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HF 51

as introduced - 90th Legislature (2017 - 2018) Posted on 02/09/2017 03:46pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; property; modifying the disabled veteran's exclusion; amending
Minnesota Statutes 2016, section 273.13, subdivision 34.

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

Section 1.

Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:


Subd. 34.

Homestead of disabled veteran or family caregiver.

(a) All or a portion of
the market value of property owned by a veteran and serving as the veteran's homestead
under this section is excluded in determining the property's taxable market value if the
veteran has a service-connected disability of 70 percent or more as certified by the United
States Department of Veterans Affairs. To qualify for exclusion under this subdivision, 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.

(b)deleted text begin (1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
except as provided in clause (2); and
deleted text end new text begin The exclusion amount is equal to $300,000 times the
disability rating percentage.
new text end

deleted text begin (2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.
deleted text end

(c) If a disabled veteran qualifying for a valuation exclusion deleted text begin under paragraph (b), clause
(2),
deleted text end new text begin based on a total (100 percent) and permanent disabilitynew text end 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 the current taxes payable year and for eight additional taxes payable
years or until such time as the spouse remarries, or sells, transfers, or otherwise disposes of
the property, whichever comes first. Qualification under this paragraph requires an annual
application under paragraph (h).

(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit deleted text begin described indeleted text end new text begin undernew text end paragraph (b), deleted text begin clause (2)deleted text end new text begin as if the deceased veteran had a 100
percent disability rating
new text end , for eight taxes payable years, or until such time as the spouse
remarries or sells, transfers, or otherwise disposes of the property, whichever comes first.

(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).

(f) 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.

(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).

(h) 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 deleted text begin oncedeleted text end new text begin fornew text end a property new text begin that:
new text end

new text begin (1) new text end has been accepted for a valuation exclusion under paragraph (a) deleted text begin anddeleted text end new text begin ;
new text end

new text begin (2)new text end qualifies deleted text begin for the benefit described in paragraph (b), clause (2),deleted text end new text begin based on a total (100
percent) and permanent disability rating;
new text end and deleted text begin the property
deleted text end

new text begin (3)new text end continues deleted text begin to qualify until there is a change indeleted text end new text begin under the samenew text end ownership.

For an application received after July 1 of any calendar year, the exclusion shall become
effective for the following assessment year.

(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.

(j) For purposes of this subdivision:

(1) "active service" has the meaning given in section 190.05;

(2) "own" means that the person's name is present as an owner on the property deed;

(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and

(4) "veteran" has the meaning given the term in section 197.447.

(k) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.

new text begin EFFECTIVE DATE. new text end

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