1.1.................... moves to amend H.F. No. 12, the delete everything amendment
1.2(.H0012DE2), as follows:
1.3Page 1, after line 2, insert:

1.4    "Section 1. Minnesota Statutes 2010, section 273.111, subdivision 3, is amended to
1.6    Subd. 3. Requirements. (a) Real estate consisting of ten acres or more or a nursery
1.7or greenhouse, or that meets the intensive use criteria under section 273.13, subdivision
1.823, paragraph (f), and qualifying for classification as class 2a under section 273.13, shall
1.9be entitled to valuation and tax deferment under this section if it is primarily devoted to
1.10agricultural use, and either:
1.11    (1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the
1.12owner or is real estate which is farmed with the real estate which contains the homestead
1.13property; or
1.14    (2) has been in possession of the applicant, the applicant's spouse, parent, or sibling,
1.15or any combination thereof, for a period of at least seven years prior to application for
1.16benefits under the provisions of this section, or is real estate which is farmed with the
1.17real estate which qualifies under this clause and is within four townships or cities or
1.18combination thereof from the qualifying real estate; or
1.19    (3) is the homestead of an individual who is part of an entity described in paragraph
1.20(b), clause (1), (2), or (3); or
1.21    (4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor,
1.22partnership, or corporation which also owns the nursery or greenhouse operations on the
1.23parcel or parcels, provided that only the acres used to produce nursery stock qualify
1.24for treatment under this section.
1.25    (b) Valuation of real estate under this section is limited to parcels owned by
1.26individuals except for:
1.27    (1) a family farm entity or authorized farm entity regulated under section 500.24;
2.1    (2) an entity, not regulated under section 500.24, in which the majority of the
2.2members, partners, or shareholders are related and at least one of the members, partners,
2.3or shareholders either resides on the land or actively operates the land; and
2.4    (3) corporations that derive 80 percent or more of their gross receipts from the
2.5wholesale or retail sale of horticultural or nursery stock.
2.6    The terms in this paragraph have the meanings given in section 500.24, where
2.8    (c) Land that previously qualified for tax deferment under this section and no longer
2.9qualifies because it is not primarily used for agricultural purposes but would otherwise
2.10qualify under Minnesota Statutes 2006, section 273.111, subdivision 3, for a period of at
2.11least three years will not be required to make payment of the previously deferred taxes,
2.12notwithstanding the provisions of subdivision 9. Sale of the land prior to the expiration
2.13of the three-year period requires payment of deferred taxes as follows: sale in the year
2.14the land no longer qualifies requires payment of the current year's deferred taxes plus
2.15payment of deferred taxes for the two prior years; sale during the second year the land
2.16no longer qualifies requires payment of the current year's deferred taxes plus payment of
2.17the deferred taxes for the prior year; and sale during the third year the land no longer
2.18qualifies requires payment of the current year's deferred taxes. Deferred taxes shall be
2.19paid even if the land qualifies pursuant to subdivision 11a. When such property is sold or
2.20no longer qualifies under this paragraph, or at the end of the three-year period, whichever
2.21comes first, all deferred special assessments plus interest are payable in equal installments
2.22spread over the time remaining until the last maturity date of the bonds issued to finance
2.23the improvement for which the assessments were levied. If the bonds have matured, the
2.24deferred special assessments plus interest are payable within 90 days. The provisions of
2.25section 429.061, subdivision 2, apply to the collection of these installments. Penalties are
2.26not imposed on any such special assessments if timely paid.
2.27    (d) Land that is enrolled in the reinvest in Minnesota program under sections
2.28103F.501 to 103F.535, the federal Conservation Reserve Program as contained in Public
2.29Law 99-198, or a similar state or federal conservation program qualifies for valuation and
2.30assessment deferral under this section if it was in agricultural use before enrollment and,
2.31provided that, in the case of land enrolled in the reinvest in Minnesota program, it is not
2.32subject to a perpetual easement.
2.33EFFECTIVE DATE.This section is effective for taxes payable in 2012 and

3.1    Sec. 2. Minnesota Statutes 2010, section 273.111, is amended by adding a subdivision
3.2to read:
3.3    Subd. 17. Appeal. If an assessor denies an application for valuation under
3.4this section, the applicant may appeal the decision to the county board of appeal and
3.5equalization as provided under section 274.13.
3.6EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
3.8Renumber the sections in sequence and correct the internal references
3.9Amend the title accordingly