HF 1902

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; providing a housing
opportunity area tax abatement program; proposing
coding for new law in Minnesota Statutes, chapter 273.

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

Section 1.

new text begin [273.128] HOUSING OPPORTUNITY TAX ABATEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin For the purpose of promoting
economic diversity throughout Minnesota and to alleviate the
concentration of low-income households in high poverty areas, a
housing opportunity area tax abatement program is created.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section,
the following terms have the meanings given them.
new text end

new text begin (b) "Housing authority" means either a housing authority
created under the Housing Authorities Act or other government
agency that is authorized by the United States government under
the United States Housing Act of 1937 to administer a housing
choice voucher program, or the authorized agent of such a
housing authority that is authorized to act on that authority's
behalf.
new text end

new text begin (c) "Housing choice voucher" means a tenant voucher issued
by a housing authority under section 8 of the United States
Housing Act of 1937.
new text end

new text begin (d) "Housing opportunity area" means a census tract where
less than ten percent of the residents live below the poverty
level, as defined by the United States government and determined
by the most recent United States census, that is located within
a qualified city or town.
new text end

new text begin (e) "Housing opportunity unit" means a dwelling unit
located in residential property that is located in a housing
opportunity area, that is owned by the applicant, and that is
rented to and occupied by a tenant who is participating in a
housing choice voucher program administered by a housing
authority as of January 1 of the taxes payable year for which
the application is made.
new text end

new text begin (f) "Qualified units" means the number of housing
opportunity units located in the property, with the limitation
that no more than two units or 20 percent of the total units
contained within the property, whichever is greater, may be
considered qualified units. Further, no unit may be considered
qualified unless the property in which it is contained is in
substantial compliance with local building codes, and no unit
may be considered qualified unless it meets the United States
Department of Housing and Urban Development's housing quality
standards as of the most recent housing authority inspection.
new text end

new text begin (g) "Qualified city or town" means a home rule charter or
statutory city or town that is (1) located within a county with
200,000 or more inhabitants, and (2) whose net tax capacity per
capita exceeds the average net tax capacity per capita of all
cities or towns in the county in which it is located.
new text end

new text begin (h) "Tax capacity per capita" means the adjusted net tax
capacity of all taxable real estate located within a city, town,
or county divided by the total population of that city, town, or
county.
new text end

new text begin Subd. 3. new text end

new text begin Application by owner; determination by housing
authority. new text end

new text begin The owner of property located within a housing
opportunity area who has a housing choice voucher contract with
a housing authority may apply for housing opportunity area tax
abatement by annually submitting an application to the housing
authority that administers the housing choice voucher contract.
The application must include the number of housing opportunity
units as well as the total number of dwelling units contained
within the property. The housing authority shall annually
determine the number of qualified units located within each
property for which an application is made. The housing
authority shall establish rules and procedures governing the
application processes and may charge an application fee.
new text end

new text begin Subd. 4. new text end

new text begin Housing opportunity areas. new text end

new text begin The housing
authority shall determine housing opportunity areas within its
service area and annually deliver to the county auditor, in a
manner determined by the county auditor, a list of all
properties containing qualified units within that service area
by December 31 of the assessment year for which the property is
eligible for abatement. The list must include the number of
qualified units and the total number of dwelling units for each
property.
new text end

new text begin Subd. 5. new text end

new text begin County auditor; data. new text end

new text begin The county auditor shall
deliver annually to a housing authority, upon the housing
authority's request, the most recent available adjusted net tax
capacity for the county as a whole and for those cities and
towns so specified by the requesting housing authority.
new text end

new text begin Subd. 6. new text end

new text begin Abatement. new text end

new text begin The county auditor shall abate the
tax attributable to the portion of the property determined to be
eligible for housing opportunity area abatement. The amount of
the abatement shall be determined by reducing the tax by a
percentage calculated using the following formula: 20 percent
of the adjusted net tax capacity of the property multiplied by a
fraction in which the numerator is the number of qualified units
and the denominator is the total number of dwelling units
located within the property. The amount of abatement shall be
shown as a credit on the property tax statement.
new text end

new text begin Subd. 7. new text end

new text begin Exclusion by petition of municipality. new text end

new text begin Any home
rule charter or statutory city or town may annually petition the
county auditor to be excluded from a housing opportunity area if
more than two percent of the total residential units located
within that municipality are occupied by tenants under the
housing choice voucher program. Properties located within an
excluded municipality are not eligible for the housing
opportunity area abatement for the tax year in which the
petition is made.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
assessed in 2006, payable in 2007, and thereafter.
new text end