HF 3086

as introduced - 88th Legislature (2013 - 2014) Posted on 03/17/2014 01:49pm

A bill for an act
relating to taxation; property; permanently increasing the agricultural market
value homestead credit; providing for supplemental credit payments for taxes
payable in 2014; appropriating money; amending Minnesota Statutes 2012,
section 273.1384, subdivision 2.

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

Section 1.

Minnesota Statutes 2012, section 273.1384, subdivision 2, is amended to read:

Subd. 2.

Agricultural homestead market value credit.

Property classified as
agricultural homestead under section 273.13, subdivision 23, paragraph (a), is eligible for
an agricultural credit. The credit is computed using the property's agricultural credit market
value, defined for this purpose as the property's market value excluding the market value of
the house, garage, and immediately surrounding one acre of land. The credit is equal to 0.3
percent of the first $115,000 of the property's agricultural credit market value deleted text begin minus .05 deleted text end new text begin plus
0.1 new text end percent of the property's agricultural credit market value in excess of $115,000, subject
to a maximum deleted text begin reduction deleted text end new text begin credit new text end of deleted text begin $115 deleted text end new text begin $500 new text end . In the case of property that is classified
as part homestead and part nonhomestead solely because not all the owners occupy or
farm the property, not all the owners have qualifying relatives occupying or farming the
property, or solely because not all the spouses of owners occupy the property, the credit
must be initially computed as if that nonhomestead agricultural land was also classified as
agricultural homestead and then prorated to the owner-occupant's percentage of ownership.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2014.
new text end

Sec. 2. new text begin SUPPLEMENTAL CREDIT FOR TAXES PAYABLE IN 2014 ONLY.
new text end

new text begin Subdivision 1. new text end

new text begin Certification of supplemental credit amount. new text end

new text begin By September 15,
2014, the county auditor must notify each eligible property owner of the amount by
which the credit determined under section 1 exceeds the credit amount certified on the
homestead's property tax statement or statements for property taxes payable in 2014. The
county auditor must also notify the commissioner of revenue in a manner prescribed by
the commissioner. The notification to the commissioner must indicate whether there
are any unpaid taxes upon the property.
new text end

new text begin Subd. 2. new text end

new text begin Payment of supplemental credit. new text end

new text begin The commissioner must pay
supplemental credit amounts to each qualifying taxpayer by October 15, 2014, provided
there are no unpaid taxes on the property.
new text end

new text begin Subd. 3. new text end

new text begin Property tax statements for taxes payable in 2015. new text end

new text begin In preparing
proposed and final property tax statements for taxes payable in 2015, the county auditor
shall include the supplemental credit amounts determined under this section in displaying
property taxes payable in 2014.
new text end

new text begin Subd. 4. new text end

new text begin Costs of administration. new text end

new text begin $40,000 in fiscal year 2015 is appropriated from
the general fund to the commissioner of revenue to be used to compensate counties for
expenses incurred in complying with this section
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end