Minnesota SF 1633: Class 2c managed forest lands classification eligibility clarification provision

Bill Text

1.1 A bill for an act​
1.2 relating to taxation; property; clarifying eligibility for class 2c managed forest​
1.3 lands classification; amending Minnesota Statutes 2024, section 273.13, subdivision​
1.4 23.​
1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.6 Section 1. Minnesota Statutes 2024, section 273.13, subdivision 23, is amended to read:​
1.7 Subd. 23.Class 2.(a) An agricultural homestead consists of class 2a agricultural land​
1.8 that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class​
1.9 2a land under the same ownership. The market value of the house and garage and immediately​
1.10 surrounding one acre of land has the same classification rates as class 1a or 1b property​
1.11 under subdivision 22. The value of the remaining land including improvements up to the​
1.12 first tier valuation limit of agricultural homestead property has a classification rate of 0.5​
1.13 percent of market value. The remaining property over the first tier has a classification rate​
1.14 of one percent of market value. For purposes of this subdivision, the "first tier valuation​
1.15 limit of agricultural homestead property" and "first tier" means the limit certified under​
1.16 section 273.11, subdivision 23.​
1.17 (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that​
1.18 are agricultural land and buildings. Class 2a property has a classification rate of one percent​
1.19 of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a​
1.20 property must also include any property that would otherwise be classified as 2b, but is​
1.21 interspersed with class 2a property, including but not limited to sloughs, wooded wind​
1.22 shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,​
1​Section 1.​
25-00385 as introduced​11/19/24 REVISOR EB/NS​
SENATE​
STATE OF MINNESOTA​
S.F. No. 1633​NINETY-FOURTH SESSION​
(SENATE AUTHORS: HAUSCHILD)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​444​02/20/2025​
Referred to Taxes​

2.1 and other similar land that is impractical for the assessor to value separately from the rest​
2.2 of the property or that is unlikely to be able to be sold separately from the rest of the property.​
2.3 An assessor may classify the part of a parcel described in this subdivision that is used​
2.4 for 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, that​
2.6 are unplatted real estate, rural in character and not used for agricultural purposes, including​
2.7 land used for growing trees for timber, lumber, and wood and wood products, that is not​
2.8 improved with a structure. The presence of a minor, ancillary nonresidential structure as​
2.9 defined by the commissioner of revenue does not disqualify the property from classification​
2.10 under this paragraph. Any parcel of 20 acres or more improved with a structure that is not​
2.11 a minor, ancillary nonresidential structure must be split-classified, and ten acres must be​
2.12 assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled​
2.13 in the sustainable forest management incentive program under chapter 290C, the number​
2.14 of acres assigned to the split parcel improved with a structure that is not a minor, ancillary​
2.15 nonresidential structure must equal three acres or the number of acres excluded from the​
2.16 sustainable forest incentive act covenant due to the structure, whichever is greater. Class​
2.17 2b property has a classification rate of one percent of market value unless it is part of an​
2.18 agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).​
2.19 (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920​
2.20 acres statewide per taxpayer that is being managed under a forest management plan that​
2.21 meets the requirements of chapter 290C, but that is not enrolled in the sustainable forest​
2.22 resource management incentive program. It has a classification rate of .65 percent, provided​
2.23 that the owner of the property must apply to the assessor in order for the property to initially​
2.24 qualify for the reduced rate and provide the information required by the assessor to verify​
2.25 that the property qualifies for the reduced rate. If the assessor receives the application and​
2.26 information before May 1 in an assessment year, the property qualifies beginning with that​
2.27 assessment year. If the assessor receives the application and information after April 30 in​
2.28 an assessment year, the property may not qualify until the next assessment year. The​
2.29 commissioner of natural resources must concur that the land is qualified. The commissioner​
2.30 of natural resources shall annually provide county assessor