Minnesota Legislature
HF 1046
as introduced - 87th Legislature (2011 - 2012) Posted on 03/10/2011 10:12am
Current Version - as introduced
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A bill for an act
relating to property taxation; converting the market value homestead credit to
a tax capacity reduction; amending Minnesota Statutes 2010, sections 273.13,
subdivision 21b; 273.1384, subdivisions 1, 3, 4; 273.1393; 275.08, subdivision
1a; 276.04, subdivision 2; repealing Minnesota Statutes 2010, section 273.1384,
subdivision 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to
read:
Subd. 21b.
Tax capacity.
deleted text begin
(a) Gross tax capacity means the product of the
appropriate gross class rates in this section and market values.
deleted text end
deleted text begin (b)deleted text end Net tax capacity means the product of the appropriate net class rates in this
section and market valuesnew text begin , minus the property's tax capacity reduction determined under
section 273.1384, subdivision 1, if applicablenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 2.
Minnesota Statutes 2010, section 273.1384, subdivision 1, is amended to read:
Subdivision 1.
Residential homestead market value deleted text begin creditdeleted text end new text begin tax capacity
reductionnew text end .
Each county auditor shall determine a homestead deleted text begin creditdeleted text end new text begin tax capacity reductionnew text end
for each class 1a, 1b, and 2a homestead property within the county equal to 0.4 percent of
the first $76,000 of market value of the property minus .09 percent of the market value
in excess of $76,000. The deleted text begin creditdeleted text end new text begin tax capacity reductionnew text end amount may not be less than
zero. In the case of an agricultural or resort homestead, only the market value of the
house, garage, and immediately surrounding one acre of land is eligible in determining
the property's homestead deleted text begin creditdeleted text end new text begin tax capacity reductionnew text end . In the case of a property that is
classified as part homestead and part nonhomestead, (i) the deleted text begin creditdeleted text end new text begin tax capacity reductionnew text end
shall apply only to the homestead portion of the property, but (ii) if a portion of a property
is classified as nonhomestead solely because not all the owners occupy the property, not
all the owners have qualifying relatives occupying the property, or solely because not all
the spouses of owners occupy the property, the deleted text begin creditdeleted text end new text begin tax capacity reductionnew text end amount shall
be initially computed as if that nonhomestead portion were also in the homestead class and
then prorated to the owner-occupant's percentage of ownership. For the purpose of this
section, when an owner-occupant's spouse does not occupy the property, the percentage of
ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 3.
Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:
Subd. 3.
Credit reimbursements.
The county auditor shall determine the tax
reductions allowed under deleted text begin this sectiondeleted text end new text begin subdivision 2new text end within the county for each taxes
payable year and shall certify that amount to the commissioner of revenue as a part of the
abstracts of tax lists submitted by the county auditors under section 275.29. Any prior
year adjustments shall also be certified on the abstracts of tax lists. The commissioner
shall review the certifications for accuracy, and may make such changes as are deemed
necessary, or return the certification to the county auditor for correction. The deleted text begin creditsdeleted text end new text begin
creditnew text end under this section must be used to proportionately reduce the net tax capacity-based
property tax payable to each local taxing jurisdiction as provided in section 273.1393.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 4.
Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:
Subd. 4.
Payment.
(a) The commissioner of revenue shall reimburse each local
taxing jurisdiction, other than school districts, for the tax reductions granted under deleted text begin this
sectiondeleted text end new text begin subdivision 2new text end in two equal installments on October 31 and December 26 of the
taxes payable year for which the reductions are granted, including in each payment
the prior year adjustments certified on the abstracts for that taxes payable year. The
reimbursements related to tax increments shall be issued in one installment each year on
December 26.
(b) The commissioner of revenue shall certify the total of the tax reductions granted
under deleted text begin this sectiondeleted text end new text begin subdivision 2new text end for each taxes payable year within each school district to
the commissioner of the Department of Education and the commissioner of education shall
pay the reimbursement amounts to each school district as provided in section 273.1392.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 5.
Minnesota Statutes 2010, section 273.1393, is amended to read:
273.1393 COMPUTATION OF NET PROPERTY TAXES.
Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:
(1) disaster credit as provided in sections 273.1231 to 273.1235;
(2) powerline credit as provided in section 273.42;
(3) agricultural preserves credit as provided in section 473H.10;
(4) enterprise zone credit as provided in section 469.171;
(5) disparity reduction credit;
(6) conservation tax credit as provided in section 273.119;
(7) deleted text begin homestead anddeleted text end agricultural deleted text begin creditsdeleted text end new text begin creditnew text end as provided in section 273.1384;
(8) taconite homestead credit as provided in section 273.135;
(9) supplemental homestead credit as provided in section 273.1391; and
(10) the bovine tuberculosis zone credit, as provided in section 273.113.
The combination of all property tax credits must not exceed the gross tax amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 6.
Minnesota Statutes 2010, section 275.08, subdivision 1a, is amended to read:
Subd. 1a.
Computation of tax capacity.
deleted text begin For taxes payable in 1989, the county
auditor shall compute the gross tax capacity for each parcel according to the class rates
specified in section 273.13. The gross tax capacity will be the appropriate class rate
multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,deleted text end
The county auditor shall compute the net tax capacity for each parcel deleted text begin according to the
class rates specified indeleted text end new text begin as defined undernew text end section 273.13new text begin , subdivision 21bnew text end . deleted text begin The net tax
capacity will be the appropriate class rate multiplied by the parcel's market value.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 7.
Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:
Subd. 2.
Contents of tax statements.
(a) The treasurer shall provide for the
printing of the tax statements. The commissioner of revenue shall prescribe the form of
the property tax statement and its contents. The tax statement must not state or imply
that property tax credits are paid by the state of Minnesota. The statement must contain
a tabulated statement of the dollar amount due to each taxing authority and the amount
of the state tax from the parcel of real property for which a particular tax statement is
prepared. The dollar amounts attributable to the county, the state tax, the voter approved
school tax, the other local school tax, the township or municipality, and the total of
the metropolitan special taxing districts as defined in section 275.065, subdivision 3,
paragraph (i), must be separately stated. The amounts due all other special taxing districts,
if any, may be aggregated except that any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be listed on a separate line directly under the appropriate county's levy. If the
county levy under this paragraph includes an amount for a lake improvement district as
defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount. In the case of Ramsey
County, if the county levy under this paragraph includes an amount for public library
service under section 134.07, the amount attributable for that purpose may be separated
from the remaining county levy amount. The amount of the tax on homesteads qualifying
under the senior citizens' property tax deferral program under chapter 290B is the total
amount of property tax before subtraction of the deferred property tax amount. The
amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any,
must also be separately stated. The dollar amounts, including the dollar amount of any
special assessments, may be rounded to the nearest even whole dollar. For purposes of this
section whole odd-numbered dollars may be adjusted to the next higher even-numbered
dollar. The amount of market value excluded under section 273.11, subdivision 16, if any,
must also be listed on the tax statement.
(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.
(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:
(1) the property's estimated market value under section 273.11, subdivision 1;
(2) the property's taxable market value after reductions under section 273.11,
subdivisions 1a and 16;
(3) the property's gross tax, before credits;
(4) for homestead deleted text begin residential anddeleted text end agricultural properties, the deleted text begin creditsdeleted text end new text begin creditnew text end under
section 273.1384;
(5) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and
(6) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 8. new text begin PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.
new text end
new text begin
For the purposes of the property tax statements required under Minnesota Statutes,
section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown
for the previous year is the gross tax minus the residential homestead market value credit.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 9. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2010, section 273.1384, subdivision 6,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end