HF 3041

as introduced - 87th Legislature (2011 - 2012) Posted on 04/30/2012 11:05am

A bill for an act
relating to property taxation; limiting the amount that a property's value can
increase from the previous year; providing a small business targeted property
tax refund; amending Minnesota Statutes 2010, sections 273.11, subdivision 1a;
290A.02; 290A.03, by adding a subdivision; 290A.04, by adding a subdivision;
290A.23, subdivision 3.

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

Section 1.

Minnesota Statutes 2010, section 273.11, subdivision 1a, is amended to read:

Subd. 1a.

Limited market value.

new text begin (a) new text end In the case of all property classified as
agricultural homestead or nonhomestead, new text begin rural vacant land, new text end residential homestead or
nonhomestead, deleted text begin timber deleted text end new text begin managed forest land new text end , or noncommercial seasonal residential
recreational, the assessor shall compare the value with the taxable portion of the value
determined in the preceding assessment.

new text begin (b) new text end deleted text begin For assessment years 2004, 2005, and 2006, deleted text end The amount of the increase shall not
exceed deleted text begin the greater of (1) 15 deleted text end new text begin 10 new text end percent of the value in the preceding assessment deleted text begin , or (2) 25
percent of the difference between the current assessment and the preceding assessment deleted text end .

deleted text begin For assessment year 2007, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

deleted text begin For assessment year 2008, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

new text begin (c) new text end This limitation shall not apply to increases in value due to improvements. For
purposes of this subdivision, the term "assessment" means the value prior to any exclusion
under subdivision 16.

deleted text begin The provisions of this subdivision shall be in effect through assessment year 2008
as provided in this subdivision.
deleted text end

deleted text begin For purposes of the assessment/sales ratio study conducted under section 127A.48,
and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A,
126C, 127A, and 477A, market values and net tax capacities determined under this
subdivision and subdivision 16, shall be used.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2013 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2010, section 290A.02, is amended to read:

290A.02 PURPOSE.

The purpose of this chapter is to provide property tax relief to certain persons who
own or rent their homesteads new text begin or who are small business persons new text end .

Sec. 3.

Minnesota Statutes 2010, section 290A.03, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Small business property. new text end

new text begin "Small business property" means (1) an
agricultural homestead under section 273.13, subdivision 23, limited to the amount
of market value in the first tier as certified under section 273.11, subdivision 23, and
excluding the value of the house, garage, and surrounding one acre of land, or (2) a
commercial-industrial property under section 273.13, subdivision 24, limited to the
amount of market value in the first tier as defined under that subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on property taxes
payable in 2014 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2010, section 290A.04, is amended by adding a subdivision
to read:

new text begin Subd. 2k. new text end

new text begin Small business targeted refund. new text end

new text begin (a) If the gross property taxes payable
on a small business property increase more than 12 percent over the property taxes payable
in the prior year on the same property that is owned by the same owner on January 2 of
both years, and the amount of that increase is $100 or more, a claimant shall be allowed a
refund equal to 50 percent of the amount of the increase over the greater of 12 percent of
the prior year's property taxes payable or $100. This subdivision shall not apply to any
increase in the gross property taxes payable attributable to improvements made to the
property after the assessment date for the prior year's taxes.
new text end

new text begin (b) The maximum refund allowed under this subdivision is $1,000 for each small
business property.
new text end

new text begin (c) In addition to the other proofs required by this chapter, each claimant under
this subdivision shall file with the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other documents required by the
commissioner.
new text end

new text begin (d) For the purposes of this subdivision, "claimant" means any person or entity that
is the owner of a small business property located in Minnesota.
new text end

new text begin (e) The limitation under section 290A.08 does not apply to refunds authorized under
this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on property taxes
payable in 2014 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2010, section 290A.23, subdivision 3, is amended to read:

Subd. 3.

Annual appropriation.

For payments made after July 1, 1996, there is
annually appropriated from the general fund to the commissioner of revenue the amount
necessary to make the payments required under section 290A.04, subdivisions 2 new text begin , new text end deleted text begin and deleted text end
2h new text begin , and 2k new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on property taxes
payable in 2014 and thereafter.
new text end