Minnesota Legislature
HF 1129
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
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A bill for an act
relating to taxation; property; modifying the senior citizen's property tax deferral
program; amending Minnesota Statutes 2006, sections 290B.03, subdivision 1;
290B.04, subdivisions 2, 3, 4; 290B.05, subdivision 1; 290B.07.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read:
Subdivision 1.
Program qualifications.
The qualifications for the senior citizens'
property tax deferral program are as follows:
(1) the property must be owned and occupied as a homestead by a person 65 years of
age or older. In the case of a married couple, deleted text begin bothdeleted text end new text begin only one new text end of the spouses must be at least
65 years old at the time the first property tax deferral is granted, regardless of whether the
property is titled in the name of one spouse or both spouses, or titled in another way that
permits the property to have homestead status;
(2) the total household income of the qualifying deleted text begin homeownersdeleted text end new text begin homeowner, or in the
case of a married couple, the qualifying homeowner and spousenew text end , as defined in section
290A.03, subdivision 5, for the calendar year preceding the year of the initial application
may not exceed deleted text begin $60,000deleted text end new text begin the maximum household income under section 290A.04,
subdivision 2, for the calendar year preceding the year of the initial applicationnew text end ;
(3) the homestead must have been owned and occupied as the homestead of at
least one of the deleted text begin qualifyingdeleted text end homeowners for at least 15 years prior to the year the initial
application is filed;
(4) there are no state or federal tax liens or judgment liens on the homesteaded
property;
(5) there are no mortgages or other liens on the property that secure future advances,
except for those subject to credit limits that result in compliance with clause (6); and
(6) the total unpaid balances of debts secured by mortgages and other liens on the
property, including unpaid and delinquent special assessments and interest and any
delinquent property taxes, penalties, and interest, but not including property taxes payable
during the year, does not exceed 75 percent of the assessor's estimated market value for
the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications filed on or after
July 1, 2007.
new text end
Sec. 2.
Minnesota Statutes 2006, section 290B.04, subdivision 2, is amended to read:
Subd. 2.
Approval; recording.
The commissioner shall approve all initial
applications that qualify under this chapter and shall notify qualifying homeowners on or
before December 1.new text begin The commissioner shall also notify qualifying homeowners of the
maximum household income under section 290A.04, subdivision 2, for the calendar year
preceding the year of the qualifying homeowner's initial application.new text end The commissioner
may investigate the facts or require confirmation in regard to an application. The
commissioner shall record or file a notice of qualification for deferral, including the names
of the qualifying homeowners and a legal description of the property, in the office of the
county recorder, or registrar of titles, whichever is applicable, in the county where the
qualifying property is located. The notice must state that it serves as a notice of lien and
that it includes deferrals under this section for future years. The homeowner shall pay the
recording or filing fees for the notice, which, notwithstanding section 357.18, shall be paid
by the homeowner at the time of satisfaction of the lien.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications filed on or after
July 1, 2007.
new text end
Sec. 3.
Minnesota Statutes 2006, section 290B.04, subdivision 3, is amended to read:
Subd. 3.
Excess-income certification by taxpayer.
A taxpayer whose initial
application has been approved under subdivision 2 shall notify the commissioner of
revenue in writing by July 1 if the taxpayer's household income for the preceding
calendar year exceeded deleted text begin $60,000deleted text end new text begin the maximum household income under section 290A.04,
subdivision 2, for the calendar year preceding the initial year of the application that was
certified to the taxpayer by the commissioner under section 290B.04, subdivision 2new text end . The
certification must state the homeowner's total household income for the previous calendar
year. new text begin If the commissioner determines that the taxpayer's household income exceeded the
maximum household income under section 290A.04, subdivision 2, for the preceding
calendar year, the commissioner must notify the individual that the individual has income
in excess of the maximum allowed. new text end No property taxes may be deferred under this chapter
in any year following the year in which a program participant filed or should have filed
an excess-income certification under this subdivisionnew text begin showing income in excess of the
maximum allowednew text end , unless the participant has filed a resumption of eligibility certification
as described in subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications filed on or after
July 1, 2007.
new text end
Sec. 4.
Minnesota Statutes 2006, section 290B.04, subdivision 4, is amended to read:
Subd. 4.
Resumption of eligibility certification by taxpayer.
A taxpayer who
has previously filed an excess-income certification under subdivision 3 may resume
program participation if the taxpayer's household income for a subsequent year is
deleted text begin $60,000 ordeleted text end lessnew text begin than the maximum household income under section 290A.04, subdivision
2new text end . If the taxpayer chooses to resume program participation, the taxpayer must notify
the commissioner of revenue in writing by July 1 of the year following a calendar
year in which the taxpayer's household income is deleted text begin $60,000 ordeleted text end lessnew text begin than the maximum
household income under section 290A.04, subdivision 2new text end . The certification must state
the taxpayer's total household income for the previous calendar year. Once a taxpayer
resumes participation in the program under this subdivision, participation will continue
until the taxpayer files a subsequent excess-income certification under subdivision 3 or
until participation is terminated under section 290B.08, subdivision 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications filed on or after
July 1, 2007.
new text end
Sec. 5.
Minnesota Statutes 2006, section 290B.05, subdivision 1, is amended to read:
Subdivision 1.
Determination by commissioner.
The commissioner shall
determine each qualifying homeowner's "annual maximum property tax amount"
following approval of the homeowner's initial application and following the receipt of a
resumption of eligibility certification. The "annual maximum property tax amount" equals
three percent of the homeowner's total household income for the year preceding either the
initial application or the resumption of eligibility certification, whichever is applicable.
Following approval of the initial application, the commissioner shall determine the
qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative
to the appropriate assessment year for any homeowner whose total household income
for the previous year exceeds deleted text begin $60,000deleted text end new text begin the maximum household income under section
290A.04, subdivision 2new text end . No tax shall be deferred in any year in which the homeowner
does not meet the program qualifications in section 290B.03. The maximum allowable
total deferral is equal to 75 percent of the assessor's estimated market value for the
year, less the balance of any mortgage loans and other amounts secured by liens against
the property at the time of application, including any unpaid and delinquent special
assessments and interest and any delinquent property taxes, penalties, and interest, but not
including property taxes payable during the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications received on or after
July 1, 2007.
new text end
Sec. 6.
Minnesota Statutes 2006, section 290B.07, is amended to read:
290B.07 LIEN; DEFERRED PORTION.
(a) Payment by the state to the county treasurer of property taxes, penalties, interest,
or special assessments and interest deferred under this chapter is deemed a loan from the
state to the program participant. The commissioner must deleted text begin compute the interest as provided
in section 270C.40, subdivision 5, but not to exceed five percent, anddeleted text end maintain records of
the total deferred amount and interest for each participant. Interest shall accrue beginning
September 1 of the payable year for which the taxes are deferrednew text begin , provided that no interest
shall be charged on (i) deferred property tax amounts on applications filed on or after
July 1, 2007, or (ii) deferred property taxes beginning with taxes payable in 2008 on
applications filed prior to July 1, 2007new text end . Any deferral made under this chapter shall not
be construed as delinquent property taxes.
The lien created under section 272.31 continues to secure payment by the taxpayer,
or by the taxpayer's successors or assigns, of the amount deferred, including interest, with
respect to all years for which amounts are deferred. The lien for deferred taxes and interest
has the same priority as any other lien under section 272.31, except that liens, including
mortgages, recorded or filed prior to the recording or filing of the notice under section
290B.04, subdivision 2, have priority over the lien for deferred taxes and interest. A
seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser
or an assignee of the purchaser, has priority over deferred taxes and interest on deferred
taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred
taxes and interest for future years has the same priority as the lien for deferred taxes and
interest for the first year, which is always higher in priority than any mortgages or other
liens filed, recorded, or created after the notice recorded or filed under section 290B.04,
subdivision 2. The county treasurer or auditor shall maintain records of the deferred
portion and shall list the amount of deferred taxes for the year and the cumulative deferral
and interest for all previous years as a lien against the property. In any certification of
unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes
payable in the current year, deferred taxes and interest, and delinquent taxes. Payment
of the deferred portion becomes due and owing at the time specified in section 290B.08.
Upon receipt of the payment, the commissioner shall issue a receipt for it to the person
making the payment upon request and shall notify the auditor of the county in which the
parcel is located, within ten days, identifying the parcel to which the payment applies.
Upon receipt by the commissioner of revenue of collected funds in the amount of the
deferral, the state's loan to the program participant is deemed paid in full.
(b) If property for which taxes have been deferred under this chapter forfeits
under chapter 281 for nonpayment of a nondeferred property tax amount, or because
of nonpayment of amounts previously deferred following a termination under section
290B.08, the lien for the taxes deferred under this chapter, plus interest and costs, shall be
canceled by the county auditor as provided in section 282.07. However, notwithstanding
any other law to the contrary, any proceeds from a subsequent sale of the property under
chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale
fund for any direct costs of selling the property or any costs directly related to preparing
the property for sale, and then to reimburse the state for the amount of the canceled lien.
Within 90 days of the receipt of any sale proceed to which the state is entitled under these
provisions, the county auditor must pay those funds to the commissioner of revenue by
warrant for deposit in the general fund. No other deposit, use, distribution, or release of
gross sale proceeds or receipts may be made by the county until payments sufficient
to fully reimburse the state for the canceled lien amount have been transmitted to the
commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2007.
new text end