1.1 	A bill for an act
1.2 	relating to taxes; modifying tax incentive payments for the Sustainable Forest 
1.3 	Incentive Act;amending Minnesota Statutes 2012, sections 290C.06; 290C.07.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2012, section 290C.06, is amended to read:
1.6 	290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; 
1.7 	MANAGED FOREST LAND TIMBERLAND.
1.8 	The commissioner shall annually calculate a statewide average estimated market 
1.9 	value per acre for class 2c managed forest land 2b timberland under section 273.13, 
1.10 	subdivision 23, paragraph (b).

1.11 	EFFECTIVE DATE. This section is effective for calculations made in 2014 and 
1.12 	thereafter.

1.13 	Sec. 2. Minnesota Statutes 2012, section 290C.07, is amended to read:
1.14 	290C.07 CALCULATION OF INCENTIVE PAYMENT.
1.15 	(a) An approved claimant under the sustainable forest incentive program is eligible 
1.16 	to receive an annual payment as provided in this section. The payment shall equal $7 per 
1.17 	acre for each acre enrolled in the sustainable forest incentive program.
1.18 	(b) The annual payment for each Social Security number or state or federal business 
1.19 	tax identification number must not exceed $100,000. For a claimant with no more than 
1.20 	1,920 acres enrolled, the payment shall be the greater of:
2.1 	(1) the difference between the property tax that would be paid on the land using the 
2.2 	previous year's statewide average total township tax rate and the class rate for class 2b 
2.3 	timberland under section 273.13, subdivision 23, paragraph (b), if the land were valued at:
2.4 	(i) the average statewide timberland market value per acre calculated under section 
2.5 	290C.06; and
2.6 	(ii) the average statewide timberland current use value per acre calculated under 
2.7 	section 290C.02, subdivision 5; or
2.8 	(2) two-thirds of the property tax amount determined by using the previous year's 
2.9 	statewide average total township tax rate, the estimated market value per acre as calculated 
2.10 	in section 290C.06, and the class rate for class 2b timberland under section 273.13, 
2.11 	subdivision 23, paragraph (b), provided that the payment shall be no less than $7 per acre 
2.12 	for each acre enrolled in the sustainable forest incentive program.
2.13 	(c) For a claimant with over 1,920 acres enrolled, the payment shall be $....... per 
2.14 	acre for each acre enrolled in the sustainable forest incentive program.

2.15 	EFFECTIVE DATE. This section is effective for calculations made in 2014 and 
2.16 	thereafter.