1.1.................... moves to amend H.F. No. 12 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 273.114, subdivision 2, is amended to
1.5    Subd. 2. Requirements. Class 2a or 2b property that had been assessed properly
1.6classified under Minnesota Statutes 2006, section 273.111, or that is part of an agricultural
1.7homestead under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is
1.8entitled to valuation and tax deferment under this section if:
1.9(1) the land consists of at least ten acres;
1.10(2) a conservation assessment plan for the land must be prepared by an approved
1.11plan writer and implemented during the period in which the land is subject to valuation
1.12and deferment under this section;
1.13(3) the land must be enrolled for a minimum of eight years;
1.14(4) (2) there are no delinquent property taxes on the land; and
1.15(5) (3) the property is not also enrolled for valuation and deferment under section
1.16273.111 or 273.112, or chapter 290C or 473H.
1.17EFFECTIVE DATE.This section is effective for taxes payable in 2012 and

1.19    Sec. 2. Minnesota Statutes 2010, section 273.114, subdivision 5, is amended to read:
1.20    Subd. 5. Application and covenant agreement. (a) Application for deferment of
1.21taxes and assessment under this section shall be filed by May 1 of the year prior to the
1.22year in which the taxes are payable. Any application filed under this subdivision and
1.23granted shall continue in effect for subsequent years until the termination of the covenant
1.24agreement under paragraph (b) property is transferred or sold, or otherwise removed from
1.25the program by the owner. The application must be filed with the assessor of the taxing
2.1district in which the real property is located on the form prescribed by the commissioner
2.2of revenue. The assessor may require proof by affidavit or otherwise that the property
2.3qualifies under subdivision 2.
2.4    (b) The owner of the property must sign a covenant agreement that is filed with the
2.5county recorder and recorded in the county where the property is located. The covenant
2.6agreement must include all of the following:
2.7    (1) legal description of the area to which the covenant applies;
2.8    (2) name and address of the owner;
2.9    (3) a statement that the land described in the covenant must be kept as rural preserve
2.10land, which meets the requirements of subdivision 2, for the duration of the covenant;
2.11    (4) a statement that the landowner may terminate the covenant agreement by
2.12notifying the county assessor in writing three years in advance of the date of proposed
2.13termination, provided that the notice of intent to terminate may not be given at any time
2.14before the land has been subject to the covenant for a period of five years;
2.15    (5) a statement that the covenant is binding on the owner or the owner's successor or
2.16assigns and runs with the land; and
2.17    (6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as
2.18described in subdivision 2.
2.19(c) After a covenant under this section has been terminated, the land that had been
2.20subject to the covenant is ineligible for subsequent valuation under this section for a
2.21period of three years after the termination.
2.22EFFECTIVE DATE.This section is effective for taxes payable in 2012 and

2.24    Sec. 3. Minnesota Statutes 2010, section 273.114, subdivision 6, is amended to read:
2.25    Subd. 6. Additional taxes. Upon termination of a covenant agreement in
2.26subdivision 5, paragraph (b) voluntary withdrawal from the program or termination due to
2.27sale or transfer of the property , the land to which the covenant applied shall be subject to
2.28additional taxes in the amount equal to the difference between the taxes determined in
2.29accordance with subdivision 3 and the amount determined under subdivision 4, provided
2.30that the amount determined under subdivision 4 shall not be greater than it would have
2.31been had the actual bona fide sale price of the real property at an arm's-length transaction
2.32been used in lieu of the market value determined under subdivision 4. The additional taxes
2.33shall be extended against the property on the tax list for the current year, provided that
2.34no interest or penalties shall be levied on the additional taxes if timely paid and that the
3.1additional taxes shall only be levied with respect to the current year plus two prior years
3.2that the property has been valued and assessed under this section.
3.3EFFECTIVE DATE.This section is effective for taxes payable in 2012 and

3.6(a) Any land that had been properly enrolled in the Minnesota Agricultural Property
3.7Tax Law under Minnesota Statutes 2006, section 273.111, and that was removed from the
3.8program between May 21, 2008, and the effective date of this section, must be reinstated to
3.9the program at the request of the owner provided that the land is classified as class 2a or 2b.
3.10(b) If additional taxes have been paid by a property owner prior to the effective
3.11date of this section with respect to property described in paragraph (a), as a result of the
3.12property being removed from the program authorized under Minnesota Statutes 2006,
3.13section 273.111, the county must repay the property owner in the manner prescribed
3.14by the commissioner of revenue.
3.15EFFECTIVE DATE.This section is effective the day following final enactment.

3.16    Sec. 5. STUDY REQUIRED.
3.17The commissioner of revenue, in consultation with the Department of Applied
3.18Economics at the University of Minnesota and with representatives of major farm groups
3.19within the state of Minnesota, must develop an alternative methodology for determining
3.20the taxable value of tillable and nontillable land enrolled in the Green Acres program
3.21under section 273.111 and the rural preserves program under section 273.114. The
3.22commissioner must make a report to the legislature by February 15, 2012, describing the
3.23alternative methodology and plans for its implementation
3.24EFFECTIVE DATE.This section is effective the day following final enactment.

3.25    Sec. 6. REPEALER.
3.26Minnesota Statutes 2010, section 273.114, subdivision 1, is repealed.
3.27EFFECTIVE DATE.This section is effective the day following final enactment."
3.28Amend the title accordingly