HF 1298

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/18/2021 03:31pm

A bill for an act
relating to taxation; property and local; requiring the commissioner of revenue to
conduct a study on class 4d properties.

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

Section 1. new text begin 4D AFFORDABLE HOUSING PROGRAMS REPORT.
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new text begin No later than January 15, 2022, the commissioner of revenue, in consultation with the
Minnesota Housing Finance Agency, must produce a report on class 4d property, as defined
in Minnesota Statutes, section 273.13, subdivision 25, and on local 4d affordable housing
programs. The commissioner must provide a copy of the report to the chairs and ranking
minority members of the legislative committees with jurisdiction over property taxation.
The report must comply with the requirements of Minnesota Statutes, sections 3.195 and
3.197. The report must include the following:
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new text begin (1) for properties classified in part or in whole as 4d qualifying under Minnesota Statutes,
section 273.128, subdivision 1, clauses (1) to (4), with separate amounts given for properties
under each clause:
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new text begin (i) the number of units classified as 4d in each property in the previous assessment year;
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new text begin (ii) the number of units not classified as 4d in each property in the previous assessment
year;
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new text begin (iii) the property tax paid in 2021;
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new text begin (iv) the property tax reduction in 2021 resulting from 4d classification; and
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new text begin (v) the total number of 4d units in each of the last ten years; and
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new text begin (2) for properties classified in part or in whole as 4d qualifying under Minnesota Statutes,
section 273.128, subdivision 1, clauses (1) to (4):
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new text begin (i) the percent change in each political subdivision's net tax capacity if the first-tier class
rate of the 4d classification was reduced from 0.75 percent to 0.25 percent;
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new text begin (ii) the number of 4d properties located within tax increment financing districts, and the
impact on increment generation in those districts;
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new text begin (iii) the impact that a 4d class rate reduction from 0.75 percent to 0.25 percent for the
entire valuation would have on the property tax burden for single family, class 1a
homeowners at 30 percent to 120 percent area median income;
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new text begin (iv) the total number of 4d units whose value qualifies for the second tier in each year
since 2019;
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new text begin (v) the impact that a reduction of the 4d class rate from 0.75 percent to 0.25 percent for
the entire valuation would have on property tax refunds received by renters in 4d units and
on property tax refunds received by homeowners in jurisdictions that contain 4d property;
and
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new text begin (vi) a profile of income limits and area median incomes used in Minnesota by the United
States Department of Housing and Urban Development to determine the eligibility for
assisted housing programs.
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new text begin EFFECTIVE DATE. new text end

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