HF 890

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

A bill for an act
relating to taxation; property; extending the limited
market value provisions to all property; making
limited market value permanent; providing a separate
limitation to certain property that is sold or
transferred; amending Minnesota Statutes 2004, section
273.11, subdivision 1a.

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

Section 1.

Minnesota Statutes 2004, section 273.11,
subdivision 1a, is amended to read:

Subd. 1a.

Limited market value.

In the case of all new text begin real
new text end property deleted text begin classified as agricultural homestead or nonhomestead,
residential homestead or nonhomestead, timber, or noncommercial
seasonal residential recreational deleted text end , the assessor shall compare
the value with the taxable portion of the value determined in
the preceding assessment.

deleted text begin For assessment year 2002, the amount of the increase shall
not exceed the greater of (1) ten percent of the value in the
preceding assessment, or (2) 15 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

deleted text begin For assessment year 2003, the amount of the increase shall
not exceed the greater of (1) 12 percent of the value in the
preceding assessment, or (2) 20 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

deleted text begin For assessment year 2004, the amount of the increase shall
not exceed the greater of (1) 15 percent of the value in the
preceding assessment, or (2) 25 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

For assessment year 2005 new text begin and thereafter new text end , the amount of the
increase shall not exceed deleted text begin the greater of deleted text end new text begin :
new text end

(1) deleted text begin 15 deleted text end new text begin 12 new text end percent of the value in the preceding assessment,
new text begin unless clause (2) applies to the property; new text end or

(2) deleted text begin 33 percent of the difference between the current
assessment and the preceding assessment deleted text end new text begin 20 percent of the value
in the preceding assessment in any year in which the property is
sold or transferred, except that a property sold or transferred
to a surviving spouse of a deceased owner or to a surviving
joint tenant is limited under clause (1) new text end .

deleted text begin For assessment year 2006, the amount of the increase shall
not exceed the greater of (1) 15 percent of the value in the
preceding assessment, or (2) 50 percent of the difference
between the current assessment and the preceding assessment.
deleted text end

This limitation shall not apply to increases in value due
to improvements. For purposes of this subdivision, the term
"assessment" means the value prior to any exclusion under
subdivision 16.

deleted text begin The provisions of this subdivision shall be in effect
through assessment year 2006 as provided in this subdivision.
deleted text end

For purposes of the assessment/sales ratio study conducted
under section 127A.48, and the computation of state aids paid
under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and
477A, market values and net tax capacities determined under this
subdivision and subdivision 16, shall be used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment
year 2005 and thereafter, for taxes payable in 2006 and
thereafter.
new text end