1.1                          A bill for an act 
  1.2             relating to taxation; adjusting property tax refund 
  1.3             amounts; amending Minnesota Statutes 1998, section 
  1.4             290A.04, subdivisions 2, 2a, and 4. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1998, section 290A.04, 
  1.7   subdivision 2, is amended to read: 
  1.8      Subd. 2.  [HOMEOWNERS.] A claimant whose property taxes 
  1.9   payable are in excess of the percentage of the household income 
  1.10  stated below shall pay an amount equal to the percent of income 
  1.11  shown for the appropriate household income level along with the 
  1.12  percent to be paid by the claimant of the remaining amount of 
  1.13  property taxes payable.  The state refund equals the amount of 
  1.14  property taxes payable that remain, up to the state refund 
  1.15  amount shown below.  
  1.16                        Percent           Percent    Maximum
  1.17  Household Income     of Income          Paid by     State
  1.18                                          Claimant    Refund
  1.19      $0 to 1,029     1.2 percent        18 percent   $440
  1.20   1,030 to 2,059     1.3 percent        18 percent   $440
  1.21   2,060 to 3,099     1.4 percent        20 percent   $440
  1.22   3,100 to 4,129     1.6 percent        20 percent   $440
  1.23   4,130 to 5,159     1.7 percent        20 percent   $440
  1.24   5,160 to 7,229     1.9 percent        25 percent   $440
  1.25   7,230 to 8,259     2.1 percent        25 percent   $440
  1.26   8,260 to 9,289     2.2 percent        25 percent   $440
  1.27   9,290 to 10,319    2.3 percent        30 percent   $440
  1.28  10,320 to 11,349    2.4 percent        30 percent   $440
  1.29  11,350 to 12,389    2.5 percent        30 percent   $440
  1.30  12,390 to 14,449    2.6 percent        30 percent   $440
  1.31  14,450 to 15,479    2.8 percent        35 percent   $440
  1.32  15,480 to 16,509    3.0 percent        35 percent   $440
  1.33  16,510 to 17,549    3.2 percent        40 percent   $440
  1.34  17,550 to 21,669    3.3 percent        40 percent   $440
  2.1   21,670 to 24,769    3.4 percent        45 percent   $440
  2.2   24,770 to 30,959    3.5 percent        45 percent   $440
  2.3   30,960 to 36,119    3.5 percent        45 percent   $440
  2.4   36,120 to 41,279    3.7 percent        50 percent   $440
  2.5   41,280 to 58,829    4.0 percent        50 percent   $440
  2.6   58,830 to 59,859    4.0 percent        50 percent   $310
  2.7   59,860 to 60,889    4.0 percent        50 percent   $210
  2.8   60,890 to 61,929    4.0 percent        50 percent   $100
  2.9   $    0 to  4,999    1.0 percent         5 percent $1,200
  2.10   5,000 to  9,999    1.1 percent        10 percent $1,200
  2.11  10,000 to 14,999    1.3 percent        15 percent $1,200
  2.12  15,000 to 19,999    1.5 percent        20 percent $1,200
  2.13  20,000 to 24,999    1.9 percent        30 percent $1,200
  2.14  25,000 to 29,999    2.6 percent        35 percent $1,200
  2.15  30,000 to 39,999    3.0 percent        40 percent $1,200
  2.16  40,000 to 44,999    3.5 percent        45 percent $1,200
  2.17  45,000 to 49,999    4.0 percent        50 percent $1,000
  2.18  50,000 to 54,999    4.0 percent        50 percent   $800
  2.19  55,000 to 59,999    4.0 percent        50 percent   $600
  2.20  60,000 to 64,999    4.0 percent        50 percent   $400
  2.21  65,000 to 69,999    4.0 percent        50 percent   $200
  2.22     The payment made to a claimant shall be the amount of the 
  2.23  state refund calculated under this subdivision.  No payment is 
  2.24  allowed if the claimant's household income is $61,930 $70,000 or 
  2.25  more. 
  2.26     Sec. 2.  Minnesota Statutes 1998, section 290A.04, 
  2.27  subdivision 2a, is amended to read: 
  2.28     Subd. 2a.  [RENTERS.] A claimant whose rent constituting 
  2.29  property taxes exceeds the percentage of the household income 
  2.30  stated below must pay an amount equal to the percent of income 
  2.31  shown for the appropriate household income level along with the 
  2.32  percent to be paid by the claimant of the remaining amount of 
  2.33  rent constituting property taxes.  The state refund equals the 
  2.34  amount of rent constituting property taxes that remain, up to 
  2.35  the maximum state refund amount shown below.  
  2.36                        Percent           Percent      Maximum
  2.37  Household Income     of Income          Paid by        State
  2.38                                          Claimant      Refund
  2.39  $     0 to 3,099     1.0 percent         5 percent    $1,030
  2.40    3,100 to 4,129     1.0 percent        10 percent    $1,030
  2.41    4,130 to 5,159     1.1 percent        10 percent    $1,030
  2.42    5,160 to 7,229     1.2 percent        10 percent    $1,030
  2.43    7,230 to 9,289     1.3 percent        15 percent    $1,030
  2.44    9,290 to 10,319    1.4 percent        15 percent    $1,030
  2.45   10,320 to 11,349    1.4 percent        20 percent    $1,030
  2.46   11,350 to 13,419    1.5 percent        20 percent    $1,030
  2.47   13,420 to 14,449    1.6 percent        20 percent    $1,030
  2.48   14,450 to 15,479    1.7 percent        25 percent    $1,030
  2.49   15,480 to 17,549    1.8 percent        25 percent    $1,030
  2.50   17,550 to 18,579    1.9 percent        30 percent    $1,030
  2.51   18,580 to 19,609    2.0 percent        30 percent    $1,030
  2.52   19,610 to 20,639    2.2 percent        30 percent    $1,030
  2.53   20,640 to 21,669    2.4 percent        30 percent    $1,030
  2.54   21,670 to 22,709    2.6 percent        35 percent    $1,030
  2.55   22,710 to 23,739    2.7 percent        35 percent    $1,030
  2.56   23,740 to 24,769    2.8 percent        35 percent    $1,030
  3.1    24,770 to 25,799    2.9 percent        40 percent    $1,030
  3.2    25,800 to 26,839    3.0 percent        40 percent    $1,030
  3.3    26,840 to 27,869    3.1 percent        40 percent    $1,030
  3.4    27,870 to 28,899    3.2 percent        40 percent    $1,030
  3.5    28,900 to 29,929    3.3 percent        45 percent    $  930
  3.6    29,930 to 30,959    3.4 percent        45 percent    $  830
  3.7    30,960 to 31,999    3.5 percent        45 percent    $  720
  3.8    32,000 to 33,029    3.5 percent        50 percent    $  620
  3.9    33,030 to 34,059    3.5 percent        50 percent    $  520
  3.10   34,060 to 35,089    3.5 percent        50 percent    $  310
  3.11   35,090 to 36,119    3.5 percent        50 percent    $  100
  3.12  $     0 to  4,999    1.0 percent         5 percent    $1,200
  3.13    5,000 to  9,999    1.1 percent        10 percent    $1,200
  3.14   10,000 to 14,999    1.3 percent        15 percent    $1,200
  3.15   15,000 to 19,999    1.5 percent        20 percent    $1,200
  3.16   20,000 to 24,999    1.9 percent        30 percent    $1,200
  3.17   25,000 to 29,999    2.6 percent        35 percent    $1,200
  3.18   30,000 to 33,999    3.0 percent        40 percent    $1,200
  3.19   34,000 to 34,999    3.2 percent        45 percent    $1,200
  3.20   35,000 to 35,999    3.4 percent        45 percent    $1,100
  3.21   36,000 to 36,999    3.5 percent        45 percent      $900
  3.22   37,000 to 37,999    3.5 percent        50 percent      $750
  3.23   38,000 to 38,999    3.5 percent        50 percent      $600
  3.24   39,000 to 39,999    3.5 percent        50 percent      $400
  3.25   40,000 to 40,999    3.5 percent        50 percent      $200
  3.26     The payment made to a claimant is the amount of the state 
  3.27  refund calculated under this subdivision.  No payment is allowed 
  3.28  if the claimant's household income is $36,120 $41,000 or more. 
  3.29     Sec. 3.  Minnesota Statutes 1998, section 290A.04, 
  3.30  subdivision 4, is amended to read: 
  3.31     Subd. 4.  [INFLATION ADJUSTMENT.] Beginning for property 
  3.32  tax refunds payable in calendar year 1996 2002, the commissioner 
  3.33  shall annually adjust the dollar amounts of the income 
  3.34  thresholds and the maximum refunds under subdivisions 2 and 2a 
  3.35  for inflation.  The commissioner shall make the inflation 
  3.36  adjustments in accordance with section 290.06, subdivision 2d, 
  3.37  except that for purposes of this subdivision the percentage 
  3.38  increase shall be determined from the year ending on June 30, 
  3.39  1994 2000, to the year ending on June 30 of the year preceding 
  3.40  that in which the refund is payable.  The commissioner shall use 
  3.41  the appropriate percentage increase to annually adjust the 
  3.42  income thresholds and maximum refunds under subdivisions 2 and 
  3.43  2a for inflation without regard to whether or not the income tax 
  3.44  brackets are adjusted for inflation in that year.  The 
  3.45  commissioner shall round the thresholds and the maximum amounts, 
  3.46  as adjusted to the nearest $10 amount.  If the amount ends in 
  3.47  $5, the commissioner shall round it up to the next $10 amount.  
  3.48     The commissioner shall annually announce the adjusted 
  4.1   refund schedule at the same time provided under section 290.06.  
  4.2   The determination of the commissioner under this subdivision is 
  4.3   not a rule under the Administrative Procedure Act. 
  4.4      Sec. 4.  [EFFECTIVE DATE.] 
  4.5      Sections 1 and 2 are effective for claims based on rent 
  4.6   paid in 2000, and taxes payable in 2001, and later years.