HF 2367

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:03am

A bill for an act
relating to property taxation; providing a property tax abatement for newly
constructed residential structures in flood-damaged areas; appropriating money.

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

Section 1. new text begin TAX ABATEMENT; NEWLY CONSTRUCTED RESIDENTIAL
STRUCTURES IN FLOOD-DAMAGED CITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (a) A residential structure qualifies for a tax abatement
under this section, if:
new text end

new text begin (1) the structure is located in a city that is eligible to designate a development zone
under Minnesota Statutes, section 469.1731;
new text end

new text begin (2) the structure is located in a county designated as an emergency area under
presidential declaration FEMA-3304-EM;
new text end

new text begin (3) the structure is located on property classified as class 1a, 1b, 2a, 4a, 4b, 4bb, or
4d under Minnesota Statutes, section 273.13;
new text end

new text begin (4) no part of the structure was in existence prior to January 1, 2009; and
new text end

new text begin (5) construction of the structure is commenced prior to December 31, 2010. For the
purposes of this clause, construction is deemed to have been commenced if a proper
building permit has been issued and the mandatory footing or foundation inspection has
been completed.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin Application for the abatement authorized under this section
must be filed by January 2 of the year following the year in which construction began. The
application must be filed with the assessor of the county in which the property is located
on a form prescribed by the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Tax abated. new text end

new text begin (a) For a property qualifying under subdivision 1 and
classified as either 1a, 1b, 2a, 4b, or 4bb, the tax attributable to (1) $150,000 of market
value, or (2) the entire market value of the structure, whichever is less, shall be abated.
For a property qualifying under subdivision 1 and classified as class 4a or 4d, the tax
attributable to (1) $20,000 of market value per residential unit, or (2) the entire market
value of the structure, whichever is less, shall be abated.
new text end

new text begin (b) The abatement under paragraph (a) shall be in effect for two taxes payable years,
corresponding to the two assessment years after construction has begun. The abatement
shall not apply to any special assessments that have been levied against the property.
new text end

new text begin Subd. 4. new text end

new text begin Reimbursement. new text end

new text begin By May 1 of each taxes payable year in which an
abatement has been authorized under this section, the auditor shall report the amount of
taxes abated for each jurisdiction within the county to the commissioner of revenue, on a
form prescribed by the commissioner. On or before September 1 of each taxes payable
year in which an abatement has been authorized under this section, the commissioner of
revenue shall reimburse each local jurisdiction for the amount of taxes abated for the
year under this section.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the reimbursements
required under this section is annually appropriated to the commissioner of revenue from
the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment years 2010 to 2012,
for taxes payable in 2011 to 2013.
new text end