<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to taxation; modifying the Minnesota rural preserve property tax <br />
         		<a id="pl.1.3"></a><var>1.3</var>program;amending Minnesota Statutes 2010, section 273.114, subdivisions 2, 5, <br />
         		<a id="pl.1.4"></a><var>1.4</var>6; repealing Minnesota Statutes 2010, section 273.114, subdivision 1.<br />
         		<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 273.114, subdivision 2, is amended to read:<br />
         		<a id="pl.1.7"></a><var>1.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Requirements.</b> Class 2a or 2b property that had been assessed properly <br />
         		<a id="pl.1.8"></a><var>1.8</var>classified under Minnesota Statutes 2006, section 273.111, or that is part of an agricultural <br />
         		<a id="pl.1.9"></a><var>1.9</var>homestead under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is <br />
         		<a id="pl.1.10"></a><var>1.10</var>entitled to valuation and tax deferment under this section if:<br />
         		<a id="pl.1.11"></a><var>1.11</var>(1) the land consists of at least ten acres;<br />
         		<a id="pl.1.12"></a><var>1.12</var>(2) a conservation assessment plan for the land must be prepared by an approved <br />
         		<a id="pl.1.13"></a><var>1.13</var>plan writer and implemented during the period in which the land is subject to valuation <br />
         		<a id="pl.1.14"></a><var>1.14</var>and deferment under this section;<br />
         		<a id="pl.1.15"></a><var>1.15</var>(3) the land must be enrolled for a minimum of eight years;<br />
         		<a id="pl.1.16"></a><var>1.16</var>(4) (2) there are no delinquent property taxes on the land; and<br />
         		<a id="pl.1.17"></a><var>1.17</var>(5) (3) the property is not also enrolled for valuation and deferment under section <br />
         		<a id="pl.1.18"></a><var>1.18</var>273.111 or 273.112, or chapter 290C or 473H.<br />
         		<a id="pl.1.19"></a><var>1.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.1.20"></a><var>1.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 273.114, subdivision 5, is amended to read:<br />
         		<a id="pl.1.21"></a><var>1.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Application </b><b>and covenant agreement</b><b>.</b> (a) Application for deferment <br />
         		<a id="pl.1.22"></a><var>1.22</var>of taxes and assessment under this section shall be filed by May 1 of the year prior to <br />
         		<a id="pl.1.23"></a><var>1.23</var>the year in which the taxes are payable. Any application filed under this subdivision <br />
         		<a id="pl.2.1"></a><var>2.1</var>and granted shall continue in effect for subsequent years until the termination of the <br />
         		<a id="pl.2.2"></a><var>2.2</var>covenant agreement under paragraph (b) property is withdrawn or no longer qualifies. The <br />
         		<a id="pl.2.3"></a><var>2.3</var>application must be filed with the assessor of the taxing district in which the real property <br />
         		<a id="pl.2.4"></a><var>2.4</var>is located on the form prescribed by the commissioner of revenue. Each application must <br />
         		<a id="pl.2.5"></a><var>2.5</var>include the most recent available aerial photograph or satellite image of the property <br />
         		<a id="pl.2.6"></a><var>2.6</var>provided by the Farm Service Agency of the United States Department of Agriculture or <br />
         		<a id="pl.2.7"></a><var>2.7</var>by the county geospatial information systems service that clearly delineates the land <br />
         		<a id="pl.2.8"></a><var>2.8</var>that is to be enrolled. The application form must contain a statement setting forth the <br />
         		<a id="pl.2.9"></a><var>2.9</var>consequences to the property owner of termination of qualification of property under the <br />
         		<a id="pl.2.10"></a><var>2.10</var>rural preserve program, together with a recommendation that land that is likely to be <br />
         		<a id="pl.2.11"></a><var>2.11</var>changed to a nonqualifying use during the period of enrollment should not be included in <br />
         		<a id="pl.2.12"></a><var>2.12</var>the application. The assessor may require proof by affidavit or otherwise that the property <br />
         		<a id="pl.2.13"></a><var>2.13</var>qualifies under subdivision 2.<br />
         		<a id="pl.2.14"></a><var>2.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The owner of the property must sign a covenant agreement that is filed with the <br />
         		<a id="pl.2.15"></a><var>2.15</var>county recorder and recorded in the county where the property is located. The covenant <br />
         		<a id="pl.2.16"></a><var>2.16</var>agreement must include all of the following:<br />
         		<a id="pl.2.17"></a><var>2.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) legal description of the area to which the covenant applies;<br />
         		<a id="pl.2.18"></a><var>2.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) name and address of the owner;<br />
         		<a id="pl.2.19"></a><var>2.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a statement that the land described in the covenant must be kept as rural preserve <br />
         		<a id="pl.2.20"></a><var>2.20</var>land, which meets the requirements of subdivision 2, for the duration of the covenant;<br />
         		<a id="pl.2.21"></a><var>2.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) a statement that the landowner may terminate the covenant agreement by <br />
         		<a id="pl.2.22"></a><var>2.22</var>notifying the county assessor in writing three years in advance of the date of proposed <br />
         		<a id="pl.2.23"></a><var>2.23</var>termination, provided that the notice of intent to terminate may not be given at any time <br />
         		<a id="pl.2.24"></a><var>2.24</var>before the land has been subject to the covenant for a period of five years;<br />
         		<a id="pl.2.25"></a><var>2.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) a statement that the covenant is binding on the owner or the owner's successor or <br />
         		<a id="pl.2.26"></a><var>2.26</var>assigns and runs with the land; and<br />
         		<a id="pl.2.27"></a><var>2.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as <br />
         		<a id="pl.2.28"></a><var>2.28</var>described in subdivision 2.<br />
         		<a id="pl.2.29"></a><var>2.29</var>(c) After a covenant under this section has been terminated, the land that had been <br />
         		<a id="pl.2.30"></a><var>2.30</var>subject to the covenant is ineligible for subsequent valuation under this section for a <br />
         		<a id="pl.2.31"></a><var>2.31</var>period of three years after the termination.<br />
         		<a id="pl.2.32"></a><var>2.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.2.33"></a><var>2.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 273.114, subdivision 6, is amended to read:<br />
         		<a id="pl.2.34"></a><var>2.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Additional taxes.</b> Upon termination of a covenant agreement in <br />
         		<a id="pl.2.35"></a><var>2.35</var>subdivision 5, paragraph (b), the land to which the covenant applied When real property <br />
         		<a id="pl.3.1"></a><var>3.1</var>which is being, or has been valued and assessed under this section no longer qualifies <br />
         		<a id="pl.3.2"></a><var>3.2</var>under subdivision 2, the portion no longer qualifying shall be subject to additional taxes <br />
         		<a id="pl.3.3"></a><var>3.3</var>in the amount equal to the difference between the taxes determined in accordance with <br />
         		<a id="pl.3.4"></a><var>3.4</var>subdivision 3 and the amount determined under subdivision 4, provided that the amount <br />
         		<a id="pl.3.5"></a><var>3.5</var>determined under subdivision 4 shall not be greater than it would have been had the <br />
         		<a id="pl.3.6"></a><var>3.6</var>actual bona fide sale price of the real property at an arm's-length transaction been used in <br />
         		<a id="pl.3.7"></a><var>3.7</var>lieu of the market value determined under subdivision 4. The additional taxes shall be <br />
         		<a id="pl.3.8"></a><var>3.8</var>extended against the property on the tax list for the current year, provided that no interest <br />
         		<a id="pl.3.9"></a><var>3.9</var>or penalties shall be levied on the additional taxes if timely paid and that the additional <br />
         		<a id="pl.3.10"></a><var>3.10</var>taxes shall only be levied with respect to the current year plus two prior years that the <br />
         		<a id="pl.3.11"></a><var>3.11</var>property has been valued and assessed under this section.<br />
         		<a id="pl.3.12"></a><var>3.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.3.13"></a><var>3.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. <b> REPEALER.</b><br />
         		<a id="pl.3.14"></a><var>3.14</var>Minnesota Statutes 2010, section 273.114, subdivision 1, is repealed.<br />
         		<a id="pl.3.15"></a><var>3.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		
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