SF 1312

as introduced - 90th Legislature (2017 - 2018) Posted on 02/23/2017 09:46am

A bill for an act
relating to taxation; property; allowing property of less than ten acres to qualify
for the green acres program under certain conditions; amending Minnesota Statutes
2016, section 273.111, subdivision 3.

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

Section 1.

Minnesota Statutes 2016, section 273.111, subdivision 3, is amended to read:

Subd. 3.

Requirements.

(a) Real estate consisting of ten acres or more or a nursery or
greenhouse, and qualifying for classification as class 2a under section 273.13, shall be
entitled to valuation and tax deferment under this section if it is primarily devoted to
agricultural use, and either:

(1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the owner
or is real estate which is farmed with the real estate which contains the homestead property;
or

(2) has been in possession of the applicant, the applicant's spouse, parent, or sibling, or
any combination thereof, for a period of at least seven years prior to application for benefits
under the provisions of this section, or is real estate which is farmed with the real estate
which qualifies under this clause and is within four townships or cities or combination
thereof from the qualifying real estate; or

(3) is the homestead of an individual who is part of an entity described in paragraph deleted text begin (b) deleted text end new text begin
(c) new text end , clause (1), (2), or (3); or

(4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor,
partnership, or corporation which also owns the nursery or greenhouse operations on the
parcel or parcels, provided that only the acres used to produce nursery stock qualify for
treatment under this section.

(b) new text begin Real estate enrolled under this section may not be disqualified under the size
requirement of paragraph (a) if a portion of the real estate was sold or otherwise transferred
for use as public infrastructure or other public purpose, provided that the real estate used
for public purpose when combined with the real estate being farmed would be sufficient to
meet the size requirement.
new text end

new text begin (c) new text end Valuation of real estate under this section is limited to parcels owned by individuals
except for:

(1) a family farm entity or authorized farm entity regulated under section 500.24;

(2) an entity, not regulated under section 500.24, in which the majority of the members,
partners, or shareholders are related and at least one of the members, partners, or shareholders
either resides on the land or actively operates the land; and

(3) corporations that derive 80 percent or more of their gross receipts from the wholesale
or retail sale of horticultural or nursery stock.

The terms in this paragraph have the meanings given in section 500.24, where applicable.

deleted text begin (c) deleted text end new text begin (d) new text end Land that previously qualified for tax deferment under this section and no longer
qualifies because it is not primarily used for agricultural purposes but would otherwise
qualify under Minnesota Statutes 2006, section 273.111, subdivision 3, for a period of at
least three years will not be required to make payment of the previously deferred taxes,
notwithstanding the provisions of subdivision 9. Sale of the land prior to the expiration of
the three-year period requires payment of deferred taxes as follows: sale in the year the land
no longer qualifies requires payment of the current year's deferred taxes plus payment of
deferred taxes for the two prior years; sale during the second year the land no longer qualifies
requires payment of the current year's deferred taxes plus payment of the deferred taxes for
the prior year; and sale during the third year the land no longer qualifies requires payment
of the current year's deferred taxes. Deferred taxes shall be paid even if the land qualifies
pursuant to subdivision 11a. When such property is sold or no longer qualifies under this
paragraph, or at the end of the three-year period, whichever comes first, all deferred special
assessments plus interest are payable in equal installments spread over the time remaining
until the last maturity date of the bonds issued to finance the improvement for which the
assessments were levied. If the bonds have matured, the deferred special assessments plus
interest are payable within 90 days. The provisions of section 429.061, subdivision 2, apply
to the collection of these installments. Penalties are not imposed on any such special
assessments if timely paid.

deleted text begin (d) deleted text end new text begin (e) new text end Land that is enrolled in the reinvest in Minnesota program under sections 103F.501
to 103F.535, the federal Conservation Reserve Program as contained in Public Law 99-198,
or a similar state or federal conservation program qualifies for valuation and assessment
deferral under this section if it was in agricultural use before enrollment and, provided that,
in the case of land enrolled in the reinvest in Minnesota program, it is not subject to a
perpetual easement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and thereafter,
for taxes payable in 2018 and thereafter.
new text end