HF 3806

as introduced - 86th Legislature (2009 - 2010) Posted on 04/26/2010 11:26am

A bill for an act
relating to taxation; property; disabled veterans' market value exclusion; allowing
spouses of deceased disabled veterans or service members who die while in active
military service to qualify for the senior deferral program; amending Minnesota
Statutes 2008, sections 273.13, subdivision 34; 290B.03, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 273.13, subdivision 34, is amended to read:

Subd. 34.

Homestead of disabled veteran.

(a) All or a portion of the market value
of property owned by a veteran or by the veteran and the veteran's spouse qualifying
for homestead classification under subdivision 22 or 23 is excluded in determining the
property's taxable market value if it new text begin either: (1) new text end serves as the homestead of a military
veteran, as defined in section 197.447, who has a service-connected disability of 70
percent or more new text begin , or (2) served as the homestead of a service member at the time of the
service member's death due to a service-connected cause while in active service, as
defined in section 190.05, subdivision 5 new text end . To qualify for exclusion under deleted text begin this subdivision deleted text end new text begin
clause (1) new text end , the veteran must have been honorably discharged from the United States armed
forces, as indicated by United States Government Form DD214 or other official military
discharge papers, and must be certified by the United States Veterans Administration
as having a service-connected disability. new text begin To qualify for exclusion under clause (2), the
surviving spouse must show proof of the service member's death while in active service
in any branch or unit of the United States armed forces, as shown by United States
Government Form DD214.
new text end

(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, new text begin or in the case of a property
qualifying under paragraph (a), clause (2), new text end $300,000 of market value is excluded.

(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse for deleted text begin one deleted text end new text begin four new text end additional
assessment deleted text begin year deleted text end new text begin years new text end or until such time as the spouse sells, transfers, or otherwise
disposes of the property, whichever comes first.

(d) In the case of an agricultural homestead, only the portion of the property
consisting of the house and garage and immediately surrounding one acre of land qualifies
for the valuation exclusion under this subdivision.

(e) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the credit under section 273.1384, subdivision 1, or classification under
subdivision 22, paragraph (b).

(f) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by July 1 of each assessment year, except that an annual reapplication
is not required once a property has been accepted for a valuation exclusion under paragraph
(b), clause (2), and the property continues to qualify until there is a change in ownership.

new text begin EFFECTIVE DATE. new text end

new text begin The change made to paragraph (a) is effective for deaths
occurring after the effective date of this act. The change made to paragraph (c) is effective
for all properties qualifying under this subdivision for taxes payable in 2010 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 290B.03, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Special program qualifications; spouse of service member who
died while in active service or deceased disabled veteran. new text end

new text begin (a) Notwithstanding the
requirements of subdivision 1, clauses (1) and (3), but subject to all the other requirements
of subdivision 1, homestead property owned and occupied by the spouse of either a service
member who died while in active service, or a deceased disabled veteran, is eligible to
participate in the program established under this chapter. For purposes of this subdivision,
"service member who died while in active service" means a person serving in any branch
or unit of the United States armed forces who has died from a service-connected cause
while serving in active service, as defined in section 190.05, subdivision 5, as indicated
by United States Government Form DD214. For purposes of this subdivision, "deceased
disabled veteran" means a deceased disabled veteran who was honorably discharged from
the United States armed forces, as indicated by United States Government Form DD214
or other official military discharge papers, and certified by the United States Veterans
Administration as having a total (100 percent) and permanent service-connected disability
prior to the veteran's death.
new text end

new text begin (b) Applications under this subdivision are exempt from the age requirements under
the application process in section 290B.04, subdivision 1. The commissioner may require
certifications as are necessary to ensure eligibility under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and
thereafter.
new text end