HF 1164

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

  1.1                          A bill for an act 
  1.2             relating to property taxes; extending the education 
  1.3             credit to seasonal recreational property; changing the 
  1.4             name to general education credit; amending Minnesota 
  1.5             Statutes 1998, sections 273.1382; and 275.08, 
  1.6             subdivision 1e.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 273.1382, is 
  1.9   amended to read: 
  1.10     273.1382 [GENERAL EDUCATION HOMESTEAD CREDIT.] 
  1.11     Subdivision 1.  [GENERAL EDUCATION HOMESTEAD CREDIT.] Each 
  1.12  year, the respective county auditors shall determine the initial 
  1.13  tax rate for each school district for the general education levy 
  1.14  certified under section 126C.13, subdivision 2 or 3.  That rate 
  1.15  plus the school district's general education homestead credit 
  1.16  tax rate adjustment under section 275.08, subdivision 1e, shall 
  1.17  be the general education homestead credit local tax rate for the 
  1.18  district.  The auditor shall then determine a general education 
  1.19  homestead credit for each homestead within the county equal to 
  1.20  68 percent for taxes payable in 1999 and 69 percent for taxes 
  1.21  payable in 2000 and thereafter of the general education 
  1.22  homestead credit local tax rate times the net tax capacity of 
  1.23  the homestead for the taxes payable year.  The amount of general 
  1.24  education homestead credit for a homestead or seasonal 
  1.25  recreational property may not exceed $320 for taxes payable in 
  1.26  1999 and $335 for taxes payable in 2000 and thereafter.  In the 
  2.1   case of an agricultural homestead, only the net tax capacity of 
  2.2   the house, garage, and surrounding one acre of land shall be 
  2.3   used in determining the property's general education homestead 
  2.4   credit. 
  2.5      Subd. 1a.  [CREDIT PERCENTAGE REDUCTION.] If the general 
  2.6   education levy target for fiscal year 2000 or 2001 is increased 
  2.7   by another law enacted prior to the 1999 legislative session, 
  2.8   the commissioner of revenue shall adjust the percentage rates of 
  2.9   the general education homestead credit for the corresponding 
  2.10  taxes payable year by multiplying the percentage rate by the 
  2.11  ratio of the prior general education levy target to the current 
  2.12  general education levy target.  If an adjustment is made under 
  2.13  this section for fiscal year 2001, the adjusted rate shall 
  2.14  remain in effect for future years until amended by subsequent 
  2.15  legislation. 
  2.16     Subd. 2.  [CREDIT REIMBURSEMENTS.] (a) The commissioner of 
  2.17  revenue shall determine the tax reductions allowed under this 
  2.18  section for each taxes payable year, and for each school 
  2.19  district based upon a review of the abstracts of tax lists 
  2.20  submitted by the county auditors under section 275.29, and from 
  2.21  any other information which the commissioner deems relevant.  
  2.22  The commissioner of revenue shall generally compute the tax 
  2.23  reductions at the unique taxing jurisdiction level, however the 
  2.24  commissioner may compute the tax reductions at a higher 
  2.25  geographic level if that would have a negligible impact, or if 
  2.26  changes in the composition of unique taxing jurisdictions do not 
  2.27  permit computation at the unique taxing jurisdiction level.  The 
  2.28  commissioner's determinations under this paragraph are not rules.
  2.29     (b) The commissioner of revenue shall certify the total of 
  2.30  the tax reductions granted under this section for each taxes 
  2.31  payable year within each school district to the commissioner of 
  2.32  children, families, and learning after July 1 and on or before 
  2.33  August 1 of the taxes payable year.  The commissioner of 
  2.34  children, families, and learning shall reimburse each affected 
  2.35  school district for the amount of the property tax reductions 
  2.36  allowed under this section as provided in section 273.1392.  The 
  3.1   commissioner of children, families, and learning shall treat the 
  3.2   reimbursement payments as entitlements for the same state fiscal 
  3.3   year as certified, including with each district's initial 
  3.4   payment all amounts that would have been paid up to that date, 
  3.5   computed as if 90 percent of the annual reimbursement amount for 
  3.6   the district were being paid one-twelfth in each month of the 
  3.7   fiscal year.  
  3.8      Subd. 3.  [APPROPRIATION.] An amount sufficient to make the 
  3.9   payments required by this section is annually appropriated from 
  3.10  the general fund to the commissioner of children, families, and 
  3.11  learning.  
  3.12     Subd. 4.  [SEASONAL RECREATIONAL PROPERTY.] Property 
  3.13  classified as class 4c noncommercial seasonal residential 
  3.14  recreational under section 273.13, subdivision 25, shall be 
  3.15  eligible to receive the same benefits as property under 
  3.16  subdivision 1.  Contiguous parcels of noncommercial seasonal 
  3.17  residential recreational property owned by the same person or 
  3.18  entity shall be treated as a single property under this section. 
  3.19     Sec. 2.  Minnesota Statutes 1998, section 275.08, 
  3.20  subdivision 1e, is amended to read: 
  3.21     Subd. 1e.  [GENERAL EDUCATION HOMESTEAD CREDIT TAX RATE 
  3.22  ADJUSTMENT.] The amounts certified under section 126C.48, 
  3.23  subdivision 1, paragraph (b), shall be divided by the total net 
  3.24  tax capacity of all taxable properties within a school 
  3.25  district's taxing jurisdiction.  The resulting ratio is a school 
  3.26  district's general education homestead credit tax rate 
  3.27  adjustment. 
  3.28     Sec. 3.  [EFFECTIVE DATE.] 
  3.29     This act is effective for taxes payable in 2000 and 
  3.30  subsequent years.