SF 2330

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; authorizing sale of 
  1.3             tax-forfeited property by counties after expiration of 
  1.4             holding period; authorizing an alternative computation 
  1.5             of repurchase amount of certain tax-forfeited 
  1.6             property; authorizing an alternative allocation of 
  1.7             taxable property and bonded indebtedness in land 
  1.8             detachment and annexation; making technical 
  1.9             corrections; amending Minnesota Statutes 2000, 
  1.10            sections 123A.45, subdivisions 2, 6; 281.17; 282.01, 
  1.11            subdivision 1; 282.241. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2000, section 123A.45, 
  1.14  subdivision 2, is amended to read: 
  1.15     Subd. 2.  [PETITION.] The petition must contain: 
  1.16     (a) A correct description of the area proposed for 
  1.17  detachment and annexation, including supporting data regarding 
  1.18  location and title to land to establish that the land is 
  1.19  adjoining a district. 
  1.20     (b) The reasons for the proposed change with facts showing 
  1.21  that the granting of the petition will not reduce the size of 
  1.22  any district to less than four sections, unless the district is 
  1.23  not operating a school within the district. 
  1.24     (c) Consent to the petition, if, at the time of the filing 
  1.25  of the petition, any part of the area proposed for detachment is 
  1.26  part of a district which maintains and operates a secondary 
  1.27  school within the district.  Before the hearing, the consent of 
  1.28  the board of the district in which the area proposed for 
  2.1   detachment lies must be endorsed on the petition. 
  2.2      (d) An identification of the district to which annexation 
  2.3   is sought. 
  2.4      (e) Other information the petitioners may desire to affix. 
  2.5      (f) An acknowledgment by the petitioner. 
  2.6      (g) A description of whether bonded indebtedness will be 
  2.7   allocated according to subdivision 6, paragraph (b) or (c). 
  2.8      Sec. 2.  Minnesota Statutes 2000, section 123A.45, 
  2.9   subdivision 6, is amended to read: 
  2.10     Subd. 6.  [TAXABLE PROPERTY.] (a) Upon the effective date 
  2.11  of the order, the detachment and annexation is effected.  The 
  2.12  bonded indebtedness must be assigned to the detached and annexed 
  2.13  land under either paragraph (b) or (c). 
  2.14     (b) Unless specified separately under paragraph (c), all 
  2.15  taxable property in the area so detached and annexed remains 
  2.16  taxable for payment of any school purpose obligations already 
  2.17  authorized by or outstanding on the effective date of the order 
  2.18  against the district from which detached.  The order does not 
  2.19  relieve such property from the obligation of any bonded debt 
  2.20  already incurred to which it was subject prior to the order.  
  2.21  All taxable property in the area so detached and annexed is 
  2.22  taxable for payment of any district obligations authorized on or 
  2.23  subsequent to the effective date of the order by the district to 
  2.24  which annexation is made. 
  2.25     (c) Alternatively, if the school board of the district in 
  2.26  which the area is proposed for detachment and the school board 
  2.27  of the district in which the area is proposed for annexation 
  2.28  agree, all taxable property in the area detached and annexed 
  2.29  shall be taxable by the school district to which the property is 
  2.30  annexed.  Detached and annexed property is relieved from the 
  2.31  obligation of any bonded debt already incurred by the district 
  2.32  in which the area is detached and is obligated for any bonded 
  2.33  debt already incurred by the district to which the area is 
  2.34  annexed. 
  2.35     Sec. 3.  Minnesota Statutes 2000, section 281.17, is 
  2.36  amended to read: 
  3.1      281.17 [PERIOD FOR REDEMPTION.] 
  3.2      Except for properties for which the period of redemption 
  3.3   has been limited under sections 281.173 and 281.174, the 
  3.4   following periods for redemption apply. 
  3.5      The period of redemption for all lands sold to the state at 
  3.6   a tax judgment sale shall be three years from the date of sale 
  3.7   to the state of Minnesota if the land is within an incorporated 
  3.8   area unless it is:  (a) nonagricultural homesteaded land as 
  3.9   defined in section 273.13, subdivision 22; (b) homesteaded 
  3.10  agricultural land as defined in section 273.13, subdivision 23, 
  3.11  paragraph (a); or (c) seasonal recreational land as defined in 
  3.12  section 273.13, subdivision 22, paragraph (c), or 25, paragraph 
  3.13  (c) (d), clause (5) (1), for which the period of redemption is 
  3.14  five years from the date of sale to the state of Minnesota. 
  3.15     The period of redemption for homesteaded lands as defined 
  3.16  in section 273.13, subdivision 22, located in a targeted 
  3.17  neighborhood as defined in Laws 1987, chapter 386, article 6, 
  3.18  section 4, and sold to the state at a tax judgment sale is three 
  3.19  years from the date of sale.  The period of redemption for all 
  3.20  lands located in a targeted neighborhood as defined in Laws 
  3.21  1987, chapter 386, article 6, section 4, except (1) homesteaded 
  3.22  lands as defined in section 273.13, subdivision 22, and (2) for 
  3.23  periods of redemption beginning after June 30, 1991, but before 
  3.24  July 1, 1996, lands located in the Loring Park targeted 
  3.25  neighborhood on which a notice of lis pendens has been served, 
  3.26  and sold to the state at a tax judgment sale is one year from 
  3.27  the date of sale. 
  3.28     The period of redemption for all real property constituting 
  3.29  a mixed municipal solid waste disposal facility that is a 
  3.30  qualified facility under section 115B.39, subdivision 1, is one 
  3.31  year from the date of the sale to the state of Minnesota. 
  3.32     The period of redemption for all other lands sold to the 
  3.33  state at a tax judgment sale shall be five years from the date 
  3.34  of sale, except that the period of redemption for nonhomesteaded 
  3.35  agricultural land as defined in section 273.13, subdivision 23, 
  3.36  paragraph (b), shall be two years from the date of sale if at 
  4.1   that time that property is owned by a person who owns one or 
  4.2   more parcels of property on which taxes are delinquent, and the 
  4.3   delinquent taxes are more than 25 percent of the prior year's 
  4.4   school district levy. 
  4.5      Sec. 4.  Minnesota Statutes 2000, section 282.01, 
  4.6   subdivision 1, is amended to read: 
  4.7      Subdivision 1.  [CLASSIFICATION AS CONSERVATION OR 
  4.8   NONCONSERVATION.] It is the general policy of this state to 
  4.9   encourage the best use of tax-forfeited lands, recognizing that 
  4.10  some lands in public ownership should be retained and managed 
  4.11  for public benefits while other lands should be returned to 
  4.12  private ownership.  Parcels of land becoming the property of the 
  4.13  state in trust under law declaring the forfeiture of lands to 
  4.14  the state for taxes must be classified by the county board of 
  4.15  the county in which the parcels lie as conservation or 
  4.16  nonconservation.  In making the classification the board shall 
  4.17  consider the present use of adjacent lands, the productivity of 
  4.18  the soil, the character of forest or other growth, accessibility 
  4.19  of lands to established roads, schools, and other public 
  4.20  services, their peculiar suitability or desirability for 
  4.21  particular uses and the suitability of the forest resources on 
  4.22  the land for multiple use, sustained yield management.  The 
  4.23  classification, furthermore, must encourage and foster a mode of 
  4.24  land utilization that will facilitate the economical and 
  4.25  adequate provision of transportation, roads, water supply, 
  4.26  drainage, sanitation, education, and recreation; facilitate 
  4.27  reduction of governmental expenditures; conserve and develop the 
  4.28  natural resources; and foster and develop agriculture and other 
  4.29  industries in the districts and places best suited to them. 
  4.30     In making the classification the county board may use 
  4.31  information made available by any office or department of the 
  4.32  federal, state, or local governments, or by any other person or 
  4.33  agency possessing pertinent information at the time the 
  4.34  classification is made.  The lands may be reclassified from time 
  4.35  to time as the county board considers necessary or desirable, 
  4.36  except for conservation lands held by the state free from any 
  5.1   trust in favor of any taxing district.  
  5.2      If the lands are located within the boundaries of an 
  5.3   organized town, with taxable valuation in excess of $20,000, or 
  5.4   incorporated municipality, the classification or 
  5.5   reclassification and sale must first be approved by the town 
  5.6   board of the town or the governing body of the municipality in 
  5.7   which the lands are located.  The town board of the town or the 
  5.8   governing body of the municipality is considered to have 
  5.9   approved the classification or reclassification and sale if the 
  5.10  county board is not notified of the disapproval of the 
  5.11  classification or reclassification and sale within 60 days of 
  5.12  the date the request for approval was transmitted to the town 
  5.13  board of the town or governing body of the municipality.  If the 
  5.14  town board or governing body desires to acquire any parcel lying 
  5.15  in the town or municipality by procedures authorized in this 
  5.16  section, it must file a written application with the county 
  5.17  board to withhold the parcel from public sale.  The application 
  5.18  must be filed within 60 days of the request for classification 
  5.19  or reclassification and sale.  The county board shall then 
  5.20  withhold the parcel from public sale for six months.  A 
  5.21  municipality or governmental subdivision shall pay maintenance 
  5.22  costs incurred by the county during the six-month period while 
  5.23  the property is withheld from public sale, provided the property 
  5.24  is not offered for public sale after the six-month period.  A 
  5.25  clerical error made by county officials does not serve to 
  5.26  eliminate the request of the town board or governing body if the 
  5.27  board or governing body has forwarded the application to the 
  5.28  county auditor.  If the town board or governing body of the 
  5.29  municipality fails to submit an application and a resolution of 
  5.30  the board or governing body to acquire the property within the 
  5.31  withholding period, the county may offer the property for sale 
  5.32  upon the expiration of the withholding period.  
  5.33     Sec. 5.  Minnesota Statutes 2000, section 282.241, is 
  5.34  amended to read: 
  5.35     282.241 [REPURCHASE AFTER FORFEITURE.] 
  5.36     Subdivision 1.  [REPURCHASE REQUIREMENTS.] The owner at the 
  6.1   time of forfeiture, or the owner's heirs, devisees, or 
  6.2   representatives, or any person to whom the right to pay taxes 
  6.3   was given by statute, mortgage, or other agreement, may 
  6.4   repurchase any parcel of land claimed by the state to be 
  6.5   forfeited to the state for taxes unless before the time 
  6.6   repurchase is made the parcel is sold under installment 
  6.7   payments, or otherwise, by the state as provided by law, or is 
  6.8   under mineral prospecting permit or lease, or proceedings have 
  6.9   been commenced by the state or any of its political subdivisions 
  6.10  or by the United States to condemn the parcel of land.  The 
  6.11  parcel of land may be repurchased for the sum of all delinquent 
  6.12  taxes and assessments computed under section 282.251, together 
  6.13  with penalties, interest, and costs, that accrued or would have 
  6.14  accrued if the parcel of land had not forfeited to the state.  
  6.15  Except for property which was homesteaded on the date of 
  6.16  forfeiture, repurchase is permitted during one year only from 
  6.17  the date of forfeiture, and in any case only after the adoption 
  6.18  of a resolution by the board of county commissioners determining 
  6.19  that by repurchase undue hardship or injustice resulting from 
  6.20  the forfeiture will be corrected, or that permitting the 
  6.21  repurchase will promote the use of the lands that will best 
  6.22  serve the public interest.  If the county board has good cause 
  6.23  to believe that a repurchase installment payment plan for a 
  6.24  particular parcel is unnecessary and not in the public interest, 
  6.25  the county board may require as a condition of repurchase that 
  6.26  the entire repurchase price be paid at the time of repurchase.  
  6.27  A repurchase is subject to any easement, lease, or other 
  6.28  encumbrance granted by the state before the repurchase, and if 
  6.29  the land is located within a restricted area established by any 
  6.30  county under Laws 1939, chapter 340, the repurchase must not be 
  6.31  permitted unless the resolution approving the repurchase is 
  6.32  adopted by the unanimous vote of the board of county 
  6.33  commissioners. 
  6.34     The person seeking to repurchase under this section shall 
  6.35  pay all maintenance costs incurred by the county auditor during 
  6.36  the time the property was tax-forfeited.  
  7.1      Subd. 2.  [ALTERNATIVE COMPUTATION OF REPURCHASE AMOUNT.] A 
  7.2   county board may by resolution establish an alternative method 
  7.3   of computing the repurchase amount under this subdivision for 
  7.4   property homesteaded at the time of forfeiture that has been in 
  7.5   forfeited status for more than ten years.  Equivalent taxes, 
  7.6   penalties, interest, and costs for each year the property was in 
  7.7   forfeiture status must be computed using the simple average of 
  7.8   the assessor's estimated market value at forfeiture and the 
  7.9   assessor's current estimated market value multiplied by the 
  7.10  class rates under current law and applying the current tax, 
  7.11  penalty, and interest rates.  Those amounts, plus any unpaid 
  7.12  special assessments reinstated and included in the purchase 
  7.13  price under section 282.251, including the penalties and 
  7.14  interest that accrued or would have accrued on the special 
  7.15  assessments, computed under current rates, are the repurchase 
  7.16  price.  The county assessor shall determine the current market 
  7.17  value and classification of the property.  
  7.18     Sec. 6.  [EFFECTIVE DATE.] 
  7.19     Sections 1 and 2 are effective the day following final 
  7.20  enactment for detachment and annexations requests approved by a 
  7.21  county board on or after that date.