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Minnesota Legislature

Office of the Revisor of Statutes

HF 126

as introduced - 88th Legislature (2013 - 2014) Posted on 01/17/2013 01:30pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/17/2013

Current Version - as introduced

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A bill for an act
relating to taxation; property; modifying property tax refunds; decreasing the
threshold percentage for the homestead credit refund for homeowners; increasing
the percentage of rent constituting property taxes; amending Minnesota Statutes
2012, sections 290A.03, subdivisions 11, 13; 290A.04, subdivisions 2, 4;
proposing coding for new law in Minnesota Statutes, chapter 290A.

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

Section 1.

Minnesota Statutes 2012, section 290A.03, subdivision 11, is amended to
read:


Subd. 11.

Rent constituting property taxes.

"Rent constituting property taxes"
means deleted text begin17deleted text endnew text begin 18new text end percent of the gross rent actually paid in cash, or its equivalent, or the portion
of rent paid in lieu of property taxes, in any calendar year by a claimant for the right
of occupancy of the claimant's Minnesota homestead in the calendar year, and which
rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
chapter by the claimant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on rent paid in
2013 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2012, section 290A.03, subdivision 13, is amended to read:


Subd. 13.

Property taxes payable.

"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in
the year that the property tax is payable. In the case of a claimant who makes ground
lease payments, "property taxes payable" includes the amount of the payments directly
attributable to the property taxes assessed against the parcel on which the house is located.
No apportionment or reduction of the "property taxes payable" shall be required for the
use of a portion of the claimant's homestead for a business purpose if the claimant does not
deduct any business depreciation expenses for the use of a portion of the homestead in the
determination of federal adjusted gross income. For homesteads which are manufactured
homes as defined in section 273.125, subdivision 8, and for homesteads which are park
trailers taxed as manufactured homes under section 168.012, subdivision 9, "property
taxes payable" shall also include deleted text begin17deleted text endnew text begin 18new text end percent of the gross rent paid in the preceding
year for the site on which the homestead is located. When a homestead is owned by
two or more persons as joint tenants or tenants in common, such tenants shall determine
between them which tenant may claim the property taxes payable on the homestead. If
they are unable to agree, the matter shall be referred to the commissioner of revenue
whose decision shall be final. Property taxes are considered payable in the year prescribed
by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have
owned and occupied the homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead property pursuant to section
273.124, on or before December 15 of the assessment year to which the "property taxes
payable" relate; or (ii) the claimant must provide documentation from the local assessor
that application for homestead classification has been made on or before December 15
of the year in which the "property taxes payable" were payable and that the assessor has
approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on rent paid in
2013 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2012, section 290A.04, subdivision 2, is amended to read:


Subd. 2.

Homeownersnew text begin; homestead credit refundnew text end.

A claimant 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 household
income level along with the percent to be paid by the claimant of the remaining amount
of property taxes payable. The state refund equals the amount of property taxes payable
that remain, up to the state refund amount shown below.

deleted text begin Household Income
deleted text end
deleted text begin Percent of Income
deleted text end
deleted text begin Percent Paid by
Claimant
deleted text end
deleted text begin Maximum
State
Refund
deleted text end
deleted text begin $0 to 1,549
deleted text end
deleted text begin 1.0 percent
deleted text end
deleted text begin 15 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 1,550 to 3,089
deleted text end
deleted text begin 1.1 percent
deleted text end
deleted text begin 15 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 3,090 to 4,669
deleted text end
deleted text begin 1.2 percent
deleted text end
deleted text begin 15 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 4,670 to 6,229
deleted text end
deleted text begin 1.3 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 6,230 to 7,769
deleted text end
deleted text begin 1.4 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 7,770 to 10,879
deleted text end
deleted text begin 1.5 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 10,880 to 12,429
deleted text end
deleted text begin 1.6 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 12,430 to 13,989
deleted text end
deleted text begin 1.7 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 13,990 to 15,539
deleted text end
deleted text begin 1.8 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 15,540 to 17,079
deleted text end
deleted text begin 1.9 percent
deleted text end
deleted text begin 25 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 17,080 to 18,659
deleted text end
deleted text begin 2.0 percent
deleted text end
deleted text begin 25 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 18,660 to 21,759
deleted text end
deleted text begin 2.1 percent
deleted text end
deleted text begin 25 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 21,760 to 23,309
deleted text end
deleted text begin 2.2 percent
deleted text end
deleted text begin 30 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 23,310 to 24,859
deleted text end
deleted text begin 2.3 percent
deleted text end
deleted text begin 30 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 24,860 to 26,419
deleted text end
deleted text begin 2.4 percent
deleted text end
deleted text begin 30 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 26,420 to 32,629
deleted text end
deleted text begin 2.5 percent
deleted text end
deleted text begin 35 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 32,630 to 37,279
deleted text end
deleted text begin 2.6 percent
deleted text end
deleted text begin 35 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,460
deleted text end
deleted text begin 37,280 to 46,609
deleted text end
deleted text begin 2.7 percent
deleted text end
deleted text begin 35 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,000
deleted text end
deleted text begin 46,610 to 54,369
deleted text end
deleted text begin 2.8 percent
deleted text end
deleted text begin 35 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,000
deleted text end
deleted text begin 54,370 to 62,139
deleted text end
deleted text begin 2.8 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,750
deleted text end
deleted text begin 62,140 to 69,909
deleted text end
deleted text begin 3.0 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,440
deleted text end
deleted text begin 69,910 to 77,679
deleted text end
deleted text begin 3.0 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,290
deleted text end
deleted text begin 77,680 to 85,449
deleted text end
deleted text begin 3.0 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,130
deleted text end
deleted text begin 85,450 to 90,119
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 45 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 960
deleted text end
deleted text begin 90,120 to 93,239
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 45 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 790
deleted text end
deleted text begin 93,240 to 97,009
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 650
deleted text end
deleted text begin 97,010 to 100,779
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 480
deleted text end
new text begin Household Income
new text end
new text begin Percent of Income
new text end
new text begin Percent Paid by
Claimant
new text end
new text begin Maximum
State
Refund
new text end
new text begin $0 to 1,619
new text end
new text begin 1.0 percent
new text end
new text begin 15 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 1,620 to 3,229
new text end
new text begin 1.1 percent
new text end
new text begin 15 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 3,230 to 4,879
new text end
new text begin 1.2 percent
new text end
new text begin 15 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 4,880 to 6,509
new text end
new text begin 1.3 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 6,510 to 8,119
new text end
new text begin 1.4 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 8,120 to 11,369
new text end
new text begin 1.5 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 11,370 to 12,989
new text end
new text begin 1.6 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 12,990 to 14,619
new text end
new text begin 1.7 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 14,620 to 16,239
new text end
new text begin 1.8 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 16,240 to 17,849
new text end
new text begin 1.9 percent
new text end
new text begin 25 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 17,850 to 22,739
new text end
new text begin 2.0 percent
new text end
new text begin 25 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 22,740 to 24,359
new text end
new text begin 2.0 percent
new text end
new text begin 30 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 24,360 to 27,609
new text end
new text begin 2.0 percent
new text end
new text begin 30 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 27,610 to 38,949
new text end
new text begin 2.0 percent
new text end
new text begin 35 percent
new text end
new text begin $
new text end
new text begin 2,570
new text end
new text begin 38,950 to 56,809
new text end
new text begin 2.0 percent
new text end
new text begin 35 percent
new text end
new text begin $
new text end
new text begin 2,090
new text end
new text begin 56,810 to 64,929
new text end
new text begin 2.0 percent
new text end
new text begin 40 percent
new text end
new text begin $
new text end
new text begin 1,830
new text end
new text begin 64,930 to 73,049
new text end
new text begin 2.1 percent
new text end
new text begin 40 percent
new text end
new text begin $
new text end
new text begin 1,500
new text end
new text begin 73,050 to 81,169
new text end
new text begin 2.2 percent
new text end
new text begin 40 percent
new text end
new text begin $
new text end
new text begin 1,350
new text end
new text begin 81,170 to 89,289
new text end
new text begin 2.3 percent
new text end
new text begin 40 percent
new text end
new text begin $
new text end
new text begin 1,180
new text end
new text begin 89,290 to 94,169
new text end
new text begin 2.4 percent
new text end
new text begin 45 percent
new text end
new text begin $
new text end
new text begin 1,000
new text end
new text begin 94,170 to 97,429
new text end
new text begin 2.5 percent
new text end
new text begin 45 percent
new text end
new text begin $
new text end
new text begin 830
new text end
new text begin 97,430 to 101,359
new text end
new text begin 2.5 percent
new text end
new text begin 50 percent
new text end
new text begin $
new text end
new text begin 680
new text end
new text begin 101,360 to 105,299
new text end
new text begin 2.5 percent
new text end
new text begin 50 percent
new text end
new text begin $
new text end
new text begin 500
new text end

The payment made to a claimant shall be the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
deleted text begin$100,780deleted text endnew text begin $105,300new text end or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on taxes
payable in 2014 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:


Subd. 4.

Inflation adjustment.

(a) Beginning for property tax refunds payable in
calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
The commissioner shall make the inflation adjustments in accordance with section 1(f) of
the Internal Revenue Code, except that for purposes of this subdivision the percentage
increase shall be determined as provided in this subdivision.

(b) In adjusting the dollar amounts of the income thresholds and the maximum
refunds under subdivision 2 for inflation, the percentage increase shall be determined
from the year ending on June 30, deleted text begin2011deleted text endnew text begin 2013new text end, to the year ending on June 30 of the year
preceding that in which the refund is payable.

(c) In adjusting the dollar amounts of the income thresholds and the maximum
refunds under subdivision 2a for inflation, the percentage increase shall be determined
from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding
that in which the refund is payable.

(d) The commissioner shall use the appropriate percentage increase to annually
adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
inflation without regard to whether or not the income tax brackets are adjusted for inflation
in that year. The commissioner shall round the thresholds and the maximum amounts,
as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
round it up to the next $10 amount.

(e) The commissioner shall annually announce the adjusted refund schedule at the
same time provided under section 290.06. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on taxes
payable in 2014 and thereafter.
new text end

Sec. 5.

new text begin [290A.28] NOTIFICATION OF POTENTIAL ELIGIBILITY.
new text end

new text begin (a) By August 1 of each year, the commissioner shall notify, in writing or
electronically, individual homeowners whom the commissioner determines likely will be
eligible for a homestead credit refund under this chapter for that property taxes payable
year. In determining whether to notify a homeowner, the commissioner shall consider the
property tax information available to the commissioner under paragraph (b) and the most
recent income information available to the commissioner from filing under this chapter
for the prior year or under chapter 290 for the current or prior year. The notification
must include information on how to file for the homestead credit refund and the range
of potential homestead credit refunds that the homeowner could qualify to receive. The
notification requirement under this section does not apply to a homeowner who has
already filed for the homestead credit refund for the current or prior year.
new text end

new text begin (b) By May 15 of each year, each county auditor shall transmit to the commissioner
of revenue the following information for each property classified as a residential or
agricultural homestead under section 273.13, subdivision 22 or 23:
new text end

new text begin (1) the property taxes payable;
new text end

new text begin (2) the name and address of the owner;
new text end

new text begin (3) the Social Security number or numbers of the owners; and
new text end

new text begin (4) any other information the commissioner deems necessary or useful to carry
out the provisions of this section.
new text end

new text begin The information must be provided in the form and manner prescribed by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on property
taxes payable in 2014 and thereafter.
new text end