, section 1.170A-13.  If 
  1.21  the taxpayer elects not to obtain an appraisal, "fair market 
  1.22  value" means the assessed value of the property for property tax 
  1.23  purposes. 
  1.24     (d) "Discount of the sale price" means the difference 
  1.25  between the fair market value of an interest in real property at 
  2.1   the time of sale and the sale price, if the price the property 
  2.2   is sold for is lower. 
  2.3      (e) "Conservation purposes" means the conservation purposes 
  2.4   as defined in section 170(h)(4)(i), (ii), and (iii) of the 
  2.5   Internal Revenue Code. 
  2.6      Subd. 2.  [CREDIT ALLOWED.] A taxpayer who donates an 
  2.7   interest in real property in this state for conservation 
  2.8   purposes may take a credit against the tax imposed by this 
  2.9   chapter in an amount equal to 50 percent of the fair market 
  2.10  value of the interest in real property or the value of the 
  2.11  discount of the sale price in the interest in real property. 
  2.12     Subd. 3.  [QUALIFICATION.] (a) To qualify for a credit 
  2.13  under this section, the taxpayer must unconditionally convey the 
  2.14  interest in real property to (1) the state of Minnesota, a local 
  2.15  government conservation agency, or a special purpose unit of 
  2.16  government, or (2) a private organization as provided in section 
  2.17  501(c) of the Internal Revenue Code that: 
  2.18     (i) meets the requirements of section 170(h)(3) of the 
  2.19  Internal Revenue Code; and 
  2.20     (ii) is organized and operated for one of the conservation 
  2.21  purposes specified in section 170(h)(4), (i), (ii), and (iii) of 
  2.22  the Internal Revenue Code.  
  2.23     (b) A taxpayer claiming the credit under this section shall 
  2.24  attach the following to the tax returns on which the credit is 
  2.25  claimed:  
  2.26     (1) a certificate of acceptance from an organization 
  2.27  described in paragraph (a) verifying that the organization has 
  2.28  accepted the contribution; and 
  2.29     (2) a copy of a qualified appraisal by a qualified 
  2.30  appraiser as those terms are defined in Code of Federal 
  2.31  Regulations, title 26, section 1.170A-13, or a copy of the 
  2.32  property value assessment. 
  2.33     (c) Dedications of real property for open space for the 
  2.34  purpose of fulfilling density requirements to obtain subdivision 
  2.35  or building permits shall not be considered as a qualified 
  2.36  donation under this section. 
  3.1      Subd. 4.  [LIMITATION; CARRYOVER.] (a) The credit for the 
  3.2   taxable year shall not exceed the liability for tax or $100,000, 
  3.3   whichever is less. 
  3.4      (b) If the amount of the credit determined under this 
  3.5   section for any taxable year exceeds the limitation provided in 
  3.6   paragraph (a), the excess shall be a carryover to each of the 
  3.7   five succeeding taxable years.  The entire amount of the excess 
  3.8   unused credit for the taxable year shall be carried first to the 
  3.9   earliest of the taxable years to which the credit may be carried 
  3.10  and then to each successive year to which the credit may be 
  3.11  carried.  The amount of the unused credit which may be added 
  3.12  under this paragraph shall not exceed the taxpayer's liability 
  3.13  for tax less the land donation credit for the taxable year. 
  3.14     (c) A taxpayer claiming a credit under this section may not 
  3.15  claim a credit or subtraction for state tax purposes under 
  3.16  another Minnesota law for costs related to the same donation. 
  3.17     Subd. 5.  [TRANSFERABILITY OF CREDIT.] (a) A taxpayer may 
  3.18  transfer to another taxpayer all or part of the credit allowed 
  3.19  under this section.  A taxpayer who receives a credit 
  3.20  transferred under this section may apply the transferred credit 
  3.21  against the tax imposed by this chapter.  
  3.22     (b) A taxpayer may transfer only the portion of the unused 
  3.23  credit that the taxpayer has not applied against the tax imposed 
  3.24  by this chapter.  For any taxable year in which a credit is 
  3.25  transferred under this section, the taxpayer transferring the 
  3.26  credit and the taxpayer receiving the credit shall both file 
  3.27  written statements with their income tax returns specifying the 
  3.28  amount of the credit that has been transferred.  A taxpayer may 
  3.29  not claim a credit transferred under this section unless the 
  3.30  written statement of the taxpayer transferring the credit 
  3.31  verifies the amount of the tax credit claimed. 
  3.32     [EFFECTIVE DATE.] This section is effective for taxable 
  3.33  years beginning after December 31, 2000.