Minnesota Session Laws - 1999, Regular Session

                             CHAPTER 112-H.F.No. 1 
                  An act relating to agricultural relief; providing for 
                  a payment to farmers at risk based on the acreage of 
                  agricultural use land; providing for an agricultural 
                  property tax refund for certain livestock producers; 
                  appropriating money. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [AGRICULTURAL ASSISTANCE IN 1999.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Acre" means an acre of effective agricultural use land 
        within the state of Minnesota as reported to the farm service 
        agency on form 156EZ. 
           (c) "Commissioner" means the commissioner of revenue. 
           (d) "Effective agricultural use land" means the land 
        suitable for growing an agricultural crop and excludes land 
        enrolled in the conservation reserve program established by 
        Minnesota Statutes, section 103F.515, or the water bank program 
        established by Minnesota Statutes, section 103F.601. 
           (e) "Farm" or "farm operation" means an agricultural 
        production operation with a unique farm number as reported on 
        form 156EZ to the farm service agency, which includes at least 
        40 acres of effective agricultural use land. 
           (f) "Farm operator" means a person who is identified as the 
        operator of a farm on form 156EZ filed with the farm service 
        agency. 
           (g) "Farm service agency" means the United States Farm 
        Service Agency. 
           (h) "Farmer" or "farmer at risk" means a person who 
        produces an agricultural crop or livestock and is reported to 
        the farm service agency as bearing a percentage of the risk for 
        the farm operation. 
           (i) "Livestock" means cattle, hogs, poultry, and sheep. 
           (j) "Livestock production facility" means a farm that has 
        produced at least $10,000 in sales of unprocessed livestock or 
        unprocessed dairy products as reported on schedule F or form 
        1065 or form 1120 or 1120S of the farmer's federal income tax 
        return for either taxable years beginning in calendar year 1997 
        or 1998. 
           (k) "Person" includes individuals, fiduciaries, estates, 
        trusts, partnerships, joint ventures, and corporations. 
           Subd. 2.  [PAYMENT TO FARMERS.] Every farm operator may 
        apply on a separate form for each farm that they operate to the 
        commissioner for payments as provided under this subdivision.  
        The payment shall be made to each farmer at risk for a farm 
        operation and shall equal $4, multiplied by the number of acres 
        of the farm operation, multiplied by the percentage of the risk 
        borne by that farmer for that farm operation.  If total payments 
        for a farm to all farmers at risk for that farm would exceed 
        $5,600, the payment to each farmer at risk shall be prorated so 
        that the total payments to all farmers at risk for that farm do 
        not exceed $5,600. 
           Applications shall be based on information reported to the 
        farm service agency for crop year 1998 by December 31, 1998.  
        The applications shall include the social security number or 
        federal employer identification number or a producer number 
        assigned by the farm service agency for each farmer and the farm 
        service agency farm number from form 156EZ.  The commissioner 
        shall prepare application forms for the payment and ensure that 
        they are available throughout the state.  The commissioner shall 
        make payments by June 30, 1999, to each eligible farmer who 
        applies by May 31, 1999, or within 30 days of the application if 
        the application is received after May 31, 1999.  In no case will 
        applications be accepted after September 30, 1999. 
           Subd. 3.  [LIVESTOCK PRODUCERS.] A farmer who owns and 
        operates a livestock production facility on 160 acres or less 
        may elect the agricultural property tax refund under 
        subdivisions 4 to 8 in lieu of the per acre payment under 
        subdivision 2.  To qualify, the farmer must apply for the refund 
        as provided in subdivisions 4 to 8.  The 40 acre minimum farm 
        size under subdivision 1 does not apply to eligibility under 
        subdivisions 4 to 8. 
           Subd. 4.  [REFUND.] The refund equals the full amount of 
        the property tax payment due and payable on May 15, 1999, on a 
        livestock production facility that is class 1b agricultural 
        homestead property or class 2a agricultural homestead property 
        as defined in Minnesota Statutes, section 273.13, excluding that 
        portion of the tax attributable to the house, garage, and 
        surrounding acre of land.  If a portion of the property was 
        leased for the agricultural production year, the refund amount 
        shall be prorated so that only the portion of the property which 
        was not leased for the agricultural production year qualifies 
        for the refund.  
           Subd. 5.  [CERTIFICATION.] The commissioner shall develop a 
        form by May 10, 1999, for use by the county auditors to 
        ascertain qualification for the refund under subdivisions 4 to 
        8.  The form shall require the property owner to certify (1) 
        that the owner operates a livestock production facility on 160 
        acres or less, and (2) the percentage of that property, if any, 
        that was leased to anyone for the agricultural production year.  
        Any person qualifying under subdivision 3 shall contact the 
        county auditor in the county where the livestock production 
        facility is located and shall file the required form with the 
        county auditor. 
           Subd. 6.  [VERIFICATION.] The county auditor shall 
        determine the amount of the refund for all qualifying properties 
        in the county for which the owner has applied under subdivision 
        5.  The county auditor shall notify all applicants of the amount 
        of the refund within 14 days of receipt of the application. 
           Subd. 7.  [CERTIFICATION AND PAYMENT.] Any person eligible 
        for the refund under subdivisions 4 to 8 shall send the 
        commissioner a copy of the certification that the taxpayer 
        received from the county auditor.  In no case will applications 
        be accepted after November 30, 1999.  The commissioner shall 
        issue a refund by July 15, 1999, to each qualifying taxpayer who 
        applied by June 15, 1999, or within 30 days of receipt of the 
        application if received after June 15, 1999. 
           Subd. 8.  [PROPERTY TAX REFUND.] Taxpayers benefiting from 
        the refund under subdivisions 4 to 8 must deduct the amount of 
        the refund from the net property taxes payable when applying for 
        a property tax refund under Minnesota Statutes 1998, section 
        290A.04, subdivision 2. 
           Subd. 9.  [ALTERNATE QUALIFICATION.] (a) If an agricultural 
        production operation does not meet the definition of a farm 
        under subdivision 1 solely because (1) the farm operator had not 
        filed a form 156EZ with the farm service agency, (2) there was 
        an error in the farm service agency's records, or (3) an 
        operator operates more than one farm and the acres of effective 
        agricultural use land of each farm is less than 40 acres, but 
        the combined acres of effective agricultural use land is at 
        least 40 acres, the commissioner may allow the farm operator to 
        apply for payment under subdivision 2 after providing such 
        information as the commissioner may require to determine the 
        number of acres that would be comparable to the effective 
        agricultural use land listed on form 156EZ. 
           (b) If the number of acres of effective agricultural use 
        land for crop year 1998 for a farm is greater than indicated in 
        the farm service agency's records, the commissioner may allow a 
        farm operator to apply for payment on the greater acreage after 
        providing such information as the commissioner may require. 
           (c) If a person who produced an agricultural crop or 
        livestock in 1998 and bore a portion of the risk for the farm 
        operation does not meet the definition of a farmer under 
        subdivision 1 solely because that information was not reported 
        to the farm service agency, or because there was an error in the 
        farm service agency's records, the commissioner may allow the 
        farmer to be included on an application for payment under 
        subdivision 2 after the farmer provides such information as the 
        commissioner may require to determine the farmer was at risk for 
        that farm. 
           Subd. 10.  [LIMIT.] No person may receive a payment under 
        subdivision 2 or a property tax refund under subdivisions 4 to 8 
        that exceeds $5,600. 
           Subd. 11.  [APPLICATION OF OTHER LAWS.] The payments under 
        subdivisions 2 and 7 are a "Minnesota tax law" for purposes of 
        Minnesota Statutes, section 270B.01, subdivision 8. 
           Subd. 12.  [REMEDIES.] A farmer denied a refund may appeal 
        that denial under Minnesota Statutes, section 289A.50, 
        subdivision 7. 
           Subd. 13.  [INTEREST.] Payments under subdivision 2 or 
        subdivisions 4 to 8 shall bear interest at the rate specified in 
        Minnesota Statutes, section 289A.55, subdivision 1, from the 
        later of the payment dates specified under subdivision 2 or 7 or 
        75 days after a complete payment application was filed with the 
        commissioner. 
           Subd. 14.  [PENALTIES.] If the commissioner determines that 
        claims for payments under subdivisions 2 and 7 are or were 
        excessive and were filed with fraudulent intent, the claim must 
        be disallowed in full.  If the claim has been paid, the amount 
        disallowed must be recovered by assessment and collection under 
        Minnesota Statutes, chapter 289A.  The assessment must be made 
        within two years after a check is cashed, but if cashing a check 
        constitutes theft under Minnesota Statutes, section 609.52, or 
        forgery under Minnesota Statutes, section 609.631, the 
        assessment may be made at any time.  The assessment may be 
        appealed administratively and judicially. 
           Sec. 2.  [APPROPRIATION.] 
           (a) The amount necessary to fund the payments required 
        under section 1, subdivisions 2 and 7, is appropriated in fiscal 
        year 1999 from the general fund to the commissioner of revenue.  
        This appropriation is available until June 30, 2000. 
           (b) $68,000 is appropriated in fiscal year 1999 to the 
        commissioner of revenue for distribution to counties for the 
        costs of administering section 1, subdivisions 4 to 8.  This 
        appropriation is available until June 30, 2000.  The 
        distribution to counties shall be based on the number of refunds 
        received under the provisions of section 1, subdivisions 4 to 8. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective the day following final 
        enactment. 
           Presented to the governor April 21, 1999 
           Became law without the governor's signature April 23, 1999