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SEPTEMBER 1996
<br />
<br />Page 7~
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<br /> FINDINGS OF FACT
<br />
<br /> 1. Petitioner has sufficient interest in the
<br />property to maintain this petition; all statutory and
<br />jurisdictional requirements have been complied w~th,
<br />and the Court has jur/sdiction over the subject matter
<br />of the action and the par~ies' hereto.
<br /> 2. The subject property, located at 5164 County
<br />Road t9 North in Independence, consists of 34.55 acres
<br />improved with a house, a pole barn, a wood-~ramed
<br />building, another building formerly used as a dairy
<br />barn and five miscellaneous old sheds. The subject
<br />property is identified on the books and records of
<br />Hennepin County as P.I.D. No. 36-I18-24 43 0001.
<br /> 3. The house on the subject property is
<br />Petitioner's homestead. It is a large, good quality two-
<br />story of approximately 3,192 square feet w~th a three-
<br />car attached garage. The house has been assessed for
<br />the assessment year at issue at $248,000, which
<br />Petitioner does not contest.
<br /> 4. Petitioner is a doctor who commutes each day
<br />to his private medical clinic in MAnneapolis from
<br />Independence and who earns approximately $200,000
<br />annually. Petitioner's w~fe,:Carol Jetzer, is a part-time
<br />nurse who annually earns approximately $65,000.
<br /> 5. Approximately 30 acres of the subject property
<br />is tillable land planted in hay. Petitioner rents the 30
<br />acres to third parties to make hay. Petitioner reported
<br />total agricultural income of $3,200 from the sale of hay
<br />during 1993 and $600 from the sale of hay during
<br />1994.
<br /> 6. Petitioner's wife, Carol Jetzer, started
<br />purchasing and breeding thoroughbred race horses in
<br />1991 on the subject property. As of January 2, 1994,
<br />there were three horses.
<br /> 7. Both Petitioner and Carol Jetzer testified that
<br />they expect the thoroughbred horse raising business to
<br />support them in the next five to seven years when
<br />Petitioner retires fi.om or sells his medical practice.
<br /> 8. William W. Davy, C.M.A., w~th the Hennepin
<br />County Assessor's Off/ce, testified' that the subject
<br />property is located in an equal m/x of att/cultural
<br />homestead properties and resident/al homestead
<br />properties.
<br /> 9. The Hennepin County Assessor classified the
<br />subject property as residential homestead.
<br /> 10. For the 1994 assessment, Petitioner applied for
<br />Green Acres treatment and reported $3,200 of income
<br />fi.om agricultural use. The Hennepin County
<br />Assessor's Office denied Petitioner Green Acres
<br />treatment concluding that the amount of Petitioner's
<br />agricultural activity was minimal and incidental when
<br />compared to the property's use as a residential
<br />homestead.
<br /> 1I. Petitioner contests the assessor's denial of
<br />Green Acres treatment by filing this petition.
<br />12. We find that the subject property was
<br />
<br />primarily used as a residential homestead as of
<br />January 2, 1994.
<br />
<br /> CONCLUSIONS OF LAW
<br />
<br /> 1'. The Hennepin County Assessor's residential
<br />homestead classification for the subject property for the
<br />January 2, 1994 assessment date is aff/rmed.
<br /> LET JUDG~ BE ENTERED ACCORDINGLY.
<br />THIS IS A FINAL ORDER. A STAY OF 15 DAYS IS
<br />HEREBY ORDERED.
<br /> BY TH~ COURT,
<br /> Diane L. Kroupa, Judge
<br />DATED: September 24, 1996
<br />
<br /> MEMORANDUM
<br />
<br /> The issue before the Court is the classification of
<br />the subject property on January 2, 1994. The subject
<br />property contains 34.55 acres, of which 30 acres are
<br />tillable. Petitioner rents ail of the tillable land to third
<br />parties to harvest hay. During 1993,~ Petitioner
<br />received $3,200 from the sale of hay.
<br /> The subject property is improved w/th a house, a
<br />pole barn, a wood-framed building, another building
<br />formerly used as a dairy barn and five miscellaneous
<br />old sheds. Petitioner and his wife use the house as
<br />their homestead.2 The house contains approximately
<br />3,129 square feet and has a three-car attached garage.
<br />The assessed value of the house is $243,000, which
<br />Petitioner does not contest,s
<br /> Petitioner is a doctor who commutes each day to
<br />his medical practice in Minneapolis fi.om Independence
<br />and earns approximately $200,000 annually.
<br />Petitioner's wife, Carol Jetzer, is a part-time nurse who
<br />earns approx/matety $65,000 annually.
<br /> Petitioner's wife started buying and breeding
<br />thoroughbred race horses in I991. By January 2, 1994,
<br />she had three race horses.
<br />
<br /> tTo detsrmine the correct tax classification for the
<br />assessment year, the Court must look to its use during the
<br />precsding year. Kaget v. County of Hennepin, File No. TC-8132
<br />(M/nn~Tax Ct. May 22, 1989).
<br /> Fedt'ioner and his wife use the other buildings to store
<br />medical records, boats, lawn mowers and other miscellaneous
<br />items. Testimony a~- thai indicates that one of the buildings is
<br />now being used to cool down the horses after they have raced.
<br />The record is unclear whether Petitioner used any of the bufldings
<br />as of the assessment date for agricultural purposes.
<br /> ~Petitioner also does not contest the $40,000 assessed value
<br />of the other buildings.
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