HF 2398

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

  1.1                          A bill for an act 
  1.2             relating to taxation; property tax rebates; extending 
  1.3             the credit to certain rented farm land and 
  1.4             improvements; amending Laws 1997, chapter 231, article 
  1.5             1, section 16, as amended; and Laws 1998, chapter 389, 
  1.6             article 1, section 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1997, chapter 231, article 1, section 16, 
  1.9   as amended by Laws 1997, First Special Session chapter 5, 
  1.10  section 35; Laws 1997, Third Special Session chapter 3, section 
  1.11  11; Laws 1998, chapter 304, section 1; and Laws 1998, chapter 
  1.12  389, article 1, section 3, is amended to read: 
  1.13     Sec. 16.  [PROPERTY TAX REBATE.] 
  1.14     (a) A credit is allowed against the tax imposed under 
  1.15  Minnesota Statutes, chapter 290, to an individual, other than as 
  1.16  a dependent, as defined in sections 151 and 152 of the Internal 
  1.17  Revenue Code, disregarding section 152(b)(3) of the Internal 
  1.18  Revenue Code, equal to 20 percent of the qualified property tax 
  1.19  paid before January 1, 1998, for taxes assessed in 1996.  
  1.20     (b) For property owned and occupied by the taxpayer during 
  1.21  1997, qualified tax means property taxes payable as defined in 
  1.22  Minnesota Statutes, section 290A.03, subdivision 13, assessed in 
  1.23  1996 and payable in 1997, except the requirement that the 
  1.24  taxpayer own and occupy the property on January 2, 1997, does 
  1.25  not apply.  The credit is allowed only to the individual and 
  1.26  spouse, if any, who paid the tax, whether directly, through an 
  2.1   escrow arrangement, or under a contractual agreement for the 
  2.2   purchase or sale of the property.  In the case of agricultural 
  2.3   land assessed as part of a homestead pursuant to Minnesota 
  2.4   Statutes, section 273.13, subdivision 23, the owner is allowed 
  2.5   to calculate the credit on all property taxes on the homestead, 
  2.6   except to the extent the owner is required to furnish a rent 
  2.7   certificate under Minnesota Statutes, section 290A.19, to a 
  2.8   tenant leasing a part of the farm homestead. 
  2.9      (c) For a renter, the qualified property tax means the 
  2.10  amount of rent constituting property taxes under Minnesota 
  2.11  Statutes, section 290A.03, subdivision 11, based on rent paid in 
  2.12  1997 except as provided in this clause.  If two or more renters 
  2.13  could be claimants under Minnesota Statutes, chapter 290A with 
  2.14  regard to the rent constituting property taxes, the rules under 
  2.15  Minnesota Statutes, section 290A.03, subdivision 8, paragraph 
  2.16  (f), applies to determine the amount of the credit for the 
  2.17  individual.  In the case of agricultural land and buildings that 
  2.18  are leased, the renter is allowed to calculate the credit on the 
  2.19  property taxes on the house, garage, other improvements, and on 
  2.20  up to 320 acres of land that is leased by the renter, provided 
  2.21  that (i) it is the renter's principal residence, (ii) the renter 
  2.22  is actively engaged in farming that property, and (iii) the 
  2.23  owner of the property does not claim a credit based on that 
  2.24  property. 
  2.25     (d) For an individual who both owned and rented principal 
  2.26  residences in calendar year 1997, qualified taxes are the sum of 
  2.27  the amounts under paragraphs (a) and (b). 
  2.28     (e) If the amount of the credit under this subdivision 
  2.29  exceeds the taxpayer's tax liability under this chapter, the 
  2.30  commissioner shall refund the excess. 
  2.31     (f) To claim a credit under this subdivision, the taxpayer 
  2.32  must attach a copy of the property tax statement and certificate 
  2.33  of rent paid, as applicable, and provide any additional 
  2.34  information the commissioner requires. 
  2.35     (g) An amount sufficient to pay refunds under this 
  2.36  subdivision is appropriated to the commissioner from the general 
  3.1   fund. 
  3.2      (h) This credit applies to taxable years beginning after 
  3.3   December 31, 1996, and before January 1, 1998. 
  3.4      (i) Payment of the credit under this section is subject to 
  3.5   Minnesota Statutes, chapter 270A, and any other provision 
  3.6   applicable to refunds under Minnesota Statutes, chapter 290. 
  3.7      Sec. 2.  Laws 1998, chapter 389, article 1, section 1, is 
  3.8   amended to read: 
  3.9      Section 1.  [1998 PROPERTY TAX REBATE.] 
  3.10     (a) A credit is allowed against the tax imposed under 
  3.11  Minnesota Statutes, chapter 290, to an individual, other than a 
  3.12  dependent, as defined in sections 151 and 152 of the Internal 
  3.13  Revenue Code, disregarding section 152(b)(3) of the Internal 
  3.14  Revenue Code, equal to 20 percent of the qualified property tax 
  3.15  paid before January 1, 1999, for taxes assessed in 1997.  The 
  3.16  maximum amount of qualifying tax to which the credit applies is 
  3.17  $7,500. 
  3.18     (b) For property owned and occupied by the taxpayer during 
  3.19  1998, qualified property tax means property taxes payable as 
  3.20  defined in Minnesota Statutes, section 290A.03, subdivision 13, 
  3.21  assessed in 1997 and payable in 1998, and deductible by the 
  3.22  individual under section 164 of the Internal Revenue Code of 
  3.23  1986, as amended through December 31, 1997, except the 
  3.24  requirement in Minnesota Statutes, section 290A.03, subdivision 
  3.25  13, that the taxpayer own and occupy the property on January 2, 
  3.26  1998, does not apply.  In the case of agricultural land assessed 
  3.27  as part of a homestead pursuant to Minnesota Statutes, section 
  3.28  273.13, subdivision 23, the owner is allowed to calculate the 
  3.29  credit on all property taxes on the homestead, except to the 
  3.30  extent the owner is required to furnish a rent certificate under 
  3.31  Minnesota Statutes, section 290A.19, to a tenant leasing a part 
  3.32  of the farm homestead. 
  3.33     (c) For a renter, the qualified property tax means the 
  3.34  amount of rent constituting property taxes under Minnesota 
  3.35  Statutes, section 290A.03, subdivision 11, based on rent paid in 
  3.36  1998 except as provided in this clause.  If two or more renters 
  4.1   could be claimants under Minnesota Statutes, chapter 290A, with 
  4.2   regard to the rent constituting property taxes, the rules under 
  4.3   Minnesota Statutes, section 290A.03, subdivision 8, paragraph 
  4.4   (f), apply to determine the amount of the credit for the 
  4.5   individual.  In the case of agricultural land and buildings that 
  4.6   are leased, the renter is allowed to calculate the credit on the 
  4.7   property taxes on the house, garage, other improvements, and on 
  4.8   up to 320 acres of land that is leased by the renter, provided 
  4.9   that (i) it is the renter's principal residence, (ii) the renter 
  4.10  is actively engaged in farming that property, and (iii) the 
  4.11  owner of the property does not claim a credit based on that 
  4.12  property. 
  4.13     (d) For an individual who both owned and rented principal 
  4.14  residences in calendar year 1998, qualified taxes are the sum of 
  4.15  the amounts under paragraphs (b) and (c). 
  4.16     (e) If the amount of the credit under this section exceeds 
  4.17  the taxpayer's tax liability under Minnesota Statutes, chapter 
  4.18  290, the commissioner shall refund the excess. 
  4.19     (f) To claim a credit under this section, the taxpayer must 
  4.20  attach a copy of the property tax statement and certificate of 
  4.21  rent paid, as applicable, and provide any additional information 
  4.22  the commissioner requires. 
  4.23     (g) This credit applies to taxable years beginning after 
  4.24  December 31, 1997, and before January 1, 1999. 
  4.25     (h) Payment of the credit under this section is subject to 
  4.26  Minnesota Statutes, chapter 270A, and any other provision 
  4.27  applicable to refunds under Minnesota Statutes, chapter 290. 
  4.28     (i) An amount sufficient to pay refunds under this section 
  4.29  is appropriated to the commissioner of revenue from the general 
  4.30  fund. 
  4.31     Sec. 3.  [EFFECTIVE DATE.] 
  4.32     Sections 1 and 2 are effective the day following final 
  4.33  enactment.