HF 794

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; providing for
valuation and deferment of taxes on certain homestead
resorts; proposing coding for new law in Minnesota
Statutes, chapter 273.

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

Section 1.

new text begin [273.1115] HOMESTEAD RESORTS; VALUATION AND
DEFERMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Requirements. new text end

new text begin Real property qualifying
for classification as class 1c under section 273.13, subdivision
22, paragraph (c), is entitled to valuation and tax deferment
under this section, provided that if part of a resort is not
classified as class 1c, only that portion of the value of the
property that is classified as class 1c property qualifies under
this section.
new text end

new text begin Subd. 2. new text end

new text begin Determination of value. new text end

new text begin Upon timely application
by the owner, as provided in subdivision 4, the value of real
property described in subdivision 1 must be determined by the
assessor solely with reference to its classification value as
class 1c property, notwithstanding sections 272.03, subdivision
8, and 273.11. The assessor shall not consider any added values
resulting from other factors.
new text end

new text begin Subd. 3. new text end

new text begin Separate determination of market value and tax.
new text end

new text begin The assessor shall, however, make a separate determination of
the market value of the real estate. The assessor shall record
on the property assessment records the tax based upon the
appropriate local tax rate applicable to the property in the
taxing district.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin Application for deferment of taxes
and assessment under this section must be filed by May 1 of the
year prior to the year in which the taxes are payable. The
application must be filed with the assessor of the taxing
district in which the real property is located on a form
prescribed by the commissioner of revenue. The assessor may
require proof by affidavit or otherwise that the property
qualifies under subdivision 1. An application approved by the
assessor continues in effect for subsequent years until the
property no longer qualifies under subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Additional taxes. new text end

new text begin When real property valued and
assessed under this section no longer qualifies under
subdivision 1, the portion no longer qualifying is subject to
additional taxes, in the amount equal to the difference between
the taxes determined in accordance with subdivision 2, and the
amount determined under subdivision 3, provided, however, that
the amount determined under subdivision 3 must not be greater
than it would have been had the actual bona fide sale price of
the real property at an arms length transaction been used in
lieu of the market value determined under subdivision 3. The
additional taxes must be extended against the property on the
tax list for the current year, except that no interest or
penalties may be levied on the additional taxes if timely paid,
and except that the additional taxes must only be levied with
respect to the last three years that the property has been
valued and assessed under this section.
new text end

new text begin Subd. 6. new text end

new text begin Lien. new text end

new text begin The tax imposed by this section is a lien
on the property assessed to the same extent and for the same
duration as other taxes imposed on property within this state.
The tax must be annually extended by the county auditor and when
payable must be collected and distributed in the manner provided
by law for the collection and distribution of other property
taxes.
new text end

new text begin Subd. 7. new text end

new text begin Special local assessments. new text end

new text begin The payment of
special local assessments levied after June 30, 2005, for
improvements made to any real property described in subdivision
2, together with the interest thereon must, on timely
application under subdivision 4, be deferred as long as the
property qualifies under subdivision 1. If special assessments
against the property have been deferred under this subdivision,
the governmental unit shall file with the county recorder in the
county in which the property is located a certificate containing
the legal description of the affected property and of the amount
deferred. When the property no longer qualifies under
subdivision 1, all deferred special assessments plus interest
are payable in equal installments spread over the time remaining
until the last maturity date of the bonds issued to finance the
improvement for which the assessments were levied. If the bonds
have matured, the deferred special assessments plus interest are
payable within 90 days. The provisions of section 429.061,
subdivision 2, apply to the collection of these installments.
Penalty must not be levied on the special assessments if timely
paid.
new text end

new text begin Subd. 8. new text end

new text begin Continuation of tax treatment upon sale. new text end

new text begin When
real property qualifying under subdivision 1 is sold, no
additional taxes or deferred special assessments plus interest
may be extended against the property if:
new text end

new text begin (1) the property continues to qualify pursuant to
subdivision 1; and
new text end

new text begin (2) the new owner files an application for continued
deferment within 30 days after the sale.
new text end

new text begin Subd. 9. new text end

new text begin Applicability of special assessment provisions.
new text end

new text begin This section applies to special local assessments levied after
June 30, 2005, and payable in the years thereafter, but shall
not apply to any special assessments levied at any time by a
county or district court under the provisions of chapter 116A.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
levied in 2005, payable in 2006, and thereafter. For
applications for taxes payable in 2006 only, the application
deadline in subdivision 4 is extended to August 1, 2005.
new text end