Bill Text: MN HF692 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Unimproved property defined for deferment purposes, assessment hearing related provisions reorganized, and conforming amendments made.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-14 - Second reading [HF692 Detail]
Download: Minnesota-2013-HF692-Introduced.html
1.2relating to special assessments; defining unimproved property for purposes of
1.3deferments; reorganizing provisions relating to the assessment hearing; making
1.4conforming amendments; amending Minnesota Statutes 2012, sections 273.111,
1.5subdivisions 3, 11; 273.114, subdivision 8; 429.061, subdivisions 1, 2, by adding
1.6subdivisions.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 273.111, subdivision 3, is amended to read:
1.9 Subd. 3. Requirements. (a) Real estate consisting of ten acres or more or a nursery
1.10or greenhouse, and qualifying for classification as class 2a under section273.13, shall be
1.11entitled to valuation and tax deferment under this section if it is primarily devoted to
1.12agricultural use, and either:
1.13 (1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the
1.14owner or is real estate which is farmed with the real estate which contains the homestead
1.15property; or
1.16 (2) has been in possession of the applicant, the applicant's spouse, parent, or sibling,
1.17or any combination thereof, for a period of at least seven years prior to application for
1.18benefits under the provisions of this section, or is real estate which is farmed with the
1.19real estate which qualifies under this clause and is within four townships or cities or
1.20combination thereof from the qualifying real estate; or
1.21 (3) is the homestead of an individual who is part of an entity described in paragraph
1.22(b), clause (1), (2), or (3); or
1.23 (4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor,
1.24partnership, or corporation which also owns the nursery or greenhouse operations on the
2.1parcel or parcels, provided that only the acres used to produce nursery stock qualify
2.2for treatment under this section.
2.3 (b) Valuation of real estate under this section is limited to parcels owned by
2.4individuals except for:
2.5 (1) a family farm entity or authorized farm entity regulated under section500.24 ;
2.6 (2) an entity, not regulated under section500.24 , in which the majority of the
2.7members, partners, or shareholders are related and at least one of the members, partners,
2.8or shareholders either resides on the land or actively operates the land; and
2.9 (3) corporations that derive 80 percent or more of their gross receipts from the
2.10wholesale or retail sale of horticultural or nursery stock.
2.11 The terms in this paragraph have the meanings given in section500.24 , where
2.12applicable.
2.13 (c) Land that previously qualified for tax deferment under this section and no longer
2.14qualifies because it is not primarily used for agricultural purposes but would otherwise
2.15qualify under Minnesota Statutes 2006, section273.111 , subdivision 3, for a period of at
2.16least three years will not be required to make payment of the previously deferred taxes,
2.17notwithstanding the provisions of subdivision 9. Sale of the land prior to the expiration
2.18of the three-year period requires payment of deferred taxes as follows: sale in the year
2.19the land no longer qualifies requires payment of the current year's deferred taxes plus
2.20payment of deferred taxes for the two prior years; sale during the second year the land
2.21no longer qualifies requires payment of the current year's deferred taxes plus payment of
2.22the deferred taxes for the prior year; and sale during the third year the land no longer
2.23qualifies requires payment of the current year's deferred taxes. Deferred taxes shall be
2.24paid even if the land qualifies pursuant to subdivision 11a. When such property is sold or
2.25no longer qualifies under this paragraph, or at the end of the three-year period, whichever
2.26comes first, all deferred special assessments plus interest are payable in equal installments
2.27spread over the time remaining until the last maturity date of the bonds issued to finance
2.28the improvement for which the assessments were levied. If the bonds have matured, the
2.29deferred special assessments plus interest are payable within 90 days. The provisions of
2.30section429.061, subdivision 2 2e , apply to the collection of these installments. Penalties
2.31are not imposed on any such special assessments if timely paid.
2.32 (d) Land that is enrolled in the reinvest in Minnesota program under sections
2.33103F.501
to
103F.535 , the federal Conservation Reserve Program as contained in Public
2.34Law 99-198, or a similar state or federal conservation program qualifies for valuation and
2.35assessment deferral under this section if it was in agricultural use before enrollment and,
3.1provided that, in the case of land enrolled in the reinvest in Minnesota program, it is not
3.2subject to a perpetual easement.
3.3EFFECTIVE DATE.This section is effective the day following final enactment.
3.4 Sec. 2. Minnesota Statutes 2012, section 273.111, subdivision 11, is amended to read:
3.5 Subd. 11. Special local assessments. The payment of special local assessments
3.6levied after June 1, 1967, for improvements made to any real property described in
3.7subdivision 3 together with the interest thereon shall, on timely application as provided
3.8in subdivision 8, be deferred as long as such property meets the conditions contained in
3.9subdivision 3 or 3a or is transferred to an agricultural preserve under sections473H.02
3.10to473H.17 . If special assessments against the property have been deferred pursuant to
3.11this subdivision, the governmental unit shall file with the county recorder in the county in
3.12which the property is located a certificate containing the legal description of the affected
3.13property and of the amount deferred. When such property no longer qualifies under
3.14subdivision 3 or 3a, all deferred special assessments plus interest shall be payable in
3.15equal installments spread over the time remaining until the last maturity date of the bonds
3.16issued to finance the improvement for which the assessments were levied. If the bonds
3.17have matured, the deferred special assessments plus interest shall be payable within 90
3.18days. The provisions of section429.061, subdivision 2 2e , apply to the collection of these
3.19installments. Penalty shall not be levied on any such special assessments if timely paid.
3.20EFFECTIVE DATE.This section is effective the day following final enactment.
3.21 Sec. 3. Minnesota Statutes 2012, section 273.114, subdivision 8, is amended to read:
3.22 Subd. 8. Special local assessments. The payment of special local assessments
3.23levied after June 1, 2011, for improvements made to any real property described in
3.24subdivision 1 together with the interest thereon shall, on timely application as provided
3.25in subdivision 6, be deferred as long as the property meets the conditions contained in
3.26this section. If special assessments against the property have been deferred pursuant to
3.27this subdivision, the governmental unit shall file with the county recorder in the county
3.28in which the property is located a certificate containing the legal description of the
3.29affected property and of the amount deferred. When the property no longer qualifies
3.30under subdivision 1, all deferred special assessments plus interest shall be payable in
3.31equal installments spread over the time remaining until the last maturity date of the bonds
3.32issued to finance the improvement for which the assessments were levied. If the bonds
3.33have matured, the deferred special assessments plus interest shall be payable within 90
4.1days. The provisions of section429.061, subdivision 2 2e , apply to the collection of these
4.2installments. A penalty shall not be levied on these special assessments if timely paid.
4.3This subdivision does not apply to special assessments levied at any time by a county or
4.4district court under chapter 116A or by a watershed district under chapter 103D.
4.5EFFECTIVE DATE.This section is effective the day following final enactment.
4.6 Sec. 4. Minnesota Statutes 2012, section 429.061, subdivision 1, is amended to read:
4.7 Subdivision 1. Calculation, notice. At any time after the expense incurred or to
4.8be incurred in making an improvement shall be calculated under the direction of the
4.9council, the council shall determine by resolution the amount of the total expense the
4.10municipality will pay, other than the amount, if any, which it will pay as a property owner,
4.11and the amount to be assessed.If a county proposes to assess within the boundaries of
4.12a city for a county state-aid highway or county highway, including curbs, gutters, and
4.13storm sewers, the resolution must include the portion of the cost proposed to be assessed
4.14within the city. The county shall forward the resolution to the city and it may not proceed
4.15with the assessment procedure nor may the county allocate any cost under this section
4.16for property within the city unless the city council adopts the resolution approving the
4.17assessment. Thereupon the clerk, with the assistance of the engineer or other qualified
4.18person selected by the council, shall calculate the proper amount to be specially assessed
4.19for the improvement against every assessable lot, piece or parcel of land, without regard
4.20to cash valuation, in accordance with the provisions of section429.051 . The proposed
4.21assessment roll shall be filed with the clerk and be open to public inspection. The clerk
4.22shall thereupon, under the council's direction, publish notice that the council will meet to
4.23consider the proposed assessment.Such The notice shall be published in the newspaper at
4.24least once and shall be mailed to the owner of each parcel described in the assessment
4.25roll. For the purpose of giving mailed notice under this subdivision, owners shall be
4.26those shown to be such on the records of the county auditor or, in any county where tax
4.27statements are mailed by the county treasurer, on the records of the county treasurer;
4.28but other appropriate records may be used for this purpose.Such The publication and
4.29mailing shall be no less than two weeks prior to such meeting of the council. Except as
4.30to the owners of tax-exempt property or property taxes on a gross earnings basis, every
4.31property owner whose name does not appear on the records of the county auditor or the
4.32county treasurer shall be deemed to have waived such mailed notice unless the owner has
4.33requested in writing that the county auditor or county treasurer, as the case may be, include
4.34the name on the records for such purpose.Such The notice shall state the date, time, and
4.35place of such meeting, the general nature of the improvement, the area proposed to be
5.1assessed, the total amount of the proposed assessment, that the proposed assessment roll is
5.2on the file with the clerk, and that written or oral objections thereto by any property owner
5.3will be considered. The notice must also state that no appeal may be taken as to the amount
5.4of any assessment adoptedpursuant to subdivision 2 under this section, unless a written
5.5objection signed by the affected property owner is filed with the municipal clerk prior to
5.6the assessment hearing or presented to the presiding officer at the hearing. The notice shall
5.7also state that an owner may appeal an assessment to district court pursuant to section
5.8429.081
by serving notice of the appeal upon the mayor or clerk of the municipality
5.9within 30 days after the adoption of the assessment and filing such notice with the district
5.10court within ten days after service upon the mayor or clerk. The notice shall also inform
5.11property owners of the provisions of sections435.193 to
435.195 and the existence of any
5.12deferment procedure established pursuant thereto in the municipality. In addition, the
5.13notice mailed to the owner must state in clear language the following information:
5.14(1) the amount to be specially assessed against that particular lot, piece, or parcel of
5.15land;
5.16(2) adoption by the council of the proposed assessment may be taken at the hearing;
5.17(3) the right of the property owner to prepay the entire assessment and the person to
5.18whom prepayment must be made;
5.19(4) whether partial prepayment of the assessment has been authorized by ordinance;
5.20(5) the time within which prepayment may be made without the assessment of
5.21interest; and
5.22(6) the rate of interest to be accrued if the assessment is not prepaid within the
5.23required time period.
5.24EFFECTIVE DATE.This section is effective the day following final enactment.
5.25 Sec. 5. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
5.26to read:
5.27 Subd. 1a. County assessment within city jurisdiction. If a county proposes to
5.28assess within the boundaries of a city for a county state-aid highway or county highway,
5.29including curbs, gutters, and storm sewers, the resolution must include the portion of the
5.30cost proposed to be assessed within the city. The county shall forward the resolution to the
5.31city and it may not proceed with the assessment procedure nor may the county allocate
5.32any cost under this section for property within the city unless the city council adopts
5.33the resolution approving the assessment.
5.34EFFECTIVE DATE.This section is effective the day following final enactment.
6.1 Sec. 6. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
6.2to read:
6.3 Subd. 1b. When objections must be filed. No appeal may be taken as to the amount
6.4of any assessment adopted under this section unless written objection signed by the
6.5affected property owner is filed with the municipal clerk prior to the assessment hearing
6.6or presented to the presiding officer at the hearing. All objections to the assessments
6.7not received at the assessment hearing in the manner prescribed by this subdivision are
6.8waived, unless the failure to object at the assessment hearing is due to a reasonable cause.
6.9EFFECTIVE DATE.This section is effective the day following final enactment.
6.10 Sec. 7. Minnesota Statutes 2012, section 429.061, subdivision 2, is amended to read:
6.11 Subd. 2. Hearing; consideration of objections; adoption; interest. (a) At such
6.12 the meetingor at any adjournment thereof on the proposed assessment, the council shall
6.13hear and pass upon all objections to the proposed assessment, whether presented orally
6.14or in writing. The council may amend by resolution the proposed assessment as to any
6.15parceland by resolution adopt the same as the special assessment against the lands named
6.16in the assessment roll.Notice of any adjournment of the hearing shall be adequate if the
6.17minutes of the meeting so adjourned show the time and place when and where the hearing
6.18is to be continued.
6.19(b) The council may continue the hearing at a later date. Notice of the continuance
6.20is adequate if the council meeting minutes state the time and place where the hearing
6.21will be continued. The council may consider any objection to the amount of a proposed
6.22assessment as to a specific parcel of land atan adjourned the continued hearing upon
6.23further notice to the affected property owner as it deems advisable. At theadjourned
6.24 continued hearing the council or a committee of it may hear further written or oral
6.25testimony on behalf of the objecting property owner and may consider further written or
6.26oral testimony from appropriate city officials and other witnesses as to the amount of the
6.27assessment. The council or committee shall prepare a record of the proceedings at the
6.28adjourned continued hearing and written findings as to the amount of the assessment. The
6.29amount of the assessment as finally determined by the council shall become a part of the
6.30adopted assessment roll.No appeal may be taken as to the amount of any assessment
6.31adopted under this section unless written objection signed by the affected property owner
6.32is filed with the municipal clerk prior to the assessment hearing or presented to the
6.33presiding officer at the hearing. All objections to the assessments not received at the
6.34assessment hearing in the manner prescribed by this subdivision are waived, unless the
6.35failure to object at the assessment hearing is due to a reasonable cause.
7.1If the adopted assessment differs from the proposed assessment as to any particular
7.2lot, piece, or parcel of land, the clerk must mail to the owner a notice stating the amount of
7.3the adopted assessment. Owners must also be notified by mail of any changes adopted
7.4by the council in interest rates or prepayment requirements from those contained in the
7.5notice of the proposed assessment.
7.6The assessment, with accruing interest, shall be a lien upon all private and public
7.7property included therein, from the date of the resolution adopting the assessment,
7.8concurrent with general taxes; but the lien shall not be enforceable against public property
7.9as long as it is publicly owned, and during such period the assessment shall be recoverable
7.10from the owner of such property only in the manner and to the extent provided in section
7.11435.19. Unless otherwise provided in the resolution, all assessments shall be payable in
7.12equal annual installments extending over such period, not exceeding 30 years, as the
7.13resolution determines, payable on the first Monday in January in each year, but the number
7.14of installments need not be uniform for all assessments included in a single assessment
7.15roll if a uniform criterion for determining the number of installments is provided by
7.16the resolution. Assessments on property located in a targeted neighborhood as defined
7.17in Laws 1987, chapter 386, article 6, section 4, may be payable in variable annual
7.18installments if the resolution provides for a variable payment. The first installment of each
7.19assessment shall be included in the first tax rolls completed after its adoption and shall be
7.20payable in the same year as the taxes contained therein; except that the payment of the
7.21first installment of any assessment levied upon unimproved property may be deferred
7.22until a designated future year, or until the platting of the property or the construction of
7.23improvements thereon, upon such terms and conditions and based upon such standards
7.24and criteria as may be provided by resolution of the council. If special assessments against
7.25the property have been deferred pursuant to this subdivision, the governmental unit shall
7.26record with the county recorder in the county in which the property is located a certificate
7.27containing the legal description of the affected property and of the amount deferred. In any
7.28event, every assessment the payment of which is so deferred, when it becomes payable,
7.29shall be divided into a number of installments such that the last installment thereof will
7.30be payable not more than 30 years after the levy of the assessment. All assessments
7.31shall bear interest at such rate as the resolution determines. To the first installment of
7.32each assessment shall be added interest on the entire assessment from a date specified in
7.33the resolution levying the assessment, not earlier than the date of the resolution, until
7.34December 31 of the year in which the first installment is payable, and to each subsequent
7.35installment shall be added interest for one year on all unpaid installments; or alternatively,
7.36any assessment may be made payable in equal annual installments including principal and
8.1interest, each in the amount annually required to pay the principal over such period with
8.2interest at such rate as the resolution determines, not exceeding the maximum period and
8.3rate specified above. In the latter event no prepayment shall be accepted under subdivision
8.43 without payment of all installments due to and including December 31 of the year of
8.5prepayment, together with the original principal amount reduced only by the amounts of
8.6principal included in such installments, computed on an annual amortization basis. When
8.7payment of an assessment is deferred, as authorized in this subdivision, interest thereon for
8.8the period of deferment may be made payable annually at the same times as the principal
8.9installments of the assessment would have been payable if not deferred; or interest for this
8.10period may be added to the principal amount of the assessment when it becomes payable;
8.11or, if so provided in the resolution levying the assessment, interest thereon to December
8.1231 of the year before the first installment is payable may be forgiven.
8.13EFFECTIVE DATE.This section is effective the day following final enactment.
8.14 Sec. 8. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
8.15to read:
8.16 Subd. 2a. Notice of changes adopted. If the adopted assessment differs from the
8.17proposed assessment as to any particular lot, piece, or parcel of land, the clerk must mail
8.18to the owner a notice stating the amount of the adopted assessment. Owners must also be
8.19notified by mail of any changes adopted by the council in interest rates or prepayment
8.20requirements from those contained in the notice of the proposed assessment.
8.21EFFECTIVE DATE.This section is effective the day following final enactment.
8.22 Sec. 9. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
8.23to read:
8.24 Subd. 2b. Payment in installments. Unless otherwise provided in the resolution, all
8.25assessments shall be payable in equal annual installments extending over such period, not
8.26exceeding 30 years, as the resolution determines, payable on the first Monday in January
8.27in each year, but the number of installments need not be uniform for all assessments
8.28included in a single assessment roll if a uniform criterion for determining the number of
8.29installments is provided by the resolution. Assessments on property located in a targeted
8.30community as defined in section 469.201, subdivision 10, may be payable in variable
8.31annual installments if the resolution provides for a variable payment. The first installment
8.32of each assessment shall be included in the first tax rolls completed after its adoption and
8.33shall be payable in the same year as the taxes contained therein.
9.1EFFECTIVE DATE.This section is effective the day following final enactment.
9.2 Sec. 10. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
9.3to read:
9.4 Subd. 2c. Interest. All assessments shall bear interest at such rate as the resolution
9.5determines. To the first installment of each assessment shall be added interest on the entire
9.6assessment from a date specified in the resolution levying the assessment, not earlier than
9.7the date of the resolution, until December 31 of the year in which the first installment is
9.8payable, and to each subsequent installment shall be added interest for one year on all
9.9unpaid installments; or alternatively, any assessment may be made payable in equal annual
9.10installments including principal and interest, each in the amount annually required to pay
9.11the principal over such period with interest at such rate as the resolution determines, not
9.12exceeding the maximum period and rate specified above. In the latter event no prepayment
9.13shall be accepted under subdivision 3 without payment of all installments due to and
9.14including December 31 of the year of prepayment, together with the original principal
9.15amount reduced only by the amounts of principal included in such installments, computed
9.16on an annual amortization basis.
9.17EFFECTIVE DATE.This section is effective the day following final enactment.
9.18 Sec. 11. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
9.19to read:
9.20 Subd. 2d. Lien. The assessment, with accruing interest, shall be a lien upon all
9.21private and public property included therein, from the date of the resolution adopting the
9.22assessment, concurrent with general taxes. However, the lien shall not be enforceable
9.23against public property as long as it is publicly owned, and while the property is publicly
9.24owned the assessment shall be recoverable from the owner of the property only in the
9.25manner and to the extent provided in section435.19 .
9.26EFFECTIVE DATE.This section is effective the day following final enactment.
9.27 Sec. 12. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
9.28to read:
9.29 Subd. 2e. Deferred payment for certain properties. (a) "Unimproved property"
9.30for the purposes of this subdivision means:
9.31(1) unplatted property;
9.32(2) platted property with no buildings, landscaping, or other betterments; or
10.1(3) property located in a redevelopment district, as defined in section 469.174, that is
10.2not yet developed at the likely level of use of or benefit from the improvements to be paid
10.3from the special assessments imposed on the property, as planned by the municipality or
10.4the owner, and that is consistent with the adopted local comprehensive plan, if there is one.
10.5(b) The payment of the first installment of any assessment levied upon unimproved
10.6property may be deferred until a designated future year upon such terms and conditions
10.7and based upon such standards and criteria as may be provided by resolution of the council.
10.8If special assessments against the property have been deferred pursuant to this subdivision,
10.9the governmental unit shall record with the county recorder in the county in which the
10.10property is located a certificate containing the legal description of the affected property and
10.11of the amount deferred. In any event, every assessment the payment of which is so deferred,
10.12when it becomes payable, shall be divided into a number of installments such that the last
10.13installment thereof will be payable not more than 30 years after the levy of the assessment.
10.14When payment of an assessment is deferred, as authorized in this subdivision, interest
10.15thereon for the period of deferment may be made payable annually at the same times as
10.16the principal installments of the assessment would have been payable if not deferred; or
10.17interest for this period may be added to the principal amount of the assessment when it
10.18becomes payable; or, if so provided in the resolution levying the assessment, interest
10.19thereon to December 31 of the year before the first installment is payable may be forgiven.
10.20EFFECTIVE DATE.This section is effective the day following final enactment.
1.3deferments; reorganizing provisions relating to the assessment hearing; making
1.4conforming amendments; amending Minnesota Statutes 2012, sections 273.111,
1.5subdivisions 3, 11; 273.114, subdivision 8; 429.061, subdivisions 1, 2, by adding
1.6subdivisions.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 273.111, subdivision 3, is amended to read:
1.9 Subd. 3. Requirements. (a) Real estate consisting of ten acres or more or a nursery
1.10or greenhouse, and qualifying for classification as class 2a under section
1.11entitled to valuation and tax deferment under this section if it is primarily devoted to
1.12agricultural use, and either:
1.13 (1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the
1.14owner or is real estate which is farmed with the real estate which contains the homestead
1.15property; or
1.16 (2) has been in possession of the applicant, the applicant's spouse, parent, or sibling,
1.17or any combination thereof, for a period of at least seven years prior to application for
1.18benefits under the provisions of this section, or is real estate which is farmed with the
1.19real estate which qualifies under this clause and is within four townships or cities or
1.20combination thereof from the qualifying real estate; or
1.21 (3) is the homestead of an individual who is part of an entity described in paragraph
1.22(b), clause (1), (2), or (3); or
1.23 (4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor,
1.24partnership, or corporation which also owns the nursery or greenhouse operations on the
2.1parcel or parcels, provided that only the acres used to produce nursery stock qualify
2.2for treatment under this section.
2.3 (b) Valuation of real estate under this section is limited to parcels owned by
2.4individuals except for:
2.5 (1) a family farm entity or authorized farm entity regulated under section
2.6 (2) an entity, not regulated under section
2.7members, partners, or shareholders are related and at least one of the members, partners,
2.8or shareholders either resides on the land or actively operates the land; and
2.9 (3) corporations that derive 80 percent or more of their gross receipts from the
2.10wholesale or retail sale of horticultural or nursery stock.
2.11 The terms in this paragraph have the meanings given in section
2.12applicable.
2.13 (c) Land that previously qualified for tax deferment under this section and no longer
2.14qualifies because it is not primarily used for agricultural purposes but would otherwise
2.15qualify under Minnesota Statutes 2006, section
2.16least three years will not be required to make payment of the previously deferred taxes,
2.17notwithstanding the provisions of subdivision 9. Sale of the land prior to the expiration
2.18of the three-year period requires payment of deferred taxes as follows: sale in the year
2.19the land no longer qualifies requires payment of the current year's deferred taxes plus
2.20payment of deferred taxes for the two prior years; sale during the second year the land
2.21no longer qualifies requires payment of the current year's deferred taxes plus payment of
2.22the deferred taxes for the prior year; and sale during the third year the land no longer
2.23qualifies requires payment of the current year's deferred taxes. Deferred taxes shall be
2.24paid even if the land qualifies pursuant to subdivision 11a. When such property is sold or
2.25no longer qualifies under this paragraph, or at the end of the three-year period, whichever
2.26comes first, all deferred special assessments plus interest are payable in equal installments
2.27spread over the time remaining until the last maturity date of the bonds issued to finance
2.28the improvement for which the assessments were levied. If the bonds have matured, the
2.29deferred special assessments plus interest are payable within 90 days. The provisions of
2.30section
2.31are not imposed on any such special assessments if timely paid.
2.32 (d) Land that is enrolled in the reinvest in Minnesota program under sections
2.34Law 99-198, or a similar state or federal conservation program qualifies for valuation and
2.35assessment deferral under this section if it was in agricultural use before enrollment and,
3.1provided that, in the case of land enrolled in the reinvest in Minnesota program, it is not
3.2subject to a perpetual easement.
3.3EFFECTIVE DATE.This section is effective the day following final enactment.
3.4 Sec. 2. Minnesota Statutes 2012, section 273.111, subdivision 11, is amended to read:
3.5 Subd. 11. Special local assessments. The payment of special local assessments
3.6levied after June 1, 1967, for improvements made to any real property described in
3.7subdivision 3 together with the interest thereon shall, on timely application as provided
3.8in subdivision 8, be deferred as long as such property meets the conditions contained in
3.9subdivision 3 or 3a or is transferred to an agricultural preserve under sections
3.10to
3.11this subdivision, the governmental unit shall file with the county recorder in the county in
3.12which the property is located a certificate containing the legal description of the affected
3.13property and of the amount deferred. When such property no longer qualifies under
3.14subdivision 3 or 3a, all deferred special assessments plus interest shall be payable in
3.15equal installments spread over the time remaining until the last maturity date of the bonds
3.16issued to finance the improvement for which the assessments were levied. If the bonds
3.17have matured, the deferred special assessments plus interest shall be payable within 90
3.18days. The provisions of section
3.19installments. Penalty shall not be levied on any such special assessments if timely paid.
3.20EFFECTIVE DATE.This section is effective the day following final enactment.
3.21 Sec. 3. Minnesota Statutes 2012, section 273.114, subdivision 8, is amended to read:
3.22 Subd. 8. Special local assessments. The payment of special local assessments
3.23levied after June 1, 2011, for improvements made to any real property described in
3.24subdivision 1 together with the interest thereon shall, on timely application as provided
3.25in subdivision 6, be deferred as long as the property meets the conditions contained in
3.26this section. If special assessments against the property have been deferred pursuant to
3.27this subdivision, the governmental unit shall file with the county recorder in the county
3.28in which the property is located a certificate containing the legal description of the
3.29affected property and of the amount deferred. When the property no longer qualifies
3.30under subdivision 1, all deferred special assessments plus interest shall be payable in
3.31equal installments spread over the time remaining until the last maturity date of the bonds
3.32issued to finance the improvement for which the assessments were levied. If the bonds
3.33have matured, the deferred special assessments plus interest shall be payable within 90
4.1days. The provisions of section
4.2installments. A penalty shall not be levied on these special assessments if timely paid.
4.3This subdivision does not apply to special assessments levied at any time by a county or
4.4district court under chapter 116A or by a watershed district under chapter 103D.
4.5EFFECTIVE DATE.This section is effective the day following final enactment.
4.6 Sec. 4. Minnesota Statutes 2012, section 429.061, subdivision 1, is amended to read:
4.7 Subdivision 1. Calculation, notice. At any time after the expense incurred or to
4.8be incurred in making an improvement shall be calculated under the direction of the
4.9council, the council shall determine by resolution the amount of the total expense the
4.10municipality will pay, other than the amount, if any, which it will pay as a property owner,
4.11and the amount to be assessed.
4.12
4.13
4.14
4.15
4.16
4.17
4.18person selected by the council, shall calculate the proper amount to be specially assessed
4.19for the improvement against every assessable lot, piece or parcel of land, without regard
4.20to cash valuation, in accordance with the provisions of section
4.21assessment roll shall be filed with the clerk and be open to public inspection. The clerk
4.22shall thereupon, under the council's direction, publish notice that the council will meet to
4.23consider the proposed assessment.
4.24least once and shall be mailed to the owner of each parcel described in the assessment
4.25roll. For the purpose of giving mailed notice under this subdivision, owners shall be
4.26those shown to be such on the records of the county auditor or, in any county where tax
4.27statements are mailed by the county treasurer, on the records of the county treasurer;
4.28but other appropriate records may be used for this purpose.
4.29mailing shall be no less than two weeks prior to such meeting of the council. Except as
4.30to the owners of tax-exempt property or property taxes on a gross earnings basis, every
4.31property owner whose name does not appear on the records of the county auditor or the
4.32county treasurer shall be deemed to have waived such mailed notice unless the owner has
4.33requested in writing that the county auditor or county treasurer, as the case may be, include
4.34the name on the records for such purpose.
4.35place of such meeting, the general nature of the improvement, the area proposed to be
5.1assessed, the total amount of the proposed assessment, that the proposed assessment roll is
5.2on the file with the clerk, and that written or oral objections thereto by any property owner
5.3will be considered. The notice must also state that no appeal may be taken as to the amount
5.4of any assessment adopted
5.5objection signed by the affected property owner is filed with the municipal clerk prior to
5.6the assessment hearing or presented to the presiding officer at the hearing. The notice shall
5.7also state that an owner may appeal an assessment to district court pursuant to section
5.9within 30 days after the adoption of the assessment and filing such notice with the district
5.10court within ten days after service upon the mayor or clerk. The notice shall also inform
5.11property owners of the provisions of sections
5.12deferment procedure established pursuant thereto in the municipality. In addition, the
5.13notice mailed to the owner must state in clear language the following information:
5.14(1) the amount to be specially assessed against that particular lot, piece, or parcel of
5.15land;
5.16(2) adoption by the council of the proposed assessment may be taken at the hearing;
5.17(3) the right of the property owner to prepay the entire assessment and the person to
5.18whom prepayment must be made;
5.19(4) whether partial prepayment of the assessment has been authorized by ordinance;
5.20(5) the time within which prepayment may be made without the assessment of
5.21interest; and
5.22(6) the rate of interest to be accrued if the assessment is not prepaid within the
5.23required time period.
5.24EFFECTIVE DATE.This section is effective the day following final enactment.
5.25 Sec. 5. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
5.26to read:
5.27 Subd. 1a. County assessment within city jurisdiction. If a county proposes to
5.28assess within the boundaries of a city for a county state-aid highway or county highway,
5.29including curbs, gutters, and storm sewers, the resolution must include the portion of the
5.30cost proposed to be assessed within the city. The county shall forward the resolution to the
5.31city and it may not proceed with the assessment procedure nor may the county allocate
5.32any cost under this section for property within the city unless the city council adopts
5.33the resolution approving the assessment.
5.34EFFECTIVE DATE.This section is effective the day following final enactment.
6.1 Sec. 6. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
6.2to read:
6.3 Subd. 1b. When objections must be filed. No appeal may be taken as to the amount
6.4of any assessment adopted under this section unless written objection signed by the
6.5affected property owner is filed with the municipal clerk prior to the assessment hearing
6.6or presented to the presiding officer at the hearing. All objections to the assessments
6.7not received at the assessment hearing in the manner prescribed by this subdivision are
6.8waived, unless the failure to object at the assessment hearing is due to a reasonable cause.
6.9EFFECTIVE DATE.This section is effective the day following final enactment.
6.10 Sec. 7. Minnesota Statutes 2012, section 429.061, subdivision 2, is amended to read:
6.11 Subd. 2. Hearing; consideration of objections; adoption
6.12 the meeting
6.13hear and pass upon all objections to the proposed assessment, whether presented orally
6.14or in writing. The council may amend by resolution the proposed assessment as to any
6.15parcel
6.16in the assessment roll.
6.17
6.18
6.19(b) The council may continue the hearing at a later date. Notice of the continuance
6.20is adequate if the council meeting minutes state the time and place where the hearing
6.21will be continued. The council may consider any objection to the amount of a proposed
6.22assessment as to a specific parcel of land at
6.23further notice to the affected property owner as it deems advisable. At the
6.24 continued hearing the council or a committee of it may hear further written or oral
6.25testimony on behalf of the objecting property owner and may consider further written or
6.26oral testimony from appropriate city officials and other witnesses as to the amount of the
6.27assessment. The council or committee shall prepare a record of the proceedings at the
6.28
6.29amount of the assessment as finally determined by the council shall become a part of the
6.30adopted assessment roll.
6.31
6.32
6.33
6.34
6.35
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7.2
7.3
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8.5
8.6
8.7
8.8
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8.10
8.11
8.12
8.13EFFECTIVE DATE.This section is effective the day following final enactment.
8.14 Sec. 8. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
8.15to read:
8.16 Subd. 2a. Notice of changes adopted. If the adopted assessment differs from the
8.17proposed assessment as to any particular lot, piece, or parcel of land, the clerk must mail
8.18to the owner a notice stating the amount of the adopted assessment. Owners must also be
8.19notified by mail of any changes adopted by the council in interest rates or prepayment
8.20requirements from those contained in the notice of the proposed assessment.
8.21EFFECTIVE DATE.This section is effective the day following final enactment.
8.22 Sec. 9. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
8.23to read:
8.24 Subd. 2b. Payment in installments. Unless otherwise provided in the resolution, all
8.25assessments shall be payable in equal annual installments extending over such period, not
8.26exceeding 30 years, as the resolution determines, payable on the first Monday in January
8.27in each year, but the number of installments need not be uniform for all assessments
8.28included in a single assessment roll if a uniform criterion for determining the number of
8.29installments is provided by the resolution. Assessments on property located in a targeted
8.30community as defined in section 469.201, subdivision 10, may be payable in variable
8.31annual installments if the resolution provides for a variable payment. The first installment
8.32of each assessment shall be included in the first tax rolls completed after its adoption and
8.33shall be payable in the same year as the taxes contained therein.
9.1EFFECTIVE DATE.This section is effective the day following final enactment.
9.2 Sec. 10. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
9.3to read:
9.4 Subd. 2c. Interest. All assessments shall bear interest at such rate as the resolution
9.5determines. To the first installment of each assessment shall be added interest on the entire
9.6assessment from a date specified in the resolution levying the assessment, not earlier than
9.7the date of the resolution, until December 31 of the year in which the first installment is
9.8payable, and to each subsequent installment shall be added interest for one year on all
9.9unpaid installments; or alternatively, any assessment may be made payable in equal annual
9.10installments including principal and interest, each in the amount annually required to pay
9.11the principal over such period with interest at such rate as the resolution determines, not
9.12exceeding the maximum period and rate specified above. In the latter event no prepayment
9.13shall be accepted under subdivision 3 without payment of all installments due to and
9.14including December 31 of the year of prepayment, together with the original principal
9.15amount reduced only by the amounts of principal included in such installments, computed
9.16on an annual amortization basis.
9.17EFFECTIVE DATE.This section is effective the day following final enactment.
9.18 Sec. 11. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
9.19to read:
9.20 Subd. 2d. Lien. The assessment, with accruing interest, shall be a lien upon all
9.21private and public property included therein, from the date of the resolution adopting the
9.22assessment, concurrent with general taxes. However, the lien shall not be enforceable
9.23against public property as long as it is publicly owned, and while the property is publicly
9.24owned the assessment shall be recoverable from the owner of the property only in the
9.25manner and to the extent provided in section
9.26EFFECTIVE DATE.This section is effective the day following final enactment.
9.27 Sec. 12. Minnesota Statutes 2012, section 429.061, is amended by adding a subdivision
9.28to read:
9.29 Subd. 2e. Deferred payment for certain properties. (a) "Unimproved property"
9.30for the purposes of this subdivision means:
9.31(1) unplatted property;
9.32(2) platted property with no buildings, landscaping, or other betterments; or
10.1(3) property located in a redevelopment district, as defined in section 469.174, that is
10.2not yet developed at the likely level of use of or benefit from the improvements to be paid
10.3from the special assessments imposed on the property, as planned by the municipality or
10.4the owner, and that is consistent with the adopted local comprehensive plan, if there is one.
10.5(b) The payment of the first installment of any assessment levied upon unimproved
10.6property may be deferred until a designated future year upon such terms and conditions
10.7and based upon such standards and criteria as may be provided by resolution of the council.
10.8If special assessments against the property have been deferred pursuant to this subdivision,
10.9the governmental unit shall record with the county recorder in the county in which the
10.10property is located a certificate containing the legal description of the affected property and
10.11of the amount deferred. In any event, every assessment the payment of which is so deferred,
10.12when it becomes payable, shall be divided into a number of installments such that the last
10.13installment thereof will be payable not more than 30 years after the levy of the assessment.
10.14When payment of an assessment is deferred, as authorized in this subdivision, interest
10.15thereon for the period of deferment may be made payable annually at the same times as
10.16the principal installments of the assessment would have been payable if not deferred; or
10.17interest for this period may be added to the principal amount of the assessment when it
10.18becomes payable; or, if so provided in the resolution levying the assessment, interest
10.19thereon to December 31 of the year before the first installment is payable may be forgiven.
10.20EFFECTIVE DATE.This section is effective the day following final enactment.
