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Closed Grain Elevators Called Agricultural Property

Air Date:01/30/2012

Owners of closed grain elevators could see a tax break. The state House of Representatives passed a bill allowing those elevators to become agricultural property instead of commercial property. Democrat Representative Paul Dennert sponsored the bill. He says some farmers want to purchase old elevators for agricultural use. However, they don't want to pay commercial tax assessed to the building, and they tear it down. Dennert says elevators are being torn down across the state, and small towns are missing out on tax revenue.

"Why wouldn't we be willing to take a certain mill levy-although it be lower, from an elevator, in Groton in this case, than no elevator at all. I said if this elevator stays there, the city will get their tax, the county will get their tax," Representative Dennert says.

Opponents say the bill allows farmers to claim other property as agricultural use, which keeps them from paying commercial taxes. Representative Brock Greenfield says the measure only allows elevators.

By Travis Berg

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