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Minnesota Legislature

Office of the Revisor of Statutes

HF 331

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

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

Bill Text Versions

Engrossments
Introduction Posted on 02/06/2003

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to taxation; property; providing for 
  1.3             valuation and deferment of taxes on certain homestead 
  1.4             resorts; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 273. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [273.1115] [HOMESTEAD RESORTS; VALUATION AND 
  1.8   DEFERMENT.] 
  1.9      Subdivision 1.  [REQUIREMENTS.] Real property qualifying 
  1.10  for classification as class 1c under section 273.13, subdivision 
  1.11  22, paragraph (c), is entitled to valuation and tax deferment 
  1.12  under this section, provided that if part of a resort is not 
  1.13  classified as class 1c, only that portion of the value of the 
  1.14  property that is classified as class 1c property qualifies under 
  1.15  this section. 
  1.16     Subd. 2.  [DETERMINATION OF VALUE.] Upon timely application 
  1.17  by the owner, as provided in subdivision 4, the value of real 
  1.18  property described in subdivision 1 must be determined by the 
  1.19  assessor solely with reference to its classification value as 
  1.20  class 1c property, notwithstanding sections 272.03, subdivision 
  1.21  8, and 273.11.  The assessor shall not consider any added values 
  1.22  resulting from other factors. 
  1.23     Subd. 3.  [SEPARATE DETERMINATION OF MARKET VALUE AND TAX.] 
  1.24  The assessor shall, however, make a separate determination of 
  1.25  the market value of the real estate.  The assessor shall record 
  2.1   on the property assessment records the tax based upon the 
  2.2   appropriate local tax rate applicable to the property in the 
  2.3   taxing district. 
  2.4      Subd. 4.  [APPLICATION.] Application for deferment of taxes 
  2.5   and assessment under this section must be filed by May 1 of the 
  2.6   year prior to the year in which the taxes are payable.  The 
  2.7   application must be filed with the assessor of the taxing 
  2.8   district in which the real property is located on a form 
  2.9   prescribed by the commissioner of revenue.  The assessor may 
  2.10  require proof by affidavit or otherwise that the property 
  2.11  qualifies under subdivision 1.  An application approved by the 
  2.12  assessor continues in effect for subsequent years until the 
  2.13  property no longer qualifies under subdivision 1. 
  2.14     Subd. 5.  [ADDITIONAL TAXES.] When real property valued and 
  2.15  assessed under this section no longer qualifies under 
  2.16  subdivision 1, the portion no longer qualifying is subject to 
  2.17  additional taxes, in the amount equal to the difference between 
  2.18  the taxes determined in accordance with subdivision 2, and the 
  2.19  amount determined under subdivision 3, provided, however, that 
  2.20  the amount determined under subdivision 3 must not be greater 
  2.21  than it would have been had the actual bona fide sale price of 
  2.22  the real property at an arms length transaction been used in 
  2.23  lieu of the market value determined under subdivision 3.  The 
  2.24  additional taxes must be extended against the property on the 
  2.25  tax list for the current year, except that no interest or 
  2.26  penalties may be levied on the additional taxes if timely paid, 
  2.27  and except that the additional taxes must only be levied with 
  2.28  respect to the last three years that the property has been 
  2.29  valued and assessed under this section. 
  2.30     Subd. 6.  [LIEN.] The tax imposed by this section is a lien 
  2.31  on the property assessed to the same extent and for the same 
  2.32  duration as other taxes imposed on property within this state.  
  2.33  The tax must be annually extended by the county auditor and when 
  2.34  payable must be collected and distributed in the manner provided 
  2.35  by law for the collection and distribution of other property 
  2.36  taxes. 
  3.1      Subd. 7.  [SPECIAL LOCAL ASSESSMENTS.] The payment of 
  3.2   special local assessments levied after June 30, 2003, for 
  3.3   improvements made to any real property described in subdivision 
  3.4   2, together with the interest thereon must, on timely 
  3.5   application under subdivision 4, be deferred as long as the 
  3.6   property qualifies under subdivision 1.  If special assessments 
  3.7   against the property have been deferred under this subdivision, 
  3.8   the governmental unit shall file with the county recorder in the 
  3.9   county in which the property is located a certificate containing 
  3.10  the legal description of the affected property and of the amount 
  3.11  deferred.  When the property no longer qualifies under 
  3.12  subdivision 1, all deferred special assessments plus interest 
  3.13  are payable in equal installments spread over the time remaining 
  3.14  until the last maturity date of the bonds issued to finance the 
  3.15  improvement for which the assessments were levied.  If the bonds 
  3.16  have matured, the deferred special assessments plus interest are 
  3.17  payable within 90 days.  The provisions of section 429.061, 
  3.18  subdivision 2, apply to the collection of these installments.  
  3.19  Penalty must not be levied on the special assessments if timely 
  3.20  paid. 
  3.21     Subd. 8.  [CONTINUATION OF TAX TREATMENT UPON SALE.] When 
  3.22  real property qualifying under subdivision 1 is sold, no 
  3.23  additional taxes or deferred special assessments plus interest 
  3.24  may be extended against the property if: 
  3.25     (1) the property continues to qualify pursuant to 
  3.26  subdivision 1; and 
  3.27     (2) the new owner files an application for continued 
  3.28  deferment within 30 days after the sale. 
  3.29     Subd. 9.  [APPLICABILITY OF SPECIAL ASSESSMENT PROVISIONS.] 
  3.30  This section applies to special local assessments levied after 
  3.31  June 30, 2003, and payable in the years thereafter, but shall 
  3.32  not apply to any special assessments levied at any time by a 
  3.33  county or district court under the provisions of chapter 116A. 
  3.34     [EFFECTIVE DATE.] This section is effective for taxes 
  3.35  levied in 2003, payable in 2004, and thereafter.  For 
  3.36  applications for taxes payable in 2004 only, the application 
  4.1   deadline in subdivision 4 is extended to August 1, 2003.