1.1.................... moves to amend H.F. No. 12, the delete everything amendment
1.2(H0012DE2), as follows:
1.3Page 3, after line 4, insert:

1.4    "Sec. 4. Minnesota Statutes 2010, section 273.13, subdivision 23, is amended to read:
1.5    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural
1.6land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
1.7the class 2a land under the same ownership. The market value of the house and garage
1.8and immediately surrounding one acre of land has the same class rates as class 1a or 1b
1.9property under subdivision 22. The value of the remaining land including improvements
1.10up to the first tier valuation limit of agricultural homestead property has a net class rate
1.11of 0.5 percent of market value. The remaining property over the first tier has a class rate
1.12of one percent of market value. For purposes of this subdivision, the "first tier valuation
1.13limit of agricultural homestead property" and "first tier" means the limit certified under
1.14section 273.11, subdivision 23.
1.15    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
1.16are agricultural land and buildings. Class 2a property has a net class rate of one percent of
1.17market value, unless it is part of an agricultural homestead under paragraph (a). Class
1.182a property must also include any property that would otherwise be classified as 2b,
1.19but is interspersed with class 2a property, including but not limited to sloughs, wooded
1.20wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
1.21requirement, and other similar land that is impractical for the assessor to value separately
1.22from the rest of the property or that is unlikely to be able to be sold separately from
1.23the rest of the property.
1.24    An assessor may classify the part of a parcel described in this subdivision that is used
1.25for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
1.26    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
1.27that are unplatted real estate, rural in character and not used for agricultural purposes,
2.1including land used for growing trees for timber, lumber, and wood and wood products,
2.2that is not improved with a structure. The presence of a minor, ancillary nonresidential
2.3structure as defined by the commissioner of revenue does not disqualify the property from
2.4classification under this paragraph. Any parcel of 20 acres or more improved with a
2.5structure that is not a minor, ancillary nonresidential structure must be split-classified, and
2.6ten acres must be assigned to the split parcel containing the structure. Class 2b property
2.7has a net class rate of one percent of market value unless it is part of an agricultural
2.8homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
2.9    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
2.10acres statewide per taxpayer that is being managed under a forest management plan that
2.11meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
2.12resource management incentive program. It has a class rate of .65 percent, provided that
2.13the owner of the property must apply to the assessor in order for the property to initially
2.14qualify for the reduced rate and provide the information required by the assessor to verify
2.15that the property qualifies for the reduced rate. If the assessor receives the application
2.16and information before May 1 in an assessment year, the property qualifies beginning
2.17with that assessment year. If the assessor receives the application and information after
2.18April 30 in an assessment year, the property may not qualify until the next assessment
2.19year. The commissioner of natural resources must concur that the land is qualified. The
2.20commissioner of natural resources shall annually provide county assessors verification
2.21information on a timely basis. The presence of a minor, ancillary nonresidential structure
2.22as defined by the commissioner of revenue does not disqualify the property from
2.23classification under this paragraph.
2.24    (e) Agricultural land as used in this section means contiguous acreage of ten
2.25acres or more, used during the preceding year for agricultural purposes. "Agricultural
2.26purposes" as used in this section means the raising, cultivation, drying, or storage of
2.27agricultural products for sale, or the storage of machinery or equipment used in support
2.28of agricultural production by the same farm entity. For a property to be classified as
2.29agricultural based only on the drying or storage of agricultural products, the products
2.30being dried or stored must have been produced by the same farm entity as the entity
2.31operating the drying or storage facility. "Agricultural purposes" also includes enrollment
2.32in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal
2.33Conservation Reserve Program as contained in Public Law 99-198 or a similar state
2.34or federal conservation program if the property was classified as agricultural (i) under
2.35this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment.
3.1Agricultural classification shall not be based upon the market value of any residential
3.2structures on the parcel or contiguous parcels under the same ownership.
3.3    (f) Real estate of less than ten acres, which is exclusively or intensively used for
3.4raising or cultivating agricultural products, shall be considered as agricultural land. To
3.5qualify under this paragraph, property that includes a residential structure must be used
3.6intensively for one of the following purposes:
3.7    (i) for drying or storage of grain or storage of machinery or equipment used to
3.8support agricultural activities on other parcels of property operated by the same farming
3.10    (ii) as a nursery, provided that only those acres used to produce nursery stock are
3.11considered agricultural land;
3.12    (iii) for livestock or poultry confinement, provided that land that is used only for
3.13pasturing and grazing does not qualify; or
3.14    (iv) for market farming; for purposes of this paragraph, "market farming" means the
3.15cultivation of one or more fruits or vegetables or production of animal or other agricultural
3.16products for sale to local markets by the farmer or an organization with which the farmer
3.17is affiliated.
3.18    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
3.19use of that property is the leasing to, or use by another person for agricultural purposes.
3.20    Classification under this subdivision is not determinative for qualifying under
3.21section 273.111.
3.22    (h) The property classification under this section supersedes, for property tax
3.23purposes only, any locally administered agricultural policies or land use restrictions that
3.24define minimum or maximum farm acreage.
3.25    (i) The term "agricultural products" as used in this subdivision includes production
3.26for sale of:
3.27    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
3.28animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
3.29bees, and apiary products by the owner;
3.30    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
3.31for agricultural use;
3.32    (3) the commercial boarding of horses, which may include related horse training and
3.33riding instruction, if the boarding is done on property that is also used for raising pasture
3.34to graze horses or raising or cultivating other agricultural products as defined in clause (1);
3.35    (4) property which is owned and operated by nonprofit organizations used for
3.36equestrian activities, excluding racing;
4.1    (5) breeding and raising of game birds and waterfowl bred and raised for use on a
4.2shooting preserve licensed under section 97A.115;
4.3    (6) insects primarily bred to be used as food for animals;
4.4    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
4.5sold for timber, lumber, wood, or wood products; and
4.6    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
4.7Department of Agriculture under chapter 28A as a food processor.
4.8    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
4.9purposes, including but not limited to:
4.10    (1) wholesale and retail sales;
4.11    (2) processing of raw agricultural products or other goods;
4.12    (3) warehousing or storage of processed goods; and
4.13    (4) office facilities for the support of the activities enumerated in clauses (1), (2),
4.14and (3),
4.15the assessor shall classify the part of the parcel used for agricultural purposes as class
4.161b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
4.17use. The grading, sorting, and packaging of raw agricultural products for first sale is
4.18considered an agricultural purpose. A greenhouse or other building where horticultural
4.19or nursery products are grown that is also used for the conduct of retail sales must be
4.20classified as agricultural if it is primarily used for the growing of horticultural or nursery
4.21products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
4.22those products. Use of a greenhouse or building only for the display of already grown
4.23horticultural or nursery products does not qualify as an agricultural purpose.
4.24    (k) The assessor shall determine and list separately on the records the market value
4.25of the homestead dwelling and the one acre of land on which that dwelling is located. If
4.26any farm buildings or structures are located on this homesteaded acre of land, their market
4.27value shall not be included in this separate determination.
4.28    (l) Class 2d airport landing area consists of a landing area or public access area of
4.29a privately owned public use airport. It has a class rate of one percent of market value.
4.30To qualify for classification under this paragraph, a privately owned public use airport
4.31must be licensed as a public airport under section 360.018. For purposes of this paragraph,
4.32"landing area" means that part of a privately owned public use airport properly cleared,
4.33regularly maintained, and made available to the public for use by aircraft and includes
4.34runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
4.35A landing area also includes land underlying both the primary surface and the approach
4.36surfaces that comply with all of the following:
5.1    (i) the land is properly cleared and regularly maintained for the primary purposes of
5.2the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
5.3facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
5.4    (ii) the land is part of the airport property; and
5.5    (iii) the land is not used for commercial or residential purposes.
5.6The land contained in a landing area under this paragraph must be described and certified
5.7by the commissioner of transportation. The certification is effective until it is modified,
5.8or until the airport or landing area no longer meets the requirements of this paragraph.
5.9For purposes of this paragraph, "public access area" means property used as an aircraft
5.10parking ramp, apron, or storage hangar, or an arrival and departure building in connection
5.11with the airport.
5.12    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
5.13being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
5.14located in a county that has elected to opt-out of the aggregate preservation program as
5.15provided in section 273.1115, subdivision 6. It has a class rate of one percent of market
5.16value. To qualify for classification under this paragraph, the property must be at least
5.17ten contiguous acres in size and the owner of the property must record with the county
5.18recorder of the county in which the property is located an affidavit containing:
5.19    (1) a legal description of the property;
5.20    (2) a disclosure that the property contains a commercial aggregate deposit that is not
5.21actively being mined but is present on the entire parcel enrolled;
5.22    (3) documentation that the conditional use under the county or local zoning
5.23ordinance of this property is for mining; and
5.24    (4) documentation that a permit has been issued by the local unit of government
5.25or the mining activity is allowed under local ordinance. The disclosure must include a
5.26statement from a registered professional geologist, engineer, or soil scientist delineating
5.27the deposit and certifying that it is a commercial aggregate deposit.
5.28    For purposes of this section and section 273.1115, "commercial aggregate deposit"
5.29means a deposit that will yield crushed stone or sand and gravel that is suitable for use
5.30as a construction aggregate; and "actively mined" means the removal of top soil and
5.31overburden in preparation for excavation or excavation of a commercial deposit.
5.32    (n) When any portion of the property under this subdivision or subdivision 22 begins
5.33to be actively mined, the owner must file a supplemental affidavit within 60 days from
5.34the day any aggregate is removed stating the number of acres of the property that is
5.35actively being mined. The acres actively being mined must be (1) valued and classified
5.36under subdivision 24 in the next subsequent assessment year, and (2) removed from the
6.1aggregate resource preservation property tax program under section 273.1115, if the
6.2land was enrolled in that program. Copies of the original affidavit and all supplemental
6.3affidavits must be filed with the county assessor, the local zoning administrator, and the
6.4Department of Natural Resources, Division of Land and Minerals. A supplemental
6.5affidavit must be filed each time a subsequent portion of the property is actively mined,
6.6provided that the minimum acreage change is five acres, even if the actual mining activity
6.7constitutes less than five acres.
6.8(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
6.9not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
6.10in section 14.386 concerning exempt rules do not apply.
6.11EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
6.13Renumber the sections in sequence and correct the internal references
6.14Amend the title accordingly