HF 1584

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 for five additional years for
certain property; providing different limited market
value maximum increases based on a property's market
value; excluding certain property from the limitation;
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.

new text begin (a) new text end In the case of all
property classified as agricultural homestead deleted text begin or nonhomestead,
residential homestead or nonhomestead deleted text end , new text begin agricultural
nonhomestead, or new text end timber, deleted text begin 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

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.

For assessment year 2005, the amount of the increase shall
not exceed the greater of (1) 15 percent of the value in the
preceding assessment, or (2) 33 percent of the difference
between the current assessment and the preceding assessment.

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.

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

new text begin For assessment years 2005 through 2011, the amount of the
increase shall not exceed:
new text end

new text begin (1) 11 percent of the value in the preceding assessment, if
the taxable value in the preceding assessment was less than
$325,000 market value; or
new text end

new text begin (2) 25 percent of the value in the preceding assessment if
the taxable value in the preceding assessment is equal to or
greater than $325,000 market value but less than $750,000 market
value.
new text end

new text begin (c) new text end deleted text begin This limitation deleted text end new text begin The limitations in paragraphs (a) and
(b) new text end 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.

The provisions of this subdivision shall be in effect
through assessment year 2006 deleted text begin as provided in this subdivision deleted text end new text begin for
paragraph (a) and through assessment year 2011 for paragraph (b) new 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, for taxes payable in 2006, and thereafter.
new text end