SF 3482

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; creating a credit for land 
  1.3             donated for conservation purposes; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 290. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [290.0676] [CREDIT FOR LAND DONATED FOR 
  1.7   CONSERVATION PURPOSES.] 
  1.8      Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.9   section, "interest in real property" means a right in real 
  1.10  property, including, but not limited to, a fee simple, future 
  1.11  estate, mineral right, or easement, including a conservation 
  1.12  easement as provided in chapter 84C. 
  1.13     Subd. 2.  [CREDIT ALLOWED.] A taxpayer is allowed a credit 
  1.14  against the tax imposed by this chapter, in an amount equal to 
  1.15  50 percent of the fair market value of real property or an 
  1.16  interest in real property located in the state which is conveyed 
  1.17  for the purpose of open space, natural resource or biodiversity 
  1.18  conservation, historic preservation, or habitat protection. 
  1.19     Subd. 3.  [QUALIFICATION.] (a) To qualify for a credit 
  1.20  under this section, the taxpayer must unconditionally convey the 
  1.21  property for conservation or preservation purposes, in 
  1.22  perpetuity, to (1) the state of Minnesota or local government 
  1.23  conservation agency or (2) a private organization as provided in 
  1.24  section 501(c) of the Internal Revenue Code that: 
  1.25     (i) meets the requirements of section 509(a)(2) or 509(b) 
  2.1   of the Internal Revenue Code; or 
  2.2      (ii) meets the requirements of section 509(a)(3) of the 
  2.3   Internal Revenue Code and is controlled by an organization 
  2.4   described in section 509(a)(2) of the Internal Revenue Code.  
  2.5      (b) Dedications of real property for open space for the 
  2.6   purpose of fulfilling density requirements to obtain subdivision 
  2.7   or building permits shall not be considered as a qualified 
  2.8   donation under this section.  Dedications of a less-than-fee 
  2.9   interest in real property must qualify as a charitable deduction 
  2.10  under section 170(h) of the Internal Revenue Code. 
  2.11     (c) A taxpayer claiming a credit under this section may not 
  2.12  claim a credit or subtraction for state tax purposes under 
  2.13  another Minnesota law for costs related to the same donation. 
  2.14     Subd. 4.  [LIMITATION; CARRYOVER.] (a) The credit for the 
  2.15  taxable year shall not exceed the liability for tax or $100,000, 
  2.16  whichever is less. 
  2.17     (b) If the amount of the credit determined under this 
  2.18  section for any taxable year exceeds the limitation provided in 
  2.19  paragraph (a), the excess shall be a carryover to each of the 20 
  2.20  succeeding taxable years.  The entire amount of the excess 
  2.21  unused credit for the taxable year shall be carried first to the 
  2.22  earliest of the taxable years to which the credit may be carried 
  2.23  and then to each successive year to which the credit may be 
  2.24  carried.  The amount of the unused credit which may be added 
  2.25  under this paragraph shall not exceed the taxpayer's liability 
  2.26  for tax less the land donation credit for the taxable year. 
  2.27     (c) A qualified donation made in a tax year which the 
  2.28  credit under this section is claimed, shall not also be eligible 
  2.29  for treatment as a charitable contribution eligible for a 
  2.30  subtraction for state tax purposes. 
  2.31     Subd. 5.  [RULEMAKING.] (a) The commissioner of natural 
  2.32  resources shall adopt, by rule, requirements for land protection 
  2.33  that are necessary for donations to be considered and shall make 
  2.34  other rules necessary to carry out its responsibilities under 
  2.35  this section.  The commissioner of natural resources shall also 
  2.36  prepare, within five years of the effective date of this 
  3.1   section, a report to the legislature showing the lands protected 
  3.2   in Minnesota under this section. 
  3.3      (b) The commissioner of revenue, in consultation with the 
  3.4   commissioner of natural resources, shall make rules necessary to 
  3.5   administer the tax incentives provided for in this section and 
  3.6   shall prepare a report to the legislature, within five years of 
  3.7   the effective date of this section, showing the fiscal impact of 
  3.8   the credits claimed under this section. 
  3.9      Sec. 2.  [EFFECTIVE DATE.] 
  3.10     Section 1 is effective for taxable years beginning after 
  3.11  December 31, 1999.