MODIFIED PROPERTY TAX LAWS 
Modified Rate 
MINNESOTA 
Modified Rate Law!. 
Optional. Enacted 1957. Amended 1959, 1963, 
1965, and 1967. 
Statutes 1964 Secs. 270.31 to .39. 
Classification 
Qualification. Privately owned forest land, 
consisting of a governmental subdivision (defined 
as a government lot or a sixteenth of a section 
known as a forty) or portion thereof containing 5 
acres or more, generally suitable for planting, 
culture, and growth of continuous forest products, 
may be classified. 
Procedure. The owner makes application to the 
county board. The legal description of the land 
must be specified together with the acreage of each 
forest type (see definition of terms below) and 
the dominant species of each type in each govern- 
mental subdivision. The application must contain 
a sworn statement that classified land will be used 
as provided by the Act, and shall include a forest 
type map and statement as to the owner’s inten- 
tions concerning reforestation of any temporarily 
nonproductive land. 
The county board must approve or disapprove 
the application within 90 days and notify the 
county auditor. If no action is taken by the county 
board, the State Commissioner of Taxation shall 
act upon the application with all of the powers of 
the county board. 
The application, together with the County 
Board’s approval, constitute an agreement deemed 
to be a convenant running with the land. Agree- 
ments may be amended or cancelled by mutual 
consent or as provided by the Act. 
Conditions governing continued classification. 
Classified lands must be used exclusively for the 
growing of continuous forest crops in accordance 
with sustained yield practice. They must be open 
to the public for hunting and fishing except 
during periods of high fire hazard. 
Declassification 
The owner may apply to the county board for 
declassification of a governmental subdivision at 
any time. Payment is required of back taxes and 
‘ Known as the ‘“Tree Growth Tax Law.” 
26 
penalties on the basis of ad valorem taxes ef- 
fective in the area with due credit for taxes paid 
under the Act. No penalties or ad valorem taxes 
are assessed in the case of lands that have been 
classified for more than 6 years. 
The county board, subject to court review, may 
declassify lands if owners fail to comply with re- 
quirements of the Act. If the county board deems 
classified lands to be more valuable for purposes 
other than timber production, such lands may be 
declassified by joint agreement with the taxpayer. 
In event of disagreement, the matter is referred to 
a three-member committee appointed respec- 
tively by the county board, the taxpayer, and the 
Commissioner of Taxation. 
Taz treatment 
Land and timber 
1. Lands growing commercial forest types 
(defined as forest types having 3 cords or more of 
standard pulpwood or saw logs per acre or 500 
stems or more of commercial tree species per acre) 
are taxed each year at the rate of 30 percent of the 
value of the estimated average annual growth 
(for “value of annual growth” see definition of 
terms below.) 
2. Temporarily nonproductive forest lands (de- 
fined as those not at present, but capable of, 
meeting the standards for commercial forest 
lands) are taxed 5 cents per acre per year provided 
the owner complies with his reforestation agree- 
ment; in the event of noncompliance the lands are 
taxed 15 cents per acre per year 
3. Permanently nonproductive lands (such as 
muskeg, marsh, and rock outcrops unsuitable for 
growing commercial forests) are taxed 5 cents per 
acre per year. 
Note: Lands described in items 1-3 inclusive 
and used for administrative or management pur- 
poses such as roads, logging camps, or worksites 
and other harvest of timber, or for free public 
recreation are classified the same as adjoining 
lands under the Act. Camp buildings and any 
