HF 1613

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

  1.1                          A bill for an act 
  1.2             relating to taxation; exempting low-income housing 
  1.3             owned by a qualified nonprofit agency from property 
  1.4             taxation; exempting construction and rehabilitation of 
  1.5             low-income housing owned by a qualified nonprofit 
  1.6             agency from the sales tax; providing for payments in 
  1.7             lieu of taxes; amending Minnesota Statutes 2000, 
  1.8             sections 272.02, by adding a subdivision; 297A.71, by 
  1.9             adding a subdivision; 297A.75. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 272.02, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 45.  [LOW-INCOME HOUSING OWNED BY A QUALIFIED 
  1.14  NONPROFIT AGENCY.] Any property (i) owned by a nonprofit 
  1.15  corporation subject to the provisions of chapter 317A, and 
  1.16  qualifying under section 501(c)(3) or 501(c)(4) of the Internal 
  1.17  Revenue Code of 1986, as amended, (ii) used to provide rental 
  1.18  housing for persons or families with incomes less than 30 
  1.19  percent of area median income, as determined by the United 
  1.20  States Department of Housing and Urban Development, adjusted for 
  1.21  family size, and (iii) rented for an annual amount that does not 
  1.22  exceed nine percent of area median income, adjusted for family 
  1.23  size, is exempt from all taxes and special assessments of the 
  1.24  city, the county, the state, or any political subdivision of the 
  1.25  state in the same manner as property referred to in section 
  1.26  469.040, subdivision 1.  For purposes of this subdivision, 
  1.27  "rent" includes one-half of any additional amounts the occupants 
  2.1   must pay for heat, water, electricity, gas, sewage disposal, or 
  2.2   garbage removal.  Payments in lieu of taxes for the property 
  2.3   must be made as provided in section 469.040, subdivision 3, 
  2.4   according to the procedures specified in that subdivision.  A 
  2.5   property qualifying for exemption under this section continues 
  2.6   to qualify for up to two years after qualification would 
  2.7   otherwise cease due to a tenant's income exceeding the limit 
  2.8   prescribed, if the property continues to be occupied by the same 
  2.9   tenant.  Owners of property qualifying for exemption under this 
  2.10  section must file an annual statement with the assessor 
  2.11  validating the claim for exemption, along with whatever 
  2.12  supporting information the assessor requires. 
  2.13     [EFFECTIVE DATE.] This section is effective for taxes 
  2.14  payable in 2002 and subsequent years. 
  2.15     Sec. 2.  Minnesota Statutes 2000, section 297A.71, is 
  2.16  amended by adding a subdivision to read: 
  2.17     Subd. 23.  [CONSTRUCTION MATERIALS FOR LOW-INCOME HOUSING 
  2.18  OWNED BY QUALIFIED NONPROFIT AGENCIES.] (a) Purchases of 
  2.19  materials and supplies used or consumed in, and equipment 
  2.20  incorporated into, the construction, rehabilitation, 
  2.21  improvement, or expansion of qualified low-income housing are 
  2.22  exempt from the tax imposed under this chapter if the property 
  2.23  qualifies for property tax exemption under section 272.02, 
  2.24  subdivision 45. 
  2.25     (b) In the case of a building project being undertaken to 
  2.26  produce low-income housing to qualify for property tax exemption 
  2.27  under section 272.02, subdivision 45, but which does not 
  2.28  currently qualify for property tax exemption, the exemption from 
  2.29  the tax under this chapter shall apply contingent upon the 
  2.30  property becoming qualified under section 272.02, subdivision 
  2.31  45, within one year of the purchase of materials and supplies.  
  2.32  When the property becomes eligible, the taxpayer may file a 
  2.33  claim for a refund of sales tax paid under section 297A.75. 
  2.34     [EFFECTIVE DATE.] This section is effective for sales and 
  2.35  purchases occurring after June 30, 2001. 
  2.36     Sec. 3.  Minnesota Statutes 2000, section 297A.75, is 
  3.1   amended to read: 
  3.2      297A.75 [REFUND; APPROPRIATION.] 
  3.3      Subdivision 1.  [TAX COLLECTED.] The tax on the gross 
  3.4   receipts from the sale of the following exempt items must be 
  3.5   imposed and collected as if the sale were taxable and the rate 
  3.6   under section 297A.62, subdivision 1, applied.  The exempt items 
  3.7   include: 
  3.8      (1) capital equipment exempt under section 297A.68, 
  3.9   subdivision 5; 
  3.10     (2) building materials for an agricultural processing 
  3.11  facility exempt under section 297A.71, subdivision 13; 
  3.12     (3) building materials for mineral production facilities 
  3.13  exempt under section 297A.71, subdivision 14; 
  3.14     (4) building materials for correctional facilities under 
  3.15  section 297A.71, subdivision 3; 
  3.16     (5) building materials used in a residence for disabled 
  3.17  veterans exempt under section 297A.71, subdivision 11; and 
  3.18     (6) chair lifts, ramps, elevators, and associated building 
  3.19  materials exempt under section 297A.71, subdivision 12; and 
  3.20     (7) construction materials for low-income housing under 
  3.21  section 297A.71, subdivision 23. 
  3.22     Subd. 2.  [REFUND; ELIGIBLE PERSONS.] Upon application on 
  3.23  forms prescribed by the commissioner, a refund equal to the tax 
  3.24  paid on the gross receipts of the exempt items must be paid to 
  3.25  the applicant.  Only the following persons may apply for the 
  3.26  refund: 
  3.27     (1) for subdivision 1, clauses (1) to (3), the applicant 
  3.28  must be the purchaser; 
  3.29     (2) for subdivision 1, clause (4), the applicant must be 
  3.30  the governmental subdivision; 
  3.31     (3) for subdivision 1, clause (5), the applicant must be 
  3.32  the recipient of the benefits provided in United States Code, 
  3.33  title 38, chapter 21; and 
  3.34     (4) for subdivision 1, clause (6), the applicant must be 
  3.35  the owner of the homestead property; and 
  3.36     (5) for subdivision 1, clause (7), the applicant must be 
  4.1   the qualified nonprofit corporation. 
  4.2      Subd. 3.  [APPLICATION.] (a) The application must include 
  4.3   sufficient information to permit the commissioner to verify the 
  4.4   tax paid.  If the tax was paid by a contractor, subcontractor, 
  4.5   or builder, under subdivision 1, clause (4), (5), or (6), or 
  4.6   (7), the contractor, subcontractor, or builder must furnish to 
  4.7   the refund applicant a statement including the cost of the 
  4.8   exempt items and the taxes paid on the items unless otherwise 
  4.9   specifically provided by this subdivision.  The provisions of 
  4.10  sections 289A.40 and 289A.50 apply to refunds under this section.
  4.11     (b) An applicant may not file more than two applications 
  4.12  per calendar year for refunds for taxes paid on capital 
  4.13  equipment exempt under section 297A.68, subdivision 5.  
  4.14     Subd. 4.  [INTEREST.] Interest must be paid on the refund 
  4.15  at the rate in section 270.76 from the date the refund claim is 
  4.16  filed for taxes paid under subdivision 1, clauses (1) to (3), 
  4.17  and (5), and from 60 days after the date the refund claim is 
  4.18  filed with the commissioner for claims filed under subdivision 
  4.19  1, clauses (4), and (6), and (7). 
  4.20     Subd. 5.  [APPROPRIATION.] The amount required to make the 
  4.21  refunds is annually appropriated to the commissioner. 
  4.22     [EFFECTIVE DATE.] This section is effective for sales and 
  4.23  purchases made after June 30, 2001.