HF 3118

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/24/2016 04:30pm

A bill for an act
relating to taxation; property; providing property tax abatements to disabled
veterans in certain circumstances; amending Minnesota Statutes 2014, section
273.13, subdivision 34.

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

Section 1.

Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read:

Subd. 34.

Homestead of disabled veteran or family caregiver.

(a) All or a
portion of the market value of property owned by a veteran and serving as the veteran's
homestead under this section is excluded in determining the property's taxable market
value if the veteran has a service-connected disability of 70 percent or more as certified
by the United States Department of Veterans Affairs. To qualify for exclusion under this
subdivision, the veteran must have been honorably discharged from the United States
armed forces, as indicated by United States Government Form DD214 or other official
military discharge papers.

(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.

(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse for the current taxes
payable year and for eight additional taxes payable years or until such time as the spouse
remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
Qualification under this paragraph requires an annual application under paragraph (h).

(d) If the spouse of a member of any branch or unit of the United States armed
forces who dies due to a service-connected cause while serving honorably in active
service, as indicated on United States Government Form DD1300 or DD2064, holds
the legal or beneficial title to a homestead and permanently resides there, the spouse is
entitled to the benefit described in paragraph (b), clause (2), for eight taxes payable years,
or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
property, whichever comes first.

(e) If a veteran meets the disability criteria of paragraph (a) but does not own
property classified as homestead in the state of Minnesota, then the homestead of the
veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
would otherwise qualify for under paragraph (b).

(f) In the case of an agricultural homestead, only the portion of the property
consisting of the house and garage and immediately surrounding one acre of land qualifies
for the valuation exclusion under this subdivision.

(g) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the market value exclusion under subdivision 35, or classification under
subdivision 22, paragraph (b).

(h) new text begin To qualify for a valuation exclusion under this subdivision, the property owner
must file an application with the assessor. Upon verifying that the applicant qualifies for
the exclusion, the county assessor must notify the auditor, and the auditor must recalculate
the taxes on the property for the current taxes payable year based on the exclusion. The
county must then issue an abatement of taxes due in the current taxes payable year based
on the difference between the taxes as initially calculated and the taxes based on the value
remaining after the exclusion, prorated for the remainder of the year based on the later
of the date the application was received or the date the property first qualified for the
exclusion. If the abatement is made after payment of all or a portion of the taxes being
abated have been paid, the portion already paid must be refunded to the taxpayer by the
county treasurer as soon as practical. Abatements granted under this paragraph are not
subject to approval by the county board.
new text end

new text begin (i) The county auditor shall certify the abatements granted under this section to the
commissioner of revenue for reimbursement to each taxing jurisdiction in which the
property is located. The commissioner shall make the payments to the taxing jurisdictions
containing the property, other than school districts and the state, at the time distributions
are made under section 473H.10, subdivision 3. Reimbursements to school districts shall
be made as provided in section 273.1392. No reimbursement is to be paid to the state
treasury. There is annually appropriated from the general fund to the commissioner of
revenue an amount necessary to make the payments required by this section.
new text end

new text begin (j) new text end deleted text begin To qualify for a valuation exclusion under this subdivision deleted text end new text begin After initial
qualification, new text end a property owner must deleted text begin apply deleted text end new text begin reapply new text end to the assessor by July 1 of each
assessment year, except that an annual reapplication is not required deleted text begin once deleted text end new text begin for new text end a property
deleted text begin has been accepted for a valuation exclusion under paragraph (a) and deleted text end new text begin that new text end qualifies for
the benefit described in paragraph (b), clause (2), deleted text begin and the property continues to qualify deleted text end
until there is a change in ownership. deleted text begin For an application received after July 1 of any
calendar year, the exclusion shall become effective for the following assessment year. deleted text end new text begin
When a property qualifying for a market value exclusion under this subdivision is sold
or transferred prior to July 1, the exclusion must be removed for taxes payable in the
following year, provided that the new owner may file a claim for an exclusion if eligible.
new text end

deleted text begin (i) deleted text end new text begin (k) new text end A first-time application by a qualifying spouse for the market value exclusion
under paragraph (d) must be made any time within two years of the death of the service
member.

deleted text begin (j) deleted text end new text begin (l) new text end For purposes of this subdivision:

(1) "active service" has the meaning given in section 190.05;

(2) "own" means that the person's name is present as an owner on the property deed;

(3) "primary family caregiver" means a person who is approved by the secretary of
the United States Department of Veterans Affairs for assistance as the primary provider
of personal care services for an eligible veteran under the Program of Comprehensive
Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
and

(4) "veteran" has the meaning given the term in section 197.447.

deleted text begin (k) deleted text end new text begin (m) new text end The purpose of this provision of law providing a level of homestead property
tax relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.