1.1    .................... moves to amend H.F. No. 3795 as follows:
1.2Page 1, delete section 1 and insert:

1.3    "Sec. 1. Minnesota Statutes 2006, section 273.13, subdivision 23, as amended by Laws
1.42008, chapter 154, article 2, section 12, is amended to read:
1.5    Subd. 23. Class 2. (a) Class 2a property is agricultural land including any
1.6improvements that is homesteaded. The market value of the house and garage and
1.7immediately surrounding one acre of land has the same class rates as class 1a property
1.8under subdivision 22. The value of the remaining land including improvements up to
1.9the first tier valuation limit of agricultural homestead property has a net class rate of
1.100.55 percent of market value. The remaining property over the first tier has a class rate
1.11of one percent of market value. For purposes of this subdivision, the "first tier valuation
1.12limit of agricultural homestead property" and "first tier" means the limit certified under
1.13section 273.11, subdivision 23.
1.14    (b) Class 2b property is (1) unplatted real estate, rural in character and used
1.15exclusively for growing trees for timber, lumber, and wood and wood products; (2) real
1.16estate that is not improved with a structure and is used exclusively for growing trees
1.17for timber, lumber, and wood and wood products, if the owner has participated or is
1.18participating in a cost-sharing program for afforestation, reforestation, or timber stand
1.19improvement on that particular property, administered or coordinated by the commissioner
1.20of natural resources; (3) and that consists of at least ten acres, including land used for
1.21growing trees for timber, lumber, wood, and wood products, but not including land used
1.22for agricultural purposes as defined in paragraph (c), provided that the presence of a minor,
1.23ancillary nonresidential structure as defined by the commissioner of revenue does not
1.24disqualify property from classification under this clause and provided that any tax parcel
1.25improved with a structure that is not a minor, ancillary nonresidential structure may not be
1.26split-classified for the sole purpose of this classification unless the acreage assigned to the
1.27split parcel with the structure is 20 acres;
2.1    (2) real estate that is nonhomestead agricultural land; or
2.2    (4) (3) a landing area or public access area of a privately owned public use airport.
2.3Class 2b property has a net class rate of one percent of market value, except that unplatted
2.4property described in clause (1) or (2) has a net class rate of .65 percent if it consists
2.5of no less than ten and no more than 1,920 acres and is being managed under a forest
2.6management plan that meets the requirements of chapter 290C, but is not enrolled in the
2.7sustainable forest resource management incentive program, provided that the owner of the
2.8property must apply to the assessor annually to receive the reduced class rate and provide
2.9the information required by the assessor to verify that the property qualifies for the reduced
2.10rate. The commissioner of natural resources must concur that the land is qualified. The
2.11commissioner of natural resources shall annually provide county assessors verification
2.12information on a timely basis. Parcels for which the preceding forest management criteria
2.13have been met and which also meet the criteria described in clause (1) shall be classified
2.142b if so requested by the landowner.
2.15    (c) Agricultural land as used in this section means contiguous acreage of ten acres or
2.16more, used during the preceding year for agricultural purposes. "Agricultural purposes" as
2.17used in this section means the raising or cultivation of agricultural products. "Agricultural
2.18purposes" also includes enrollment in the Reinvest in Minnesota program under sections
2.19103F.501 to 103F.535 or the federal Conservation Reserve Program as contained in Public
2.20Law 99-198 if the property was classified as agricultural (i) under this subdivision for
2.21the assessment year 2002 or (ii) in the year prior to its enrollment. Contiguous acreage
2.22on the same parcel, or contiguous acreage on an immediately adjacent parcel under the
2.23same ownership, may also qualify as agricultural land, but only if it is pasture, timber,
2.24waste, unusable wild land, or land included in state or federal farm programs. Agricultural
2.25classification for property shall be determined excluding the house, garage, and
2.26immediately surrounding one acre of land, and shall not be based upon the market value of
2.27any residential structures on the parcel or contiguous parcels under the same ownership.
2.28    (d) Real estate, excluding the house, garage, and immediately surrounding one acre
2.29of land, of less than ten acres which is exclusively and intensively used for raising or
2.30cultivating agricultural products, shall be considered as agricultural land.
2.31    Land shall be classified as agricultural even if all or a portion of the agricultural use
2.32of that property is the leasing to, or use by another person for agricultural purposes.
2.33    Classification under this subdivision is not determinative for qualifying under
2.34section 273.111.
3.1    The property classification under this section supersedes, for property tax purposes
3.2only, any locally administered agricultural policies or land use restrictions that define
3.3minimum or maximum farm acreage.
3.4    (e) The term "agricultural products" as used in this subdivision includes production
3.5for sale of:
3.6    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
3.7animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
3.8bees, and apiary products by the owner;
3.9    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
3.10for agricultural use;
3.11    (3) the commercial boarding of horses if the boarding is done in conjunction with
3.12raising or cultivating agricultural products as defined in clause (1);
3.13    (4) property which is owned and operated by nonprofit organizations used for
3.14equestrian activities, excluding racing;
3.15    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
3.16under section 97A.115;
3.17    (6) insects primarily bred to be used as food for animals;
3.18    (7) trees, grown for sale as a crop, and not sold for timber, lumber, wood, or wood
3.19products; and
3.20    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
3.21Department of Agriculture under chapter 28A as a food processor.
3.22    (f) If a parcel used for agricultural purposes is also used for commercial or industrial
3.23purposes, including but not limited to:
3.24    (1) wholesale and retail sales;
3.25    (2) processing of raw agricultural products or other goods;
3.26    (3) warehousing or storage of processed goods; and
3.27    (4) office facilities for the support of the activities enumerated in clauses (1), (2),
3.28and (3),
3.29the assessor shall classify the part of the parcel used for agricultural purposes as class
3.301b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
3.31use. The grading, sorting, and packaging of raw agricultural products for first sale is
3.32considered an agricultural purpose. A greenhouse or other building where horticultural
3.33or nursery products are grown that is also used for the conduct of retail sales must be
3.34classified as agricultural if it is primarily used for the growing of horticultural or nursery
3.35products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
4.1those products. Use of a greenhouse or building only for the display of already grown
4.2horticultural or nursery products does not qualify as an agricultural purpose.
4.3    The assessor shall determine and list separately on the records the market value of
4.4the homestead dwelling and the one acre of land on which that dwelling is located. If any
4.5farm buildings or structures are located on this homesteaded acre of land, their market
4.6value shall not be included in this separate determination.
4.7    (g) To qualify for classification under paragraph (b), clause (4), a privately owned
4.8public use airport must be licensed as a public airport under section 360.018. For purposes
4.9of paragraph (b), clause (4), "landing area" means that part of a privately owned public use
4.10airport properly cleared, regularly maintained, and made available to the public for use by
4.11aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing
4.12or navigational aids. A landing area also includes land underlying both the primary surface
4.13and the approach surfaces that comply with all of the following:
4.14    (i) the land is properly cleared and regularly maintained for the primary purposes of
4.15the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
4.16facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
4.17    (ii) the land is part of the airport property; and
4.18    (iii) the land is not used for commercial or residential purposes.
4.19The land contained in a landing area under paragraph (b), clause (4), must be described
4.20and certified by the commissioner of transportation. The certification is effective until
4.21it is modified, or until the airport or landing area no longer meets the requirements of
4.22paragraph (b), clause (4). For purposes of paragraph (b), clause (4), "public access area"
4.23means property used as an aircraft parking ramp, apron, or storage hangar, or an arrival
4.24and departure building in connection with the airport.
4.25EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
4.26thereafter."
4.27Renumber the sections in sequence and correct the internal references
4.28Amend the title accordingly