HF 248

as introduced - 90th Legislature (2017 - 2018) Posted on 01/17/2017 10:22am

A bill for an act
relating to taxation; property; requiring property tax credits for overvalued property;
proposing coding for new law in Minnesota Statutes, chapter 274.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [274.132] PROPERTY OVERVALUED.
new text end

new text begin Subdivision 1. new text end

new text begin Tax credit. new text end

new text begin Notwithstanding any other provision to the contrary, when
the value of a property is reduced by a local, special, or county board of appeal and
equalization, the state board of equalization, an order from the Minnesota Tax Court, or an
abatement to correct an error in valuation, the taxpayer shall receive a tax credit in the
manner prescribed under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Reduced value tax balance; credit amount. new text end

new text begin When the value of property is
reduced as provided in subdivision 1, the assessor shall determine the total accumulated
amount of taxes paid for the prior three years on that property and subtract from that amount
the amount of taxes due for the prior three years under the property's reduced value to obtain
the property's reduced value tax balance. The assessor shall credit the reduced value tax
balance against the taxpayer's succeeding year's property taxes due according to the following
schedule:
new text end

new text begin (1) if the reduced value tax balance is less than 25 percent of the current year's total
property taxes due, it shall be credited to the taxpayer in the succeeding year; or
new text end

new text begin (2) if the reduced value tax balance is 25 percent or more of the current year's total
property taxes due, it shall be credited to the taxpayer at a rate of 25 percent of the property
taxes due per year until credited in full.
new text end

new text begin Subd. 3. new text end

new text begin Settlement. new text end

new text begin The reduced value tax balance credit calculated under subdivision
2 shall reduce the tax payable to each jurisdiction in proportion to the total taxes payable
on the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2018.
new text end