SF 960

as introduced - 94th Legislature (2025 - 2026) Posted on 02/10/2025 06:31pm

A bill for an act
relating to taxation; property; establishing the agricultural riparian buffer property
tax exemption; requiring reimbursement to taxing jurisdictions; amending
Minnesota Statutes 2024, sections 272.02, by adding a subdivision; 273.1392;
proposing coding for new law in Minnesota Statutes, chapter 272.

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

Section 1.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision
to read:

new text begin Subd. 106. new text end

new text begin Agricultural riparian buffer. new text end

new text begin (a) A riparian buffer or buffer, as defined in
section 103F.48, that is located on class 2a and 2b property under section 273.13, subdivision
23, is exempt, provided that the landowner is in compliance with the requirements of section
103F.48.
new text end

new text begin (b) A taxpayer requesting exemption of all or a portion of any real property used as a
riparian buffer must submit an application to the county assessor. The commissioner of
revenue, in consultation with the Board of Water and Soil Resources, must prescribe the
form and manner of the application. The county assessor and local soil and water conservation
district must determine the portion of the parcel that contains a riparian buffer under section
103F.48. The local soil and water conservation district must certify eligible land to the
county by November 15 of the year prior to each assessment year. A local soil and water
conservation district must annually notify the county assessor of any landowner who is not
in compliance with the requirements of section 103F.48. If a landowner is no longer in
compliance with the requirements of this subdivision, the county assessor must remove the
exemption on the next January 2 assessment date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026
and thereafter.
new text end

Sec. 2.

new text begin [272.0214] AGRICULTURAL RIPARIAN BUFFER EXEMPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Certification. new text end

new text begin For land qualifying for an exemption under section 272.02,
subdivision 106, the county auditor must certify to the commissioner of revenue the
information necessary for the commissioner to determine the reimbursements made under
subdivision 3. The county auditor must certify the information for each taxes payable year
as part of the data required under section 270C.85, subdivision 2. The county auditor must
also certify any prior-year adjustments as part of the data required under section 270C.85,
subdivision 2. The commissioner must review the certifications for accuracy and may make
any changes deemed necessary or return the certification to the county auditor for correction.
new text end

new text begin Subd. 2. new text end

new text begin Calculation. new text end

new text begin The commissioner of revenue shall calculate the reimbursement
amounts attributable to the exemption under section 272.02, subdivision 106, for each local
taxing district based on the information certified under subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Payment. new text end

new text begin (a) The commissioner of revenue shall reimburse each local taxing
jurisdiction, other than school districts, for the gross property tax amount attributed to the
exemption under section 272.02, subdivision 106, in two equal installments on October 31
and December 26 of the taxes payable year for which the exemptions are granted, including
in each payment the prior-year adjustments certified under section 270C.85, subdivision 2,
for that taxes payable year.
new text end

new text begin (b) The commissioner of revenue shall certify the total of the reimbursements attributed
to the exemption under section 272.02, subdivision 106, for each taxes payable year within
each school district to the commissioner of education. The commissioner of education must
pay the reimbursement amounts to each school district as provided in section 273.1392.
new text end

new text begin (c) The reimbursement to each local taxing jurisdiction under this subdivision must be
equal to the reduction in gross property tax payable to each local taxing jurisdiction resulting
from the exemption under section 272.02, subdivision 106.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by this
section to taxing jurisdictions other than school districts is annually appropriated from the
general fund to the commissioner of revenue. An amount sufficient to make the payments
required by this section for school districts is annually appropriated from the general fund
to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2024, section 273.1392, is amended to read:

273.1392 PAYMENT; SCHOOL DISTRICTS.

The amounts of new text begin agricultural riparian buffer reimbursements under section 272.0214;
new text end bovine tuberculosis credit reimbursements under section 273.113; conservation tax credits
under section 273.119; disaster or emergency reimbursement under sections 273.1231 to
273.1235; agricultural credits under sections 273.1384 and 273.1387; aids and credits under
section 273.1398; enterprise zone property credit payments under section 469.171;
metropolitan agricultural preserve reduction under section 473H.10; and electric generation
transition aid under section 477A.24 for school districts, shall be certified to the Department
of Education by the Department of Revenue. The amounts so certified shall be paid according
to section 127A.45, subdivisions 9, 10, and 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with fiscal year 2027.
new text end