1.1                          A bill for an act 
  1.2             relating to taxation; exempting agricultural loans 
  1.3             from the mortgage registry tax; amending Minnesota 
  1.4             Statutes 1996, section 287.04, by adding a subdivision.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 287.04, is 
  1.7   amended by adding a subdivision to read: 
  1.8      Subd. 3.  [AGRICULTURAL LOANS.] No tax is imposed upon an 
  1.9   agricultural loan if:  
  1.10     (1) the loan is secured by a mortgage of real property 
  1.11  classified as class 2 agricultural property under section 
  1.12  273.13, subdivision 22; and 
  1.13     (2) the proceeds of the loan are used for (i) acquisition 
  1.14  or improvement of class 2 agricultural property, or (ii) its 
  1.15  farm operations.