HF 2396

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

  1.1                          A bill for an act 
  1.2             relating to the property tax refund; combining the 
  1.3             schedules for renters and homeowners; increasing the 
  1.4             percentage of rent constituting property taxes; 
  1.5             amending Minnesota Statutes 1998, sections 290A.03, 
  1.6             subdivisions 11 and 13; 290A.04, subdivisions 1, 2, 
  1.7             and 4; and 290A.23, subdivision 1; repealing Minnesota 
  1.8             Statutes 1998, section 290A.04, subdivisions 2a and 2b.
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 290A.03, 
  1.11  subdivision 11, is amended to read: 
  1.12     Subd. 11.  [RENT CONSTITUTING PROPERTY TAXES.] "Rent 
  1.13  constituting property taxes" means 19 20 percent of the gross 
  1.14  rent actually paid in cash, or its equivalent, or the portion of 
  1.15  rent paid in lieu of property taxes, in any calendar year by a 
  1.16  claimant for the right of occupancy of the claimant's Minnesota 
  1.17  homestead in the calendar year, and which rent constitutes the 
  1.18  basis, in the succeeding calendar year of a claim for relief 
  1.19  under this chapter by the claimant.  
  1.20     Sec. 2.  Minnesota Statutes 1998, section 290A.03, 
  1.21  subdivision 13, is amended to read: 
  1.22     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
  1.23  payable" means the property tax exclusive of special 
  1.24  assessments, penalties, and interest payable on a claimant's 
  1.25  homestead after deductions made under sections 273.135, 
  1.26  273.1382, 273.1391, 273.42, subdivision 2, and any other state 
  1.27  paid property tax credits in any calendar year.  In the case of 
  2.1   a claimant who makes ground lease payments, "property taxes 
  2.2   payable" includes the amount of the payments directly 
  2.3   attributable to the property taxes assessed against the parcel 
  2.4   on which the house is located.  No apportionment or reduction of 
  2.5   the "property taxes payable" shall be required for the use of a 
  2.6   portion of the claimant's homestead for a business purpose if 
  2.7   the claimant does not deduct any business depreciation expenses 
  2.8   for the use of a portion of the homestead in the determination 
  2.9   of federal adjusted gross income.  For homesteads which are 
  2.10  manufactured homes as defined in section 273.125, subdivision 8, 
  2.11  and for homesteads which are park trailers taxed as manufactured 
  2.12  homes under section 168.012, subdivision 9, "property taxes 
  2.13  payable" shall also include 19 20 percent of the gross rent paid 
  2.14  in the preceding year for the site on which the homestead is 
  2.15  located.  When a homestead is owned by two or more persons as 
  2.16  joint tenants or tenants in common, such tenants shall determine 
  2.17  between them which tenant may claim the property taxes payable 
  2.18  on the homestead.  If they are unable to agree, the matter shall 
  2.19  be referred to the commissioner of revenue whose decision shall 
  2.20  be final.  Property taxes are considered payable in the year 
  2.21  prescribed by law for payment of the taxes. 
  2.22     In the case of a claim relating to "property taxes 
  2.23  payable," the claimant must have owned and occupied the 
  2.24  homestead on January 2 of the year in which the tax is payable 
  2.25  and (i) the property must have been classified as homestead 
  2.26  property pursuant to section 273.124, on or before December 15 
  2.27  of the assessment year to which the "property taxes payable" 
  2.28  relate; or (ii) the claimant must provide documentation from the 
  2.29  local assessor that application for homestead classification has 
  2.30  been made on or before December 15 of the year in which the 
  2.31  "property taxes payable" were payable and that the assessor has 
  2.32  approved the application. 
  2.33     Sec. 3.  Minnesota Statutes 1998, section 290A.04, 
  2.34  subdivision 1, is amended to read: 
  2.35     Subdivision 1.  [REFUND.] A refund shall be allowed each 
  2.36  claimant in the amount that property taxes payable or rent 
  3.1   constituting property taxes exceed the percentage of the 
  3.2   household income of the claimant specified in subdivision 2 or 
  3.3   2a in the year for which the taxes were levied or in the year in 
  3.4   which the rent was paid as specified in subdivision 2 or 2a.  If 
  3.5   the amount of property taxes payable or rent constituting 
  3.6   property taxes is equal to or less than the percentage of the 
  3.7   household income of the claimant specified in subdivision 2 or 
  3.8   2a in the year for which the taxes were levied or in the year in 
  3.9   which the rent was paid, the claimant shall not be eligible for 
  3.10  a state refund pursuant to this section. 
  3.11     Sec. 4.  Minnesota Statutes 1998, section 290A.04, 
  3.12  subdivision 2, is amended to read: 
  3.13     Subd. 2.  [REFUND SCHEDULE; HOMEOWNERS AND RENTERS.] A 
  3.14  claimant whose property taxes payable or rent constituting 
  3.15  property taxes are in excess of the percentage of the household 
  3.16  income stated below shall pay an amount equal to the percent of 
  3.17  income shown for the appropriate household income level along 
  3.18  with the percent to be paid by the claimant of the remaining 
  3.19  amount of property taxes payable.  The state refund equals the 
  3.20  amount of property taxes payable that remain, up to the state 
  3.21  refund amount shown below.  
  3.22                        Percent           Percent    Maximum
  3.23  Household Income     of Income          Paid by     State
  3.24                                          Claimant    Refund
  3.25      $0 to 1,029     1.2 percent        18 percent   $440 $1,160
  3.26   1,030 to 2,059     1.3 percent        18 percent   $440 $1,160
  3.27   2,060 to 3,099     1.4 percent        20 percent   $440 $1,160
  3.28   3,100 to 4,129     1.6 percent        20 percent   $440 $1,160
  3.29   4,130 to 5,159     1.7 percent        20 percent   $440 $1,160
  3.30   5,160 to 7,229     1.9 percent        25 percent   $440 $1,160
  3.31   7,230 to 8,259     2.1 percent        25 percent   $440 $1,160
  3.32   8,260 to 9,289     2.2 percent        25 percent   $440 $1,160
  3.33   9,290 to 10,319    2.3 percent        30 percent   $440 $1,160
  3.34  10,320 to 11,349    2.4 percent        30 percent   $440 $1,160
  3.35  11,350 to 12,389    2.5 percent        30 percent   $440 $1,160
  3.36  12,390 to 14,449    2.6 percent        30 percent   $440 $1,160
  3.37  14,450 to 15,479    2.8 percent        35 percent   $440 $1,160
  3.38  15,480 to 16,509    3.0 percent        35 percent   $440 $1,160
  3.39  16,510 to 17,549    3.2 percent        40 percent   $440 $1,160
  3.40  17,550 to 21,669    3.3 percent        40 percent   $440 $1,160
  3.41  21,670 to 24,769    3.4 percent        45 percent   $440 $1,160
  3.42  24,770 to 30,959    3.5 percent        45 percent   $440 $1,160
  3.43  30,960 to 36,119    3.5 percent        45 percent   $440 $1,160
  3.44  36,120 to 41,279    3.7 percent        50 percent   $440 $1,160
  3.45  41,280 to 58,829    
  3.46            62,859    4.0 percent        50 percent   $440 $1,160
  3.47  58,830 to 59,859     
  3.48  62,860 to 63,859    4.0 percent        50 percent   $310 $1,010
  3.49  59,860 to 60,889    
  3.50  63,860 to 64,859    4.0 percent        50 percent   $210 $860
  4.1   60,890 to 61,929     
  4.2   64,860 to 65,859    4.0 percent        50 percent   $100 $710 
  4.3   65,860 to 66,859    4.0 percent        50 percent   $560
  4.4   66,860 to 67,859    4.0 percent        50 percent   $410
  4.5   67,860 to 68,859    4.0 percent        50 percent   $260
  4.6   68,860 to 69,859    4.0 percent        50 percent   $110
  4.7      The payment made to a claimant shall be the amount of the 
  4.8   state refund calculated under this subdivision.  No payment is 
  4.9   allowed if the claimant's household income is $61,930 $69,860 or 
  4.10  more. 
  4.11     Sec. 5.  Minnesota Statutes 1998, section 290A.04, 
  4.12  subdivision 4, is amended to read: 
  4.13     Subd. 4.  [INFLATION ADJUSTMENT.] Beginning for property 
  4.14  tax refunds payable in calendar year 1996 2001, the commissioner 
  4.15  shall annually adjust the dollar amounts of the income 
  4.16  thresholds and the maximum refunds under subdivisions 2 and 2a 
  4.17  for inflation.  The commissioner shall make the inflation 
  4.18  adjustments in accordance with section 290.06, subdivision 2d, 
  4.19  except that for purposes of this subdivision the percentage 
  4.20  increase shall be determined from the year ending on June 30, 
  4.21  1994 1999, to the year ending on June 30 of the year preceding 
  4.22  that in which the refund is payable.  The commissioner shall use 
  4.23  the appropriate percentage increase to annually adjust the 
  4.24  income thresholds and maximum refunds under subdivisions 
  4.25  subdivision 2 and 2a for inflation without regard to whether or 
  4.26  not the income tax brackets are adjusted for inflation in that 
  4.27  year.  The commissioner shall round the thresholds and the 
  4.28  maximum amounts, as adjusted to the nearest $10 amount.  If the 
  4.29  amount ends in $5, the commissioner shall round it up to the 
  4.30  next $10 amount.  
  4.31     The commissioner shall annually announce the adjusted 
  4.32  refund schedule at the same time provided under section 290.06.  
  4.33  The determination of the commissioner under this subdivision is 
  4.34  not a rule under the Administrative Procedure Act. 
  4.35     Sec. 6.  Minnesota Statutes 1998, section 290A.23, 
  4.36  subdivision 1, is amended to read: 
  4.37     Subdivision 1.  [RENTERS CREDIT.] There is appropriated 
  4.38  from the general fund in the state treasury to the commissioner 
  5.1   of revenue the amount necessary to make the payments required 
  5.2   under section 290A.04, subdivision 2a 2.  
  5.3      Sec. 7.  [REPEALER.] 
  5.4      Minnesota Statutes 1998, section 290A.04, subdivisions 2a 
  5.5   and 2b, are repealed. 
  5.6      Sec. 8.  [EFFECTIVE DATE.] 
  5.7      Sections 1 to 7 are effective beginning for claims based on 
  5.8   rent paid in 1999 and property taxes payable in 2000.