1.1                          A bill for an act 
  1.2             relating to taxation; increasing the education 
  1.3             agricultural credit; amending Minnesota Statutes 2000, 
  1.4             section 273.1832, subdivision 1b. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 273.1382, 
  1.7   subdivision 1b, is amended to read: 
  1.8      Subd. 1b.  [EDUCATION AGRICULTURAL CREDIT.] Property 
  1.9   classified as class 2a agricultural homestead or class 2b 
  1.10  agricultural nonhomestead or timberland is eligible for 
  1.11  education agricultural credit.  The credit is equal to 70 
  1.12  percent, in the case of agricultural homestead property up to 
  1.13  $600,000 in market value, or 63 percent, in the case of all 
  1.14  other agricultural property or timberland, of the property's net 
  1.15  tax capacity times the education credit tax rate determined in 
  1.16  subdivision 1.  The portion of class 2a property consisting of 
  1.17  the house, garage, and surrounding one acre of land is not 
  1.18  eligible for the credit under this subdivision, nor does its 
  1.19  market value count towards the valuation threshold contained in 
  1.20  this subdivision. 
  1.21     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  1.22  payable in 2002 and thereafter.