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File No. C-95-0§893 Dale J. Otto and Lori B. Otto, vs. County of Scott, Petitioners, Respondent This matter was heard by the Honorable Kathleen Doar, Judge of the Minnesota Tax Court, on October 8, 1993, at the Scott County District Court Facilities, in Shakopee, Minnesota. Keith M. Lewis, Attorney at Law, represented the Petitioners. Brian Nasi, Assistant Scott County Attorney, ap- peared for the Respondent. The issue in this easg is whether property owned by the Ottos in Scott County qualified for an agricultural classi-fication on the January 2, 1992 assessment date. The Court, having .heard and considered the evi- dence adduced at the hearing, and upon all of the files, records and proceedings herein, now makes the follow- ing: FINDINGS OF FACT l. Petitioners have sufficient interest in thc prop- erty to maintain this petition; all statutory and jurisdic- tional requirements have: been complied with, and the Court has jurisdiction over the subject matter of the ac- tion and the parties hereto. 2. The subject prop.ertL 10.24 acres in size, is lo- cated approximately two miles northwest of Jordan, Minnesota (the "Property"). Dale and Loft Otto pur- chased the Property in 1988 for $38,000. They con- NOVEMBER 1993 strutted a two-story, three-bedroom home in 1990 at a cost of $189,000. The home sits on less than one acre of the Property. 3. Five acres of the Property is wooded land and five acres is prairie and meadow. 4. Dale and Lori Otto filed a Minn. ch. 278 petition challenging the January 2, 1992 estimated market value and classification for the Property. Shortly before trial, the parties settled the valuation issue and agreed that the January 2, 1992 market value of the Property was $215,800. 5. In 1991 the Ottos owned three sheep and two lla- mas and in 1992 they owned three sheep and five lla- mas. They plan to breed the animals in the future. The Ottos earned no income from the animals in 1991. In 1992 the Ottos earned $686 from the sale of wool and showing the animals at children's evems. 6. Dale Otto is a pharmacist. He and his wife own three stores called The Drug Express, one in Belle Plain, one in New Prague and one in Le Center. Mr. Otto works approximately 65 hours per week in the stores. Mrs. Otto works approximately 50 hours a week in the stores. 7. The primary use of the Property is as a home- stead. CONCLUSIONS OF LAW 1. Thc property does not qualify for agricultural classification pursuant to Minn. Stat. § 273.13, subd. 23(c). 2. The assessor's January 2, 1992 classification for the subject property as residential homestead is affirmed. LET JUDGMENT BE ENTERED ACCORDINGLY. A STAY OF 15 DAYS IS HEREBY ORDERED. BY THE COURT, Kathleen Doar, Judge Dated: November 15, 1993 MEMORANDUM The Property, approximately 10 acres in size, is lo- cated outside of Jordan, Minnesota, and contains wood- land and prairie. In 1989, Date and Lori. Otto constructed a two-story, three-bedroom house for them- selves and their children on the Property. The Ottos own a business called The Drug Express and each works over 40 hours per week at the business. Because the Ottos keep sheep and llamas on the Property, and intend to breed these animals in the fu- ture,- they contend that the Property should be classified as agricultural on the January 2, 1992 .assessment date. We look to Minn. Stat. § 273.13, subd. 23(c) which reads in part as follows: (c) Agricultural land means contiguous acreage of ten acres or more, primarily used during the preceding year for agricultural purposes. Agricultural may include pasture, timber, waste, unusable wiId land and land included in state or federal farm programs. "Agricultural purposes" as used in this section means the raising or cultivation of agricultural products ....