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HF 1921

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/04/2021 02:46pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/04/2021

Current Version - as introduced

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A bill for an act
relating to taxation; property; property tax relief for properties damaged by fire or
vandalism.

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

Section 1. new text begin PROPERTY TAX RELIEF FOR PROPERTIES DAMAGED BY FIRE
OR VANDALISM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Damage amount" means the difference between: (1) a property's estimated market
value as determined on January 2, 2020; and (2) the property's estimated market value as
determined under subdivision 4.
new text end

new text begin (c) "Qualifying property" means a property that:
new text end

new text begin (1) is located in the area included in the peacetime emergency declared in Executive
Order 20-64;
new text end

new text begin (2) was damaged or destroyed due to the unrest in the cities of Minneapolis and St. Paul
and surrounding communities after May 24, 2020, and before June 16, 2020;
new text end

new text begin (3) has a damage amount equal to at least 25 percent of the property's estimated market
value, excluding the value of the land, as determined on January 2, 2020; and
new text end

new text begin (4) has not received abatements or credits under Minnesota Statutes, sections 273.1231
to 273.1235, for a disaster or emergency that occurred in 2020.
new text end

new text begin (d) "Utility property" means property appraised and classified for tax purposes by order
of the commissioner of revenue under Minnesota Statutes, sections 273.33 to 273.3711.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin The owner of a property that is not a utility property must apply
to the county board and county or local assessor by ......, in a manner prescribed by the
assessor, in order to be eligible for an abatement under subdivision 3. The owner of a utility
property must apply to the commissioner of revenue by ......, in a manner prescribed by the
commissioner, in order to be eligible for an abatement under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Abatements. new text end

new text begin (a) Notwithstanding Minnesota Statutes, sections 270C.86 and
375.192, the county board and commissioner of revenue must grant abatements in the
amounts provided in paragraphs (b) and (c) for qualifying properties that submitted an
application under subdivision 2.
new text end

new text begin (b) For a qualifying property with a damage amount equal to less than 50 percent of the
property's estimated market value, excluding the value of the land, as determined on January
2, 2020, the abatement amount is equal to 50 percent of the net property tax due on the
property in 2020.
new text end

new text begin (c) For a qualifying property with a damage amount equal to at least 50 percent of the
property's estimated market value, excluding the value of the land, as determined on January
2, 2020, the abatement amount is equal to 100 percent of the net property tax due on the
property in 2020.
new text end

new text begin (d) If application is made after payment of all or a portion of the taxes being abated, the
portion of the abatement already paid must be refunded to the taxpayer by the county
treasurer as soon as practicable.
new text end

new text begin Subd. 4. new text end

new text begin Reassessments required. new text end

new text begin For the purposes of this section, the county or local
assessor must reassess all damaged property for which an application is submitted under
subdivision 2, except that the commissioner of revenue must reassess all utility property
for which an application is submitted under subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Valuation increase prohibited. new text end

new text begin (a) The estimated market value for qualifying
properties that receive an abatement under subdivision 3 must not exceed the property's
estimated market value as determined under subdivision 4 until assessment year 2025,
provided that the property retains the same ownership it had as of May 25, 2020.
new text end

new text begin (b) Owners of property meeting the requirements of this subdivision must submit any
information the county or local assessor or commissioner of revenue deems necessary to
determine continued eligibility under this subdivision by December 15 of each year prior
to the assessment year for which the property qualifies under paragraph (a).
new text end

new text begin Subd. 6. new text end

new text begin Reimbursement and appropriation. new text end

new text begin (a) The county auditor must certify the
abatements granted under this section to the commissioner of revenue for reimbursement
to each taxing jurisdiction in which qualifying property is located. The commissioner must
make the payments to the taxing jurisdictions containing qualifying property, other than
school districts and the state, at the time distributions are made under Minnesota Statutes,
section 473H.10, subdivision 3. Reimbursements to school districts must be made as provided
in Minnesota Statutes, section 273.1392. No reimbursement is to be paid to the state treasury.
new text end

new text begin (b) An amount necessary to make payments required by this section is appropriated to
the commissioner of revenue from the general fund in fiscal year 2021.
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