HF 557

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; extending relative homestead 
  1.3             treatment to property occupied by the niece or nephew 
  1.4             of the owner; amending Minnesota Statutes 1998, 
  1.5             section 273.124, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 273.124, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
  1.10  that is occupied and used for the purposes of a homestead by its 
  1.11  owner, who must be a Minnesota resident, is a residential 
  1.12  homestead.  
  1.13     Agricultural land, as defined in section 273.13, 
  1.14  subdivision 23, that is occupied and used as a homestead by its 
  1.15  owner, who must be a Minnesota resident, is an agricultural 
  1.16  homestead. 
  1.17     Dates for establishment of a homestead and homestead 
  1.18  treatment provided to particular types of property are as 
  1.19  provided in this section.  
  1.20     Property of a trustee, beneficiary, or grantor of a trust 
  1.21  is not disqualified from receiving homestead benefits if the 
  1.22  homestead requirements under this chapter are satisfied. 
  1.23     The assessor shall require proof, as provided in 
  1.24  subdivision 13, of the facts upon which classification as a 
  1.25  homestead may be determined.  Notwithstanding any other law, the 
  2.1   assessor may at any time require a homestead application to be 
  2.2   filed in order to verify that any property classified as a 
  2.3   homestead continues to be eligible for homestead status.  
  2.4   Notwithstanding any other law to the contrary, the department of 
  2.5   revenue may, upon request from an assessor, verify whether an 
  2.6   individual who is requesting or receiving homestead 
  2.7   classification has filed a Minnesota income tax return as a 
  2.8   resident for the most recent taxable year for which the 
  2.9   information is available. 
  2.10     When there is a name change or a transfer of homestead 
  2.11  property, the assessor may reclassify the property in the next 
  2.12  assessment unless a homestead application is filed to verify 
  2.13  that the property continues to qualify for homestead 
  2.14  classification. 
  2.15     (b) For purposes of this section, homestead property shall 
  2.16  include property which is used for purposes of the homestead but 
  2.17  is separated from the homestead by a road, street, lot, 
  2.18  waterway, or other similar intervening property.  The term "used 
  2.19  for purposes of the homestead" shall include but not be limited 
  2.20  to uses for gardens, garages, or other outbuildings commonly 
  2.21  associated with a homestead, but shall not include vacant land 
  2.22  held primarily for future development.  In order to receive 
  2.23  homestead treatment for the noncontiguous property, the owner 
  2.24  must use the property for the purposes of the homestead, and 
  2.25  must apply to the assessor, both by the deadlines given in 
  2.26  subdivision 9.  After initial qualification for the homestead 
  2.27  treatment, additional applications for subsequent years are not 
  2.28  required. 
  2.29     (c) Residential real estate that is occupied and used for 
  2.30  purposes of a homestead by a relative of the owner is a 
  2.31  homestead but only to the extent of the homestead treatment that 
  2.32  would be provided if the related owner occupied the property.  
  2.33  For purposes of this paragraph and paragraph (g), "relative" 
  2.34  means a parent, stepparent, child, stepchild, grandparent, 
  2.35  grandchild, brother, sister, uncle, or aunt, nephew, or niece.  
  2.36  This relationship may be by blood or marriage.  Property that 
  3.1   has been classified as seasonal recreational residential 
  3.2   property at any time during which it has been owned by the 
  3.3   current owner or spouse of the current owner will not be 
  3.4   reclassified as a homestead unless it is occupied as a homestead 
  3.5   by the owner; this prohibition also applies to property that, in 
  3.6   the absence of this paragraph, would have been classified as 
  3.7   seasonal recreational residential property at the time when the 
  3.8   residence was constructed.  Neither the related occupant nor the 
  3.9   owner of the property may claim a property tax refund under 
  3.10  chapter 290A for a homestead occupied by a relative.  In the 
  3.11  case of a residence located on agricultural land, only the 
  3.12  house, garage, and immediately surrounding one acre of land 
  3.13  shall be classified as a homestead under this paragraph, except 
  3.14  as provided in paragraph (d). 
  3.15     (d) Agricultural property that is occupied and used for 
  3.16  purposes of a homestead by a relative of the owner, is a 
  3.17  homestead, only to the extent of the homestead treatment that 
  3.18  would be provided if the related owner occupied the property, 
  3.19  and only if all of the following criteria are met: 
  3.20     (1) the relative who is occupying the agricultural property 
  3.21  is a son, daughter, father, or mother of the owner of the 
  3.22  agricultural property or a son or daughter of the spouse of the 
  3.23  owner of the agricultural property, 
  3.24     (2) the owner of the agricultural property must be a 
  3.25  Minnesota resident, 
  3.26     (3) the owner of the agricultural property must not receive 
  3.27  homestead treatment on any other agricultural property in 
  3.28  Minnesota, and 
  3.29     (4) the owner of the agricultural property is limited to 
  3.30  only one agricultural homestead per family under this paragraph. 
  3.31     Neither the related occupant nor the owner of the property 
  3.32  may claim a property tax refund under chapter 290A for a 
  3.33  homestead occupied by a relative qualifying under this 
  3.34  paragraph.  For purposes of this paragraph, "agricultural 
  3.35  property" means the house, garage, other farm buildings and 
  3.36  structures, and agricultural land. 
  4.1      Application must be made to the assessor by the owner of 
  4.2   the agricultural property to receive homestead benefits under 
  4.3   this paragraph.  The assessor may require the necessary proof 
  4.4   that the requirements under this paragraph have been met. 
  4.5      (e) In the case of property owned by a property owner who 
  4.6   is married, the assessor must not deny homestead treatment in 
  4.7   whole or in part if only one of the spouses occupies the 
  4.8   property and the other spouse is absent due to:  (1) marriage 
  4.9   dissolution proceedings, (2) legal separation, (3) employment or 
  4.10  self-employment in another location, or (4) other personal 
  4.11  circumstances causing the spouses to live separately, not 
  4.12  including an intent to obtain two homestead classifications for 
  4.13  property tax purposes.  To qualify under clause (3), the 
  4.14  spouse's place of employment or self-employment must be at least 
  4.15  50 miles distant from the other spouse's place of employment, 
  4.16  and the homesteads must be at least 50 miles distant from each 
  4.17  other.  Homestead treatment, in whole or in part, shall not be 
  4.18  denied to the owner's spouse who previously occupied the 
  4.19  residence with the owner if the absence of the owner is due to 
  4.20  one of the exceptions provided in this paragraph. 
  4.21     (f) The assessor must not deny homestead treatment in whole 
  4.22  or in part if: 
  4.23     (1) in the case of a property owner who is not married, the 
  4.24  owner is absent due to residence in a nursing home or boarding 
  4.25  care facility and the property is not otherwise occupied; or 
  4.26     (2) in the case of a property owner who is married, the 
  4.27  owner or the owner's spouse or both are absent due to residence 
  4.28  in a nursing home or boarding care facility and the property is 
  4.29  not occupied or is occupied only by the owner's spouse. 
  4.30     (g) If an individual is purchasing property with the intent 
  4.31  of claiming it as a homestead and is required by the terms of 
  4.32  the financing agreement to have a relative shown on the deed as 
  4.33  a coowner, the assessor shall allow a full homestead 
  4.34  classification.  This provision only applies to first-time 
  4.35  purchasers, whether married or single, or to a person who had 
  4.36  previously been married and is purchasing as a single individual 
  5.1   for the first time.  The application for homestead benefits must 
  5.2   be on a form prescribed by the commissioner and must contain the 
  5.3   data necessary for the assessor to determine if full homestead 
  5.4   benefits are warranted. 
  5.5      Sec. 2.  [EFFECTIVE DATE.] 
  5.6      Section 1 is effective for taxes levied in 1999, payable in 
  5.7   2000, and thereafter.