HF 474

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; refundable tax credit; making 
  1.3             the property tax rebate permanent for senior citizens; 
  1.4             appropriating money; amending Minnesota Statutes 1998, 
  1.5             section 290A.03, subdivision 13; proposing coding for 
  1.6             new law in Minnesota Statutes, chapter 290. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [290.0675] [ANNUAL PROPERTY TAX REBATE.] 
  1.9      (a) A credit is allowed against the tax imposed under this 
  1.10  chapter to an individual who is 65 years of age or older.  In 
  1.11  the case of a married couple, both of the spouses must be at 
  1.12  least 65 years old by January 1 of the year in which the claim 
  1.13  is filed.  The credit is not allowed for an individual's 
  1.14  dependent, as defined in sections 151 and 152 of the Internal 
  1.15  Revenue Code, disregarding section 152(b)(3) of the Internal 
  1.16  Revenue Code.  The credit is equal to ten percent of the 
  1.17  qualified property tax paid during the taxable year. 
  1.18     (b) For property owned and occupied by the taxpayer during 
  1.19  the taxable year for which the credit is claimed, "qualified 
  1.20  property tax" means property taxes payable as defined in section 
  1.21  290A.03, subdivision 13, and deductible by the individual under 
  1.22  section 164 of the Internal Revenue Code, except the requirement 
  1.23  in section 290A.03, subdivision 13, that the taxpayer own and 
  1.24  occupy the property on January 2 of the payable year does not 
  1.25  apply.  In the case of agricultural land assessed as part of a 
  1.26  homestead under section 273.13, subdivision 23, the owner may 
  2.1   calculate the credit on all property taxes on the homestead, 
  2.2   except to the extent the owner is required to furnish a rent 
  2.3   certificate under section 290A.19, to a tenant leasing a part of 
  2.4   the farm homestead. 
  2.5      (c) For a renter, the qualified property tax means the 
  2.6   amount of rent constituting property taxes under section 
  2.7   290A.03, subdivision 11, based on rent paid in the taxable 
  2.8   year.  If two or more renters could be claimants under chapter 
  2.9   290A, with regard to the rent constituting property taxes, the 
  2.10  rules under section 290A.03, subdivision 8, paragraph (f), apply 
  2.11  to determine the amount of the credit for the individual. 
  2.12     (d) For an individual who both owned and rented principal 
  2.13  residences during the taxable year, qualified taxes are the sum 
  2.14  of the amounts under paragraphs (b) and (c). 
  2.15     (e) If the amount of the credit under this section exceeds 
  2.16  the taxpayer's tax liability, the commissioner shall refund the 
  2.17  excess. 
  2.18     (f) To claim a credit under this section, the taxpayer must 
  2.19  attach a copy of the property tax statement and certificate of 
  2.20  rent paid, as applicable, and provide any additional information 
  2.21  the commissioner requires. 
  2.22     (g) Any refunds in excess of liability must be paid within 
  2.23  60 days from the date the claim is received by the commissioner 
  2.24  of revenue. 
  2.25     (h) An amount sufficient to pay refunds under this section 
  2.26  is appropriated to the commissioner of revenue from the general 
  2.27  fund beginning in fiscal year 2000. 
  2.28     Sec. 2.  Minnesota Statutes 1998, section 290A.03, 
  2.29  subdivision 13, is amended to read: 
  2.30     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
  2.31  payable" means the property tax exclusive of special 
  2.32  assessments, penalties, and interest payable on a claimant's 
  2.33  homestead after deductions made under sections 273.135, 
  2.34  273.1382, 273.1391, 273.42, subdivision 2, 290.0675, and any 
  2.35  other state paid property tax credits in any calendar year.  In 
  2.36  the case of a claimant who makes ground lease payments, 
  3.1   "property taxes payable" includes the amount of the payments 
  3.2   directly attributable to the property taxes assessed against the 
  3.3   parcel on which the house is located.  No apportionment or 
  3.4   reduction of the "property taxes payable" shall be required for 
  3.5   the use of a portion of the claimant's homestead for a business 
  3.6   purpose if the claimant does not deduct any business 
  3.7   depreciation expenses for the use of a portion of the homestead 
  3.8   in the determination of federal adjusted gross income.  For 
  3.9   homesteads which are manufactured homes as defined in section 
  3.10  273.125, subdivision 8, and for homesteads which are park 
  3.11  trailers taxed as manufactured homes under section 168.012, 
  3.12  subdivision 9, "property taxes payable" shall also include 19 
  3.13  percent of the gross rent paid in the preceding year for the 
  3.14  site on which the homestead is located.  When a homestead is 
  3.15  owned by two or more persons as joint tenants or tenants in 
  3.16  common, such tenants shall determine between them which tenant 
  3.17  may claim the property taxes payable on the homestead.  If they 
  3.18  are unable to agree, the matter shall be referred to the 
  3.19  commissioner of revenue whose decision shall be final.  Property 
  3.20  taxes are considered payable in the year prescribed by law for 
  3.21  payment of the taxes. 
  3.22     In the case of a claim relating to "property taxes 
  3.23  payable," the claimant must have owned and occupied the 
  3.24  homestead on January 2 of the year in which the tax is payable 
  3.25  and (i) the property must have been classified as homestead 
  3.26  property pursuant to section 273.124, on or before December 15 
  3.27  of the assessment year to which the "property taxes payable" 
  3.28  relate; or (ii) the claimant must provide documentation from the 
  3.29  local assessor that application for homestead classification has 
  3.30  been made on or before December 15 of the year in which the 
  3.31  "property taxes payable" were payable and that the assessor has 
  3.32  approved the application. 
  3.33     Sec. 3.  [EFFECTIVE DATE.] 
  3.34     Sections 1 and 2 are effective for taxable years beginning 
  3.35  after December 31, 1998.