1.1                          A bill for an act 
  1.2             relating to taxation; limiting eligibility for 
  1.3             residential homestead market value credit; amending 
  1.4             Minnesota Statutes 2001 Supplement, section 273.1384, 
  1.5             subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.8   273.1384, subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [RESIDENTIAL HOMESTEAD MARKET VALUE 
  1.10  CREDIT.] Each county auditor shall determine a homestead credit 
  1.11  for each eligible class 1a, 1b, 1c, and 2a homestead property 
  1.12  within the county equal to 0.4 percent of the market value of 
  1.13  the property.  The amount of homestead credit for a homestead may 
  1.14  not exceed $304 and is reduced by .09 percent of the market 
  1.15  value in excess of $76,000.  In the case of an agricultural or 
  1.16  resort homestead, only the market value of the house, garage, 
  1.17  and immediately surrounding one acre of land is eligible in 
  1.18  determining the property's homestead credit.  A class 1a, 1b, or 
  1.19  1c homestead is not eligible for the credit provided under this 
  1.20  subdivision if the property is not located in an incorporated 
  1.21  area and the residential structure was initially occupied after 
  1.22  January 1, 2002. 
  1.23     <b>[EFFECTIVE DATE.]</b> This section is effective for credits 
  1.24  payable in 2003 and thereafter.