SF 2674

Introduction - 79th Legislature (1995 - 1996)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to taxation; extending the St. Paul rental 
  1.3             tax equity program; amending Laws 1994, chapter 587, 
  1.4             article 5, section 27, subdivisions 1, 5, 6, 8, 9, and 
  1.5             10, as amended; and Laws 1995, chapter 264, article 3, 
  1.6             section 45. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1994, chapter 587, article 5, section 27, 
  1.9   subdivision 1, as amended by Laws 1995, chapter 264, article 3, 
  1.10  section 38, is amended to read: 
  1.11     Subdivision 1.  [PILOT; TERM.] A pilot project for rental 
  1.12  tax equity in the city of Saint Paul is established.  The 
  1.13  program is for property taxes payable in 1995 and 1996 through 
  1.14  1997.  The program is available to owners of single- and 
  1.15  two-family nonhomestead property. 
  1.16     Sec. 2.  Laws 1994, chapter 587, article 5, section 27, 
  1.17  subdivision 5, as amended by Laws 1995, chapter 264, article 3, 
  1.18  section 38, is amended to read: 
  1.19     Subd. 5.  [PROGRAM STEPS.] (a) A landlord who owns eligible 
  1.20  property and who wishes to participate must arrange for a 
  1.21  certified evaluator who is licensed by the city of Saint Paul to 
  1.22  evaluate the property. 
  1.23     (b) The landlord must notify the tenant of the evaluation 
  1.24  so that the tenant may be present if the tenant wishes. 
  1.25     (c) The evaluator must evaluate the property using program 
  1.26  guidelines adopted by resolution of the Saint Paul city council 
  2.1   prior to implementation of the program under this section. 
  2.2      (d) To receive the property tax credit under subdivision 9, 
  2.3   the evaluator must have determined that repairs were necessary, 
  2.4   and the landlord must make the repairs and call for a 
  2.5   reinspection by the evaluator. 
  2.6      If the evaluator identifies life or safety hazards, the 
  2.7   evaluator must notify appropriate city officials, who shall take 
  2.8   immediate action to require and enforce repair of the life or 
  2.9   safety hazard items. 
  2.10     (e) The evaluator must reinspect the property to see if the 
  2.11  program guidelines have been followed. 
  2.12     (f) The evaluator must submit a report on the property's 
  2.13  evaluation to the appropriate city officials, the landlord, and 
  2.14  the tenant.  A filing fee must be paid at the time the report is 
  2.15  submitted to the city. 
  2.16     (g) Appropriate city officials must review the report and 
  2.17  approve it or issue orders for further repair.  In so doing, 
  2.18  city staff members may make an on-site review.  The landlord may 
  2.19  withdraw from the program at any time without making required 
  2.20  repairs except those for life or safety hazards, which may be 
  2.21  otherwise required.  Property for which the evaluator's report 
  2.22  is approved must be certified by the appropriate city officials 
  2.23  to the county assessor.  The city must limit the number of 
  2.24  qualifying properties so that the credit payable under 
  2.25  subdivision 8 will not, in the city's estimate, exceed 
  2.26  $1,000,000. 
  2.27     (h) A landlord who chooses to participate must complete an 
  2.28  application for certification by November 1, 1994, for taxes 
  2.29  payable in 1995 and by September 1, 1995, for taxes payable in 
  2.30  1996, and by September 1, 1996, for taxes payable in 1997. 
  2.31     (i) An owner may apply this program to no more than two 
  2.32  nonhomestead, single- or two-family, tenant-occupied properties. 
  2.33     Sec. 3.  Laws 1994, chapter 587, article 5, section 27, 
  2.34  subdivision 6, as amended by Laws 1995, chapter 264, article 3, 
  2.35  section 38, is amended to read: 
  2.36     Subd. 6.  [APPEALS.] (a) The board of equalization must 
  3.1   serve as a board of review to hear appeals relating to the value 
  3.2   of improvements and properties.  Procedures for board actions 
  3.3   and for appeals from board decisions are as provided for other 
  3.4   matters decided by the board of equalization.  
  3.5      (b) The city may appoint a board of appeals to hear 
  3.6   disputes regarding qualification.  The board shall meet to hear 
  3.7   appeals under this program between November 1 and December 1, 
  3.8   1994, for appeals for taxes payable in 1995 and between November 
  3.9   1 and December 1, 1995, for appeals for taxes payable in 
  3.10  1996 the year following the hearing on the appeal. 
  3.11     Sec. 4.  Laws 1994, chapter 587, article 5, section 27, 
  3.12  subdivision 8, as amended by Laws 1995, chapter 264, article 3, 
  3.13  section 38, is amended to read: 
  3.14     Subd. 8.  [CREDIT AND REIMBURSEMENT.] (a) [CREDIT 
  3.15  PROVIDED.] Property that meets the requirements under this 
  3.16  section is eligible for a property tax credit equal to the 
  3.17  difference between (1) the tax on the property and (2) the tax 
  3.18  that would be payable if the property were classified under 
  3.19  Minnesota Statutes, section 273.13, subdivision 22, paragraph 
  3.20  (a). 
  3.21     (b) [PROPERTY TAX STATEMENTS.] The property tax statement 
  3.22  provided under Minnesota Statutes, section 276.04, to an owner 
  3.23  of property that receives the credit under this subdivision 
  3.24  shall include information on the amount of the credit given to 
  3.25  the property.  The Ramsey county treasurer shall notify the 
  3.26  commissioner of revenue on how the county plans to modify the 
  3.27  property tax statements to include the necessary information. 
  3.28     (c) [GENERAL FUND; REPLACEMENT OF REVENUE.] Payment from 
  3.29  the general fund shall be made as provided in this subdivision 
  3.30  for the purpose of replacing revenue lost as a result of the 
  3.31  reduction of property taxes provided in this subdivision. 
  3.32     The Ramsey county auditor shall certify to the commissioner 
  3.33  of revenue the amount of reduction resulting from this 
  3.34  subdivision.  This certification shall be submitted to the 
  3.35  commissioner of revenue as part of the abstracts of tax lists 
  3.36  required to be filed with the commissioner under the provisions 
  4.1   of Minnesota Statutes, section 275.29.  The commissioner of 
  4.2   revenue shall review the certification to determine its accuracy 
  4.3   and make changes in the certification as necessary or return the 
  4.4   certification to the county auditor for corrections. 
  4.5      Based on current year tax data reported in the abstracts of 
  4.6   tax lists, the commissioner of revenue shall determine the 
  4.7   taxing district distribution of the amounts certified.  The 
  4.8   commissioner of revenue shall pay to each taxing district, other 
  4.9   than school districts, its total payment for the year at the 
  4.10  times provided in Minnesota Statutes, section 473H.10.  The 
  4.11  credit reimbursement to school districts must be certified to 
  4.12  the commissioner of education and paid as provided under 
  4.13  Minnesota Statutes, section 273.1392. 
  4.14     The reimbursement paid under this subdivision shall be made 
  4.15  in 1995 and in 1996, and through 1997.  The reimbursement for 
  4.16  1995 and 1996 is limited to a total amount of $1,000,000 for the 
  4.17  two years.  To the extent the amount of credit originally 
  4.18  certified exceeds $1,000,000, reimbursements to the taxing 
  4.19  districts shall be prorated according to the proportions of 
  4.20  their levies so as not to exceed $1,000,000. 
  4.21     Any amount remaining of the $1,000,000 total appropriation, 
  4.22  after the reimbursement for taxes payable in 1995 have been 
  4.23  paid, is available for taxes payable in 1996 provided, however, 
  4.24  that the total amount available for both taxes payable in 1995 
  4.25  and 1996 shall not exceed the total $1,000,000 appropriation for 
  4.26  both years. 
  4.27     The reimbursement paid under this subdivision for 1997 is 
  4.28  limited to $1,000,000.  To the extent the amount of credit 
  4.29  originally certified exceeds $1,000,000, reimbursements to the 
  4.30  taxing districts shall be prorated according to the proportions 
  4.31  of their levies so as not to exceed $1,000,000. 
  4.32     Sec. 5.  Laws 1994, chapter 587, article 5, section 27, 
  4.33  subdivision 9, as amended by Laws 1995, chapter 264, article 3, 
  4.34  section 38, is amended to read: 
  4.35     Subd. 9.  [REPORT TO THE LEGISLATURE.] By January 15, of 
  4.36  1995, and by January 15, 1996, and 1997, the Saint Paul city 
  5.1   council shall provide a report to the committee on housing and 
  5.2   the committee on taxes and tax laws of the senate and the 
  5.3   housing committee and the tax committee of the house of 
  5.4   representatives on the program.  The report must include the 
  5.5   program guidelines, housing costs, rents and the extent of 
  5.6   participation in the program for the 1995 tax year and, 1996, 
  5.7   and 1997 tax year years, respectively. 
  5.8      Sec. 6.  Laws 1994, chapter 587, article 5, section 27, 
  5.9   subdivision 10, as amended by Laws 1995, chapter 264, article 3, 
  5.10  section 38, is amended to read: 
  5.11     Subd. 10.  [EFFECTIVE DATE.] This section is effective the 
  5.12  day following final enactment, upon compliance with Minnesota 
  5.13  Statutes, section 645.021, subdivision 3, by the city of Saint 
  5.14  Paul, and applies to property taxes payable in 1995 and in, 
  5.15  1996, and 1997 on nonhomestead, single- and two-family rental 
  5.16  properties existing on the effective date. 
  5.17     Sec. 7.  Laws 1995, chapter 264, article 3, section 45, is 
  5.18  amended to read: 
  5.19     Sec. 45.  [PROPERTY TAX REFUNDS; ST. PAUL RENTAL EQUITY 
  5.20  PARTICIPANTS.] 
  5.21     Notwithstanding Minnesota Statutes, section 290A.03, 
  5.22  subdivision 11, for purposes of calculating a claimant's 
  5.23  property tax refund, in the case of a claimant who resides in a 
  5.24  unit certified for participation in the St. Paul rental equity 
  5.25  program under section 38, the claimant's "rent constituting 
  5.26  property taxes paid" for property taxes payable in 1996 only or 
  5.27  1997 shall be 20 percent of gross rent actually paid in cash or 
  5.28  its equivalent. 
  5.29     An owner or managing agent of a unit certified for 
  5.30  participation in the rental equity project shall indicate that 
  5.31  the unit was certified for participation on the rent certificate 
  5.32  prescribed in Minnesota Statutes, section 290A.19, paragraph 
  5.33  (a).  In the event that the owner or managing agent fails to 
  5.34  provide a rent certificate and the renter obtains a statement 
  5.35  from the county treasurer, as prescribed in Minnesota Statutes, 
  5.36  section 290A.19, paragraph (c), the county treasurer shall also 
  6.1   indicate on the statement if the building was certified for 
  6.2   participation in the rental equity project. 
  6.3      Sec. 8.  [EFFECTIVE DATE.] 
  6.4      This act is effective the day following final enactment.