SF 377

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/18/2023 08:51am

A bill for an act
relating to taxation; property; prohibiting an increase in property value for
homesteads owned by persons 65 years of age or older; amending Minnesota
Statutes 2022, sections 273.11, subdivision 5, by adding a subdivision; 273.121,
subdivision 1; 276.04, subdivision 2.

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

Section 1.

Minnesota Statutes 2022, section 273.11, subdivision 5, is amended to read:

Subd. 5.

Boards of review and equalization.

Notwithstanding any other provision of
law to the contrary, deleted text begin the limitation contained deleted text end new text begin any limitations on valuation new text end in deleted text begin subdivisions 1
and 1a shall deleted text end new text begin this section new text end also apply to the authority of the local board of review as provided
in section 274.01, the county board of equalization as provided in section 274.13, the State
Board of Equalization and the commissioner of revenue as provided in sections 270.11,
subdivision 1, 270.12, 270C.92, and 270C.94.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 273.11, is amended by adding a subdivision to
read:

new text begin Subd. 24. new text end

new text begin Homesteads of persons age 65 or older; valuation increase prohibited. new text end

new text begin (a)
The estimated market value for class 1 property as defined in section 273.13, subdivision
22, and that portion of class 2a property as defined in section 273.13, subdivision 23,
consisting of the house, garage, and surrounding one acre of land, may not exceed the
property's estimated market value for the preceding year, provided that as of the assessment
date the property is owned and occupied as a homestead by a person that is 65 years of age
or older. In the case of a married couple, both of the spouses must be at least 65 years of
age regardless of whether the property is titled in the name of one spouse or both spouses
or titled in another way that permits the property to have homestead status.
new text end

new text begin (b) An owner or owners must apply to the county assessor by July 1 of the assessment
year for which the valuation freeze under paragraph (a) is first requested. The applicant or
applicants must submit proof of age as required by the assessor to determine eligibility for
the valuation freeze under paragraph (a). In succeeding years, applicants must submit
information the county assessor deems necessary to determine continued eligibility under
this section.
new text end

new text begin (c) This subdivision does not prohibit an increase in estimated market value attributable
to improvements made to the property.
new text end

new text begin (d) The county assessor shall annually inform the public of the availability of the valuation
freeze under this subdivision as part of the notice published under section 273.121.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023.
new text end

Sec. 3.

Minnesota Statutes 2022, section 273.121, subdivision 1, is amended to read:

Subdivision 1.

Notice.

Any county assessor or city assessor having the powers of a
county assessor, valuing or classifying taxable real property shall in each year notify those
persons whose property is to be included on the assessment roll that year if the person's
address is known to the assessor, otherwise the occupant of the property. The notice shall
be in writing and shall be sent by ordinary mail at least ten days before the meeting of the
local board of appeal and equalization under section 274.01 or the review process established
under section 274.13, subdivision 1c. Upon written request by the owner of the property,
the assessor may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail. It shall contain: (1) the new text begin estimated new text end market value for the current and prior
assessment deleted text begin , deleted text end new text begin ; new text end (2) new text begin any value reduction resulting from the limitation under section 273.11,
subdivision 24; (3) new text end the qualifying amount of any improvements under section 273.11,
subdivision 16, for the current assessment deleted text begin , (3) deleted text end new text begin ; (4) new text end the market value subject to taxation deleted text begin after
subtracting the amount of any qualifying improvements deleted text end for the current assessment deleted text begin , (4) deleted text end new text begin ; (5) new text end
the classification of the property for the current and prior assessment deleted text begin , (5) deleted text end new text begin ; (6) new text end the assessor's
office address deleted text begin , deleted text end new text begin ; new text end and deleted text begin (6) deleted text end new text begin (7) new text end the dates, places, and times set for the meetings of the local board
of appeal and equalization, the review process established under section 274.13, subdivision
1c, and the county board of appeal and equalization. If the classification of the property has
changed between the current and prior assessments, a specific note to that effect shall be
prominently listed on the statement. The commissioner of revenue shall specify the form
of the notice. The assessor shall attach to the assessment roll a statement that the notices
required by this section have been mailed. Any assessor who is not provided sufficient funds
from the assessor's governing body to provide such notices, may make application to the
commissioner of revenue to finance such notices. The commissioner of revenue shall conduct
an investigation and, if satisfied that the assessor does not have the necessary funds, issue
a certification to the commissioner of management and budget of the amount necessary to
provide such notices. The commissioner of management and budget shall issue a payment
for such amount and shall deduct such amount from any state payment to such county or
municipality. The necessary funds to make such payments are hereby appropriated. Failure
to receive the notice shall in no way affect the validity of the assessment, the resulting tax,
the procedures of any board of review or equalization, or the enforcement of delinquent
taxes by statutory means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023.
new text end

Sec. 4.

Minnesota Statutes 2022, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of market value excluded under section 273.11,
subdivision 16, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13, subdivision
35 new text begin , and any reduction due to section 273.11, subdivision 24 new text end ;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for agricultural properties, the credits under sections 273.1384 and 273.1387;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
received under section 273.135 must be separately stated and identified as "taconite tax
relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023.
new text end