SF 2173

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; clarifying that land must be 
  1.3             classified as agricultural in order to qualify for 
  1.4             green acres treatment; modifying the recapture of 
  1.5             deferred taxes for certain property that no longer 
  1.6             qualifies for green acres treatment; amending 
  1.7             Minnesota Statutes 1994, section 273.111, subdivision 
  1.8             3. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 273.111, 
  1.11  subdivision 3, is amended to read: 
  1.12     Subd. 3.  (a) Real estate consisting of ten acres or more 
  1.13  or a nursery or greenhouse, and qualifying for classification as 
  1.14  class 1b, 2a, or 2b under section 273.13, subdivision 23, 
  1.15  paragraph (d), shall be entitled to valuation and tax deferment 
  1.16  under this section only if it is actively and exclusively 
  1.17  devoted to agricultural use as defined in subdivision 6 and 
  1.18  either:  
  1.19     (1) is the homestead of the owner, or of a surviving 
  1.20  spouse, child, or sibling of the owner or is real estate which 
  1.21  is farmed with the real estate which contains the homestead 
  1.22  property; or 
  1.23     (2) has been in possession of the applicant, the 
  1.24  applicant's spouse, parent, or sibling, or any combination 
  1.25  thereof, for a period of at least seven years prior to 
  1.26  application for benefits under the provisions of this section, 
  1.27  or is real estate which is farmed with the real estate which 
  2.1   qualifies under this clause and is within two townships or 
  2.2   cities or combination thereof from the qualifying real estate; 
  2.3   or 
  2.4      (3) is the homestead of a shareholder in a family farm 
  2.5   corporation as defined in section 500.24, notwithstanding the 
  2.6   fact that legal title to the real estate may be held in the name 
  2.7   of the family farm corporation; or 
  2.8      (4) is in the possession of a nursery or greenhouse or an 
  2.9   entity owned by a proprietor, partnership, or corporation which 
  2.10  also owns the nursery or greenhouse operations on the parcel or 
  2.11  parcels. 
  2.12     (b) Valuation of real estate under this section is limited 
  2.13  to parcels the ownership of which is in noncorporate entities 
  2.14  except for:  
  2.15     (1) family farm corporations organized pursuant to section 
  2.16  500.24; and 
  2.17     (2) corporations that derive 80 percent or more of their 
  2.18  gross receipts from the wholesale or retail sale of 
  2.19  horticultural or nursery stock.  
  2.20     Corporate entities who previously qualified for tax 
  2.21  deferment pursuant to this section and who continue to otherwise 
  2.22  qualify under subdivisions 3 and 6 for a period of at least 
  2.23  three years following the effective date of Laws 1983, chapter 
  2.24  222, section 8, will not be required to make payment of the 
  2.25  previously deferred taxes, notwithstanding the provisions of 
  2.26  subdivision 9.  Sale of the land prior to the expiration of the 
  2.27  three-year period shall result in payment of deferred taxes as 
  2.28  follows:  sale within the first year requires payment of payable 
  2.29  1980, 1981, and 1982 deferred taxes; sale during the second year 
  2.30  requires payment of payable 1981 and 1982 taxes deferred; and 
  2.31  sale at any time during the third year will require payment of 
  2.32  payable 1983 taxes deferred.  Deferred taxes shall be paid even 
  2.33  if the land qualifies pursuant to subdivision 11a.  Special 
  2.34  assessments are payable at the end of the three-year period or 
  2.35  at time of sale, whichever comes first.  
  2.36     (c) Land that previously qualified for tax deferment 
  3.1   pursuant to this section and no longer qualifies because it is 
  3.2   not classified as agricultural land but would otherwise qualify 
  3.3   under subdivisions 3 and 6 for a period of at least three years 
  3.4   following the effective date of this section will not be 
  3.5   required to make payment of the previously deferred taxes, 
  3.6   notwithstanding the provisions of subdivision 9.  Sale of the 
  3.7   land prior to the expiration of the three-year period requires 
  3.8   payment of deferred taxes as follows:  sale within the first 
  3.9   year requires payment of payable 1995, 1996, and 1997 deferred 
  3.10  taxes; sale during the second year requires payment of payable 
  3.11  1996 and 1997 taxes deferred; and sale during the third year 
  3.12  will require payment of payable 1997 taxes deferred.  Deferred 
  3.13  taxes shall be paid even if the land qualifies pursuant to 
  3.14  subdivision 11a.  When such property is sold or no longer 
  3.15  qualifies under this paragraph, or at the end of the three-year 
  3.16  period, whichever comes first, all deferred special assessments 
  3.17  plus interest are payable in equal installments spread over the 
  3.18  time remaining until the last maturity date of the bonds issued 
  3.19  to finance the improvement for which the assessments were 
  3.20  levied.  If the bonds have matured, the deferred special 
  3.21  assessments plus interest are payable within 90 days.  The 
  3.22  provisions of section 429.061, subdivision 2, apply to the 
  3.23  collection of these installments.  Penalties are not imposed on 
  3.24  any such special assessments if timely paid. 
  3.25     Sec. 2.  [EFFECTIVE DATE.] 
  3.26     Section 1 is effective for taxes levied in 1996, payable in 
  3.27  1997, and thereafter.