HF 941

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; extending homestead 
  1.3             treatment for certain agricultural property; amending 
  1.4             Minnesota Statutes 1998, section 273.124, subdivisions 
  1.5             1 and 14. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 273.124, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
  1.10  that is occupied and used for the purposes of a homestead by its 
  1.11  owner, who must be a Minnesota resident, is a residential 
  1.12  homestead.  
  1.13     Agricultural land, as defined in section 273.13, 
  1.14  subdivision 23, that is occupied and used as a homestead by its 
  1.15  owner, who must be a Minnesota resident, is an agricultural 
  1.16  homestead. 
  1.17     Dates for establishment of a homestead and homestead 
  1.18  treatment provided to particular types of property are as 
  1.19  provided in this section.  
  1.20     Property of a trustee, beneficiary, or grantor of a trust 
  1.21  is not disqualified from receiving homestead benefits if the 
  1.22  homestead requirements under this chapter are satisfied. 
  1.23     The assessor shall require proof, as provided in 
  1.24  subdivision 13, of the facts upon which classification as a 
  1.25  homestead may be determined.  Notwithstanding any other law, the 
  2.1   assessor may at any time require a homestead application to be 
  2.2   filed in order to verify that any property classified as a 
  2.3   homestead continues to be eligible for homestead status.  
  2.4   Notwithstanding any other law to the contrary, the department of 
  2.5   revenue may, upon request from an assessor, verify whether an 
  2.6   individual who is requesting or receiving homestead 
  2.7   classification has filed a Minnesota income tax return as a 
  2.8   resident for the most recent taxable year for which the 
  2.9   information is available. 
  2.10     When there is a name change or a transfer of homestead 
  2.11  property, the assessor may reclassify the property in the next 
  2.12  assessment unless a homestead application is filed to verify 
  2.13  that the property continues to qualify for homestead 
  2.14  classification. 
  2.15     (b) For purposes of this section, homestead property shall 
  2.16  include property which is used for purposes of the homestead but 
  2.17  is separated from the homestead by a road, street, lot, 
  2.18  waterway, or other similar intervening property.  The term "used 
  2.19  for purposes of the homestead" shall include but not be limited 
  2.20  to uses for gardens, garages, or other outbuildings commonly 
  2.21  associated with a homestead, but shall not include vacant land 
  2.22  held primarily for future development.  In order to receive 
  2.23  homestead treatment for the noncontiguous property, the owner 
  2.24  must use the property for the purposes of the homestead, and 
  2.25  must apply to the assessor, both by the deadlines given in 
  2.26  subdivision 9.  After initial qualification for the homestead 
  2.27  treatment, additional applications for subsequent years are not 
  2.28  required. 
  2.29     (c) Residential real estate that is occupied and used for 
  2.30  purposes of a homestead by a relative of the owner is a 
  2.31  homestead but only to the extent of the homestead treatment that 
  2.32  would be provided if the related owner occupied the property.  
  2.33  For purposes of this paragraph and paragraph (g), "relative" 
  2.34  means a parent, stepparent, child, stepchild, grandparent, 
  2.35  grandchild, brother, sister, uncle, or aunt.  This relationship 
  2.36  may be by blood or marriage.  Property that has been classified 
  3.1   as seasonal recreational residential property at any time during 
  3.2   which it has been owned by the current owner or spouse of the 
  3.3   current owner will not be reclassified as a homestead unless it 
  3.4   is occupied as a homestead by the owner; this prohibition also 
  3.5   applies to property that, in the absence of this paragraph, 
  3.6   would have been classified as seasonal recreational residential 
  3.7   property at the time when the residence was constructed.  
  3.8   Neither the related occupant nor the owner of the property may 
  3.9   claim a property tax refund under chapter 290A for a homestead 
  3.10  occupied by a relative.  In the case of a residence located on 
  3.11  agricultural land, only the house, garage, and immediately 
  3.12  surrounding one acre of land shall be classified as a homestead 
  3.13  under this paragraph, except as provided in paragraph (d). 
  3.14     (d) Agricultural property that is occupied and used for 
  3.15  purposes of a homestead by a relative of the owner, is a 
  3.16  homestead, only to the extent of the homestead treatment that 
  3.17  would be provided if the related owner occupied the property, 
  3.18  and only if all of the following criteria are met: 
  3.19     (1) the relative who is occupying the agricultural property 
  3.20  is a son, daughter, father, or mother of the owner of the 
  3.21  agricultural property or a son or daughter of the spouse of the 
  3.22  owner of the agricultural property, 
  3.23     (2) notwithstanding the residency requirement in paragraph 
  3.24  (a), the owner of the agricultural property must need not be a 
  3.25  Minnesota resident, 
  3.26     (3) the relative who is occupying the agricultural property 
  3.27  is actively farming the property, 
  3.28     (4) the owner of the agricultural property must not receive 
  3.29  homestead treatment on any other agricultural property in 
  3.30  Minnesota, and 
  3.31     (4) (5) the owner of the agricultural property is limited 
  3.32  to only one agricultural homestead per family under this 
  3.33  paragraph. 
  3.34     Neither the related occupant nor the owner of the property 
  3.35  may claim a property tax refund under chapter 290A for a 
  3.36  homestead occupied by a relative qualifying under this 
  4.1   paragraph.  For purposes of this paragraph, "agricultural 
  4.2   property" means the house, garage, other farm buildings and 
  4.3   structures, and agricultural land. 
  4.4      Application must be made to the assessor by the owner of 
  4.5   the agricultural property to receive homestead benefits under 
  4.6   this paragraph.  The assessor may require the necessary proof 
  4.7   that the requirements under this paragraph have been met. 
  4.8      (e) In the case of property owned by a property owner who 
  4.9   is married, the assessor must not deny homestead treatment in 
  4.10  whole or in part if only one of the spouses occupies the 
  4.11  property and the other spouse is absent due to:  (1) marriage 
  4.12  dissolution proceedings, (2) legal separation, (3) employment or 
  4.13  self-employment in another location, or (4) other personal 
  4.14  circumstances causing the spouses to live separately, not 
  4.15  including an intent to obtain two homestead classifications for 
  4.16  property tax purposes.  To qualify under clause (3), the 
  4.17  spouse's place of employment or self-employment must be at least 
  4.18  50 miles distant from the other spouse's place of employment, 
  4.19  and the homesteads must be at least 50 miles distant from each 
  4.20  other.  Homestead treatment, in whole or in part, shall not be 
  4.21  denied to the owner's spouse who previously occupied the 
  4.22  residence with the owner if the absence of the owner is due to 
  4.23  one of the exceptions provided in this paragraph. 
  4.24     (f) The assessor must not deny homestead treatment in whole 
  4.25  or in part if: 
  4.26     (1) in the case of a property owner who is not married, the 
  4.27  owner is absent due to residence in a nursing home or boarding 
  4.28  care facility and the property is not otherwise occupied; or 
  4.29     (2) in the case of a property owner who is married, the 
  4.30  owner or the owner's spouse or both are absent due to residence 
  4.31  in a nursing home or boarding care facility and the property is 
  4.32  not occupied or is occupied only by the owner's spouse. 
  4.33     (g) If an individual is purchasing property with the intent 
  4.34  of claiming it as a homestead and is required by the terms of 
  4.35  the financing agreement to have a relative shown on the deed as 
  4.36  a coowner, the assessor shall allow a full homestead 
  5.1   classification.  This provision only applies to first-time 
  5.2   purchasers, whether married or single, or to a person who had 
  5.3   previously been married and is purchasing as a single individual 
  5.4   for the first time.  The application for homestead benefits must 
  5.5   be on a form prescribed by the commissioner and must contain the 
  5.6   data necessary for the assessor to determine if full homestead 
  5.7   benefits are warranted. 
  5.8      (h) Agricultural property shall be classified homestead, to 
  5.9   the same extent as other agricultural homestead property, as 
  5.10  long as it continues to meet all of the following criteria: 
  5.11     (1) the owner of the agricultural property does not claim 
  5.12  another agricultural homestead in Minnesota; 
  5.13     (2) no one is residing on the agricultural property; 
  5.14     (3) the person who is actively farming the property is a 
  5.15  son, daughter, son-in-law, or daughter-in-law of the owner of 
  5.16  the agricultural property; 
  5.17     (4) no other agricultural homestead in Minnesota is claimed 
  5.18  by the person who is actively farming the property or by the 
  5.19  person's spouse; and 
  5.20     (5) the person who is actively farming the property does 
  5.21  not live farther than four townships or cities, or a combination 
  5.22  of four townships or cities, from the agricultural property. 
  5.23     Sec. 2.  Minnesota Statutes 1998, section 273.124, 
  5.24  subdivision 14, is amended to read: 
  5.25     Subd. 14.  [AGRICULTURAL HOMESTEADS; SPECIAL PROVISIONS.] 
  5.26  (a) Real estate of less than ten acres that is the homestead of 
  5.27  its owner must be classified as class 2a under section 273.13, 
  5.28  subdivision 23, paragraph (a), if:  
  5.29     (1) the parcel on which the house is located is contiguous 
  5.30  on at least two sides to (i) agricultural land, (ii) land owned 
  5.31  or administered by the United States Fish and Wildlife Service, 
  5.32  or (iii) land administered by the department of natural 
  5.33  resources on which in lieu taxes are paid under sections 477A.11 
  5.34  to 477A.14; 
  5.35     (2) its owner also owns a noncontiguous parcel of 
  5.36  agricultural land that is at least 20 acres and the owner 
  6.1   actively farms that agricultural land; 
  6.2      (3) (2) the noncontiguous land is located not farther than 
  6.3   four townships or cities, or a combination of townships or 
  6.4   cities from the homestead; and 
  6.5      (4) (3) the agricultural use value of the noncontiguous 
  6.6   land and farm buildings is equal to at least 50 percent of the 
  6.7   market value of the house, garage, and one acre of land. 
  6.8      Homesteads initially classified as class 2a under the 
  6.9   provisions of this paragraph shall remain classified as class 
  6.10  2a, irrespective of subsequent changes in the use of adjoining 
  6.11  properties, as long as the homestead remains under the same 
  6.12  ownership, the owner owns a noncontiguous parcel of agricultural 
  6.13  land that is at least 20 acres, and the agricultural use value 
  6.14  qualifies under clause (4). 
  6.15     (b) Except as provided in paragraph (d), noncontiguous land 
  6.16  shall be included as part of a homestead under section 273.13, 
  6.17  subdivision 23, paragraph (a), only if the homestead is 
  6.18  classified as class 2a and the detached land is located in the 
  6.19  same township or city, or not farther than four townships or 
  6.20  cities or combination thereof from the homestead.  Any taxpayer 
  6.21  of these noncontiguous lands must notify the county assessor 
  6.22  that the noncontiguous land is part of the taxpayer's homestead, 
  6.23  and, if the homestead is located in another county, the taxpayer 
  6.24  must also notify the assessor of the other county. 
  6.25     (c) Agricultural land used for purposes of a homestead and 
  6.26  actively farmed by a person holding a vested remainder interest 
  6.27  in it must be classified as a homestead under section 273.13, 
  6.28  subdivision 23, paragraph (a).  If agricultural land is 
  6.29  classified class 2a, any other dwellings on the land used for 
  6.30  purposes of a homestead by persons holding vested remainder 
  6.31  interests who are actively engaged in farming the property, and 
  6.32  up to one acre of the land surrounding each homestead and 
  6.33  reasonably necessary for the use of the dwelling as a home, must 
  6.34  also be assessed class 2a. 
  6.35     (d) Agricultural land and buildings that were class 2a 
  6.36  homestead property under section 273.13, subdivision 23, 
  7.1   paragraph (a), for the 1997 assessment shall remain classified 
  7.2   as agricultural homesteads for subsequent assessments if:  
  7.3      (1) the property owner abandoned the homestead dwelling 
  7.4   located on the agricultural homestead as a result of the April 
  7.5   1997 floods; 
  7.6      (2) the property is located in the county of Polk, Clay, 
  7.7   Kittson, Marshall, Norman, or Wilkin; 
  7.8      (3) the agricultural land and buildings remain under the 
  7.9   same ownership for the current assessment year as existed for 
  7.10  the 1997 assessment year and continue to be used for 
  7.11  agricultural purposes; 
  7.12     (4) the dwelling occupied by the owner is located in 
  7.13  Minnesota and is within 30 miles of one of the parcels of 
  7.14  agricultural land that is owned by the taxpayer; and 
  7.15     (5) the owner notifies the county assessor that the 
  7.16  relocation was due to the 1997 floods, and the owner furnishes 
  7.17  the assessor any information deemed necessary by the assessor in 
  7.18  verifying the change in dwelling.  Further notifications to the 
  7.19  assessor are not required if the property continues to meet all 
  7.20  the requirements in this paragraph and any dwellings on the 
  7.21  agricultural land remain uninhabited. 
  7.22     (e) Agricultural land and buildings that were class 2a 
  7.23  homestead property under section 273.13, subdivision 23, 
  7.24  paragraph (a), for the 1998 assessment shall remain classified 
  7.25  agricultural homesteads for subsequent assessments if: 
  7.26     (1) the property owner abandoned the homestead dwelling 
  7.27  located on the agricultural homestead as a result of damage 
  7.28  caused by a March 29, 1998, tornado; 
  7.29     (2) the property is located in the county of Blue Earth, 
  7.30  Brown, Cottonwood, LeSueur, Nicollet, Nobles, or Rice; 
  7.31     (3) the agricultural land and buildings remain under the 
  7.32  same ownership for the current assessment year as existed for 
  7.33  the 1998 assessment year; 
  7.34     (4) the dwelling occupied by the owner is located in this 
  7.35  state and is within 50 miles of one of the parcels of 
  7.36  agricultural land that is owned by the taxpayer; and 
  8.1      (5) the owner notifies the county assessor that the 
  8.2   relocation was due to a March 29, 1998, tornado, and the owner 
  8.3   furnishes the assessor any information deemed necessary by the 
  8.4   assessor in verifying the change in homestead dwelling.  For 
  8.5   taxes payable in 1999, the owner must notify the assessor by 
  8.6   December 1, 1998.  Further notifications to the assessor are not 
  8.7   required if the property continues to meet all the requirements 
  8.8   in this paragraph and any dwellings on the agricultural land 
  8.9   remain uninhabited. 
  8.10     Sec. 3.  [EFFECTIVE DATE.] 
  8.11     Sections 1 and 2 are effective beginning with the 1999 
  8.12  assessment, taxes payable in 2000 and thereafter.  For 
  8.13  eligibility for the 1999 assessment year, the owner or the 
  8.14  person who is actively farming the property must notify the 
  8.15  county assessor by July 1, 1999, and furnish to the assessor the 
  8.16  information required by the assessor to determine whether the 
  8.17  criteria in section 1 or 2 have been met for the 1999 assessment 
  8.18  on the agricultural property.