1.1 	A bill for an act
1.2 	relating to property tax refunds; modifying the schedule for the homestead credit 
1.3 	state refund;amending Minnesota Statutes 2016, section 290A.04, subdivisions 
1.4 	2, 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 290A.04, subdivision 2, is amended to read:
1.7 		Subd. 2.Homeowners; homestead credit refund. A claimant whose property taxes 
1.8 	payable are in excess of the percentage of the household income stated below shall pay an 
1.9 	amount equal to the percent of income shown for the appropriate household income level 
1.10 	along with the percent to be paid by the claimant of the remaining amount of property taxes 
1.11 	payable. The state refund equals the amount of property taxes payable that remain, up to 
1.12 	the state refund amount shown below.

1.151.14
1.13
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
1.16	$0 to 1,619
	1.0 percent
	15 percent
	$
	2,580
	
1.17	1,620 to 3,229
	1.1 percent
	15 percent
	$
	2,580
	
1.18	3,230 to 4,889
	1.2 percent
	15 percent
	$
	2,580
	
1.19	4,890 to 6,519
	1.3 percent
	20 percent
	$
	2,580
	
1.20	6,520 to 8,129
	1.4 percent
	20 percent
	$
	2,580
	
1.21	8,130 to 11,389
	1.5 percent
	20 percent
	$
	2,580
	
1.22	11,390 to 13,009
	1.6 percent
	20 percent
	$
	2,580
	
1.23	13,010 to 14,649
	1.7 percent
	20 percent
	$
	2,580
	
1.24	14,650 to 16,269
	1.8 percent
	20 percent
	$
	2,580
	
1.25	16,270 to 17,879
	1.9 percent
	25 percent
	$
	2,580
	
2.1	17,880 to 22,779
	2.0 percent
	25 percent
	$
	2,580
	
2.2	22,780 to 24,399
	2.0 percent
	30 percent
	$
	2,580
	
2.3	24,400 to 27,659
	2.0 percent
	30 percent
	$
	2,580
	
2.4	27,660 to 39,029
	2.0 percent
	35 percent
	$
	2,580
	
2.5	39,030 to 56,919
	2.0 percent
	35 percent
	$
	2,090
	
2.6	56,920 to 65,049
	2.0 percent
	40 percent
	$
	1,830
	
2.7	65,050 to 73,189
	2.1 percent
	40 percent
	$
	1,510
	
2.8	73,190 to 81,319
	2.2 percent
	40 percent
	$
	1,350
	
2.9	81,320 to 89,449
	2.3 percent
	40 percent
	$
	1,180
	
2.10	89,450 to 94,339
	2.4 percent
	45 percent
	$
	1,000
	
2.11	94,340 to 97,609
	2.5 percent
	45 percent
	$
	830
	
2.12	97,610 to 101,559
	2.5 percent
	50 percent
	$
	680
	
2.13	101,560 to 105,499
	2.5 percent
	50 percent
	$
	500

2.162.15
2.14
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
2.17	$0 to 1,699
	1.0 percent
	15 percent
	$
	2,800
	
2.18	1,700 to 3,389
	1.1 percent
	15 percent
	$
	2,800
	
2.19	3,390 to 5,139
	1.2 percent
	15 percent
	$
	2,800
	
2.20	5,140 to 6,849
	1.3 percent
	20 percent
	$
	2,800
	
2.21	6,850 to 8,539
	1.4 percent
	20 percent
	$
	2,800
	
2.22	8,540 to 11,959
	1.5 percent
	20 percent
	$
	2,800
	
2.23	11,960 to 13,669
	1.6 percent
	20 percent
	$
	2,800
	
2.24	13,670 to 15,389
	1.7 percent
	20 percent
	$
	2,800
	
2.25	15,390 to 17,089
	1.8 percent
	20 percent
	$
	2,800
	
2.26	17,090 to 18,779
	1.9 percent
	25 percent
	$
	2,800
	
2.27	18,780 to 23,929
	1.9 percent
	25 percent
	$
	2,800
	
2.28	23,930 to 25,629
	1.9 percent
	30 percent
	$
	2,800
	
2.29	25,630 to 29,059
	1.9 percent
	30 percent
	$
	2,800
	
2.30	29,060 to 40,999
	1.9 percent
	35 percent
	$
	2,800
	
2.31	41,000 to 59,789
	1.9 percent
	35 percent
	$
	2,800
	
2.32	59,790 to 68,329
	1.9 percent
	40 percent
	$
	2,800
	
2.33	68,330 to 76,879
	2.0 percent
	40 percent
	$
	2,800
	
2.34	76,880 to 81,549
	2.0 percent
	40 percent
	$
	2,800
	
2.35	81,550 to 85,419
	2.0 percent
	40 percent
	$
	2,050
	
2.36	85,420 to 93,959
	2.0 percent
	40 percent
	$
	1,300
	
2.37	93,960 to 99,099
	2.0 percent
	45 percent
	$
	1,200
	
2.38	99,100 to 102,539
	2.3 percent
	45 percent
	$
	1,100
	
3.1	102,540 to 106,679
	2.3 percent
	50 percent
	$
	1,000
	
3.2	106,680 to 110,819
	2.3 percent
	50 percent
	$
	800
	
3.3 	The payment made to a claimant shall be the amount of the state refund calculated under 
3.4 	this subdivision. No payment is allowed if the claimant's household income is $105,500
3.5 	$110,820 or more.

3.6 	EFFECTIVE DATE. This section is effective for refunds based on property taxes 
3.7 	payable in 2018 and thereafter.

3.8 	Sec. 2. Minnesota Statutes 2016, section 290A.04, subdivision 4, is amended to read:
3.9 		Subd. 4.Inflation adjustment. (a) Beginning for property tax refunds payable in calendar 
3.10 	year 2002, the commissioner shall annually adjust the dollar amounts of the income thresholds 
3.11 	and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner 
3.12 	shall make the inflation adjustments in accordance with section 1(f) of the Internal Revenue 
3.13 	Code, except that for purposes of this subdivision the percentage increase shall be determined 
3.14 	as provided in this subdivision.
3.15 	(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds 
3.16 	under subdivision 2 for inflation, the percentage increase shall be determined from the year 
3.17 	ending on June 30, 2013 2017, to the year ending on June 30 of the year preceding that in 
3.18 	which the refund is payable.
3.19 	(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds 
3.20 	under subdivision 2a for inflation, the percentage increase shall be determined from the 
3.21 	year ending on June 30, 2013, to the year ending on June 30 of the year preceding that in 
3.22 	which the refund is payable.
3.23 	(d) The commissioner shall use the appropriate percentage increase to annually adjust 
3.24 	the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation 
3.25 	without regard to whether or not the income tax brackets are adjusted for inflation in that 
3.26 	year. The commissioner shall round the thresholds and the maximum amounts, as adjusted 
3.27 	to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to 
3.28 	the next $10 amount.
3.29 	(e) The commissioner shall annually announce the adjusted refund schedule at the same 
3.30 	time provided under section 290.06. The determination of the commissioner under this 
3.31 	subdivision is not a rule under the Administrative Procedure Act.

3.32 	EFFECTIVE DATE. This section is effective for claims based on property taxes payable 
3.33 	in 2018 and thereafter.