SF 1542

as introduced - 90th Legislature (2017 - 2018) Posted on 03/15/2017 06:11pm

A bill for an act
relating to taxation; establishing the riparian buffer compensation program and
riparian protection aid; modifying conversion schedule for construction debris;
appropriating money; amending Minnesota Statutes 2016, section 297H.04,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 103F;
477A.

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

Section 1.

new text begin [103F.485] RIPARIAN BUFFER COMPENSATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Board" means the Board of Water and Soil Resources.
new text end

new text begin (c) "Claimant" means:
new text end

new text begin (1) a person, as defined in section 290.01, subdivision 2, who owns agricultural land in
Minnesota and files an application under this section; or
new text end

new text begin (2) a purchaser or grantee of property sold or transferred after the original application
was submitted.
new text end

new text begin (d) "Commissioner" means the commissioner of revenue.
new text end

new text begin (e) "Program" means the riparian buffer compensation program established in this section.
new text end

new text begin (f) "Public waters buffer" means a 50-foot average width, 30-foot minimum width
continuous area consisting of perennially rooted vegetation, excluding invasive plants and
noxious weeds, adjacent to public waters, as defined in section 103G.005, subdivision 15,
that protects the water resources of the state from runoff pollution; stabilizes soils, shores,
and banks; and protects or provides riparian corridors.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility requirements. new text end

new text begin Land may be enrolled in the program if all of the
following conditions are met:
new text end

new text begin (1) the land is tillable land classified as 2a under section 273.13, subdivision 23;
new text end

new text begin (2) a public waters buffer is required to be maintained on the property by the landowner
pursuant to section 103F.48, subdivision 3, and the public waters buffer is identified and
mapped on a buffer protection map established and maintained by the commissioner of
natural resources;
new text end

new text begin (3) the tillable land is converted to a public waters buffer during calendar years 2015
through 2018 to comply with section 103F.48;
new text end

new text begin (4) there are no delinquent property taxes on the land; and
new text end

new text begin (5) an application is submitted to the commissioner as specified in subdivision 3 on or
before April 1, 2019.
new text end

new text begin Subd. 3. new text end

new text begin Applications. new text end

new text begin (a) An owner of agricultural land in Minnesota may apply to
enroll agricultural land in the program under this section. The application shall be on a form
prescribed by the commissioner and must include the following information: (1) the
landowner's Social Security number and date of birth, or state or federal business tax
identification number, (2) the landowner's address, (3) the landowner's signature, (4) the
county parcel identification numbers for the tax parcels that completely contain the
agricultural land on which a public waters buffer is required to be established and maintained,
(5) the number of acres of tillable class 2a agricultural land converted to a public waters
buffer during calendar years 2015 through 2018 to comply with section 103F.48, rounded
to the nearest whole acre, (6) the signature of an employee of the soil and water conservation
district where the land is located, certifying the accuracy of the parcel identification numbers
and the converted acres figure included in the application, and (7) any other information
the commissioner deems necessary.
new text end

new text begin (b) The commissioner shall review the application and determine if the property is
eligible for enrollment in the program. The commissioner shall notify the claimant of the
determination within 90 days of receipt of the completed application.
new text end

new text begin (c) Social Security numbers collected from individuals under this section are private
data as provided in section 13.355. The federal business tax identification number and date
of birth data collected under this section are private data on individuals or nonpublic data,
as defined in section 13.02, subdivisions 9 and 12, but may be shared with county treasurers
for purposes of the revenue recapture under chapter 270A.
new text end

new text begin Subd. 4. new text end

new text begin Annual certification. new text end

new text begin On or before February 15, 2019, and each February 15
thereafter, the commissioner shall send each claimant a certification form. The claimant
must sign the certification, attesting that the requirements and conditions the commissioner
deems necessary for continued enrollment in the program are currently being met, and must
return the signed certification form to the commissioner by April 1 of the same year. If the
claimant does not return the annual certification form by the due date, the commissioner
must notify the claimant that the land will be terminated from the program if the certification
is not received within 30 days.
new text end

new text begin Subd. 5. new text end

new text begin Notification to commissioner of noncompliance. new text end

new text begin On or before June 1, 2019,
and each June 1 thereafter, the commissioner shall provide by electronic means to the board
data sufficient for a county, watershed district, or the board to identify claimants enrolled
in the program. The board shall notify the commissioner of any claimant that has been
determined by a county, watershed district, or the board to be noncompliant with the
requirements of section 103F.48 on or before August 1 of each year in which the certification
under subdivision 4 is due.
new text end

new text begin Subd. 6. new text end

new text begin Length of enrollment. new text end

new text begin Land approved for enrollment under subdivision 3,
paragraph (b), remains in the program for five years unless terminated under subdivision
10.
new text end

new text begin Subd. 7. new text end

new text begin Payment amount. new text end

new text begin A claimant is eligible to receive an annual payment equal
to $40 per acre for each tillable acre converted a public waters buffer.
new text end

new text begin Subd. 8. new text end

new text begin Annual payment. new text end

new text begin The commissioner shall make the payments required under
subdivision 7 annually on or before October 1 based on applications or certifications received
on or before April 1 of that year. No future payment shall be made to a claimant for property
after it has been terminated from the program. Interest at the annual rate determined under
section 270C.40 shall be included with any payment not paid by the later of October 1 of
the year the application or certification was due, or 180 days after the completed application
or certification was filed.
new text end

new text begin Subd. 9. new text end

new text begin Multiple claimants. new text end

new text begin No more than one claimant is entitled to a payment under
this section with respect to any tract, parcel, or piece of land that has been assigned the same
parcel identification number. When enrolled agricultural land is owned by two or more
persons, the owners must determine which person is eligible to claim the payments. In the
case of property sold or transferred, the former owner and the purchaser or grantee may
determine which person is eligible to claim the payments. If they cannot agree, the matter
shall be referred to the commissioner, whose decision shall be final.
new text end

new text begin Subd. 10. new text end

new text begin Reasons for termination. new text end

new text begin (a) Agricultural land enrolled in the program may
be terminated from the program for any of the following reasons:
new text end

new text begin (1) there are delinquent taxes on the land;
new text end

new text begin (2) the commissioner receives notification from the board of noncompliance under
subdivision 5;
new text end

new text begin (3) the claimant does not timely submit a certification form after being notified by the
commissioner that the annual certification was not received by April l; or
new text end

new text begin (4) the claimant voluntarily withdraws from the program.
new text end

new text begin (b) The commissioner shall prepare a notice of termination for any land that is to be
terminated from the program. The notice of termination must contain the parcel identification
numbers, the reason for termination, and the effective date of termination. The commissioner
shall mail the notice of the termination to the claimant at least 60 days before the effective
date of termination.
new text end

new text begin Subd. 11. new text end

new text begin Compliance audit. new text end

new text begin The commissioner may examine any application or annual
certification to ensure compliance with this section.
new text end

new text begin Subd. 12. new text end

new text begin Penalty. new text end

new text begin If the commissioner determines a claimant intentionally filed a false
application or certification under this section, the commissioner shall notify the claimant
of the determination and the penalty amount for which the claimant is liable. The penalty
is equal to the total payments received while enrolled in the program, plus interest calculated
from the date the payments were made at the annual rate determined under section 270C.40.
The claimant has 90 days to satisfy the payment from the date on the notice of determination.
If the penalty is not paid within the 90-day period, the commissioner shall certify the amount
to the county auditor for collection as a part of the general ad valorem real property taxes
on the land in the following taxes payable year.
new text end

new text begin Subd. 13. new text end

new text begin Appeal to Tax Court. new text end

new text begin Any person aggrieved by the commissioner's decision
to deny an application for enrollment, to assess a penalty, to terminate land from the program,
or to deny payment to a claimant may, within 60 days of the date on the notice of
determination or notice of termination, or after 180 days of the submission of the application
or annual certification if no determination is issued, appeal to the Tax Court under chapter
271 as if the appeal is from an order of the commissioner.
new text end

new text begin Subd. 14. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the payments under this section
is annually appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments made in 2018 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2016, section 297H.04, subdivision 2, is amended to read:

Subd. 2.

Rate.

(a) Commercial generators that generate nonmixed municipal solid waste
shall pay a solid waste management tax of 60 cents per noncompacted cubic yard of periodic
waste collection capacity purchased by the generator, based on the size of the container for
the nonmixed municipal solid waste, the actual volume, or the weight-to-volume conversion
schedule in paragraph (c). However, the tax must be calculated by the waste management
service provider using the same method for calculating the waste management service fee
so that both are calculated according to container capacity, actual volume, or weight.

(b) Notwithstanding section 297H.02, a residential generator that generates nonmixed
municipal solid waste shall pay a solid waste management tax in the same manner as provided
in paragraph (a).

(c) The weight-to-volume conversion schedule for:

(1) construction debris as defined in section 115A.03, subdivision 7, is deleted text begin one ton equals
3.33 cubic yards, or $2 per ton deleted text end new text begin equal to 60 cents per cubic yard. The commissioner of
revenue, after consultation with the commissioner of the Pollution Control Agency, shall
determine and may publish by notice a conversion schedule for construction debris new text end ;

(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents
per cubic yard. The commissioner of revenue after consultation with the commissioner of
the Pollution Control Agency, shall determine, and may publish by notice, a conversion
schedule for various industrial wastes; and

(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste
as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60
cents per 150 pounds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2017.
new text end

Sec. 3.

new text begin [477A.21] RIPARIAN PROTECTION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Buffer protection map" means the buffer protection map as defined in section
103F.48, subdivision 1.
new text end

new text begin (c) "Commissioner" means the commissioner of revenue.
new text end

new text begin Subd. 2. new text end

new text begin Certification to commissioner. new text end

new text begin (a) The Board of Water and Soil Resources
must certify to the commissioner by September 1, 2017, and by July 1 of each year thereafter,
which counties and watershed districts have affirmed their jurisdiction under section 103F.48,
and the proportion of the number of centerline miles of public watercourses, and the miles
of public drainage system ditches on the buffer protection map, within each county and
each watershed district within the county with affirmed jurisdiction.
new text end

new text begin (b) On or before July 1 of each year, the commissioner of natural resources shall certify
to the commissioner the statewide and countywide number of centerline miles of public
watercourses and the miles of public drainage system ditches on the buffer protection map.
new text end

new text begin Subd. 3. new text end

new text begin Distribution. new text end

new text begin (a) A county that is certified under subdivision 2, or that portion
of a county containing a watershed district certified under subdivision 2, is eligible to receive
aid under this section to enforce and implement the riparian protection and water quality
practices under section 103F.48. The commissioner shall calculate a preliminary aid for all
counties that shall equal the sum of (1) the total number of acres in the county classified as
class 2a under section 273.13, subdivision 23; (2) the countywide number of centerline
miles of public watercourses on the buffer protection map; and (3) the countywide number
of miles of public drainage system on the buffer protection map; divided by the sum of (4)
the statewide total number of acres classified as class 2a under section 273.13, subdivision
23; (5) the statewide total number of centerline miles of public watercourses on the buffer
protection map; and (6) the statewide total number of miles of public drainage system on
the buffer protection map; multiplied by (7) $10,000,000.
new text end

new text begin (b) Aid to a county shall not be greater than $200,000 or less than $50,000. If the sum
of the preliminary aids payable to counties under paragraph (a) is greater or less than the
appropriation under subdivision 5, the commissioner shall calculate the percentage adjustment
necessary so that the total of the aid under paragraph (a) equals the total amount available
for aid under subdivision 5.
new text end

new text begin (c) If only a portion of a county is certified as eligible to receive aid under subdivision
2, the aid otherwise payable to that county under this section shall be multiplied by a fraction,
the numerator of which is the area of the certified watershed districts contained within the
county and the denominator of which is the total area of the county.
new text end

new text begin (d) Any aid that would otherwise be paid to a county or portion of a county that is not
certified under subdivision 2 shall be paid to the Board of Water and Soil Resources for the
purpose of enforcing and implementing the riparian protection and water quality practices
under section 103F.48.
new text end

new text begin Subd. 4. new text end

new text begin Payments. new text end

new text begin The commissioner of revenue must compute the amount of riparian
protection aid payable to each eligible county and to the Board of Water and Soil Resources
under this section. On or before November 1, 2017, and on or before each August 1 thereafter,
the commissioner shall certify the amount to be paid to each county and the Board of Water
and Soil Resources in the following year. The commissioner shall pay riparian protection
aid to counties and the Board of Water and Soil Resources in the same manner and at the
same time as aid payments under section 477A.015.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin $10,000,000 is annually appropriated from the general fund
to the commissioner to make the payments required under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2018.
new text end

Sec. 4. new text begin APPROPRIATION; RIPARIAN BUFFER COMPENSATION PROGRAM.
new text end

new text begin $11,000 in fiscal year 2018 and $434,000 in fiscal year 2019 are appropriated from the
general fund to the commissioner of revenue to administer section 1. $286,000 shall be
added to base appropriations to the Department of Revenue for fiscal years 2020 and 2021.
new text end