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HF 119

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/28/2017 05:04pm

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

Current Version - 1st Engrossment

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A bill for an act
relating to taxation; homestead valuation exclusion for disabled veterans; modifying
benefit eligibility for a deceased veteran's spouse; 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)(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, $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 deleted text begin for the current taxes payable year and
for eight additional taxes payable years or
deleted text end until such time as the spouse remarries, or sells,
transfers, or otherwise disposes of the propertydeleted text begin , whichever comes firstdeleted text end . 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 described in paragraph (b), clause (2), deleted text begin for eight taxes payable years, ordeleted text end until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the propertydeleted text begin ,
whichever comes first
deleted text end .

(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 once a property has been accepted for a valuation exclusion under paragraph
(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property
continues to qualify until there is a change in 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)new text begin If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
under paragraph (b), clause (2), until the spouse remarries or sells, transfers, or otherwise
disposes of the property if:
new text end

new text begin (1) the spouse files a first-time application within two years of the death of the service
member or by June 1, 2019, whichever is later;
new text end

new text begin (2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;
new text end

new text begin (3) the veteran met the honorable discharge requirements of paragraph (a);
new text end

new text begin (4) the spouse complies with the annual application requirement under paragraph (h);
and
new text end

new text begin (5) the United States Department of Veterans Affairs certifies that:
new text end

new text begin (i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or
new text end

new text begin (ii) the spouse has been awarded dependency and indemnity compensation.
new text end

new text begin (l)new text end 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