Bill Text: MN SF2592 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Christmas trees as agricultural product for property tax classification purposes
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-04-02 - Referred to Taxes [SF2592 Detail]
Download: Minnesota-2011-SF2592-Introduced.html
1.2relating to taxation; property; modifying property classifications;amending
1.3Minnesota Statutes 2011 Supplement, section 273.13, subdivision 23.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2011 Supplement, section 273.13, subdivision 23,
1.6is amended to read:
1.7 Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural
1.8land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
1.9the class 2a land under the same ownership. The market value of the house and garage
1.10and immediately surrounding one acre of land has the same class rates as class 1a or 1b
1.11property under subdivision 22. The value of the remaining land including improvements
1.12up to the first tier valuation limit of agricultural homestead property has a net class rate
1.13of 0.5 percent of market value. The remaining property over the first tier has a class rate
1.14of one percent of market value. For purposes of this subdivision, the "first tier valuation
1.15limit of agricultural homestead property" and "first tier" means the limit certified under
1.16section273.11 , subdivision 23.
1.17 (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
1.18are agricultural land and buildings. Class 2a property has a net class rate of one percent of
1.19market value, unless it is part of an agricultural homestead under paragraph (a). Class
1.202a property must also include any property that would otherwise be classified as 2b,
1.21but is interspersed with class 2a property, including but not limited to sloughs, wooded
1.22wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
1.23requirement, and other similar land that is impractical for the assessor to value separately
2.1from the rest of the property or that is unlikely to be able to be sold separately from
2.2the rest of the property.
2.3 An assessor may classify the part of a parcel described in this subdivision that is used
2.4for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
2.5 (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
2.6that are unplatted real estate, rural in character and not used for agricultural purposes,
2.7including land used for growing trees for timber, lumber, and wood and wood products,
2.8that is not improved with a structure. The presence of a minor, ancillary nonresidential
2.9structure as defined by the commissioner of revenue does not disqualify the property from
2.10classification under this paragraph. Any parcel of 20 acres or more improved with a
2.11structure that is not a minor, ancillary nonresidential structure must be split-classified, and
2.12ten acres must be assigned to the split parcel containing the structure. Class 2b property
2.13has a net class rate of one percent of market value unless it is part of an agricultural
2.14homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
2.15 (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
2.16acres statewide per taxpayer that is being managed under a forest management plan that
2.17meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
2.18resource management incentive program. It has a class rate of .65 percent, provided that
2.19the owner of the property must apply to the assessor in order for the property to initially
2.20qualify for the reduced rate and provide the information required by the assessor to verify
2.21that the property qualifies for the reduced rate. If the assessor receives the application
2.22and information before May 1 in an assessment year, the property qualifies beginning
2.23with that assessment year. If the assessor receives the application and information after
2.24April 30 in an assessment year, the property may not qualify until the next assessment
2.25year. The commissioner of natural resources must concur that the land is qualified. The
2.26commissioner of natural resources shall annually provide county assessors verification
2.27information on a timely basis. The presence of a minor, ancillary nonresidential structure
2.28as defined by the commissioner of revenue does not disqualify the property from
2.29classification under this paragraph.
2.30 (e) Agricultural land as used in this section means contiguous acreage of ten
2.31acres or more, used during the preceding year for agricultural purposes. "Agricultural
2.32purposes" as used in this section means the raising, cultivation, drying, or storage of
2.33agricultural products for sale, or the storage of machinery or equipment used in support
2.34of agricultural production by the same farm entity. For a property to be classified as
2.35agricultural based only on the drying or storage of agricultural products, the products
2.36being dried or stored must have been produced by the same farm entity as the entity
3.1operating the drying or storage facility. "Agricultural purposes" also includes enrollment
3.2in the Reinvest in Minnesota program under sections103F.501 to
103F.535 or the federal
3.3Conservation Reserve Program as contained in Public Law 99-198 or a similar state
3.4or federal conservation program if the property was classified as agricultural (i) under
3.5this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment.
3.6Agricultural classification shall not be based upon the market value of any residential
3.7structures on the parcel or contiguous parcels under the same ownership.
3.8 (f) Real estate of less than ten acres, which is exclusively or intensively used for
3.9raising or cultivating agricultural products, shall be considered as agricultural land. To
3.10qualify under this paragraph, property that includes a residential structure must be used
3.11intensively for one of the following purposes:
3.12 (i) for drying or storage of grain or storage of machinery or equipment used to
3.13support agricultural activities on other parcels of property operated by the same farming
3.14entity;
3.15 (ii) as a nursery, provided that only those acres used to produce nursery stock are
3.16considered agricultural land;
3.17 (iii) for livestock or poultry confinement, provided that land that is used only for
3.18pasturing and grazing does not qualify; or
3.19 (iv) for market farming; for purposes of this paragraph, "market farming" means the
3.20cultivation of one or more fruits or vegetables or production of animal or other agricultural
3.21products for sale to local markets by the farmer or an organization with which the farmer
3.22is affiliated.
3.23 (g) Land shall be classified as agricultural even if all or a portion of the agricultural
3.24use of that property is the leasing to, or use by another person for agricultural purposes.
3.25 Classification under this subdivision is not determinative for qualifying under
3.26section273.111 .
3.27 (h) The property classification under this section supersedes, for property tax
3.28purposes only, any locally administered agricultural policies or land use restrictions that
3.29define minimum or maximum farm acreage.
3.30 (i) The term "agricultural products" as used in this subdivision includes production
3.31for sale of:
3.32 (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
3.33animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
3.34bees, and apiary products by the owner;
3.35 (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
3.36for agricultural use;
4.1 (3) the commercial boarding of horses, which may include related horse training and
4.2riding instruction, if the boarding is done on property that is also used for raising pasture
4.3to graze horses or raising or cultivating other agricultural products as defined in clause (1);
4.4 (4) property which is owned and operated by nonprofit organizations used for
4.5equestrian activities, excluding racing;
4.6 (5) game birds and waterfowl bred and raised (i) on a game farm licensed under
4.7section97A.105 , provided that the annual licensing report to the Department of Natural
4.8Resources, which must be submitted annually by March 30 to the assessor, indicates
4.9that at least 500 birds were raised or used for breeding stock on the property during the
4.10preceding year and that the owner provides a copy of the owner's most recent schedule F;
4.11or (ii) for use on a shooting preserve licensed under section97A.115 ;
4.12 (6) insects primarily bred to be used as food for animals;
4.13 (7) trees, grown for sale as a crop, including trees grown for sale as Christmas
4.14trees and short rotation woody crops, and not sold for timber, lumber, wood, or wood
4.15products; and
4.16 (8) maple syrup taken from trees grown by a person licensed by the Minnesota
4.17Department of Agriculture under chapter 28A as a food processor.
4.18 (j) If a parcel used for agricultural purposes is also used for commercial or industrial
4.19purposes, including but not limited to:
4.20 (1) wholesale and retail sales;
4.21 (2) processing of raw agricultural products or other goods;
4.22 (3) warehousing or storage of processed goods; and
4.23 (4) office facilities for the support of the activities enumerated in clauses (1), (2),
4.24and (3),
4.25the assessor shall classify the part of the parcel used for agricultural purposes as class
4.261b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
4.27use. The grading, sorting, and packaging of raw agricultural products for first sale is
4.28considered an agricultural purpose. A greenhouse or other building where horticultural
4.29or nursery products are grown that is also used for the conduct of retail sales must be
4.30classified as agricultural if it is primarily used for the growing of horticultural or nursery
4.31products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
4.32those products. Use of a greenhouse or building only for the display of already grown
4.33horticultural or nursery products does not qualify as an agricultural purpose.
4.34 (k) The assessor shall determine and list separately on the records the market value
4.35of the homestead dwelling and the one acre of land on which that dwelling is located. If
5.1any farm buildings or structures are located on this homesteaded acre of land, their market
5.2value shall not be included in this separate determination.
5.3 (l) Class 2d airport landing area consists of a landing area or public access area of
5.4a privately owned public use airport. It has a class rate of one percent of market value.
5.5To qualify for classification under this paragraph, a privately owned public use airport
5.6must be licensed as a public airport under section360.018 . For purposes of this paragraph,
5.7"landing area" means that part of a privately owned public use airport properly cleared,
5.8regularly maintained, and made available to the public for use by aircraft and includes
5.9runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
5.10A landing area also includes land underlying both the primary surface and the approach
5.11surfaces that comply with all of the following:
5.12 (i) the land is properly cleared and regularly maintained for the primary purposes of
5.13the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
5.14facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
5.15 (ii) the land is part of the airport property; and
5.16 (iii) the land is not used for commercial or residential purposes.
5.17The land contained in a landing area under this paragraph must be described and certified
5.18by the commissioner of transportation. The certification is effective until it is modified,
5.19or until the airport or landing area no longer meets the requirements of this paragraph.
5.20For purposes of this paragraph, "public access area" means property used as an aircraft
5.21parking ramp, apron, or storage hangar, or an arrival and departure building in connection
5.22with the airport.
5.23 (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
5.24being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
5.25located in a county that has elected to opt-out of the aggregate preservation program as
5.26provided in section273.1115, subdivision 6 . It has a class rate of one percent of market
5.27value. To qualify for classification under this paragraph, the property must be at least
5.28ten contiguous acres in size and the owner of the property must record with the county
5.29recorder of the county in which the property is located an affidavit containing:
5.30 (1) a legal description of the property;
5.31 (2) a disclosure that the property contains a commercial aggregate deposit that is not
5.32actively being mined but is present on the entire parcel enrolled;
5.33 (3) documentation that the conditional use under the county or local zoning
5.34ordinance of this property is for mining; and
5.35 (4) documentation that a permit has been issued by the local unit of government
5.36or the mining activity is allowed under local ordinance. The disclosure must include a
6.1statement from a registered professional geologist, engineer, or soil scientist delineating
6.2the deposit and certifying that it is a commercial aggregate deposit.
6.3 For purposes of this section and section273.1115 , "commercial aggregate deposit"
6.4means a deposit that will yield crushed stone or sand and gravel that is suitable for use
6.5as a construction aggregate; and "actively mined" means the removal of top soil and
6.6overburden in preparation for excavation or excavation of a commercial deposit.
6.7 (n) When any portion of the property under this subdivision or subdivision 22 begins
6.8to be actively mined, the owner must file a supplemental affidavit within 60 days from
6.9the day any aggregate is removed stating the number of acres of the property that is
6.10actively being mined. The acres actively being mined must be (1) valued and classified
6.11under subdivision 24 in the next subsequent assessment year, and (2) removed from the
6.12aggregate resource preservation property tax program under section273.1115 , if the
6.13land was enrolled in that program. Copies of the original affidavit and all supplemental
6.14affidavits must be filed with the county assessor, the local zoning administrator, and the
6.15Department of Natural Resources, Division of Land and Minerals. A supplemental
6.16affidavit must be filed each time a subsequent portion of the property is actively mined,
6.17provided that the minimum acreage change is five acres, even if the actual mining activity
6.18constitutes less than five acres.
6.19(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
6.20not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
6.21in section14.386 concerning exempt rules do not apply.
1.3Minnesota Statutes 2011 Supplement, section 273.13, subdivision 23.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2011 Supplement, section 273.13, subdivision 23,
1.6is amended to read:
1.7 Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural
1.8land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
1.9the class 2a land under the same ownership. The market value of the house and garage
1.10and immediately surrounding one acre of land has the same class rates as class 1a or 1b
1.11property under subdivision 22. The value of the remaining land including improvements
1.12up to the first tier valuation limit of agricultural homestead property has a net class rate
1.13of 0.5 percent of market value. The remaining property over the first tier has a class rate
1.14of one percent of market value. For purposes of this subdivision, the "first tier valuation
1.15limit of agricultural homestead property" and "first tier" means the limit certified under
1.16section
1.17 (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
1.18are agricultural land and buildings. Class 2a property has a net class rate of one percent of
1.19market value, unless it is part of an agricultural homestead under paragraph (a). Class
1.202a property must also include any property that would otherwise be classified as 2b,
1.21but is interspersed with class 2a property, including but not limited to sloughs, wooded
1.22wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
1.23requirement, and other similar land that is impractical for the assessor to value separately
2.1from the rest of the property or that is unlikely to be able to be sold separately from
2.2the rest of the property.
2.3 An assessor may classify the part of a parcel described in this subdivision that is used
2.4for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
2.5 (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
2.6that are unplatted real estate, rural in character and not used for agricultural purposes,
2.7including land used for growing trees for timber, lumber, and wood and wood products,
2.8that is not improved with a structure. The presence of a minor, ancillary nonresidential
2.9structure as defined by the commissioner of revenue does not disqualify the property from
2.10classification under this paragraph. Any parcel of 20 acres or more improved with a
2.11structure that is not a minor, ancillary nonresidential structure must be split-classified, and
2.12ten acres must be assigned to the split parcel containing the structure. Class 2b property
2.13has a net class rate of one percent of market value unless it is part of an agricultural
2.14homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
2.15 (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
2.16acres statewide per taxpayer that is being managed under a forest management plan that
2.17meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
2.18resource management incentive program. It has a class rate of .65 percent, provided that
2.19the owner of the property must apply to the assessor in order for the property to initially
2.20qualify for the reduced rate and provide the information required by the assessor to verify
2.21that the property qualifies for the reduced rate. If the assessor receives the application
2.22and information before May 1 in an assessment year, the property qualifies beginning
2.23with that assessment year. If the assessor receives the application and information after
2.24April 30 in an assessment year, the property may not qualify until the next assessment
2.25year. The commissioner of natural resources must concur that the land is qualified. The
2.26commissioner of natural resources shall annually provide county assessors verification
2.27information on a timely basis. The presence of a minor, ancillary nonresidential structure
2.28as defined by the commissioner of revenue does not disqualify the property from
2.29classification under this paragraph.
2.30 (e) Agricultural land as used in this section means contiguous acreage of ten
2.31acres or more, used during the preceding year for agricultural purposes. "Agricultural
2.32purposes" as used in this section means the raising, cultivation, drying, or storage of
2.33agricultural products for sale, or the storage of machinery or equipment used in support
2.34of agricultural production by the same farm entity. For a property to be classified as
2.35agricultural based only on the drying or storage of agricultural products, the products
2.36being dried or stored must have been produced by the same farm entity as the entity
3.1operating the drying or storage facility. "Agricultural purposes" also includes enrollment
3.2in the Reinvest in Minnesota program under sections
3.3Conservation Reserve Program as contained in Public Law 99-198 or a similar state
3.4or federal conservation program if the property was classified as agricultural (i) under
3.5this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment.
3.6Agricultural classification shall not be based upon the market value of any residential
3.7structures on the parcel or contiguous parcels under the same ownership.
3.8 (f) Real estate of less than ten acres, which is exclusively or intensively used for
3.9raising or cultivating agricultural products, shall be considered as agricultural land. To
3.10qualify under this paragraph, property that includes a residential structure must be used
3.11intensively for one of the following purposes:
3.12 (i) for drying or storage of grain or storage of machinery or equipment used to
3.13support agricultural activities on other parcels of property operated by the same farming
3.14entity;
3.15 (ii) as a nursery, provided that only those acres used to produce nursery stock are
3.16considered agricultural land;
3.17 (iii) for livestock or poultry confinement, provided that land that is used only for
3.18pasturing and grazing does not qualify; or
3.19 (iv) for market farming; for purposes of this paragraph, "market farming" means the
3.20cultivation of one or more fruits or vegetables or production of animal or other agricultural
3.21products for sale to local markets by the farmer or an organization with which the farmer
3.22is affiliated.
3.23 (g) Land shall be classified as agricultural even if all or a portion of the agricultural
3.24use of that property is the leasing to, or use by another person for agricultural purposes.
3.25 Classification under this subdivision is not determinative for qualifying under
3.26section
3.27 (h) The property classification under this section supersedes, for property tax
3.28purposes only, any locally administered agricultural policies or land use restrictions that
3.29define minimum or maximum farm acreage.
3.30 (i) The term "agricultural products" as used in this subdivision includes production
3.31for sale of:
3.32 (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
3.33animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
3.34bees, and apiary products by the owner;
3.35 (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
3.36for agricultural use;
4.1 (3) the commercial boarding of horses, which may include related horse training and
4.2riding instruction, if the boarding is done on property that is also used for raising pasture
4.3to graze horses or raising or cultivating other agricultural products as defined in clause (1);
4.4 (4) property which is owned and operated by nonprofit organizations used for
4.5equestrian activities, excluding racing;
4.6 (5) game birds and waterfowl bred and raised (i) on a game farm licensed under
4.7section
4.8Resources, which must be submitted annually by March 30 to the assessor, indicates
4.9that at least 500 birds were raised or used for breeding stock on the property during the
4.10preceding year and that the owner provides a copy of the owner's most recent schedule F;
4.11or (ii) for use on a shooting preserve licensed under section
4.12 (6) insects primarily bred to be used as food for animals;
4.13 (7) trees, grown for sale as a crop, including trees grown for sale as Christmas
4.14trees and short rotation woody crops, and not sold for timber, lumber, wood, or wood
4.15products; and
4.16 (8) maple syrup taken from trees grown by a person licensed by the Minnesota
4.17Department of Agriculture under chapter 28A as a food processor.
4.18 (j) If a parcel used for agricultural purposes is also used for commercial or industrial
4.19purposes, including but not limited to:
4.20 (1) wholesale and retail sales;
4.21 (2) processing of raw agricultural products or other goods;
4.22 (3) warehousing or storage of processed goods; and
4.23 (4) office facilities for the support of the activities enumerated in clauses (1), (2),
4.24and (3),
4.25the assessor shall classify the part of the parcel used for agricultural purposes as class
4.261b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
4.27use. The grading, sorting, and packaging of raw agricultural products for first sale is
4.28considered an agricultural purpose. A greenhouse or other building where horticultural
4.29or nursery products are grown that is also used for the conduct of retail sales must be
4.30classified as agricultural if it is primarily used for the growing of horticultural or nursery
4.31products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
4.32those products. Use of a greenhouse or building only for the display of already grown
4.33horticultural or nursery products does not qualify as an agricultural purpose.
4.34 (k) The assessor shall determine and list separately on the records the market value
4.35of the homestead dwelling and the one acre of land on which that dwelling is located. If
5.1any farm buildings or structures are located on this homesteaded acre of land, their market
5.2value shall not be included in this separate determination.
5.3 (l) Class 2d airport landing area consists of a landing area or public access area of
5.4a privately owned public use airport. It has a class rate of one percent of market value.
5.5To qualify for classification under this paragraph, a privately owned public use airport
5.6must be licensed as a public airport under section
5.7"landing area" means that part of a privately owned public use airport properly cleared,
5.8regularly maintained, and made available to the public for use by aircraft and includes
5.9runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
5.10A landing area also includes land underlying both the primary surface and the approach
5.11surfaces that comply with all of the following:
5.12 (i) the land is properly cleared and regularly maintained for the primary purposes of
5.13the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
5.14facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
5.15 (ii) the land is part of the airport property; and
5.16 (iii) the land is not used for commercial or residential purposes.
5.17The land contained in a landing area under this paragraph must be described and certified
5.18by the commissioner of transportation. The certification is effective until it is modified,
5.19or until the airport or landing area no longer meets the requirements of this paragraph.
5.20For purposes of this paragraph, "public access area" means property used as an aircraft
5.21parking ramp, apron, or storage hangar, or an arrival and departure building in connection
5.22with the airport.
5.23 (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
5.24being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
5.25located in a county that has elected to opt-out of the aggregate preservation program as
5.26provided in section
5.27value. To qualify for classification under this paragraph, the property must be at least
5.28ten contiguous acres in size and the owner of the property must record with the county
5.29recorder of the county in which the property is located an affidavit containing:
5.30 (1) a legal description of the property;
5.31 (2) a disclosure that the property contains a commercial aggregate deposit that is not
5.32actively being mined but is present on the entire parcel enrolled;
5.33 (3) documentation that the conditional use under the county or local zoning
5.34ordinance of this property is for mining; and
5.35 (4) documentation that a permit has been issued by the local unit of government
5.36or the mining activity is allowed under local ordinance. The disclosure must include a
6.1statement from a registered professional geologist, engineer, or soil scientist delineating
6.2the deposit and certifying that it is a commercial aggregate deposit.
6.3 For purposes of this section and section
6.4means a deposit that will yield crushed stone or sand and gravel that is suitable for use
6.5as a construction aggregate; and "actively mined" means the removal of top soil and
6.6overburden in preparation for excavation or excavation of a commercial deposit.
6.7 (n) When any portion of the property under this subdivision or subdivision 22 begins
6.8to be actively mined, the owner must file a supplemental affidavit within 60 days from
6.9the day any aggregate is removed stating the number of acres of the property that is
6.10actively being mined. The acres actively being mined must be (1) valued and classified
6.11under subdivision 24 in the next subsequent assessment year, and (2) removed from the
6.12aggregate resource preservation property tax program under section
6.13land was enrolled in that program. Copies of the original affidavit and all supplemental
6.14affidavits must be filed with the county assessor, the local zoning administrator, and the
6.15Department of Natural Resources, Division of Land and Minerals. A supplemental
6.16affidavit must be filed each time a subsequent portion of the property is actively mined,
6.17provided that the minimum acreage change is five acres, even if the actual mining activity
6.18constitutes less than five acres.
6.19(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
6.20not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
6.21in section
