SF 2114

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; property; providing for 
  1.3             valuation and deferment of certain property whose 
  1.4             current use and potential alternative use are not the 
  1.5             same; proposing coding for new law in Minnesota 
  1.6             Statutes, chapter 273. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [273.1115] [MINNESOTA ENVIRONMENTAL 
  1.9   PRESERVATION PROPERTY TAX LAW.] 
  1.10     Subdivision 1.  [CITATION.] This section may be cited as 
  1.11  the "Minnesota Environmental Preservation Property Tax Law." 
  1.12     Subd. 2.  [PUBLIC POLICY.] The present general system of ad 
  1.13  valorem property taxation in the state of Minnesota does not 
  1.14  provide an equitable basis for the taxation of certain real 
  1.15  property and may result in excessive taxes on some land.  It is 
  1.16  therefore declared to be the public policy of this state that 
  1.17  the public interest would best be served by imposing tax burdens 
  1.18  through appropriate taxing measures upon certain properties 
  1.19  within this state based upon their current use and not on their 
  1.20  potential alternative or future use. 
  1.21     Subd. 3.  [REQUIREMENTS.] (a) Real estate consisting of at 
  1.22  least 20 acres classified under section 273.13, subdivision 22 
  1.23  or 23, is entitled to valuation and tax deferment under this 
  1.24  section only if it meets all of the following criteria: 
  1.25     (1) the property is either (i) the homestead of the owner 
  1.26  or of a surviving spouse, or (ii) has been in possession of the 
  2.1   owner or the owner's spouse for a period of at least seven years 
  2.2   prior to application for benefits under this section; 
  2.3      (2) the land is primarily forestland, woodland, slough, 
  2.4   wasteland, or a combination thereof; 
  2.5      (3) no revenue has been derived from the property for at 
  2.6   least the three immediately preceding years prior to applying 
  2.7   for enrollment in the program under this section; and 
  2.8      (4) if any portion of the property borders public waters, 
  2.9   the land bordering the water must be substantially undeveloped 
  2.10  and must not be platted. 
  2.11     (b) Valuation of real estate under this section is limited 
  2.12  to parcels owned by noncorporate entities. 
  2.13     Subd. 4.  [DETERMINATION OF VALUE.] Upon timely application 
  2.14  by the owner, in the manner provided in subdivision 6, the value 
  2.15  of any real estate described in subdivision 3 must be determined 
  2.16  solely with reference to its current use and value 
  2.17  notwithstanding sections 272.03, subdivision 8, and 273.11.  The 
  2.18  assessor shall not consider any additional value resulting from 
  2.19  potential alternative and future uses of the property, except 
  2.20  that the value determined cannot be less than the market value 
  2.21  of the property for the assessment year preceding the year of 
  2.22  enrollment. 
  2.23     Subd. 5.  [SEPARATE DETERMINATION OF MARKET VALUE AND TAX.] 
  2.24  The assessor shall annually make a separate determination of the 
  2.25  market value of such real estate at its highest and best use.  
  2.26  The tax based upon the appropriate local tax rate and the 
  2.27  highest and best use value must be recorded on the property 
  2.28  assessment records. 
  2.29     Subd. 6.  [APPLICATION.] Application for deferment of taxes 
  2.30  and assessment under this section must be filed by May 1 of the 
  2.31  assessment year.  Any application filed and granted continues in 
  2.32  effect for subsequent years until the property no longer 
  2.33  qualifies.  The application must be filed with the assessor of 
  2.34  the taxing district in which the real property is located on 
  2.35  such form as may be prescribed by the commissioner of revenue.  
  2.36  The assessor may require proof by affidavit or otherwise that 
  3.1   the property qualifies under subdivision 3. 
  3.2      Subd. 7.  [ADDITIONAL TAXES.] When real property which has 
  3.3   been valued and assessed under this section no longer qualifies 
  3.4   under subdivision 3, the portion no longer qualifying is subject 
  3.5   to additional taxes, in the amount equal to the difference 
  3.6   between the taxes determined in accordance with subdivision 4, 
  3.7   and the amount determined under subdivision 5, provided, 
  3.8   however, that if the property was sold in an arms-length 
  3.9   transaction the amount determined under subdivision 5 must not 
  3.10  be greater than it would have been had the actual bona fide sale 
  3.11  price of the property been used in lieu of the market value 
  3.12  determined under subdivision 5.  The additional taxes must be 
  3.13  extended against the property on the tax list for the current 
  3.14  year, provided, however, that no interest or penalties shall be 
  3.15  levied on such additional taxes if timely paid, and provided 
  3.16  further, that such additional taxes must only be levied with 
  3.17  respect to the last three years that the property has been 
  3.18  valued and assessed under this section. 
  3.19     Subd. 8.  [LIEN.] The tax imposed by this section is a lien 
  3.20  upon the property assessed to the same extent and for the same 
  3.21  duration as other taxes imposed upon property within this 
  3.22  state.  The tax must be annually extended by the county auditor 
  3.23  and if and when payable must be collected and distributed in the 
  3.24  manner provided by law for the collection and distribution of 
  3.25  other property taxes. 
  3.26     Subd. 9.  [CONTINUATION OF TAX TREATMENT UPON SALE.] When 
  3.27  real property qualifying under subdivision 3 is sold, no 
  3.28  additional taxes shall be extended against the property if (i) 
  3.29  the property continues to qualify under subdivision 3, and (ii) 
  3.30  the new owner files an application with the assessor for 
  3.31  continued deferment within 30 days after the sale.  
  3.32     [EFFECTIVE DATE.] This section is effective beginning with 
  3.33  the 2001 assessment year, for taxes payable in 2002 and 
  3.34  thereafter, except that for the 2001 assessment year, the 
  3.35  application date under subdivision 6 shall be September 1, 2001.