HF 1745

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; indexing the homestead market value credit
maximum valuation limit; amending Minnesota Statutes 2006, section 273.1384,
subdivision 1, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to
read:

Subdivision 1.

Residential homestead market value credit.

Each county auditor
shall determine a homestead credit 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 deleted text begin $76,000 deleted text end new text begin the homestead market value
credit maximum valuation limit under subdivision 1a new text end . The credit 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 credit. In the case of a property that is classified as part homestead
and part nonhomestead, (i) the credit 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
credit 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 2008 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2006, section 273.1384, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Homestead market value credit maximum valuation limit. new text end

new text begin (a) For
assessment year 2007, the homestead market value credit maximum valuation limit is
$118,000.
new text end

new text begin (b) Beginning with assessment year 2008, the commissioner of revenue must
annually certify the homestead market value credit maximum valuation limit as the
product of: (1) the ratio of the statewide average taxable market value of a residential
homestead in the preceding assessment year to the statewide average taxable market value
of a residential homestead for assessment year 2006; and (2) $118,000. The limit must
be rounded to the nearest $1,000.
new text end

new text begin (c) The commissioner must certify the limit by January 2 of each assessment year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 and
thereafter.
new text end