HF 1119

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to property taxation; providing that 
  1.3             household income rather than market value will be used 
  1.4             as the basis for computing the property tax on 
  1.5             homestead properties; appropriating money; amending 
  1.6             Minnesota Statutes 2000, sections 126C.01, subdivision 
  1.7             3; 127A.48, by adding a subdivision; 273.124, by 
  1.8             adding a subdivision; 273.13, subdivisions 22, 23, and 
  1.9             by adding subdivisions; 275.08, subdivisions 1a, 1b, 
  1.10            and by adding a subdivision; 276.04, subdivision 3; 
  1.11            290A.02; 290A.03, subdivisions 4, 8, and 13; and 
  1.12            290A.04, subdivisions 2 and 2h; repealing Minnesota 
  1.13            Statutes 2000, sections 273.1382, subdivision 1a; and 
  1.14            290A.03, subdivision 6. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 2000, section 126C.01, 
  1.17  subdivision 3, is amended to read: 
  1.18     Subd. 3.  [REFERENDUM MARKET VALUE.] "Referendum market 
  1.19  value" means the market value of all taxable property, except 
  1.20  that (a) any class of property, or any portion of a class of 
  1.21  property, with a class rate of less than one percent under 
  1.22  section 273.13 shall have a referendum market value equal to its 
  1.23  net tax capacity multiplied by 100; and (b) any property or 
  1.24  portion thereof whose net tax capacity is determined under 
  1.25  section 273.13, subdivision 34, shall have a referendum market 
  1.26  value equal to its household income. 
  1.27     [EFFECTIVE DATE.] This section is effective for taxes 
  1.28  payable in 2003 and subsequent years. 
  1.29     Sec. 2.  Minnesota Statutes 2000, section 127A.48, is 
  1.30  amended by adding a subdivision to read: 
  2.1      Subd. 2a.  [HOMESTEAD PROPERTY.] For property classified as 
  2.2   class 1a, 1b, 1c, or the portion of class 2a property consisting 
  2.3   of the house, garage, and surrounding one acre of land, the 
  2.4   adjusted net tax capacity shall be presumed to be equal to the 
  2.5   net tax capacity. 
  2.6      [EFFECTIVE DATE.] This section is effective for adjusted 
  2.7   net tax capacity certified in 2003 and subsequent years. 
  2.8      Sec. 3.  Minnesota Statutes 2000, section 273.124, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 13a.  [FRAUDULENT REPORTING OF INCOME.] (a) Each year 
  2.11  the county assessor shall provide the commissioner of revenue 
  2.12  with a list of all homestead properties in the county.  The list 
  2.13  shall include the name and social security number of each 
  2.14  property owner, and the household income of the owner as 
  2.15  reported under section 273.13, subdivision 35.  The information 
  2.16  required under this subdivision may be included with the list 
  2.17  submitted by the assessor under section 273.124, subdivision 13, 
  2.18  paragraph (g), provided that such a list has been requested by 
  2.19  the commissioner. 
  2.20     (b) If the commissioner finds that a property owner may 
  2.21  have certified a false household income amount, the commissioner 
  2.22  may conduct an examination under the authority granted under 
  2.23  section 289A.36.  If the commissioner finds that the household 
  2.24  income reported by the property owner was false, the 
  2.25  commissioner shall notify the county of that finding, along with 
  2.26  a statement of the owner's proper household income amount. 
  2.27     (c) Upon notification of a false income report by the 
  2.28  commissioner, the county auditor shall compute the corrected 
  2.29  property tax amount.  The owner shall be liable for the 
  2.30  corrected amount, plus a penalty equal to the difference between 
  2.31  the property tax originally certified and the corrected property 
  2.32  tax amount. 
  2.33     [EFFECTIVE DATE.] This section is effective January 1, 
  2.34  2003, for taxes payable in 2003 and subsequent years. 
  2.35     Sec. 4.  Minnesota Statutes 2000, section 273.13, 
  2.36  subdivision 22, is amended to read: 
  3.1      Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  3.2   23, real estate which is residential and used for homestead 
  3.3   purposes is class 1.  The market value of class 1a property must 
  3.4   be determined based upon the value of the house, garage, and 
  3.5   land tax capacity of class 1a property shall be determined as 
  3.6   provided under subdivision 34.  
  3.7      The first $76,000 of market value of class 1a property has 
  3.8   a net class rate of one percent of its market value; and the 
  3.9   market value of class 1a property that exceeds $76,000 has a 
  3.10  class rate of 1.65 percent of its market value.  
  3.11     (b) Class 1b property includes homestead real estate or 
  3.12  homestead manufactured homes used for the purposes of a 
  3.13  homestead by 
  3.14     (1) any blind person, or the blind person and the blind 
  3.15  person's spouse; or 
  3.16     (2) any person, hereinafter referred to as "veteran," who: 
  3.17     (i) served in the active military or naval service of the 
  3.18  United States; and 
  3.19     (ii) is entitled to compensation under the laws and 
  3.20  regulations of the United States for permanent and total 
  3.21  service-connected disability due to the loss, or loss of use, by 
  3.22  reason of amputation, ankylosis, progressive muscular 
  3.23  dystrophies, or paralysis, of both lower extremities, such as to 
  3.24  preclude motion without the aid of braces, crutches, canes, or a 
  3.25  wheelchair; and 
  3.26     (iii) has acquired a special housing unit with special 
  3.27  fixtures or movable facilities made necessary by the nature of 
  3.28  the veteran's disability, or the surviving spouse of the 
  3.29  deceased veteran for as long as the surviving spouse retains the 
  3.30  special housing unit as a homestead; or 
  3.31     (3) any person who: 
  3.32     (i) is permanently and totally disabled and 
  3.33     (ii) receives 90 percent or more of total household income, 
  3.34  as defined in section 290A.03, subdivision 5, from 
  3.35     (A) aid from any state as a result of that disability; or 
  3.36     (B) supplemental security income for the disabled; or 
  4.1      (C) workers' compensation based on a finding of total and 
  4.2   permanent disability; or 
  4.3      (D) social security disability, including the amount of a 
  4.4   disability insurance benefit which is converted to an old age 
  4.5   insurance benefit and any subsequent cost of living increases; 
  4.6   or 
  4.7      (E) aid under the federal Railroad Retirement Act of 1937, 
  4.8   United States Code Annotated, title 45, section 228b(a)5; or 
  4.9      (F) a pension from any local government retirement fund 
  4.10  located in the state of Minnesota as a result of that 
  4.11  disability; or 
  4.12     (G) pension, annuity, or other income paid as a result of 
  4.13  that disability from a private pension or disability plan, 
  4.14  including employer, employee, union, and insurance plans and 
  4.15     (iii) has household income as defined in section 290A.03, 
  4.16  subdivision 5, of $50,000 or less; or 
  4.17     (4) any person who is permanently and totally disabled and 
  4.18  whose household income as defined in section 290A.03, 
  4.19  subdivision 5, is 275 percent or less of the federal poverty 
  4.20  level. 
  4.21     Property is classified and assessed under clause (4) only 
  4.22  if the government agency or income-providing source certifies, 
  4.23  upon the request of the homestead occupant, that the homestead 
  4.24  occupant satisfies the disability requirements of this paragraph.
  4.25     Property is classified and assessed pursuant to clause (1) 
  4.26  only if the commissioner of economic security certifies to the 
  4.27  assessor that the homestead occupant satisfies the requirements 
  4.28  of this paragraph.  
  4.29     Permanently and totally disabled for the purpose of this 
  4.30  subdivision means a condition which is permanent in nature and 
  4.31  totally incapacitates the person from working at an occupation 
  4.32  which brings the person an income.  The first $32,000 market 
  4.33  value of class 1b property has a net class rate of .45 percent 
  4.34  of its market value.  The remaining market value of class 1b 
  4.35  property has a net class rate using the rates for class 1 or 
  4.36  class 2a property, whichever is appropriate, of similar market 
  5.1   value tax capacity of class 1b property shall be determined as 
  5.2   provided under subdivision 34.  
  5.3      (c) Class 1c property is commercial use real property that 
  5.4   abuts a lakeshore line and is devoted to temporary and seasonal 
  5.5   residential occupancy for recreational purposes but not devoted 
  5.6   to commercial purposes for more than 250 days in the year 
  5.7   preceding the year of assessment, and that includes a portion 
  5.8   used as a homestead by the owner, which includes a dwelling 
  5.9   occupied as a homestead by a shareholder of a corporation that 
  5.10  owns the resort or a partner in a partnership that owns the 
  5.11  resort, even if the title to the homestead is held by the 
  5.12  corporation or partnership.  For purposes of this clause, 
  5.13  property is devoted to a commercial purpose on a specific day if 
  5.14  any portion of the property, excluding the portion used 
  5.15  exclusively as a homestead, is used for residential occupancy 
  5.16  and a fee is charged for residential occupancy.  Class 1c 
  5.17  property has a class rate of one percent of total market value 
  5.18  with the following limitation:  the area of the property must 
  5.19  not exceed is limited to 100 feet of lakeshore footage for each 
  5.20  cabin or campsite located on the property up to a total of 800 
  5.21  feet and 500 feet in depth, measured away from the lakeshore.  
  5.22  If any portion of the class 1c resort property is classified as 
  5.23  class 4c under subdivision 25, the entire property must meet the 
  5.24  requirements of subdivision 25, paragraph (d), clause (1), to 
  5.25  qualify for class 1c treatment under this paragraph.  The tax 
  5.26  capacity of class 1c property shall be determined under 
  5.27  subdivision 34.  
  5.28     (d) Class 1d property includes structures that meet all of 
  5.29  the following criteria: 
  5.30     (1) the structure is located on property that is classified 
  5.31  as agricultural property under section 273.13, subdivision 23; 
  5.32     (2) the structure is occupied exclusively by seasonal farm 
  5.33  workers during the time when they work on that farm, and the 
  5.34  occupants are not charged rent for the privilege of occupying 
  5.35  the property, provided that use of the structure for storage of 
  5.36  farm equipment and produce does not disqualify the property from 
  6.1   classification under this paragraph; 
  6.2      (3) the structure meets all applicable health and safety 
  6.3   requirements for the appropriate season; and 
  6.4      (4) the structure is not salable as residential property 
  6.5   because it does not comply with local ordinances relating to 
  6.6   location in relation to streets or roads. 
  6.7      The first $76,000 of market value of class 1d property has 
  6.8   the same class rates as class 1a property under paragraph (a) a 
  6.9   net class rate of one percent, and the market value of class 1d 
  6.10  property that exceeds $76,000 has a class rate of 1.65 percent. 
  6.11     [EFFECTIVE DATE.] This section is effective for taxes 
  6.12  payable in 2003 and subsequent years. 
  6.13     Sec. 5.  Minnesota Statutes 2000, section 273.13, 
  6.14  subdivision 23, is amended to read: 
  6.15     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  6.16  land including any improvements that is homesteaded.  The market 
  6.17  value tax capacity of the house and garage and immediately 
  6.18  surrounding one acre of land has the same class rates is 
  6.19  determined in the same way as class 1a property under 
  6.20  subdivision 22 34.  The value of the remaining land including 
  6.21  improvements up to $115,000 has a net class rate of 0.35 percent 
  6.22  of market value.  The value of class 2a property over $115,000 
  6.23  of market value up to and including $600,000 market value has a 
  6.24  net class rate of 0.8 percent of market value.  The remaining 
  6.25  property over $600,000 market value has a class rate of 1.20 
  6.26  percent of market value. 
  6.27     (b) Class 2b property is (1) real estate, rural in 
  6.28  character and used exclusively for growing trees for timber, 
  6.29  lumber, and wood and wood products; (2) real estate that is not 
  6.30  improved with a structure and is used exclusively for growing 
  6.31  trees for timber, lumber, and wood and wood products, if the 
  6.32  owner has participated or is participating in a cost-sharing 
  6.33  program for afforestation, reforestation, or timber stand 
  6.34  improvement on that particular property, administered or 
  6.35  coordinated by the commissioner of natural resources; (3) real 
  6.36  estate that is nonhomestead agricultural land; or (4) a landing 
  7.1   area or public access area of a privately owned public use 
  7.2   airport.  Class 2b property has a net class rate of 1.20 percent 
  7.3   of market value. 
  7.4      (c) Agricultural land as used in this section means 
  7.5   contiguous acreage of ten acres or more, used during the 
  7.6   preceding year for agricultural purposes.  "Agricultural 
  7.7   purposes" as used in this section means the raising or 
  7.8   cultivation of agricultural products or enrollment in the 
  7.9   Reinvest in Minnesota program under sections 103F.501 to 
  7.10  103F.535 or the federal Conservation Reserve Program as 
  7.11  contained in Public Law Number 99-198.  Contiguous acreage on 
  7.12  the same parcel, or contiguous acreage on an immediately 
  7.13  adjacent parcel under the same ownership, may also qualify as 
  7.14  agricultural land, but only if it is pasture, timber, waste, 
  7.15  unusable wild land, or land included in state or federal farm 
  7.16  programs.  Agricultural classification for property shall be 
  7.17  determined excluding the house, garage, and immediately 
  7.18  surrounding one acre of land, and shall not be based upon the 
  7.19  market value of any residential structures on the parcel or 
  7.20  contiguous parcels under the same ownership. 
  7.21     (d) Real estate, excluding the house, garage, and 
  7.22  immediately surrounding one acre of land, of less than ten acres 
  7.23  which is exclusively and intensively used for raising or 
  7.24  cultivating agricultural products, shall be considered as 
  7.25  agricultural land.  
  7.26     Land shall be classified as agricultural even if all or a 
  7.27  portion of the agricultural use of that property is the leasing 
  7.28  to, or use by another person for agricultural purposes. 
  7.29     Classification under this subdivision is not determinative 
  7.30  for qualifying under section 273.111. 
  7.31     The property classification under this section supersedes, 
  7.32  for property tax purposes only, any locally administered 
  7.33  agricultural policies or land use restrictions that define 
  7.34  minimum or maximum farm acreage. 
  7.35     (e) The term "agricultural products" as used in this 
  7.36  subdivision includes production for sale of:  
  8.1      (1) livestock, dairy animals, dairy products, poultry and 
  8.2   poultry products, fur-bearing animals, horticultural and nursery 
  8.3   stock described in sections 18.44 to 18.61, fruit of all kinds, 
  8.4   vegetables, forage, grains, bees, and apiary products by the 
  8.5   owner; 
  8.6      (2) fish bred for sale and consumption if the fish breeding 
  8.7   occurs on land zoned for agricultural use; 
  8.8      (3) the commercial boarding of horses if the boarding is 
  8.9   done in conjunction with raising or cultivating agricultural 
  8.10  products as defined in clause (1); 
  8.11     (4) property which is owned and operated by nonprofit 
  8.12  organizations used for equestrian activities, excluding racing; 
  8.13     (5) game birds and waterfowl bred and raised for use on a 
  8.14  shooting preserve licensed under section 97A.115; 
  8.15     (6) insects primarily bred to be used as food for animals; 
  8.16  and 
  8.17     (7) trees, grown for sale as a crop, and not sold for 
  8.18  timber, lumber, wood, or wood products. 
  8.19     (f) If a parcel used for agricultural purposes is also used 
  8.20  for commercial or industrial purposes, including but not limited 
  8.21  to:  
  8.22     (1) wholesale and retail sales; 
  8.23     (2) processing of raw agricultural products or other goods; 
  8.24     (3) warehousing or storage of processed goods; and 
  8.25     (4) office facilities for the support of the activities 
  8.26  enumerated in clauses (1), (2), and (3), 
  8.27  the assessor shall classify the part of the parcel used for 
  8.28  agricultural purposes as class 1b, 2a, or 2b, whichever is 
  8.29  appropriate, and the remainder in the class appropriate to its 
  8.30  use.  The grading, sorting, and packaging of raw agricultural 
  8.31  products for first sale is considered an agricultural purpose.  
  8.32  A greenhouse or other building where horticultural or nursery 
  8.33  products are grown that is also used for the conduct of retail 
  8.34  sales must be classified as agricultural if it is primarily used 
  8.35  for the growing of horticultural or nursery products from seed, 
  8.36  cuttings, or roots and occasionally as a showroom for the retail 
  9.1   sale of those products.  Use of a greenhouse or building only 
  9.2   for the display of already grown horticultural or nursery 
  9.3   products does not qualify as an agricultural purpose.  
  9.4      The assessor shall determine and list separately on the 
  9.5   records the market value of the homestead dwelling and the one 
  9.6   acre of land on which that dwelling is located.  If any farm 
  9.7   buildings or structures are located on this homesteaded acre of 
  9.8   land, their market value shall not be included in this separate 
  9.9   determination.  
  9.10     (g) To qualify for classification under paragraph (b), 
  9.11  clause (4), a privately owned public use airport must be 
  9.12  licensed as a public airport under section 360.018.  For 
  9.13  purposes of paragraph (b), clause (4), "landing area" means that 
  9.14  part of a privately owned public use airport properly cleared, 
  9.15  regularly maintained, and made available to the public for use 
  9.16  by aircraft and includes runways, taxiways, aprons, and sites 
  9.17  upon which are situated landing or navigational aids.  A landing 
  9.18  area also includes land underlying both the primary surface and 
  9.19  the approach surfaces that comply with all of the following:  
  9.20     (i) the land is properly cleared and regularly maintained 
  9.21  for the primary purposes of the landing, taking off, and taxiing 
  9.22  of aircraft; but that portion of the land that contains 
  9.23  facilities for servicing, repair, or maintenance of aircraft is 
  9.24  not included as a landing area; 
  9.25     (ii) the land is part of the airport property; and 
  9.26     (iii) the land is not used for commercial or residential 
  9.27  purposes. 
  9.28  The land contained in a landing area under paragraph (b), clause 
  9.29  (4), must be described and certified by the commissioner of 
  9.30  transportation.  The certification is effective until it is 
  9.31  modified, or until the airport or landing area no longer meets 
  9.32  the requirements of paragraph (b), clause (4).  For purposes of 
  9.33  paragraph (b), clause (4), "public access area" means property 
  9.34  used as an aircraft parking ramp, apron, or storage hangar, or 
  9.35  an arrival and departure building in connection with the airport.
  9.36     [EFFECTIVE DATE.] This section is effective for taxes 
 10.1   payable in 2003 and subsequent years. 
 10.2      Sec. 6.  Minnesota Statutes 2000, section 273.13, is 
 10.3   amended by adding a subdivision to read: 
 10.4      Subd. 34.  [TAX CAPACITY DETERMINATION OF HOMESTEAD 
 10.5   PROPERTY.] The tax capacity of class 1a, 1b, or 1c property is 
 10.6   equal to two percent of the household income of all persons 
 10.7   residing in the homestead, as defined under section 290A.03, for 
 10.8   the calendar year immediately preceding the year in which the 
 10.9   tax is payable.  
 10.10     [EFFECTIVE DATE.] This section is effective for taxes 
 10.11  payable in 2003 and subsequent years. 
 10.12     Sec. 7.  Minnesota Statutes 2000, section 273.13, is 
 10.13  amended by adding a subdivision to read: 
 10.14     Subd. 35.  [CERTIFICATION OF HOUSEHOLD INCOME; HOMESTEAD 
 10.15  PROPERTY.] The owner of a property classified as homestead as of 
 10.16  January 1 of any year must certify the owner's household income 
 10.17  for the previous calendar year to the county assessor, on a form 
 10.18  prescribed by the assessor, by April 15. 
 10.19     [EFFECTIVE DATE.] This section is effective January 1, 
 10.20  2002, requiring homestead owners to report household income in 
 10.21  2002 for use in calculating preliminary tax capacity for taxes 
 10.22  payable in 2003. 
 10.23     Sec. 8.  Minnesota Statutes 2000, section 275.08, 
 10.24  subdivision 1a, is amended to read: 
 10.25     Subd. 1a.  [COMPUTATION OF TAX CAPACITY.] For taxes payable 
 10.26  in 1989, the county auditor shall compute the gross tax capacity 
 10.27  for each parcel according to the class rates specified in 
 10.28  section 273.13.  The gross tax capacity will be the appropriate 
 10.29  class rate multiplied by the parcel's market value.  For taxes 
 10.30  payable in 1990 and subsequent years, The county auditor shall 
 10.31  compute the net tax capacity for each parcel according to 
 10.32  the class rates specified methods prescribed in section 273.13.  
 10.33  The net tax capacity will be the appropriate class rate 
 10.34  multiplied by the parcel's market value.  
 10.35     [EFFECTIVE DATE.] This section is effective for taxes 
 10.36  payable in 2003 and subsequent years. 
 11.1      Sec. 9.  Minnesota Statutes 2000, section 275.08, 
 11.2   subdivision 1b, is amended to read: 
 11.3      Subd. 1b.  [COMPUTATION OF TAX RATES.] (a) To determine a 
 11.4   local government unit's local tax rate, the amounts amount 
 11.5   certified to be levied against net tax capacity under section 
 11.6   275.07 by an individual the local government unit shall be 
 11.7   divided by the total net tax capacity of all taxable properties 
 11.8   within the local government unit's taxing jurisdiction.  For 
 11.9   homestead properties whose net tax capacity is determined under 
 11.10  section 273.13, subdivisions 34 and 35, the tax capacity for the 
 11.11  previous taxes payable year shall be used in the determination 
 11.12  of the local tax rate, after adjustment under subdivision 5.  
 11.13     (b) The resulting ratio, the local government's local tax 
 11.14  rate, multiplied by each property's net tax capacity shall be 
 11.15  each property's net tax capacity tax for that local government 
 11.16  unit before reduction by any credits.  For homestead properties 
 11.17  whose net tax capacity is determined under section 273.13, 
 11.18  subdivisions 34 and 35, the tax capacity for the current year 
 11.19  shall be used in the determination of the property's net tax 
 11.20  capacity tax.  
 11.21     (c) To determine a taxing district's referendum tax rate, 
 11.22  any amount certified to the county auditor to be levied against 
 11.23  market value shall be divided by the total referendum market 
 11.24  value of all taxable properties within the taxing district.  For 
 11.25  homestead properties whose referendum market value is determined 
 11.26  under sections 126C.01, subdivision 3, and 273.13, subdivisions 
 11.27  34 and 35, the referendum market value for the previous taxes 
 11.28  payable year shall be used in the determination of the local 
 11.29  referendum tax rate, after adjustment under subdivision 5.  
 11.30     (d) The resulting ratio, the taxing district's new 
 11.31  referendum tax rate, multiplied by each property's referendum 
 11.32  market value shall be each property's new referendum tax before 
 11.33  reduction by any credits.  For the purposes of this subdivision, 
 11.34  "referendum market value" means the market value as defined in 
 11.35  section 126C.01, subdivision 3.  For homestead properties whose 
 11.36  referendum market value is determined under section 273.13, 
 12.1   subdivisions 34 and 35, the referendum market value for the 
 12.2   current year shall be used in the determination of the 
 12.3   property's referendum market value tax. 
 12.4      [EFFECTIVE DATE.] This section is effective for taxes 
 12.5   payable in 2003 and subsequent years. 
 12.6      Sec. 10.  Minnesota Statutes 2000, section 275.08, is 
 12.7   amended by adding a subdivision to read: 
 12.8      Subd. 5.  [ADJUSTMENT OF HOMESTEAD NET TAX CAPACITY.] By 
 12.9   September 1 of each year, the commissioner of finance shall 
 12.10  certify to the commissioner of revenue the "homestead net tax 
 12.11  capacity adjustment factor" for the year, equal to the estimated 
 12.12  change in the national consumer price index for the current 
 12.13  calendar year.  The commissioner of revenue shall notify all 
 12.14  local taxing jurisdictions of the factor, which must be used to 
 12.15  adjust the net tax capacities of all homestead properties in 
 12.16  determining tax rates for taxes payable in the following year. 
 12.17     [EFFECTIVE DATE.] This section is effective for taxes 
 12.18  payable in 2003 and subsequent years. 
 12.19     Sec. 11.  Minnesota Statutes 2000, section 276.04, 
 12.20  subdivision 3, is amended to read: 
 12.21     Subd. 3.  [MAILING OF TAX STATEMENTS.] The county treasurer 
 12.22  shall mail to taxpayers statements of their personal property 
 12.23  taxes due not later than April 15 for property taxes payable in 
 12.24  1990 and March 31 thereafter, except in the case of manufactured 
 12.25  homes and sectional structures taxed as personal property.  
 12.26  Statements of the real property taxes due shall be mailed not 
 12.27  later than April 15 for property taxes payable in 1990 and May 
 12.28  15, for all properties classified as homestead, and not later 
 12.29  than March 31 thereafter, for all other properties.  The 
 12.30  validity of the tax shall not be affected by failure of the 
 12.31  treasurer to mail the statement.  The taxpayer is defined as the 
 12.32  owner who is responsible for the payment of the tax.  
 12.33     [EFFECTIVE DATE.] This section is effective for taxes 
 12.34  payable in 2003 and subsequent years. 
 12.35     Sec. 12.  Minnesota Statutes 2000, section 290A.02, is 
 12.36  amended to read: 
 13.1      290A.02 [PURPOSE.] 
 13.2      The purpose of this chapter is to provide property tax 
 13.3   relief to certain owners of farm homesteads and persons who own 
 13.4   or rent their homesteads dwellings. 
 13.5      [EFFECTIVE DATE.] This section is effective for returns 
 13.6   filed in 2003 and subsequent years. 
 13.7      Sec. 13.  Minnesota Statutes 2000, section 290A.03, 
 13.8   subdivision 4, is amended to read: 
 13.9      Subd. 4.  [HOUSEHOLD.] "Household" means a claimant and an 
 13.10  individual related to the claimant as husband or wife who are 
 13.11  domiciled in the same homestead dwelling. 
 13.12     [EFFECTIVE DATE.] This section is effective for returns 
 13.13  filed in 2003 and subsequent years. 
 13.14     Sec. 14.  Minnesota Statutes 2000, section 290A.03, 
 13.15  subdivision 8, is amended to read: 
 13.16     Subd. 8.  [CLAIMANT.] (a) "Claimant" means a person, other 
 13.17  than a dependent, as defined under sections 151 and 152 of the 
 13.18  Internal Revenue Code disregarding section 152(b)(3) of the 
 13.19  Internal Revenue Code, who either (i) owned and occupied a 
 13.20  property classified as class 2a under section 273.13, or (ii) 
 13.21  rented the person's principal domicile, and who filed a claim 
 13.22  authorized by this chapter and who was a resident of this state 
 13.23  as provided in chapter 290 during the calendar year for which 
 13.24  the claim for relief was filed. 
 13.25     (b) In the case of a claim relating to rent constituting 
 13.26  property taxes, the claimant shall have resided in a rented or 
 13.27  leased unit on which ad valorem taxes or payments made in lieu 
 13.28  of ad valorem taxes, including payments of special assessments 
 13.29  imposed in lieu of ad valorem taxes, are payable at some time 
 13.30  during the calendar year covered by the claim.  
 13.31     (c) "Claimant" shall not include a resident of a nursing 
 13.32  home, intermediate care facility, or long-term residential 
 13.33  facility whose rent constituting property taxes is paid pursuant 
 13.34  to the supplemental security income program under title XVI of 
 13.35  the Social Security Act, the Minnesota supplemental aid program 
 13.36  under sections 256D.35 to 256D.54, the medical assistance 
 14.1   program pursuant to title XIX of the Social Security Act, or the 
 14.2   general assistance medical care program pursuant to section 
 14.3   256D.03, subdivision 3.  If only a portion of the rent 
 14.4   constituting property taxes is paid by these programs, the 
 14.5   resident shall be a claimant for purposes of this chapter, but 
 14.6   the refund calculated pursuant to section 290A.04 shall be 
 14.7   multiplied by a fraction, the numerator of which is income as 
 14.8   defined in subdivision 3, paragraphs (1) and (2), reduced by the 
 14.9   total amount of income from the above sources other than vendor 
 14.10  payments under the medical assistance program or the general 
 14.11  assistance medical care program and the denominator of which is 
 14.12  income as defined in subdivision 3, paragraphs (1) and (2), plus 
 14.13  vendor payments under the medical assistance program or the 
 14.14  general assistance medical care program, to determine the 
 14.15  allowable refund pursuant to this chapter.  
 14.16     (d) Notwithstanding paragraph (c), if the claimant was a 
 14.17  resident of the nursing home, intermediate care facility or 
 14.18  long-term residential facility for only a portion of the 
 14.19  calendar year covered by the claim, the claimant may compute 
 14.20  rent constituting property taxes by disregarding the rent 
 14.21  constituting property taxes from the nursing home, intermediate 
 14.22  care facility, or long-term residential facility and use only 
 14.23  that amount of rent constituting property taxes or property 
 14.24  taxes payable relating to that portion of the year when the 
 14.25  claimant was not in the facility.  The claimant's household 
 14.26  income is the income for the entire calendar year covered by the 
 14.27  claim.  
 14.28     (e) In the case of a claim for rent constituting property 
 14.29  taxes of a part-year Minnesota resident, the income and rental 
 14.30  reflected in this computation shall be for the period of 
 14.31  Minnesota residency only.  Any rental expenses paid which may be 
 14.32  reflected in arriving at federal adjusted gross income cannot be 
 14.33  utilized for this computation.  When two individuals of a 
 14.34  household are able to meet the qualifications for a claimant, 
 14.35  they may determine among them as to who the claimant shall be. 
 14.36  If they are unable to agree, the matter shall be referred to the 
 15.1   commissioner of revenue whose decision shall be final.  If a 
 15.2   homestead property owner was a part-year Minnesota resident, the 
 15.3   income reflected in the computation made pursuant to section 
 15.4   290A.04 shall be for the entire calendar year, including income 
 15.5   not assignable to Minnesota. 
 15.6      (f) If a homestead dwelling is occupied by two or more 
 15.7   renters, who are not husband and wife, the rent shall be deemed 
 15.8   to be paid equally by each, and separate claims shall be filed 
 15.9   by each.  The income of each shall be each renter's household 
 15.10  income for purposes of computing the amount of credit to be 
 15.11  allowed. 
 15.12     [EFFECTIVE DATE.] This section is effective for returns 
 15.13  filed in 2003 and subsequent years. 
 15.14     Sec. 15.  Minnesota Statutes 2000, section 290A.03, 
 15.15  subdivision 13, is amended to read: 
 15.16     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
 15.17  payable" means the property tax exclusive of special 
 15.18  assessments, penalties, and interest payable on up to $600,000 
 15.19  market value of a claimant's agricultural homestead excluding 
 15.20  the value and tax attributable to the house, garage, and 
 15.21  surrounding one acre of land, after deductions made under 
 15.22  sections 273.135, 273.1382, 273.1391, 273.42, subdivision 2, and 
 15.23  any other state paid property tax credits in any calendar year.  
 15.24  In the case of a claimant who makes ground lease payments, 
 15.25  "property taxes payable" includes the amount of the payments 
 15.26  directly attributable to the property taxes assessed against the 
 15.27  parcel on which the house is located.  No apportionment or 
 15.28  reduction of the "property taxes payable" shall be required for 
 15.29  the use of a portion of the claimant's homestead for a business 
 15.30  purpose if the claimant does not deduct any business 
 15.31  depreciation expenses for the use of a portion of the homestead 
 15.32  in the determination of federal adjusted gross income.  For 
 15.33  homesteads which are manufactured homes as defined in section 
 15.34  273.125, subdivision 8, and for homesteads which are park 
 15.35  trailers taxed as manufactured homes under section 168.012, 
 15.36  subdivision 9, "property taxes payable" shall also include 19 
 16.1   percent of the gross rent paid in the preceding year for the 
 16.2   site on which the homestead is located.  When a homestead is 
 16.3   owned by two or more persons as joint tenants or tenants in 
 16.4   common, such tenants shall determine between them which tenant 
 16.5   may claim the property taxes payable on the homestead.  If they 
 16.6   are unable to agree, the matter shall be referred to the 
 16.7   commissioner of revenue whose decision shall be final.  Property 
 16.8   taxes are considered payable in the year prescribed by law for 
 16.9   payment of the taxes. 
 16.10     In the case of a claim relating to "property taxes 
 16.11  payable," the claimant must have owned and occupied the 
 16.12  homestead on January 2 of the year in which the tax is payable 
 16.13  and (i) the property must have been classified as homestead 
 16.14  property pursuant to section 273.124, on or before December 15 
 16.15  of the assessment year to which the "property taxes payable" 
 16.16  relate; or (ii) the claimant must provide documentation from the 
 16.17  local assessor that application for homestead classification has 
 16.18  been made on or before December 15 of the year in which the 
 16.19  "property taxes payable" were payable and that the assessor has 
 16.20  approved the application. 
 16.21     [EFFECTIVE DATE.] This section is effective for returns 
 16.22  filed in 2003 and subsequent years. 
 16.23     Sec. 16.  Minnesota Statutes 2000, section 290A.04, 
 16.24  subdivision 2, is amended to read: 
 16.25     Subd. 2.  [FARM HOMEOWNERS.] A claimant whose property 
 16.26  taxes payable on an agricultural homestead are in excess of the 
 16.27  percentage of the household income stated below shall pay an 
 16.28  amount equal to the percent of income shown for the appropriate 
 16.29  household income level along with the percent to be paid by the 
 16.30  claimant of the remaining amount of property taxes payable.  The 
 16.31  state refund equals the amount of property taxes payable that 
 16.32  remain, up to the state refund amount shown below.  
 16.33                        Percent           Percent    Maximum
 16.34  Household Income     of Income          Paid by     State
 16.35                                          Claimant    Refund
 16.36      $0 to 1,029     1.2 percent        18 percent   $440
 16.37   1,030 to 2,059     1.3 percent        18 percent   $440
 16.38   2,060 to 3,099     1.4 percent        20 percent   $440
 16.39   3,100 to 4,129     1.6 percent        20 percent   $440
 17.1    4,130 to 5,159     1.7 percent        20 percent   $440
 17.2    5,160 to 7,229     1.9 percent        25 percent   $440
 17.3    7,230 to 8,259     2.1 percent        25 percent   $440
 17.4    8,260 to 9,289     2.2 percent        25 percent   $440
 17.5    9,290 to 10,319    2.3 percent        30 percent   $440
 17.6   10,320 to 11,349    2.4 percent        30 percent   $440
 17.7   11,350 to 12,389    2.5 percent        30 percent   $440
 17.8   12,390 to 14,449    2.6 percent        30 percent   $440
 17.9   14,450 to 15,479    2.8 percent        35 percent   $440
 17.10  15,480 to 16,509    3.0 percent        35 percent   $440
 17.11  16,510 to 17,549    3.2 percent        40 percent   $440
 17.12  17,550 to 21,669    3.3 percent        40 percent   $440
 17.13  21,670 to 24,769    3.4 percent        45 percent   $440
 17.14  24,770 to 30,959    3.5 percent        45 percent   $440
 17.15  30,960 to 36,119    3.5 percent        45 percent   $440
 17.16  36,120 to 41,279    3.7 percent        50 percent   $440
 17.17  41,280 to 58,829    4.0 percent        50 percent   $440
 17.18  58,830 to 59,859    4.0 percent        50 percent   $310
 17.19  59,860 to 60,889    4.0 percent        50 percent   $210
 17.20  60,890 to 61,929    4.0 percent        50 percent   $100 
 17.21     The payment made to a claimant shall be the amount of the 
 17.22  state refund calculated under this subdivision.  No payment is 
 17.23  allowed if the claimant's household income is $61,930 or more. 
 17.24     [EFFECTIVE DATE.] This section is effective for returns 
 17.25  filed in 2003 and subsequent years. 
 17.26     Sec. 17.  Minnesota Statutes 2000, section 290A.04, 
 17.27  subdivision 2h, is amended to read: 
 17.28     Subd. 2h.  [ADDITIONAL REFUND.] (a) If the gross property 
 17.29  taxes payable on a an agricultural homestead increase more than 
 17.30  12 percent over the net property taxes payable in the prior year 
 17.31  on the same property that is owned and occupied by the same 
 17.32  owner on January 2 of both years, and the amount of that 
 17.33  increase is $100 or more, a claimant who is a homeowner shall be 
 17.34  allowed an additional refund equal to 60 percent of the amount 
 17.35  of the increase over the greater of 12 percent of the prior 
 17.36  year's net property taxes payable or $100.  This subdivision 
 17.37  shall not apply to any increase in the gross property taxes 
 17.38  payable attributable to improvements made to the homestead 
 17.39  property after the assessment date for the prior year's taxes.  
 17.40  This subdivision shall not apply to any increase in the gross 
 17.41  property taxes payable attributable to the termination of 
 17.42  valuation exclusions under section 273.11, subdivision 16. 
 17.43     The maximum refund allowed under this subdivision is $1,000.
 17.44     (b) For purposes of this subdivision, the following terms 
 17.45  have the meanings given: 
 18.1      (1) "Net property taxes payable" means property taxes 
 18.2   payable minus refund amounts for which the claimant qualifies 
 18.3   pursuant to subdivision 2 and this subdivision.  
 18.4      (2) "Gross property taxes" means net property taxes payable 
 18.5   determined without regard to the refund allowed under this 
 18.6   subdivision. 
 18.7      (c) In addition to the other proofs required by this 
 18.8   chapter, each claimant under this subdivision shall file with 
 18.9   the property tax refund return a copy of the property tax 
 18.10  statement for taxes payable in the preceding year or other 
 18.11  documents required by the commissioner. 
 18.12     (d) Upon request, the appropriate county official shall 
 18.13  make available the names and addresses of the property taxpayers 
 18.14  who may be eligible for the additional property tax refund under 
 18.15  this section.  The information shall be provided on a magnetic 
 18.16  computer disk.  The county may recover its costs by charging the 
 18.17  person requesting the information the reasonable cost for 
 18.18  preparing the data.  The information may not be used for any 
 18.19  purpose other than for notifying the homeowner of potential 
 18.20  eligibility and assisting the homeowner, without charge, in 
 18.21  preparing a refund claim. 
 18.22     [EFFECTIVE DATE.] This section is effective for returns 
 18.23  filed in 2003 and subsequent years. 
 18.24     Sec. 18.  [EDUCATION LEVY REDUCTION APPROPRIATION.] 
 18.25     In addition to any amount appropriated by other law, an 
 18.26  amount sufficient to reduce the general education property tax 
 18.27  levy for taxes payable in 2003 and subsequent years by 
 18.28  $400,000,000 each year is appropriated from the general fund to 
 18.29  the commissioner of children, families, and learning.  
 18.30     [EFFECTIVE DATE.] This section is effective for fiscal year 
 18.31  2004 and subsequent years. 
 18.32     Sec. 19.  [REPEALER.] 
 18.33     Minnesota Statutes 2000, sections 273.1382, subdivision 1a; 
 18.34  and 290A.03, subdivision 6, are repealed. 
 18.35     [EFFECTIVE DATE.] This section is effective January 1, 2003.