SF 2731

as introduced - 86th Legislature (2009 - 2010) Posted on 02/18/2010 03:25pm

A bill for an act
relating to taxation; providing a method for valuation of agricultural property in
the green acres program; modifying the Minnesota agricultural property tax law;
amending Minnesota Statutes 2009 Supplement, section 273.111, subdivision 4.

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

Section 1.

Minnesota Statutes 2009 Supplement, section 273.111, subdivision 4,
is amended to read:

Subd. 4.

Determination of value.

(a) The value of any real estate described
in subdivision 3 shall upon timely application by the owner, in the manner provided
in subdivision 8, be determined solely with reference to its appropriate agricultural
classification and value notwithstanding sections 272.03, subdivision 8, and 273.11.
Furthermore, the assessor shall not consider any added values resulting from
nonagricultural factors. In order to account for the presence of nonagricultural influences
that may affect the value of agricultural land, the commissioner of revenue shall, in
consultation with the Department of Applied Economics at the University of Minnesota,
develop a fair and uniform method of determining agricultural values the average
agricultural production value of agricultural land for each county in the state that are
consistent with this subdivision. The values must be calculated using the most recent
available county data for agricultural production, prices, production expenses, rent,
and investment return. The commissioner shall annually assign the resulting values
countywide average value to each county, and these values shall be used as the basis
for determining the agricultural value for all properties in the county qualifying for tax
deferment under this section. In determining the relative value of agricultural land for
each assessment district compared to the county average, the county assessor shall use soil
type and soil classification data from detailed and general soil surveys.

(b) In the case of property qualifying for tax deferment only under subdivision 3a,
the assessor shall not consider the presence of commercial, industrial, residential, or
seasonal recreational land use influences in determining the value for ad valorem tax
purposes provided that in no case shall the value exceed the value prescribed by the
commissioner of revenue for class 2a tillable property in that county.

EFFECTIVE DATE.

This section is effective for taxes payable in 2011 and
thereafter.