Saturday, October 4, 2008

Eastlund drafts bill to repeal Green Acres changes




Other local legislators support modifying the new law once the session resumes in January.

If he can, Representative Rob Eastlund will repeal the changes made to the Green Acres bill in 2008.
He has already drafted a bill that would do so and intends to submit it once the 2009 session begins.
"We're hoping to generate enough concern about this so that when we get to the Legislature next January we can make some changes," said Eastlund during a community forum on the issue Oct. 1, 2008 at Anoka-Ramsey Community College – Cambridge Campus. Hundreds from Isanti County, as well as neighboring areas, attended the forum to register their concern about the issue.
Eastlund believes there is a pretty good chance that the repeal effort will succeed. He pointed out that there are 32 counties in the state affected by these changes. Eighty-four representatives and 42 senators represent these areas in the Legislature.
That's a majority in both houses.
"It's our intent to squash the bill, but there is no guarantee in the Legislature," admitted Eastlund.
He was joined at the forum by Senator Rick Olseen and Representative Sondra Erickson, both of whom support changes to the Green Acres bill.
If the repeal doesn't work, plan B is to make changes to the new law.
The most contentious item is the way grandfathering is being handled. Olseen, Eastlund and Erickson stated that when they read "grandfather" in the bill approved in May 2008, they assumed it meant there would be no changes to anyone currently in the program.
Thom Peterson of the Minnesota Farmer's Union pointed out his group urged the Legislature last spring to form a task force before making changes to the Green Acres law. This was never done, but instead the bill went directly from a committee to law. It was included in the 250-page tax omnibus bill passed on the last day.
Senator Olseen admitted that the way this issue was pushed through was a mistake. "I feel like I was snookered," he said. When the bill was explained on the senate floor, there was no mention of the seven-year payback. "This bill goes against everything we all stand for," he stated. "I don't think this was a good decision, and I apologize for that."
Eastlund agreed. "I really think there was a breakdown in the legislative process here." The legislators present vowed to be sure that this time around, farmers have a chance to make their voices heard during committee hearings.
Towards that end, Eastlund encouraged people to write down their stories, and either email them or mail them to legislators.
"We need to get the message out to everybody," said Eastlund.
What should farmers do now?
"Don't panic," Jeremy Geske of the Minnesota Farm Bureau tells callers to his office. "We've got the legislative session to fix it."
From his point of view, one of the biggest issues with the modified law is that is doesn't provide a way for landowners to transfer their land to the next generation without pulling property from the Green Acres program.
Eastlund had this advice for farmers. Consider what you will be doing with your land over the next five years. If you may sell a portion or parcel off for a child, you will likely want to notify your assessor's office that you may pull it out of the program.
Landowners in Isanti County, along with others, have been sent letters from the assessors' offices asking people whether their intent is to stay in the program or not. Farmers are urged to end the letter back so they can begin planning. However, no one is bound to the decision they make prior to Jan. 2. Each landowner will have until next summer to make a final decision under the new law. And that law may be repealed or changed in the interim.

TIMELINE FOR FARMERS
NOW - Farmers are receiving letters from their county assessor asking whether or not they intend to remain in the program.
JAN. 2, 2009 – Farmers must state their intent to withdraw or remain in the program. This is non-binding.
SUMMER 2009 – Farmers will be given the tax impact of withdrawing from the program to make a final decision.
NOV. 15, 2009 – Any deferred taxes are due.

CHANGES TO GREEN ACRES
• Productive and non-productive land will be separated and treated differently. Productive land includes: anything tilled or pastured, what's mowed for hay, and land that is fallowed. Non-productive includes: sloughs, wetlands, meadows and woods.
• A new classification was created: Rural vacant land. That land will no longer be allowed in the Green Acres program. At present, the land will be valued at the same rate as farmland, however.
• Land in the program is grandfathered in with two provisions. 1) When land classified as rural vacant land is removed from the program it will be subject to a seven-year payback (compared to the old three-year payback). 2) In the future, landowners will no longer be allowed to withdraw small tracts of land, but must instead do all or none. When withdrawn, the land is subject to a seven-year payback.
• Landowners may withdraw some or all of their land from the program by next summer and pay only the three-year payback included under the old law.

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