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HF 75

as introduced - 91st Legislature (2019 - 2020) Posted on 01/14/2019 02:00pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/14/2019

Current Version - as introduced

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A bill for an act
relating to taxation; property taxes; real property transfers of conservation land;
conservation easements; amending Minnesota Statutes 2018, sections 84C.02;
272.01, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 84C.

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

Section 1.

Minnesota Statutes 2018, section 84C.02, is amended to read:


84C.02 CREATION, CONVEYANCE, ACCEPTANCE, AND DURATION.

(a) Except as otherwise provided in this chapter, a conservation easement may be created,
conveyed, recorded, assigned, released, modified, terminated, or otherwise altered or affected
in the same manner as other easements.

(b) No right or duty in favor of or against a holder and no right in favor of a person
having a third-party right of enforcement arises under a conservation easement before its
acceptance by the holder and a recordation of the acceptance.

(c) Except as provided in new text beginparagraph (e) or new text endsection 84C.03, clause (b), a conservation
easement is unlimited in duration unless the instrument creating it otherwise provides.

(d) An interest in real property in existence at the time a conservation easement is created
is not impaired by it unless the owner of the interest is a party to the conservation easement
or consents to it.

new text begin (e) The duration of a conservation easement that burdens 500 acres or less may not
exceed 15 years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for conservation easements and interests
conveyed on or after the day following final enactment.
new text end

Sec. 2.

new text begin [84C.06] DELINQUENT REAL ESTATE TAXES; BURDENED LAND.
new text end

new text begin (a) If the taxes are deemed delinquent on the real property burdened by a conservation
easement subject to the duration limit in section 84C.02, paragraph (e), the easement
terminates and must be released.
new text end

new text begin (b) After the taxes are deemed delinquent on the real property burdened by a conservation
easement subject to the duration limit in section 84C.02, paragraph (e), no payment for the
purchase of that easement may thereafter be made by the holder or the holder's successor
in interest, or any other person, to an owner of the interest in the real property burdened by
the easement, or the owner's successor in interest. Within 120 days from the date the taxes
are deemed delinquent, the owner of an interest in the real property burdened by the easement
must pay to the holder an amount equal to the amount of any payment made for the purchase
of that easement in the taxes payable year for which the taxes are deemed delinquent.
new text end

new text begin (c) If all payments for the purchase of a conservation easement have been made at the
time the taxes on the real property burdened by the easement are deemed delinquent but
before the easement under section 84C.02, paragraph (e), expires, then within 120 days
from the date the taxes are deemed delinquent, an owner of the interest in the real property
burdened by the easement must make a payment to the holder equal to the total amount paid
for the easement, divided by the number of years of the duration of the easement, multiplied
by the sum of the number of taxes payable years for which taxes are deemed delinquent
and the number of years remaining until the easement expires. For multiple owners, each
owner must pay a pro rata share of the amount determined under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for conservation easements and interests
conveyed on or after the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2018, section 272.01, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Acquisition of conservation property; taxation. new text end

new text begin Notwithstanding section
272.02, or any other law to the contrary, a tax is imposed on all or a portion of real property
that is initially acquired in fee by a nongovernmental organization for conservation purposes
using state funds and subsequently transferred to an agency. The tax is imposed until such
time as the agency sells, transfers, or otherwise disposes of the property. All provisions
related to the taxation of real property apply to the property taxed under this section as if
the nongovernmental organization is the owner of the property, including those provisions
related to delinquency, forfeiture, and the sale of tax-forfeited land except that the property
must be classified as 2b rural vacant land under section 273.13. No payment in lieu of taxes
must be made under sections 477A.10 to 477A.14 for property subject to tax under this
section. For purposes of this section, "agency" means an agency as defined in section 16B.01,
subdivision 2, and the Board of Trustees of the Minnesota State Colleges and Universities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for acquisitions made with state funds
on or after the day following final enactment.
new text end