HF 3846

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; prohibiting an increase in taxable market value for
homesteads owned by certain persons age 65 years or older; amending Minnesota
Statutes 2006, sections 273.11, subdivision 5, by adding a subdivision; 273.121;
276.04, subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 273.11, subdivision 5, is amended to read:

Subd. 5.

Boards of review and equalization.

Notwithstanding any other provision
of law to the contrary, the limitation contained in subdivisions 1 deleted text begin and deleted text end new text begin , new text end 1a new text begin , and 24 new text end shall
also apply to the authority of the local board of review as provided in section 274.01,
the county board of equalization as provided in section 274.13, the State Board of
Equalization and the commissioner of revenue as provided in sections 270.11, subdivision
1, 270.12, 270C.92, and 270C.94.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2008 and
thereafter, for taxes payable in 2009 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to
read:

new text begin Subd. 24. new text end

new text begin Homesteads of persons age 65 or older; valuation increase prohibited.
new text end

new text begin (a) The taxable market value used for taxes levied in the current year on class 1 property as
defined in section 273.13, subdivision 22, and that portion of class 2a property as defined
in section 273.13, subdivision 23, consisting of the house, garage, and surrounding one
acre of land, may not exceed the property's taxable market value used for taxes levied in
the preceding year, provided that the property has been owned and occupied for at least 20
years as a homestead by a person that will be 65 years of age or older as of December 31
of the year in which the tax is levied. In the case of a married couple, both of the spouses
must be at least 65 years old as of December 31 of the year in which the tax is levied
regardless of whether the property is titled in the name of one spouse or both spouses, or
titled in another way that permits the property to have homestead status and at least one
of the spouses must have owned and occupied the homestead for at least 20 years as of
December 31 of the year in which the tax is levied.
new text end

new text begin (b) An owner or owners must apply to the county assessor where the property is
located by August 1 of the levy year for which the valuation freeze under paragraph
(a) is first requested. The applicant or applicants must submit proof of age as required
by the assessor to determine eligibility for the valuation freeze under paragraph (a). In
succeeding years, applicants must submit whatever information the county assessor deems
necessary to determine the homestead status and continued eligibility under this section.
new text end

new text begin (c) This subdivision does not apply to any increase in estimated market value
attributable to improvements made to the homestead.
new text end

new text begin (d) The market value of qualifying homestead property under this section shall be
used only in determining property taxes and shall not be used for any other purpose related
to eligibility for state programs or benefits.
new text end

new text begin (e) The county assessor shall annually inform the public of the availability of the
valuation freeze under this subdivision as part of the notice published under section
273.121.
new text end

new text begin (f) The valuation freeze granted under this subdivision terminates when one of the
following occur. The property:
new text end

new text begin (1) is sold or transferred;
new text end

new text begin (2) loses its homestead classification; or
new text end

new text begin (3) otherwise no longer qualifies for treatment under this section.
new text end

new text begin Upon termination the property shall be assessed for the current levy year as
otherwise provided by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2008 and
thereafter, for taxes payable in 2009 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2006, section 273.121, is amended to read:

273.121 VALUATION OF REAL PROPERTY, NOTICE.

Any county assessor or city assessor having the powers of a county assessor, valuing
or classifying taxable real property shall in each year notify those persons whose property
is to be included on the assessment roll that year if the person's address is known to the
assessor, otherwise the occupant of the property. The notice shall be in writing and
shall be sent by ordinary mail at least ten days before the meeting of the local board of
appeal and equalization under section 274.01 or the review process established under
section 274.13, subdivision 1c. It shall contain: (1) the market value for the current and
prior assessment, (2) the limited market value under section 273.11, subdivision 1a, for
the current and prior assessment, (3) the qualifying amount of any improvements under
section 273.11, subdivision 16, for the current assessment, (4) new text begin the amount of any market
value increase prohibited under section 273.11, subdivision 24, (5) new text end the market value
subject to taxation after subtracting the amount of any qualifying improvements new text begin under
clause (3) or any valuation freeze amount under clause (4) new text end for the current assessment, deleted text begin (5) deleted text end
new text begin (6) new text end the classification of the property for the current and prior assessment, deleted text begin (6) deleted text end new text begin (7) new text end a note
that if the property is homestead and at least 45 years old, improvements made to the
property may be eligible for a valuation exclusion under section 273.11, subdivision 16,
deleted text begin (7) deleted text end new text begin (8) new text end the assessor's office address, and deleted text begin (8) deleted text end new text begin (9) new text end the dates, places, and times set for the
meetings of the local board of appeal and equalization, the review process established
under section 274.13, subdivision 1c, and the county board of appeal and equalization.
The commissioner of revenue shall specify the form of the notice. The assessor shall
attach to the assessment roll a statement that the notices required by this section have been
mailed. Any assessor who is not provided sufficient funds from the assessor's governing
body to provide such notices, may make application to the commissioner of revenue
to finance such notices. The commissioner of revenue shall conduct an investigation
and, if satisfied that the assessor does not have the necessary funds, issue a certification
to the commissioner of finance of the amount necessary to provide such notices. The
commissioner of finance shall issue a warrant for such amount and shall deduct such
amount from any state payment to such county or municipality. The necessary funds to
make such payments are hereby appropriated. Failure to receive the notice shall in no way
affect the validity of the assessment, the resulting tax, the procedures of any board of
review or equalization, or the enforcement of delinquent taxes by statutory means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for valuation notices beginning
with the 2009 assessment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the
printing of the tax statements. The commissioner of revenue shall prescribe the form
of the property tax statement and its contents. The statement must contain a tabulated
statement of the dollar amount due to each taxing authority and the amount of the state
tax from the parcel of real property for which a particular tax statement is prepared. The
dollar amounts attributable to the county, the state tax, the voter approved school tax, the
other local school tax, the township or municipality, and the total of the metropolitan
special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must
be separately stated. The amounts due all other special taxing districts, if any, may be
aggregated except that any levies made by the regional rail authorities in the county of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be listed on a separate line directly under the appropriate county's levy. If the county
levy under this paragraph includes an amount for a lake improvement district as defined
under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount. In the case of Ramsey County,
if the county levy under this paragraph includes an amount for public library service
under section 134.07, the amount attributable for that purpose may be separated from the
remaining county levy amount. The amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount. The amount of the
tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
be separately stated. The dollar amounts, including the dollar amount of any special
assessments, may be rounded to the nearest even whole dollar. For purposes of this section
whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
The amount of market value excluded under section 273.11, subdivision 16, if any, must
also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's taxable market value after reductions under section 273.11,
subdivisions 1a deleted text begin and deleted text end new text begin , new text end 16 new text begin , and 24 new text end ;

(3) the property's gross tax, calculated by adding the property's total property tax to
the sum of the aids enumerated in clause (4);

(4) a total of the following aids:

(i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C,
and 127A;

(ii) local government aids for cities, towns, and counties under sections 477A.011 to
477A.04; and

(iii) disparity reduction aid under section 273.1398;

(5) for homestead residential and agricultural properties, the credits under section
273.1384;

(6) any credits received under sections 273.119; 273.123; 273.135; 273.1391;
273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received
under section 273.135 must be separately stated and identified as "taconite tax relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

The commissioner of revenue shall certify to the county auditor the actual or
estimated aids enumerated in paragraph (c), clause (4), that local governments will receive
in the following year. The commissioner must certify this amount by January 1 of each
year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax statements for taxes
payable in 2009 and thereafter.
new text end