HF 1436

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/09/2011 03:13pm

A bill for an act
relating to taxation; property; valuation of income-producing property; amending
Minnesota Statutes 2010, section 278.05, subdivision 6.

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

Section 1.

Minnesota Statutes 2010, section 278.05, subdivision 6, is amended to read:

Subd. 6.

Dismissal of petition; exclusion of certain evidence.

(a) In cases where
the petitioner contests the valuation of income-producing property, deleted text begin information, including
income and expense figures in the form of deleted text end new text begin the following information must be provided to
the county assessor no later than August 1 of the taxes payable year: new text end

(1) new text begin a new text end year-end financial deleted text begin statements deleted text end new text begin statement new text end for the year prior to the assessment
date deleted text begin , deleted text end new text begin ; new text end

(2) new text begin a new text end year-end financial deleted text begin statements deleted text end new text begin statement new text end for the year of the assessment date deleted text begin , and deleted text end new text begin ; new text end

(3) new text begin a new text end rent deleted text begin rolls deleted text end new text begin roll new text end on new text begin or near new text end the assessment date deleted text begin including deleted text end new text begin listing the new text end tenant name,
lease start and end dates, deleted text begin option terms, deleted text end base rent, square footage leased and vacant space deleted text begin ,
verified net rentable areas in the form of net rentable square footage of the building or
buildings, and anticipated income and expenses in the form of proposed budgets for
the year subsequent to the year of the assessment date, must be provided to the county
assessor no later than 60 days after the applicable filing deadline contained in section
278.01, subdivision 1 or 4. deleted text end new text begin ;
new text end

new text begin (4) identification of all lease agreements not disclosed on a rent roll in the response
to clause (3), listing the tenant name, lease start and end dates, base rent, and square
footage leased;
new text end

new text begin (5) net rentable square footage of the building or buildings; and
new text end

new text begin (6) anticipated income and expenses in the form of a proposed budget for the year
subsequent to the year of the assessment date.
new text end

new text begin (b) The information required to be provided to the county assessor under paragraph
(a) does not include leases. new text end Failure to provide the information required in deleted text begin this deleted text end paragraph new text begin (a)
new text end shall result in the dismissal of the petition, unless (1) the failure to provide it was due to the
unavailability of the deleted text begin evidence deleted text end new text begin information new text end at the time that the information was due, or (2)
the petitioner was not aware of or informed of the requirement to provide the information.

If the petitioner proves that the requirements under clause (2) are met, the petitioner has
an additional 30 days to provide the information from the time the petitioner became
aware of or was informed of the requirement to provide the information, otherwise the
petition shall be dismissed.

new text begin (c) If, after the August 1 deadline set in paragraph (a), a county assessor determines
that the actual leases in effect on the assessment date are necessary to properly evaluate
the income-producing property, then a county assessor may require that the petitioner
submit the leases. The petitioner must provide the requested information to the county
assessor within 60 days of a county assessor's request. The tax court shall hear and decide
any issues relating to subsequent information requests by a county assessor. Failure to
provide the information required in this paragraph shall be addressed under Rules of
Civil Procedure, rule 37.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end Provided that the information as contained in paragraph (a) is timely
submitted to the county assessor, the county assessor shall furnish the petitioner at least
five days before the hearing under this chapter with the property's appraisal, if any,
which will be presented to the court at the hearing. The petitioner shall furnish to the
county assessor at least five days before the hearing under this chapter with the property's
appraisal, if any, which will be presented to the court at the hearing. An appraisal of the
petitioner's property done by or for the county shall not be admissible as evidence if the
county assessor does not comply with the provisions in this paragraph. The petition shall
be dismissed if the petitioner does not comply with the provisions in this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for petitions contesting the 2010
assessment and assessments made after that date.
new text end