HF 2861

as introduced - 86th Legislature (2009 - 2010) Posted on 02/10/2010 03:23pm

A bill for an act
relating to taxation; modifying benefits under the Minnesota property tax
homestead market value exemption program for disabled veterans and their
surviving spouses; amending Minnesota Statutes 2008, section 273.13,
subdivision 34.

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

Section 1.

Minnesota Statutes 2008, section 273.13, subdivision 34, is amended to read:

Subd. 34.

Homestead of disabled veteran.

(a) All or a portion of the market value
of property owned by a veteran or by the veteran and the veteran's spouse qualifying
for homestead classification under subdivision 22 or 23 is excluded in determining the
property's taxable market value if it serves as the homestead of a military veteran, as
defined in section 197.447, who has a service-connected disability of 70 percent or
more. To qualify for exclusion under this subdivision, the veteran must have been
honorably discharged from the United States armed forces, as indicated by United States
Government Form DD214 or other official military discharge papers, and must be certified
by the United States deleted text begin Veterans Administration deleted text end new text begin Department of Veterans Affairs new text end as having a
service-connected disability.

(b)(1) For a disability rating of 70 percent or more, deleted text begin $150,000 deleted text end new text begin 70 percent new text end of market
value is excluded new text begin up to an amount equal to 70 percent of the average market value of a
residential homestead within the county new text end , except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, deleted text begin $300,000 deleted text end new text begin 100 percent new text end
of market value is excluded new text begin up to an amount equal to the average market value of a
residential homestead within the county new text end .

new text begin (c) Notwithstanding paragraph (b), clauses (1) and (2), no property that qualifies for
a valuation exclusion under this subdivision for the current year shall have an exclusion
that is less than its exclusion under this subdivision for taxes payable in 2010.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end If a disabled veteran qualifying for a valuation exclusion under paragraph
(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse deleted text begin for one additional
assessment year or deleted text end until such time as the spouse sells, transfers, or otherwise disposes of
the property deleted text begin , whichever comes first deleted text end .

deleted text begin (d) deleted text end new text begin (e) new text end In the case of an agricultural homestead, only the portion of the property
consisting of the house and garage and immediately surrounding one acre of land qualifies
for the valuation exclusion under this subdivision.

deleted text begin (e) deleted text end new text begin (f) new text end A property qualifying for a valuation exclusion under this subdivision is
not eligible for the credit under section 273.1384, subdivision 1, or classification under
subdivision 22, paragraph (b).

deleted text begin (f) deleted text end new text begin (g) new text end To qualify for a valuation exclusion under this subdivision a property owner
must apply to the assessor by July 1 of each assessment year, except that an annual
reapplication is not required once a property has been accepted for a valuation exclusion
under paragraph (b), clause (2), and the property continues to qualify until there is a
change in ownership.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2010 and
thereafter, for taxes payable in 2011 and thereafter.
new text end