2001 Minnesota Statutes

CHAPTER 290C. Sustainable forest resource management incentive program

     290C.01 Purpose. 

    It is the policy of this state to promote sustainable 
 forest resource management on the state's public and private 
 lands.  Recognizing that private forests comprise approximately 
 one-half of the state forest land resources, that healthy and 
 robust forest land provides significant benefits to the state of 
 Minnesota, and that ad valorem property taxes represent a 
 significant annual cost that can discourage long-term forest 
 management investments, this chapter, hereafter referred to as 
 the "Sustainable Forest Incentive Act," is enacted to encourage 
 the state's private forest landowners to make a long-term 
 commitment to sustainable forest management. 

    HIST: 1Sp2001 c 5 art 8 s 5 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 5, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 5, the 
*effective date.

     290C.02 Definitions. 

    Subdivision 1.    Application.  When used in sections 
 290C.01 to 290C.11, the terms in this section have the meanings 
 given them. 

    Subd. 2.    Approved plan writers.  "Approved plan 
 writers" are natural resource professionals who are 
 self-employed, employed by private companies or individuals, 
 nonprofit organizations, local units of government, or public 
 agencies, and who are approved by the commissioner of natural 
 resources.  Persons determined to be certified foresters by the 
 Society of American Foresters shall be deemed to meet the 
 standards required under this subdivision.  The commissioner of 
 natural resources shall issue a unique identification number to 
 each approved planner. 

    Subd. 3.    Claimant.  "Claimant" means a person, as 
 that term is defined in section 290.01, subdivision 2, who owns 
 forest land in Minnesota and files an application authorized by 
 the Sustainable Forest Incentive Act.  No more than one claimant 
 is entitled to a payment under this chapter with respect to any 
 tract, parcel, or piece of land enrolled under this chapter.  
 When enrolled forest land is owned by two or more persons, the 
 owners must determine between them which person may claim the 
 payments provided under sections 290C.01 to 290C.11. 

    Subd. 4.    Commissioner.  "Commissioner" means the 
 commissioner of revenue. 

    Subd. 5.    Current use value.  "Current use value" 
 means the statewide average annual income per acre, multiplied 
 by 90 percent and divided by the capitalization rate determined 
 under subdivision 9.  The statewide net annual income shall be a 
 weighted average based on the most recent data as of July 1 of 
 the computation year on stumpage prices and annual tree growth 
 rates and acreage by cover type provided by the department of 
 natural resources and the United States Department of 
 Agriculture Forest Service North Central Research Station. 

    Subd. 6.    Forest land.  "Forest land" means land 
 containing a minimum of 20 contiguous acres for which the owner 
 has implemented a forest management plan that was prepared or 
 updated within the past ten years by an approved plan writer.  
 For purposes of this subdivision, acres are considered to be 
 contiguous even if they are separated by a road, waterway, 
 railroad track, or other similar intervening property.  At least 
 50 percent of the contiguous acreage must meet the definition of 
 forest land in section 88.01, subdivision 7.  For the purposes 
 of sections 290C.01 to 290C.11, forest land does not include (i) 
 land used for residential or agricultural purposes, (ii) land 
 enrolled in the reinvest in Minnesota program, a state or 
 federal conservation reserve or easement reserve program under 
 sections 103F.501 to 103F.531, the Minnesota agricultural 
 property tax law under section 273.111, or land subject to 
 agricultural land preservation controls or restrictions as 
 defined in section 40A.02 or under the Metropolitan Agricultural 
 Preserves Act under chapter 473H, or (iii) land improved with a 
 structure, pavement, sewer, campsite, or any road, other than a 
 township road, used for purposes not prescribed in the forest 
 management plan. 

    Subd. 7.    Forest management plan.  "Forest management 
 plan" means a written document providing a framework for 
 site-specific healthy, productive, and sustainable forest 
 resources.  A forest management plan must include at least the 
 following:  (i) owner-specific forest management goals for the 
 property; (ii) a reliable field inventory of the individual 
 forest cover types, their age, and density; (iii) a description 
 of the soil type and quality; (iv) an aerial photo and/or map of 
 the vegetation and other natural features of the property 
 clearly indicating the boundaries of the property and of the 
 forest land; (v) the proposed future conditions of the property; 
 (vi) prescriptions to meet proposed future conditions of the 
 property; (vii) a recommended timetable for implementing the 
 prescribed activities; and (viii) a legal description of the 
 parcels encompassing the parcels included in the plan.  All 
 management activities prescribed in a plan must be in accordance 
 with the recommended timber harvesting and forest management 
 guidelines.  The commissioner of natural resources shall provide 
 a framework for plan content and updating and revising plans. 

    Subd. 8.    Timber harvesting and forest management 
 guidelines.  "Timber harvesting and forest management 
 guidelines" means guidelines developed under section 89A.05 and 
 adopted by the Minnesota forest resources council in 1998. 

    Subd. 9.    Capitalization rate.  By July 1 of each 
 year, the commissioner shall determine a statewide 
 capitalization rate for use under this chapter.  The rate shall 
 be the average annual effective interest rate for St. Paul on 
 new loans under the Farm Credit Bank system calculated under 
 section 2032A(e)(7)(A) of the Internal Revenue Code. 

    HIST: 1Sp2001 c 5 art 8 s 6 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 6, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001 
*First Special Session chapter 5, article 8, section 6, the 
*effective date.

     290C.03 Eligibility requirements. 

    (a) Property may be enrolled in the sustainable forest 
 incentive program under this chapter if all of the following 
 conditions are met: 

    (1) property consists of at least 20 contiguous acres and 
 at least 50 percent of the land must meet the definition of 
 forest land in section 88.01, subdivision 7, during the 
 enrollment; 

    (2) a forest management plan for the property must be 
 prepared by an approved plan writer and implemented during the 
 period in which the land is enrolled; 

    (3) timber harvesting and forest management guidelines must 
 be used in conjunction with any timber harvesting or forest 
 management activities conducted on the land during the period in 
 which the land is enrolled; 

    (4) the property must be enrolled for a minimum of eight 
 years; 

    (5) there are no delinquent property taxes on the property; 
 and 

    (6) claimants enrolling more than 1,920 acres in the 
 sustainable forest incentive program must allow year-round, 
 nonmotorized access to fish and wildlife resources on enrolled 
 land except within one-fourth mile of a permanent dwelling or 
 during periods of high fire hazard as determined by the 
 commissioner of natural resources. 

    (b) Claimants required to allow access under paragraph (a), 
 clause (6), do not by that action: 

    (1) extend any assurance that the land is safe for any 
 purpose; 

    (2) confer upon the person the legal status of an invitee 
 or licensee to whom a duty of care is owed; or 

    (3) assume responsibility for or incur liability for any 
 injury to the person or property caused by an act or omission of 
 the person. 

    HIST: 1Sp2001 c 5 art 8 s 7 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 7, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 7, the 
*effective date.

     290C.04 Applications. 

    (a) A landowner may apply to enroll forest land for the 
 sustainable forest incentive program under this chapter.  The 
 claimant must complete, sign, and submit an application to the 
 commissioner by September 30 in order for the land to become 
 eligible beginning in the next year.  The application shall be 
 on a form prescribed by the commissioner and must include the 
 information the commissioner deems necessary.  At a minimum, the 
 application must show the following information for the land and 
 the claimant:  (i) the claimant's social security number or 
 state or federal business tax registration number and date of 
 birth, (ii) the claimant's address, (iii) the claimant's 
 signature, (iv) the county's parcel identification numbers for 
 the tax parcels that completely contain the claimant's forest 
 land that is sought to be enrolled, (v) the number of acres 
 eligible for enrollment in the program, (vi) the approved plan 
 writer's signature and identification number, and (vii) proof, 
 in a form specified by the commissioner, that the claimant has 
 executed and acknowledged in the manner required by law for a 
 deed, and recorded, a covenant that the land is not and shall 
 not be developed in a manner inconsistent with the requirements 
 and conditions of this chapter.  The covenant shall state in 
 writing that the covenant is binding on the claimant and the 
 claimant's successor or assignee, and that it runs with the land 
 for a period of not less than eight years.  The commissioner 
 shall specify the form of the covenant and provide copies upon 
 request.  The covenant must include a legal description that 
 encompasses all the forest land that the claimant wishes to 
 enroll under this section or the certificate of title number for 
 that land if it is registered land. 

    (b) In all cases, the commissioner shall notify the 
 claimant within 90 days after receipt of a completed application 
 that either the land has or has not been approved for enrollment.
 A claimant whose application is denied may appeal the denial as 
 provided in section 290C.11, paragraph (a). 

    (c) Within 90 days after the denial of an application, or 
 within 90 days after the final resolution of any appeal related 
 to the denial, the commissioner shall execute and acknowledge a 
 document releasing the land from the covenant required under 
 this chapter.  The document must be mailed to the claimant and 
 is entitled to be recorded. 

    (d) The social security numbers collected from individuals 
 under this section are private data as provided in section 13.49.
 The state or federal business tax registration number and date 
 of birth data collected under this section are also private data 
 but may be shared with county assessors for purposes of tax 
 administration and with county treasurers for purposes of the 
 revenue recapture under chapter 270A. 

    HIST: 1Sp2001 c 5 art 8 s 8 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 8, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 8, the 
*effective date.

     290C.05 Annual certification. 

    On or before July 1 of each year, beginning with the year 
 after the claimant has received an approved application, the 
 commissioner shall send each claimant enrolled under the 
 sustainable forest incentive program a certification form.  The 
 claimant must sign the certification, attesting that the 
 requirements and conditions for continued enrollment in the 
 program are currently being met, and must return the signed 
 certification form to the commissioner by August 15 of that same 
 year.  Failure to return an annual certification form by the due 
 date shall result in removal of the lands from the provisions of 
 the sustainable forest incentive program, and the imposition of 
 any applicable removal penalty.  The claimant may appeal the 
 removal and any associated penalty according to the procedures 
 and within the time allowed under this chapter. 

    HIST: 1Sp2001 c 5 art 8 s 9 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 9, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 9, the 
*effective date.

     290C.06 Calculation of average estimated market value; 
  timberland. 

    The commissioner shall annually calculate a statewide 
 average estimated market value per acre for class 2b timberland 
 under section 273.13, subdivision 23, paragraph (b). 

    HIST: 1Sp2001 c 5 art 8 s 10 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 10, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 10, the 
*effective date.

     290C.07 Calculation of incentive payment. 

    An approved claimant under the sustainable forest incentive 
 program is eligible to receive an annual payment.  The payment 
 shall equal the greater of: 

    (1) the difference between the property tax that would be 
 paid on the property using the previous year's statewide average 
 total township tax rate and the class rate for class 2b 
 timberland under section 273.13, subdivision 23, paragraph (b), 
 if the property were valued at (i) the average statewide 
 timberland market value per acre calculated under section 
 290C.06, and (ii) the average statewide timberland current use 
 value per acre calculated under section 290C.02, subdivision 5; 

    (2) two-thirds of the property tax amount determined by 
 using the previous year's statewide average total township tax 
 rate, the estimated market value per acre as calculated in 
 section 290C.06, and the class rate for 2b timberland under 
 section 273.13, subdivision 23, paragraph (b); or 

    (3) $1.50 per acre for each acre enrolled in the 
 sustainable forest incentive program. 

    HIST: 1Sp2001 c 5 art 8 s 11 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 11, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 11, the 
*effective date.

     290C.08 Annual incentive payment; appropriation. 

    Subdivision 1.    Annual payment.  An incentive payment 
 for each acre of enrolled land will be made annually to each 
 claimant in the amount determined under section 290C.07.  The 
 incentive payment shall be paid on or before October 1 each year 
 based on the certifications due August 15 of that year.  
 Interest at the annual rate determined under section 270.75 
 shall be included with any incentive payment not paid by the 
 later of October 1 of the year the certification was due, or 45 
 days after the completed certification was returned or filed if 
 the commissioner accepts a certification filed after August 15 
 of the taxes payable year as the resolution of an appeal. 

    Subd. 2.    Appropriation.  The amount necessary to make 
 the payments under this section is annually appropriated to the 
 commissioner from the general fund. 

    HIST: 1Sp2001 c 5 art 8 s 12 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 12, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 12, the 
*effective date.

     290C.09 Removal for property tax delinquency. 

    The commissioner shall immediately remove any property 
 enrolled in the sustainable forest incentive program for which 
 taxes are determined to be delinquent as provided in chapter 279 
 and shall notify the claimant of such action.  Lands terminated 
 from the sustainable forest incentive program under this section 
 are not entitled to any payments provided in this chapter and 
 are subject to removal penalties prescribed in section 290C.11.  
 The claimant has 60 days from the receipt of notice from the 
 commissioner under this section to pay the delinquent taxes.  If 
 the delinquent taxes are paid within this 60-day period, the 
 lands shall be reinstated in the program as if they had not been 
 withdrawn and without the payment of a penalty. 

    HIST: 1Sp2001 c 5 art 8 s 13 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 13, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 13, the 
*effective date.

     290C.10 Withdrawal procedures. 

    An approved claimant under the sustainable forest incentive 
 program for a minimum of four years may notify the commissioner 
 of the intent to terminate enrollment.  Within 90 days of 
 receipt of notice to terminate enrollment, the commissioner 
 shall inform the claimant in writing, acknowledging receipt of 
 this notice and indicating the effective date of termination 
 from the sustainable forest incentive program.  Termination of 
 enrollment in the sustainable forest incentive program occurs on 
 January 1 of the fifth calendar year that begins after receipt 
 by the commissioner of the termination notice.  After the 
 commissioner issues an effective date of termination, a claimant 
 wishing to continue the property's enrollment in the sustainable 
 forest incentive program beyond the termination date must apply 
 for enrollment as prescribed in section 290C.04.  A claimant who 
 withdraws a parcel of land from this program may not reenroll 
 the parcel for a period of three years.  Within 90 days after 
 the termination date, the commissioner shall execute and 
 acknowledge a document releasing the land from the covenant 
 required under this chapter.  The document must be mailed to the 
 claimant and is entitled to be recorded.  The commissioner may 
 allow early withdrawal from the Sustainable Forest Incentive Act 
 without penalty in cases of condemnation for a public purpose 
 notwithstanding the provisions of this section. 

    HIST: 1Sp2001 c 5 art 8 s 14 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 14, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 14, the 
*effective date.

     290C.11 Penalties for removal. 

    (a) If the commissioner determines that property enrolled 
 in the sustainable forest incentive program is in violation of 
 the conditions for enrollment as specified in section 290C.03, 
 the commissioner shall notify the claimant of the intent to 
 remove all enrolled land from the sustainable forest incentive 
 program.  The claimant has 60 days to appeal this determination. 
 The appeal must be made in writing to the commissioner, who 
 shall, within 60 days, notify the claimant as to the outcome of 
 the appeal.  Within 60 days after the commissioner denies an 
 appeal, or within 120 days after the commissioner received a 
 written appeal if the commissioner has not made a determination 
 in that time, the owner may appeal to tax court under chapter 
 271 as if the appeal is from an order of the commissioner. 

    (b) If the commissioner determines the property is to be 
 removed from the sustainable forest incentive program, the 
 claimant is liable for payment to the commissioner in the amount 
 equal to the payments received under this chapter for the 
 previous four-year period, plus interest.  The claimant has 90 
 days to satisfy the payment for removal of land from the 
 sustainable forest incentive program under this section.  If the 
 penalty is not paid within the 90-day period under this 
 paragraph, the commissioner shall certify the amount to the 
 county auditor for collection as a part of the general ad 
 valorem real property taxes on the land in the following taxes 
 payable year.  

    HIST: 1Sp2001 c 5 art 8 s 15 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 5, article 8, section 15, is effective for taxes 
*levied in 2002, payable in 2003, and thereafter.  Laws 2001, 
*First Special Session chapter 5, article 8, section 15, the 
*effective date.