HF 169

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

A bill for an act
relating to property taxation; providing a property
tax exemption for the homestead of a permanently and
totally disabled veteran or the veteran's spouse;
amending Minnesota Statutes 2004, sections 272.02, by
adding a subdivision; 273.13, subdivision 22.

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

Section 1.

Minnesota Statutes 2004, section 272.02, is
amended by adding a subdivision to read:

new text begin Subd. 68. new text end

new text begin Homestead of disabled veteran or surviving
spouse. new text end

new text begin (a) Property otherwise qualifying for homestead
classification under section 273.13 is exempt from taxation if
it serves as the homestead of a military veteran, as defined in
section 197.447, who has a total and permanent service-connected
disability. To qualify for exemption under this subdivision,
the veteran must have been honorably discharged from the United
States armed forces, as indicated by United States Government
Form DD214 or other official military discharge papers, and must
be certified by the United States Veterans Administration as
having a total (100 percent) and permanent service-connected
disability.
new text end

new text begin (b) If a disabled veteran qualifying for exemption under
paragraph (a) predeceases the veteran's spouse, and if upon the
death of the veteran the spouse holds the legal or beneficial
title to the homestead and permanently resides there, the
exemption from taxation shall carry over to the benefit of the
veteran's spouse until such time as the spouse remarries or
sells or otherwise disposes of the property.
new text end

new text begin (c) In the case of an agricultural homestead, only the
portion of the property consisting of the house and garage and
immediately surrounding one acre of land qualifies for exemption
under this subdivision.
new text end

new text begin (d) A property owner attempting to first qualify for
exemption under this section must apply to the assessor by July
1 of the assessment year, except that for assessment year 2005
application may be made until October 1, 2005. The application
must be accompanied by supporting documentation as required by
the assessor. Once a property has been accepted for exemption
under this section, the property continues to qualify until
there is a change in ownership of the property.
new text end

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

Sec. 2.

Minnesota Statutes 2004, section 273.13,
subdivision 22, is amended to read:

Subd. 22.

Class 1.

(a) Except as provided in subdivision
23 and in paragraphs (b) and (c), real estate which is
residential and used for homestead purposes is class 1a. In the
case of a duplex or triplex in which one of the units is used
for homestead purposes, the entire property is deemed to be used
for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage,
and land.

The first $500,000 of market value of class 1a property has
a net class rate of one percent of its market value; and the
market value of class 1a property that exceeds $500,000 has a
class rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or
homestead manufactured homes used for the purposes of a
homestead by

(1) any person who is blind as defined in section 256D.35,
or the blind person and the blind person's spouse; or

(2) deleted text begin any person, hereinafter referred to as "veteran," who:
deleted text end

deleted text begin (i) served in the active military or naval service of the
United States; and
deleted text end

deleted text begin (ii) is entitled to compensation under the laws and
regulations of the United States for permanent and total
service-connected disability due to the loss, or loss of use, by
reason of amputation, ankylosis, progressive muscular
dystrophies, or paralysis, of both lower extremities, such as to
preclude motion without the aid of braces, crutches, canes, or a
wheelchair; and
deleted text end

deleted text begin (iii) has acquired a special housing unit with special
fixtures or movable facilities made necessary by the nature of
the veteran's disability, or the surviving spouse of the
deceased veteran for as long as the surviving spouse retains the
special housing unit as a homestead; or
deleted text end

deleted text begin (3) deleted text end any person who is permanently and totally disabled.

Property is classified and assessed under clause deleted text begin (3) deleted text end new text begin (2)
new text end only if the government agency or income-providing source
certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this
paragraph.

Property is classified and assessed pursuant to clause (1)
only if the commissioner of revenue certifies to the assessor
that the homestead occupant satisfies the requirements of this
paragraph.

Permanently and totally disabled for the purpose of this
subdivision means a condition which is permanent in nature and
totally incapacitates the person from working at an occupation
which brings the person an income. The first $32,000 market
value of class 1b property has a net class rate of .45 percent
of its market value. The remaining market value of class 1b
property has a class rate using the rates for class 1a or class
2a property, whichever is appropriate, of similar market value.

(c) Class 1c property is commercial use real property that
abuts a lakeshore line and is devoted to temporary and seasonal
residential occupancy for recreational purposes but not devoted
to commercial purposes for more than 250 days in the year
preceding the year of assessment, and that includes a portion
used as a homestead by the owner, which includes a dwelling
occupied as a homestead by a shareholder of a corporation that
owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the
resort even if the title to the homestead is held by the
corporation, partnership, or limited liability company. For
purposes of this clause, property is devoted to a commercial
purpose on a specific day if any portion of the property,
excluding the portion used exclusively as a homestead, is used
for residential occupancy and a fee is charged for residential
occupancy. The first $500,000 of market value of class 1c
property has a class rate of one percent, and the remaining
market value of class 1c property has a class rate of one
percent, with the following limitation: the area of the
property must not exceed 100 feet of lakeshore footage for each
cabin or campsite located on the property up to a total of 800
feet and 500 feet in depth, measured away from the lakeshore.
If any portion of the class 1c resort property is classified as
class 4c under subdivision 25, the entire property must meet the
requirements of subdivision 25, paragraph (d), clause (1), to
qualify for class 1c treatment under this paragraph.

(d) Class 1d property includes structures that meet all of
the following criteria:

(1) the structure is located on property that is classified
as agricultural property under section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm
workers during the time when they work on that farm, and the
occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of
farm equipment and produce does not disqualify the property from
classification under this paragraph;

(3) the structure meets all applicable health and safety
requirements for the appropriate season; and

(4) the structure is not salable as residential property
because it does not comply with local ordinances relating to
location in relation to streets or roads.

The market value of class 1d property has the same class
rates as class 1a property under paragraph (a).

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