HF 3118

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to tourism; providing for a later start date 
  1.3             for school districts; providing for valuation and 
  1.4             deferment of taxes on certain homestead resorts; 
  1.5             delaying the date by which taxes on certain resort 
  1.6             property must be paid; exempting from sales tax 
  1.7             certain purchases from resorts; appropriating money; 
  1.8             amending Minnesota Statutes 2002, sections 120A.40; 
  1.9             278.03, subdivision 1; 279.01, subdivision 1, by 
  1.10            adding a subdivision; 297A.71, by adding a 
  1.11            subdivision; 297A.75, as amended; proposing coding for 
  1.12            new law in Minnesota Statutes, chapter 273. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2002, section 120A.40, is 
  1.15  amended to read: 
  1.16     120A.40 [SCHOOL CALENDAR.] 
  1.17     (a) Except for learning programs during summer, flexible 
  1.18  learning year programs authorized under sections 124D.12 to 
  1.19  124D.127, and learning year programs under section 124D.128, a 
  1.20  district must not commence an elementary or secondary school 
  1.21  year before September 1 Labor Day, except as provided under 
  1.22  paragraph (b).  Days devoted to teachers' workshops may be held 
  1.23  before September 1.  Districts that enter into cooperative 
  1.24  agreements are encouraged to adopt similar school calendars.  
  1.25     (b) A district may begin the school year on any day before 
  1.26  September 1 to accommodate a construction or remodeling project 
  1.27  of $400,000 $1,000,000 or more affecting a district school 
  1.28  facility. 
  1.29     [EFFECTIVE DATE.] This section is effective the day 
  2.1   following final enactment and applies beginning with the 
  2.2   2004-2005 school year.  
  2.3      Sec. 2.  [273.1115] [HOMESTEAD RESORTS; VALUATION AND 
  2.4   DEFERMENT.] 
  2.5      Subdivision 1.  [REQUIREMENTS.] Real property qualifying 
  2.6   for classification as class 1c under section 273.13, subdivision 
  2.7   22, paragraph (c), is entitled to valuation and tax deferment 
  2.8   under this section, provided that if part of a resort is not 
  2.9   classified as class 1c, only that portion of the value of the 
  2.10  property that is classified as class 1c property qualifies under 
  2.11  this section. 
  2.12     Subd. 2.  [DETERMINATION OF VALUE.] Upon timely application 
  2.13  by the owner, as provided in subdivision 4, the value of real 
  2.14  property described in subdivision 1 must be determined by the 
  2.15  assessor solely with reference to its classification value as 
  2.16  class 1c property, notwithstanding sections 272.03, subdivision 
  2.17  8, and 273.11.  The assessor shall not consider any added values 
  2.18  resulting from other factors. 
  2.19     Subd. 3.  [SEPARATE DETERMINATION OF MARKET VALUE AND TAX.] 
  2.20  The assessor shall make a separate determination of the market 
  2.21  value of the real estate.  The assessor shall record on the 
  2.22  property assessment records the tax based upon the appropriate 
  2.23  local tax rate applicable to the property in the taxing district.
  2.24     Subd. 4.  [APPLICATION.] Application for deferment of taxes 
  2.25  and assessment under this section must be filed by May 1 of the 
  2.26  year prior to the year in which the taxes are payable.  The 
  2.27  application must be filed with the assessor of the taxing 
  2.28  district in which the real property is located on a form 
  2.29  prescribed by the commissioner of revenue.  The assessor may 
  2.30  require proof by affidavit or otherwise that the property 
  2.31  qualifies under subdivision 1.  An application approved by the 
  2.32  assessor continues in effect for subsequent years until the 
  2.33  property no longer qualifies under subdivision 1. 
  2.34     Subd. 5.  [ADDITIONAL TAXES.] When real property valued and 
  2.35  assessed under this section no longer qualifies under 
  2.36  subdivision 1, the portion no longer qualifying is subject to 
  3.1   additional taxes, in the amount equal to the difference between 
  3.2   the taxes determined in accordance with subdivision 2, and the 
  3.3   amount determined under subdivision 3, provided that the amount 
  3.4   determined under subdivision 3 must not be greater than it would 
  3.5   have been had the actual bona fide sale price of the real 
  3.6   property at an arm's-length transaction been used in lieu of the 
  3.7   market value determined under subdivision 3.  The additional 
  3.8   taxes must be extended against the property on the tax list for 
  3.9   the current year, except that no interest or penalties may be 
  3.10  levied on the additional taxes if timely paid, and except that 
  3.11  the additional taxes must only be levied with respect to the 
  3.12  last three years that the property has been valued and assessed 
  3.13  under this section. 
  3.14     Subd. 6.  [LIEN.] The tax imposed by this section is a lien 
  3.15  on the property assessed to the same extent and for the same 
  3.16  duration as other taxes imposed on property within this state.  
  3.17  The tax must be annually extended by the county auditor and when 
  3.18  payable must be collected and distributed in the manner provided 
  3.19  by law for the collection and distribution of other property 
  3.20  taxes. 
  3.21     Subd. 7.  [SPECIAL LOCAL ASSESSMENTS.] The payment of 
  3.22  special local assessments levied after June 30, 2004, for 
  3.23  improvements made to any real property described in subdivision 
  3.24  2, together with the interest thereon must, on timely 
  3.25  application under subdivision 4, be deferred as long as the 
  3.26  property qualifies under subdivision 1.  If special assessments 
  3.27  against the property have been deferred under this subdivision, 
  3.28  the governmental unit shall file with the county recorder in the 
  3.29  county in which the property is located a certificate containing 
  3.30  the legal description of the affected property and of the amount 
  3.31  deferred.  When the property no longer qualifies under 
  3.32  subdivision 1, all deferred special assessments plus interest 
  3.33  are payable in equal installments spread over the time remaining 
  3.34  until the last maturity date of the bonds issued to finance the 
  3.35  improvement for which the assessments were levied.  If the bonds 
  3.36  have matured, the deferred special assessments plus interest are 
  4.1   payable within 90 days.  Section 429.061, subdivision 2, applies 
  4.2   to the collection of these installments.  A penalty must not be 
  4.3   levied on the special assessments if timely paid. 
  4.4      Subd. 8.  [CONTINUATION OF TAX TREATMENT UPON SALE.] When 
  4.5   real property qualifying under subdivision 1 is sold, no 
  4.6   additional taxes or deferred special assessments plus interest 
  4.7   may be extended against the property if: 
  4.8      (1) the property continues to qualify pursuant to 
  4.9   subdivision 1; and 
  4.10     (2) the new owner files an application for continued 
  4.11  deferment within 30 days after the sale. 
  4.12     Subd. 9.  [APPLICABILITY OF SPECIAL ASSESSMENT PROVISIONS.] 
  4.13  This section applies to special local assessments levied after 
  4.14  June 30, 2004, and payable in the years thereafter, but shall 
  4.15  not apply to any special assessments levied at any time by a 
  4.16  county or district court under the provisions of chapter 116A. 
  4.17     [EFFECTIVE DATE.] This section is effective for taxes 
  4.18  levied in 2004, payable in 2005, and thereafter.  For 
  4.19  applications for taxes payable in 2005 only, the application 
  4.20  deadline in subdivision 4 is extended to August 1, 2004. 
  4.21     Sec. 3.  Minnesota Statutes 2002, section 278.03, 
  4.22  subdivision 1, is amended to read: 
  4.23     Subdivision 1.  [REAL PROPERTY.] In the case of real 
  4.24  property, If the proceedings instituted by the filing of the 
  4.25  petition have not been completed before the 16th day of May next 
  4.26  following the filing or, in the case of class 1c property or 
  4.27  class 4c resort property, before the 16th day of July, the 
  4.28  petitioner shall pay to the county treasurer 50 percent of the 
  4.29  tax levied for such year against the property involved, unless 
  4.30  permission to continue prosecution of the petition without such 
  4.31  payment is obtained as herein provided. If the proceedings 
  4.32  instituted by the filing of the petition have not been completed 
  4.33  by the next October 16, or, in the case of class 1b agricultural 
  4.34  homestead, class 2a agricultural homestead, and class 2b(2) 
  4.35  agricultural nonhomestead property, November 16, the petitioner 
  4.36  shall pay to the county treasurer 50 percent of the unpaid 
  5.1   balance of the taxes levied for the year against the property 
  5.2   involved if the unpaid balance is $2,000 or less and 80 percent 
  5.3   of the unpaid balance if the unpaid balance is over $2,000, 
  5.4   unless permission to continue prosecution of the petition 
  5.5   without payment is obtained as herein provided.  The petitioner, 
  5.6   upon ten days' notice to the county attorney and to the county 
  5.7   auditor, given at least ten days prior to the 16th day of 
  5.8   May or, in the case of class 1c or class 4c resort property, the 
  5.9   16th day of July, or the 16th day of October, or, in the case of 
  5.10  class 1b agricultural homestead, class 2a agricultural 
  5.11  homestead, and class 2b(2) agricultural nonhomestead property, 
  5.12  the 16th day of November, may apply to the court for permission 
  5.13  to continue prosecution of the petition without payment; and, if 
  5.14  it is made to appear 
  5.15     (1) that the proposed review is to be taken in good faith; 
  5.16     (2) that there is probable cause to believe that the 
  5.17  property may be held exempt from the tax levied or that the tax 
  5.18  may be determined to be less than 50 percent of the amount 
  5.19  levied; and 
  5.20     (3) that it would work a hardship upon petitioner to pay 
  5.21  the taxes due, 
  5.22     the court may permit the petitioner to continue prosecution 
  5.23  of the petition without payment, or may fix a lesser amount to 
  5.24  be paid as a condition of continuing the prosecution of the 
  5.25  petition. 
  5.26     Failure to make payment of the amount required when due 
  5.27  shall operate automatically to dismiss the petition and all 
  5.28  proceedings thereunder unless the payment is waived by an order 
  5.29  of the court permitting the petitioner to continue prosecution 
  5.30  of the petition without payment.  The petition shall be 
  5.31  automatically reinstated upon payment of the entire tax plus 
  5.32  interest and penalty if the payment is made within one year of 
  5.33  the dismissal.  The county treasurer shall, upon request of the 
  5.34  petitioner, issue duplicate receipts for the tax payment, one of 
  5.35  which shall be filed by the petitioner in the proceeding. 
  5.36     [EFFECTIVE DATE.] This section is effective for taxes 
  6.1   payable in 2005 and thereafter. 
  6.2      Sec. 4.  Minnesota Statutes 2002, section 279.01, 
  6.3   subdivision 1, is amended to read: 
  6.4      Subdivision 1.  [DUE DATES; PENALTIES.] Except as provided 
  6.5   in subdivision 3 or 4 this section, on May 16 or 21 days after 
  6.6   the postmark date on the envelope containing the property tax 
  6.7   statement, whichever is later, a penalty shall accrue and 
  6.8   thereafter be charged upon all unpaid taxes on real estate on 
  6.9   the current lists in the hands of the county treasurer.  The 
  6.10  penalty shall be at a rate of two percent on homestead property 
  6.11  until May 31 and four percent on June 1.  The penalty on 
  6.12  nonhomestead property shall be at a rate of four percent until 
  6.13  May 31 and eight percent on June 1.  This penalty shall not 
  6.14  accrue until June 1 of each year, or 21 days after the postmark 
  6.15  date on the envelope containing the property tax statements, 
  6.16  whichever is later, on commercial use real property used for 
  6.17  seasonal residential recreational purposes and classified as 
  6.18  class 1c or 4c, and on other commercial use real property 
  6.19  classified as class 3a, provided that over 60 percent of the 
  6.20  gross income earned by the enterprise on the class 3a property 
  6.21  is earned during the months of May, June, July, and August.  Any 
  6.22  property owner of such class 3a property who pays the first half 
  6.23  of the tax due on the property after May 15 and before June 1, 
  6.24  or 21 days after the postmark date on the envelope containing 
  6.25  the property tax statement, whichever is later, shall attach an 
  6.26  affidavit to the payment attesting to compliance with the income 
  6.27  provision of this subdivision.  Thereafter, for both homestead 
  6.28  and nonhomestead property, on the first day of each month 
  6.29  beginning July 1, up to and including October 1 following, an 
  6.30  additional penalty of one percent for each month shall accrue 
  6.31  and be charged on all such unpaid taxes provided that if the due 
  6.32  date was extended beyond May 15 as the result of any delay in 
  6.33  mailing property tax statements no additional penalty shall 
  6.34  accrue if the tax is paid by the extended due date.  If the tax 
  6.35  is not paid by the extended due date, then all penalties that 
  6.36  would have accrued if the due date had been May 15 shall be 
  7.1   charged.  When the taxes against any tract or lot exceed $50, 
  7.2   one-half thereof may be paid prior to May 16 or 21 days after 
  7.3   the postmark date on the envelope containing the property tax 
  7.4   statement, whichever is later; and, if so paid, no penalty shall 
  7.5   attach; the remaining one-half shall be paid at any time prior 
  7.6   to October 16 following, without penalty; but, if not so paid, 
  7.7   then a penalty of two percent shall accrue thereon for homestead 
  7.8   property and a penalty of four percent on nonhomestead 
  7.9   property.  Thereafter, for homestead property, on the first day 
  7.10  of November an additional penalty of four percent shall accrue 
  7.11  and on the first day of December following, an additional 
  7.12  penalty of two percent shall accrue and be charged on all such 
  7.13  unpaid taxes.  Thereafter, for nonhomestead property, on the 
  7.14  first day of November and December following, an additional 
  7.15  penalty of four percent for each month shall accrue and be 
  7.16  charged on all such unpaid taxes.  If one-half of such taxes 
  7.17  shall not be paid prior to May 16 or 21 days after the postmark 
  7.18  date on the envelope containing the property tax statement, 
  7.19  whichever is later, the same may be paid at any time prior to 
  7.20  October 16, with accrued penalties to the date of payment added, 
  7.21  and thereupon no penalty shall attach to the remaining one-half 
  7.22  until October 16 following.  
  7.23     This section applies to payment of personal property taxes 
  7.24  assessed against improvements to leased property, except as 
  7.25  provided by section 277.01, subdivision 3. 
  7.26     A county may provide by resolution that in the case of a 
  7.27  property owner that has multiple tracts or parcels with 
  7.28  aggregate taxes exceeding $50, payments may be made in 
  7.29  installments as provided in this subdivision. 
  7.30     The county treasurer may accept payments of more or less 
  7.31  than the exact amount of a tax installment due.  If the accepted 
  7.32  payment is less than the amount due, payments must be applied 
  7.33  first to the penalty accrued for the year the payment is made.  
  7.34  Acceptance of partial payment of tax does not constitute a 
  7.35  waiver of the minimum payment required as a condition for filing 
  7.36  an appeal under section 278.03 or any other law, nor does it 
  8.1   affect the order of payment of delinquent taxes under section 
  8.2   280.39. 
  8.3      [EFFECTIVE DATE.] This section is effective for taxes 
  8.4   payable in 2005 and thereafter. 
  8.5      Sec. 5.  Minnesota Statutes 2002, section 279.01, is 
  8.6   amended by adding a subdivision to read: 
  8.7      Subd. 5.  [SEASONAL RESIDENTIAL RECREATIONAL PROPERTY USED 
  8.8   FOR COMMERCIAL PURPOSES.] In the case of class 1c property and 
  8.9   class 4c seasonal residential recreational property used for 
  8.10  commercial purposes, no penalties shall accrue to the first 
  8.11  one-half property tax payment as provided in this section if 
  8.12  paid by July 15.  On July 16, a penalty shall accrue and 
  8.13  thereafter be charged upon all unpaid taxes.  On class 1c 
  8.14  property, the penalty is at a rate of two percent until July 31, 
  8.15  and four percent on August 1.  On class 4c seasonal residential 
  8.16  recreational property used for commercial purposes, the penalty 
  8.17  is four percent until July 31 and eight percent on August 1.  
  8.18  Thereafter, for both class 1c and class 4c seasonal residential 
  8.19  recreational property used for commercial purposes, on the first 
  8.20  day of September and on the first day of October, an additional 
  8.21  penalty of one percent shall accrue and be charged on unpaid 
  8.22  taxes.  The remaining one-half of the property taxes must be 
  8.23  paid and penalties accrue as provided in subdivision 1. 
  8.24     [EFFECTIVE DATE.] This section is effective for taxes 
  8.25  payable in 2005 and thereafter. 
  8.26     Sec. 6.  Minnesota Statutes 2002, section 297A.71, is 
  8.27  amended by adding a subdivision to read: 
  8.28     Subd. 33.  [CONSTRUCTION MATERIALS AND SUPPLIES; CERTAIN 
  8.29  RESORTS.] Construction materials and supplies used or consumed 
  8.30  in physically expanding or making capital improvements to a 
  8.31  resort classified as class 1c or 4c, under section 273.13, 
  8.32  subdivision 22 or 25, including any part of the resort 
  8.33  classified as class 3 under section 273.13, subdivision 24, are 
  8.34  exempt, up to a maximum refund of $10,000 in each calendar year 
  8.35  for each resort.  The tax must be imposed and collected as if 
  8.36  the rate under section 297A.62, subdivision 1, applied, and then 
  9.1   refunded in the manner provided in section 297A.75. 
  9.2      [EFFECTIVE DATE.] This section is effective for sales and 
  9.3   purchases made after June 30, 2004. 
  9.4      Sec. 7.  Minnesota Statutes 2002, section 297A.75, as 
  9.5   amended by Laws 2003, chapter 127, article 1, section 26, is 
  9.6   amended to read: 
  9.7      297A.75 [REFUND; APPROPRIATION.] 
  9.8      Subdivision 1.  [TAX COLLECTED.] The tax on the gross 
  9.9   receipts from the sale of the following exempt items must be 
  9.10  imposed and collected as if the sale were taxable and the rate 
  9.11  under section 297A.62, subdivision 1, applied.  The exempt items 
  9.12  include: 
  9.13     (1) capital equipment exempt under section 297A.68, 
  9.14  subdivision 5; 
  9.15     (2) building materials for an agricultural processing 
  9.16  facility exempt under section 297A.71, subdivision 13; 
  9.17     (3) building materials for mineral production facilities 
  9.18  exempt under section 297A.71, subdivision 14; 
  9.19     (4) building materials for correctional facilities under 
  9.20  section 297A.71, subdivision 3; 
  9.21     (5) building materials used in a residence for disabled 
  9.22  veterans exempt under section 297A.71, subdivision 11; 
  9.23     (6) chair lifts, ramps, elevators, and associated building 
  9.24  materials exempt under section 297A.71, subdivision 12; 
  9.25     (7) building materials for the Long Lake Conservation 
  9.26  Center exempt under section 297A.71, subdivision 17; 
  9.27     (8) materials, supplies, fixtures, furnishings, and 
  9.28  equipment for a county law enforcement and family service center 
  9.29  under section 297A.71, subdivision 26; and 
  9.30     (9) materials and supplies for qualified low-income housing 
  9.31  under section 297A.71, subdivision 23; and 
  9.32     (10) materials and supplies for qualified resorts under 
  9.33  section 297A.71, subdivision 33. 
  9.34     Subd. 2.  [REFUND; ELIGIBLE PERSONS.] Upon application on 
  9.35  forms prescribed by the commissioner, a refund equal to the tax 
  9.36  paid on the gross receipts of the exempt items must be paid to 
 10.1   the applicant.  Only the following persons may apply for the 
 10.2   refund: 
 10.3      (1) for subdivision 1, clauses (1) to (3), the applicant 
 10.4   must be the purchaser; 
 10.5      (2) for subdivision 1, clauses (4), (7), and (8), the 
 10.6   applicant must be the governmental subdivision; 
 10.7      (3) for subdivision 1, clause (5), the applicant must be 
 10.8   the recipient of the benefits provided in United States Code, 
 10.9   title 38, chapter 21; 
 10.10     (4) for subdivision 1, clause (6), the applicant must be 
 10.11  the owner of the homestead property; and 
 10.12     (5) for subdivision 1, clause (9), the owner of the 
 10.13  qualified low-income housing project; and 
 10.14     (6) for subdivision 1, clause (10), the owner of the resort.
 10.15     Subd. 3.  [APPLICATION.] (a) The application must include 
 10.16  sufficient information to permit the commissioner to verify the 
 10.17  tax paid.  If the tax was paid by a contractor, subcontractor, 
 10.18  or builder, under subdivision 1, clause (4), (5), (6), (7), (8), 
 10.19  or (9) clauses (4) to (10), the contractor, subcontractor, or 
 10.20  builder must furnish to the refund applicant a statement 
 10.21  including the cost of the exempt items and the taxes paid on the 
 10.22  items unless otherwise specifically provided by this 
 10.23  subdivision.  The provisions of sections 289A.40 and 289A.50 
 10.24  apply to refunds under this section. 
 10.25     (b) An applicant may not file more than two applications 
 10.26  per calendar year for refunds for taxes paid on capital 
 10.27  equipment exempt under section 297A.68, subdivision 5.  
 10.28     Subd. 4.  [INTEREST.] Interest must be paid on the refund 
 10.29  at the rate in section 270.76 from 90 days after the refund 
 10.30  claim is filed with the commissioner for taxes paid under 
 10.31  subdivision 1. 
 10.32     Subd. 5.  [APPROPRIATION.] The amount required to make the 
 10.33  refunds is annually appropriated to the commissioner. 
 10.34     [EFFECTIVE DATE.] This section is effective for sales and 
 10.35  purchases made after June 30, 2004.  
 10.36     Sec. 8.  [APPROPRIATION.] 
 11.1      $2,000,000 is appropriated from the general fund to the 
 11.2   commissioner of employment and economic development for the 
 11.3   tourism loan program under Minnesota Statutes, section 
 11.4   116J.617.  This appropriation is for fiscal year 2005, but any 
 11.5   unspent funds shall be carried over for use in fiscal year 2006.
 11.6      [EFFECTIVE DATE.] This section is effective July 1, 2004.