HF 3372

as introduced - 86th Legislature (2009 - 2010) Posted on 03/03/2010 04:43pm

A bill for an act
relating to property taxation; limiting the growth in market value for agricultural
properties; reducing the property tax targeting refund; amending Minnesota
Statutes 2008, sections 273.11, subdivision 1a; 290A.04, subdivision 2h.

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

Section 1.

Minnesota Statutes 2008, section 273.11, subdivision 1a, is amended to read:

Subd. 1a.

Limited market value.

new text begin (a) new text end In the case of all property classified as
agricultural deleted text begin homestead or nonhomestead deleted text end new text begin under section 273.13, subdivision 23, paragraph
(a), (b), or (c) new text end , deleted text begin residential homestead or nonhomestead, timber, or noncommercial seasonal
residential recreational, deleted text end the assessor shall compare the value with the taxable portion of
the value determined in the preceding assessment.

deleted text begin For assessment years 2004, 2005, and 2006, the amount of the increase shall not
exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25
percent of the difference between the current assessment and the preceding assessment.
deleted text end

deleted text begin For assessment year 2007, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

deleted text begin For assessment year 2008, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

new text begin (b) For assessment year 2010, the amount of increase shall not exceed the greater
of (1) 20 percent of the value of the 2008 assessment, or (2) 33 percent of the difference
between the 2010 assessment and the 2008 assessment.
new text end

new text begin (c) For assessment years 2011, 2012, and 2013, the amount of the increase shall not
exceed (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the
difference between the current assessment and the preceding assessment.
new text end

new text begin (d) For assessment year 2014, the amount of the increase shall not exceed (1) 15
percent of the value of the preceding year, or (2) 50 percent of the difference between the
current assessment and the preceding assessment.
new text end

deleted text begin This limitation deleted text end new text begin (e) The limitations in this subdivision new text end shall not apply to increases
in value due to improvements. For purposes of this subdivision, the term "assessment"
means the value prior to any exclusion under subdivision 16.

The provisions of this subdivision shall be in effect through assessment year deleted text begin 2008 deleted text end
new text begin 2014 new text end as provided in this subdivision.

For purposes of the assessment/sales ratio study conducted under section 127A.48,
and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A,
126C, 127A, and 477A, market values and net tax capacities determined under this
subdivision and subdivision 16 deleted text begin , deleted text end shall be used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2010 assessment.
new text end

Sec. 2.

Minnesota Statutes 2008, section 290A.04, subdivision 2h, is amended to read:

Subd. 2h.

Additional refund.

(a) If the gross property taxes payable on a
homestead increase more than deleted text begin 12 deleted text end new text begin 20 new text end percent over the property taxes payable in the prior
year on the same property that is owned and occupied by the same owner on January
2 of both years, and the amount of that increase is $100 or more, a claimant who is a
homeowner shall be allowed an additional refund equal to 60 percent of the amount of
the increase over the greater of deleted text begin 12 deleted text end new text begin 20 new text end percent of the prior year's property taxes payable
or $100. This subdivision shall not apply to any increase in the gross property taxes
payable attributable to improvements made to the homestead after the assessment date
for the prior year's taxes. This subdivision shall not apply to any increase in the gross
property taxes payable attributable to the termination of valuation exclusions under
section 273.11, subdivision 16.

The maximum refund allowed under this subdivision is $1,000.

(b) For purposes of this subdivision "gross property taxes payable" means property
taxes payable determined without regard to the refund allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each claimant under
this subdivision shall file with the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other documents required by the
commissioner.

(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
refund under this section. The information shall be provided on a magnetic computer
disk. The county may recover its costs by charging the person requesting the information
the reasonable cost for preparing the data. The information may not be used for any
purpose other than for notifying the homeowner of potential eligibility and assisting the
homeowner, without charge, in preparing a refund claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on property
taxes payable in 2011 and thereafter.
new text end