HF 2904

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/15/2023 09:09am

A bill for an act
relating to taxation; converting the property tax refund program to a refundable
income tax credit; amending Minnesota Statutes 2022, sections 290A.03,
subdivision 3; 290A.04, subdivisions 1, 2, 2a, 2h, 3, 4, 5; 290A.05; 290A.08;
290A.09; 290A.11, subdivision 5; 290A.13; 290A.14; 290A.15; 290A.18; 290A.25;
proposing coding for new law in Minnesota Statutes, chapter 290; repealing
Minnesota Statutes 2022, sections 290A.07, subdivisions 1, 2a, 3, 5; 290A.23,
subdivisions 1, 3.

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

Section 1.

new text begin [290.0693] PROPERTY TAX REFUND CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed; refundable. new text end

new text begin An individual is a allowed a credit against
the tax due under this chapter equal to the amount allowed under chapter 290A.04,
subdivision 1. If the amount of credit which a taxpayer is eligible to receive under this
section exceeds the taxpayer's eligibility for tax under this chapter, the commissioner shall
refund the excess to the taxpayer.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the refunds under this section is
appropriated from the general fund to the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022.
new text end

Sec. 2.

Minnesota Statutes 2022, section 290A.03, subdivision 3, is amended to read:

Subd. 3.

Income.

(a) "Income" means deleted text begin the sum of the following:(1) deleted text end federal adjusted
gross income as defined in the Internal Revenue Code deleted text begin ; and deleted text end new text begin , less the subtractions allowed
in paragraph (b).
new text end

deleted text begin (2) the sum of the following amounts to the extent not included in clause (1):
deleted text end

deleted text begin (i) all nontaxable income;
deleted text end

deleted text begin (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
deleted text end

deleted text begin (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
deleted text end

deleted text begin (iv) cash public assistance and relief;
deleted text end

deleted text begin (v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
deleted text end

deleted text begin (vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
deleted text end

deleted text begin (vii) workers' compensation;
deleted text end

deleted text begin (viii) nontaxable strike benefits;
deleted text end

deleted text begin (ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
deleted text end

deleted text begin (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
deleted text end

deleted text begin (xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
deleted text end

deleted text begin (xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
deleted text end

deleted text begin (xiii) nontaxable scholarship or fellowship grants;
deleted text end

deleted text begin (xiv) alimony received to the extent not included in the recipient's income;
deleted text end

deleted text begin (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
deleted text end

deleted text begin (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
deleted text end

deleted text begin (xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
deleted text end

deleted text begin In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
deleted text end

deleted text begin (b) "Income" does not include:
deleted text end

deleted text begin (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
deleted text end

deleted text begin (2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
deleted text end

deleted text begin (3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
deleted text end

deleted text begin (4) surplus food or other relief in kind supplied by a governmental agency;
deleted text end

deleted text begin (5) relief granted under this chapter;
deleted text end

deleted text begin (6) child support payments received under a temporary or final decree of dissolution or
legal separation;
deleted text end

deleted text begin (7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16;
deleted text end

deleted text begin (8) alimony paid; or
deleted text end

deleted text begin (9) veterans disability compensation paid under title 38 of the United States Code.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end The sum of the following amounts may be subtracted from income:

(1) for the deleted text begin claimant's deleted text end new text begin taxpayer's new text end first dependent, the exemption amount multiplied by
1.4;

(2) for the deleted text begin claimant's deleted text end new text begin taxpayer's new text end second dependent, the exemption amount multiplied by
1.3;

(3) for the deleted text begin claimant's deleted text end new text begin taxpayer's new text end third dependent, the exemption amount multiplied by
1.2;

(4) for the deleted text begin claimant's deleted text end new text begin taxpayer's new text end fourth dependent, the exemption amount multiplied by
1.1;

(5) for the deleted text begin claimant's deleted text end new text begin taxpayer's new text end fifth dependent, the exemption amount; and

(6) if the deleted text begin claimant deleted text end new text begin taxpayer new text end or deleted text begin claimant's deleted text end new text begin taxpayer's new text end spouse had a disability or attained
the age of 65 on or before December 31 of the year for which the taxes were levied or rent
paid, the exemption amount.

deleted text begin (d) deleted text end new text begin (c) new text end For purposes of this subdivision, deleted text begin the following terms have the meanings given:
deleted text end

deleted text begin (1) deleted text end "exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b), for the taxable year for which the income is reported deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and
deleted text end

deleted text begin (3) "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with credits based on property
taxes payable in 2024 and rent paid in 2023.
new text end

Sec. 3.

Minnesota Statutes 2022, section 290A.04, subdivision 1, is amended to read:

Subdivision 1.

Refund.

A deleted text begin refund deleted text end new text begin credit against the tax imposed under chapter 290 new text end shall
be allowed deleted text begin each claimant in deleted text end new text begin to an individual taxpayer equal to new text end the amount that property
taxes payable or rent constituting property taxes exceed the percentage of the household
income of the deleted text begin claimant deleted text end new text begin taxpayer new text end specified in subdivision 2 or 2a in the year for which the
taxes were levied or in the year in which the rent was paid as specified in subdivision 2 or
2a. If the amount of property taxes payable or rent constituting property taxes is equal to
or less than the percentage of the household income of the deleted text begin claimant deleted text end new text begin taxpayer new text end specified in
subdivision 2 or 2a in the year for which the taxes were levied or in the year in which the
rent was paid, the deleted text begin claimant deleted text end new text begin taxpayer new text end shall not be eligible for a deleted text begin state refund deleted text end new text begin credit new text end pursuant
to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 4.

Minnesota Statutes 2022, section 290A.04, subdivision 2, is amended to read:

Subd. 2.

Homeowners; homestead credit refund.

A deleted text begin claimant deleted text end new text begin taxpayer new text end whose property
taxes payable are in excess of the percentage of the household income stated below shall
pay an amount equal to the percent of income shown for the appropriate deleted text begin household deleted text end income
level along with the percent to be paid by the deleted text begin claimant deleted text end new text begin taxpayer new text end of the remaining amount
of property taxes payable. The deleted text begin state refund deleted text end new text begin credit new text end equals the amount of property taxes payable
that remain, up to the deleted text begin state refund deleted text end new text begin maximum credit new text end amount shown below.

Household Income	Percent of Income	Percent Paid by deleted text begin Claimant deleted text end new text begin Taxpayer new text end	Maximum State deleted text begin Refund deleted text end new text begin Credit new text end
$0 to 1,739	1.0 percent	15 percent	$	2,770
1,740 to 3,459	1.1 percent	15 percent	$	2,770
3,460 to 5,239	1.2 percent	15 percent	$	2,770
5,240 to 6,989	1.3 percent	20 percent	$	2,770
6,990 to 8,719	1.4 percent	20 percent	$	2,770
8,720 to 12,219	1.5 percent	20 percent	$	2,770
12,220 to 13,949	1.6 percent	20 percent	$	2,770
13,950 to 15,709	1.7 percent	20 percent	$	2,770
15,710 to 17,449	1.8 percent	20 percent	$	2,770
17,450 to 19,179	1.9 percent	25 percent	$	2,770
19,180 to 24,429	2.0 percent	25 percent	$	2,770
24,430 to 26,169	2.0 percent	30 percent	$	2,770
26,170 to 29,669	2.0 percent	30 percent	$	2,770
29,670 to 41,859	2.0 percent	35 percent	$	2,770
41,860 to 61,049	2.0 percent	35 percent	$	2,240
61,050 to 69,769	2.0 percent	40 percent	$	1,960
69,770 to 78,499	2.1 percent	40 percent	$	1,620
78,500 to 87,219	2.2 percent	40 percent	$	1,450
87,220 to 95,939	2.3 percent	40 percent	$	1,270
95,940 to 101,179	2.4 percent	45 percent	$	1,070
101,180 to 104,689	2.5 percent	45 percent	$	890
104,690 to 108,919	2.5 percent	50 percent	$	730
108,920 to 113,149	2.5 percent	50 percent	$	540

deleted text begin The payment made to a claimant shall be the amount of the state refund calculated under
this subdivision. deleted text end No deleted text begin payment deleted text end new text begin credit new text end is allowed if the deleted text begin claimant's deleted text end new text begin taxpayer's new text end household income
is $113,150 or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 5.

Minnesota Statutes 2022, section 290A.04, subdivision 2a, is amended to read:

Subd. 2a.

Renters.

A deleted text begin claimant deleted text end new text begin taxpayer new text end whose rent constituting property taxes exceeds
the percentage of the deleted text begin household deleted text end income stated below must pay an amount equal to the
percent of income shown for the appropriate household income level along with the percent
to be paid by the deleted text begin claimant deleted text end new text begin taxpayer new text end of the remaining amount of rent constituting property
taxes. The state deleted text begin refund deleted text end new text begin credit new text end equals the amount of rent constituting property taxes that
remain, up to the maximum state deleted text begin refund deleted text end new text begin credit new text end amount shown below.

Household Income	Percent of Income	Percent Paid by deleted text begin Claimant deleted text end new text begin Taxpayer new text end	Maximum State deleted text begin Refund deleted text end new text begin Credit new text end
$0 to 5,269	1.0 percent	5 percent	$	2,150
5,270 to 6,999	1.0 percent	10 percent	$	2,150
7,000 to 8,749	1.1 percent	10 percent	$	2,090
8,750 to 12,269	1.2 percent	10 percent	$	2,040
12,270 to 15,779	1.3 percent	15 percent	$	1,980
15,780 to 17,519	1.4 percent	15 percent	$	1,930
17,520 to 19,259	1.4 percent	20 percent	$	1,880
19,260 to 22,779	1.5 percent	20 percent	$	1,820
22,780 to 24,529	1.6 percent	20 percent	$	1,770
24,530 to 26,279	1.7 percent	25 percent	$	1,770
26,280 to 29,789	1.8 percent	25 percent	$	1,770
29,790 to 31,529	1.9 percent	30 percent	$	1,770
31,530 to 36,789	2.0 percent	30 percent	$	1,770
36,790 to 42,039	2.0 percent	35 percent	$	1,770
42,040 to 49,059	2.0 percent	40 percent	$	1,770
49,060 to 50,799	2.0 percent	45 percent	$	1,610
50,800 to 52,559	2.0 percent	45 percent	$	1,450
52,560 to 54,319	2.0 percent	45 percent	$	1,230
54,320 to 56,059	2.0 percent	50 percent	$	1,070
56,060 to 57,819	2.0 percent	50 percent	$	970
57,820 to 59,569	2.0 percent	50 percent	$	540
59,570 to 61,319	2.0 percent	50 percent	$	210

deleted text begin The payment made to a claimant is the amount of the state refund calculated under this
subdivision. deleted text end No deleted text begin payment deleted text end new text begin credit new text end is allowed if the claimant's household income is $61,320
or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 6.

Minnesota Statutes 2022, section 290A.04, subdivision 2h, is amended to read:

Subd. 2h.

Additional deleted text begin refund deleted text end new text begin credit new text end .

(a) If the gross property taxes payable on a
homestead increase more than 12 percent over the property taxes payable in the prior year
on the same property that is owned and occupied by the same owner on January 2 of both
years, and the amount of that increase is $100 or more, a deleted text begin claimant deleted text end new text begin taxpayer new text end who is a
homeowner shall be allowed an additional deleted text begin refund deleted text end new text begin credit new text end equal to 60 percent of the amount
of the increase over the greater of 12 percent of the prior year's property taxes payable or
$100. This subdivision shall not apply to any increase in the gross property taxes payable
attributable to improvements made to the homestead after the assessment date for the prior
year's taxes. This subdivision shall not apply to any increase in the gross property taxes
payable attributable to the termination of valuation exclusions under section 273.11,
subdivision 16.

The maximum deleted text begin refund deleted text end new text begin credit new text end allowed under this subdivision is $1,000.

(b) For purposes of this subdivision "gross property taxes payable" means property taxes
payable determined without regard to the deleted text begin refund deleted text end new text begin credit new text end allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each deleted text begin claimant deleted text end new text begin taxpayer new text end under
this subdivision shall file with the deleted text begin property tax refund deleted text end new text begin income tax new text end return a copy of the
property tax statement for taxes payable in the preceding year or other documents required
by the commissioner.

(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
deleted text begin refund deleted text end new text begin credit new text end under this section. The information shall be provided on a magnetic computer
disk. The county may recover its costs by charging the person requesting the information
the reasonable cost for preparing the data. The information may not be used for any purpose
other than for notifying the homeowner of potential eligibility and assisting the homeowner,
without charge, in preparing a deleted text begin refund deleted text end new text begin credit new text end claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024.
new text end

Sec. 7.

Minnesota Statutes 2022, section 290A.04, subdivision 3, is amended to read:

Subd. 3.

Table.

The commissioner of revenue shall construct and make available to
taxpayers a comprehensive table showing the property taxes to be paid and deleted text begin refund deleted text end new text begin credit new text end
allowed at various levels of income and assessment. The table shall follow the schedule of
income percentages, maximums and other provisions specified in subdivision 2, except that
the commissioner may graduate the transition between income brackets. All deleted text begin refunds deleted text end new text begin credits new text end
shall be computed in accordance with tables prepared and issued by the commissioner of
revenue.

The commissioner shall include on the form an appropriate space or method for the
deleted text begin claimant deleted text end new text begin taxpayer new text end to identify if the property taxes paid are for a manufactured home, as
defined in section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as a
manufactured home under section 168.012, subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 8.

Minnesota Statutes 2022, section 290A.04, subdivision 4, is amended to read:

Subd. 4.

Inflation adjustment.

The commissioner shall annually adjust the dollar
amounts of the income thresholds and the maximum deleted text begin refunds deleted text end new text begin credits new text end under subdivisions 2
and 2a as provided in section 270C.22. The statutory year is 2018.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 9.

Minnesota Statutes 2022, section 290A.04, subdivision 5, is amended to read:

Subd. 5.

Combined renter and homeowner refund.

In the case of a deleted text begin claimant deleted text end new text begin taxpayer new text end
who is entitled to a deleted text begin refund deleted text end new text begin credit new text end in a calendar year for claims based both on rent constituting
property taxes and property taxes payable, the deleted text begin refund deleted text end new text begin credit new text end allowable equals the sum of
the deleted text begin refunds deleted text end new text begin credits new text end allowable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 10.

Minnesota Statutes 2022, section 290A.05, is amended to read:

290A.05 COMBINED HOUSEHOLD INCOME.

If a person occupies a homestead with another person not related to the person as the
person's spouse, excluding dependents, roomers or boarders on contract, and has property
tax payable with respect to the homestead, the household income of the deleted text begin claimant deleted text end new text begin taxpayer new text end
or deleted text begin claimants deleted text end new text begin taxpayers new text end for the purpose of computing the deleted text begin refund deleted text end new text begin credit new text end allowed by section
290A.04 shall include the total income received by the other persons residing in the
homestead. For purposes of this section, "dependent" includes a parent of the deleted text begin claimant deleted text end new text begin
taxpayer new text end or spouse who lives in the deleted text begin claimant's deleted text end new text begin taxpayer's new text end homestead and does not have an
ownership interest in the homestead. If a person occupies a homestead with another person
or persons not related to the person as the person's spouse or as dependents, the property
tax payable or rent constituting property tax shall be reduced as follows.

If the other person or persons are residing at the homestead under rental or lease
agreement, the amount of property tax payable or rent constituting property tax shall be that
portion not covered by the rental agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 11.

Minnesota Statutes 2022, section 290A.08, is amended to read:

290A.08 ONE deleted text begin CLAIMANT deleted text end new text begin TAXPAYER new text end PER HOUSEHOLD.

Only one deleted text begin claimant deleted text end new text begin taxpayer new text end per household per year is entitled to deleted text begin relief deleted text end new text begin a credit new text end under
this chapter. deleted text begin Payment of the claim for relief may be made payable to the spouses as one
claimant. deleted text end deleted text begin The commissioner, upon written request, may issue separate checks, to the spouses
for one-half of the relief provided the original check has not been issued or has been returned. deleted text end
deleted text begin Individuals related as spouses who were married during the year may elect to file a joint
claim which shall include each spouse's income, rent constituting property taxes, and property
taxes payable. Spouses who were married for the entire year and were domiciled in the same
household for the entire year must file a joint claim. deleted text end The maximum dollar amount allowable
for a joint claim shall not exceed the amount that one person could receive.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 12.

Minnesota Statutes 2022, section 290A.09, is amended to read:

290A.09 PROOF OF CLAIM.

Every deleted text begin claimant deleted text end new text begin taxpayer new text end shall supply to the commissioner of revenue, in support of the
claim, proof of eligibility under this chapter, including but not limited to amount of rent
paid or property taxes accrued, name and address of owner or managing agent of property
rented, changes in homestead, household membership, household income, size and nature
of property claimed as a homestead.

Persons with a disability filing claims shall submit proof of disability in the form and
manner as the commissioner may prescribe. The department may require examination and
certification by the deleted text begin claimant's deleted text end physician new text begin of the taxpayer or the taxpayer's spouse, new text end or by a
physician designated by the commissioner. The cost of any examination shall be borne by
the deleted text begin claimant deleted text end new text begin taxpayer new text end , unless the examination proves the disability, in which case the cost
of the examination shall be borne by the commissioner.

A determination of disability of a deleted text begin claimant deleted text end new text begin taxpayer new text end by the Social Security Administration
under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of
disability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 13.

Minnesota Statutes 2022, section 290A.11, subdivision 5, is amended to read:

Subd. 5.

Assignment of refund.

The commissioner shall not honor an assignment by
the deleted text begin claimant deleted text end new text begin taxpayer new text end to another person or entity of a property tax deleted text begin refund prior to the refund
check being presented to the claimant deleted text end new text begin credit new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 14.

Minnesota Statutes 2022, section 290A.13, is amended to read:

290A.13 NO RELIEF ALLOWED IN CERTAIN CASES.

No deleted text begin claim for relief deleted text end new text begin credit new text end under this chapter shall be allowed if the commissioner
determines that the deleted text begin claimant deleted text end new text begin taxpayer new text end received title or tenancy to the homestead primarily
for the purpose of receiving deleted text begin benefits deleted text end new text begin a credit new text end under this chapter and not for bona fide residence
purposes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 15.

Minnesota Statutes 2022, section 290A.14, is amended to read:

290A.14 PROPERTY TAX STATEMENT.

The county treasurer shall prepare and send a sufficient number of copies of the property
tax statement to the owner, and to the owner's escrow agent if the taxes are paid via an
escrow account, to enable the owner to comply with the filing requirements of this chapter
and to retain one copy as a record. The property tax statement, in a form prescribed by the
commissioner, shall indicate the manner in which the deleted text begin claimant deleted text end new text begin taxpayer new text end may claim deleted text begin relief
from the state deleted text end new text begin a credit new text end under both this chapter and chapter 290B, and the amount of the deleted text begin tax
for which deleted text end new text begin credit new text end the applicant may claim deleted text begin relief deleted text end . The statement shall also indicate if there
are delinquent property taxes on the property in the preceding year. Taxes included in a
confession of judgment under section 277.23 or 279.37 shall not constitute delinquent taxes
as long as the deleted text begin claimant deleted text end new text begin taxpayer new text end is current on the payments required to be made under section
277.23 or 279.37.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 16.

Minnesota Statutes 2022, section 290A.15, is amended to read:

290A.15 CLAIM APPLIED AGAINST OUTSTANDING LIABILITY.

The amount of any deleted text begin claim deleted text end new text begin credit new text end otherwise payable under this chapter may be applied by
the commissioner against any delinquent tax liability of any member of the household. If
there are two members of the household, the commissioner may apply only one-half of a
deleted text begin refund deleted text end new text begin credit new text end to the separate liability of either member of the household.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 17.

Minnesota Statutes 2022, section 290A.18, is amended to read:

290A.18 RIGHT TO FILE CLAIM; RIGHT TO RECEIVE CREDIT.

Subdivision 1.

Claim by surviving spouse or dependent.

If a person entitled to relief
under this chapter dies prior to receiving deleted text begin relief deleted text end new text begin a credit under this chapter new text end , the surviving
spouse or dependent of the person shall be entitled to file deleted text begin the claim deleted text end and receive deleted text begin relief deleted text end new text begin the
credit new text end . If there is no surviving spouse or dependent, the right to the credit shall lapse.

Subd. 2.

deleted text begin Claimant deleted text end new text begin Taxpayer new text end cannot be located.

If the commissioner cannot locate the
deleted text begin claimant deleted text end new text begin taxpayer new text end within two years from the date that the original warrant was issued, or if
a deleted text begin claimant deleted text end new text begin taxpayer new text end to whom a warrant has been issued does not cash that warrant within
two years from the date the warrant was issued, the right to the credit shall lapse, and the
warrant shall be deposited in the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 18.

Minnesota Statutes 2022, section 290A.25, is amended to read:

290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.

Annually, the commissioner of revenue shall furnish a list to the county assessor
containing the names and Social Security numbers of persons who have applied for both
homestead classification under section 273.13 and a deleted text begin property tax refund deleted text end new text begin credit new text end as a renter
under this chapter.

Within 90 days of the notification, the county assessor shall investigate to determine if
the homestead classification was improperly claimed. If the property owner does not qualify,
the county assessor shall notify the county auditor who will determine the amount of
homestead benefits that has been improperly allowed. For the purpose of this section,
"homestead benefits" has the meaning given in section 273.124, subdivision 13b. The county
auditor shall send a notice to persons who owned the affected property at the time the
homestead application related to the improper homestead was filed, demanding
reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead
benefits. The person notified may appeal the county's determination with the Minnesota
Tax Court within 60 days of the date of the notice from the county as provided in section
273.124, subdivision 13b.

If the amount of homestead benefits and penalty is not paid within 60 days, and if no
appeal has been filed, the county auditor shall certify the amount of taxes and penalty to
the county treasurer. The county treasurer will add interest to the unpaid homestead benefits
and penalty amounts at the rate provided for delinquent personal property taxes for the
period beginning 60 days after demand for payment was made until payment. If the person
notified is the current owner of the property, the treasurer may add the total amount of
benefits, penalty, interest, and costs to the real estate taxes otherwise payable on the property
in the following year. If the person notified is not the current owner of the property, the
treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A,
or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce
payment of the benefits, penalty, interest, and costs, as if those amounts were delinquent
tax obligations of the person who owned the property at the time the application related to
the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
personal liability for the benefits, penalty, interest, and costs, and instead extend those
amounts on the tax lists against the property for taxes payable in the following year to the
extent that the current owner agrees in writing.

Any amount of homestead benefits recovered by the county from the property owner
shall be distributed to the county, city or town, and school district where the property is
located in the same proportion that each taxing district's levy was to the total of the three
taxing districts' levy for the current year. Any amount recovered attributable to taconite
homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the
taconite property tax relief account. Any amount recovered that is attributable to supplemental
homestead credit is to be transmitted to the commissioner of revenue for deposit in the
general fund of the state treasury. The total amount of penalty collected must be deposited
in the county general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 290A.07, subdivisions 1, 2a, 3, and 5; and 290A.23,
subdivisions 1 and 3, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and beginning with refunds based on property taxes payable in 2024 and rent paid
in 2023.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-04481

290A.07 CLAIMS PAYMENTS.

Subdivision 1.

Authority.

Allowable claims filed pursuant to the provisions of this chapter shall be paid by the commissioner from the general fund.

Subd. 2a.

Time of payment to renter or manufactured home homeowner.

A claimant who is a renter or a homeowner who occupies a manufactured home, as defined in section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured home under section 168.012, subdivision 9, shall receive full payment after August 1 and before August 15 or 60 days after receipt of the application, whichever is later.

Subd. 3.

Time of payment to other claimants.

A claimant not included in subdivision 2a shall receive full payment after September 15 and before September 30.

Subd. 5.

Early payment; e-file claims.

The commissioner may pay a claim up to 30 days earlier than the first permitted date under subdivision 2a or 3 if the claim is submitted by electronic means.

290A.23 APPROPRIATION.

Subdivision 1.

Renters credit.

There is appropriated from the general fund in the state treasury to the commissioner of revenue the amount necessary to make the payments required under section 290A.04, subdivision 2a.

Subd. 3.

Annual appropriation.

For payments made after July 1, 1996, there is annually appropriated from the general fund to the commissioner of revenue the amount necessary to make the payments required under section 290A.04, subdivisions 2 and 2h.