relating to taxation; property; requiring a truth in taxation budget hearing;
repealing requirement for notice of proposed property taxes; amending Minnesota
Statutes 2012, sections 273.124, subdivision 13; 275.065, subdivisions 6, 7;
275.07, subdivision 1; 276.04, subdivision 2; 383E.21, subdivision 2; 469.1815,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 275;
repealing Minnesota Statutes 2012, section 275.065, subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:
Subd. 13. Homestead application.
(a) A person who meets the homestead
requirements under subdivision 1 must file a homestead application with the county
assessor to initially obtain homestead classification.
(b) The format and contents of a uniform homestead application shall be prescribed
by the commissioner of revenue. The application must clearly inform the taxpayer that
this application must be signed by all owners who occupy the property or by the qualifying
relative and returned to the county assessor in order for the property to receive homestead
(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner
of the property on the deed of record, the name and address of each owner who does not
occupy the property, and the name and Social Security number of each owner's spouse who
occupies the property. The application must be signed by each owner who occupies the
property and by each owner's spouse who occupies the property, or, in the case of property
that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not
claim another property as a homestead unless the property owner and the property owner's
spouse file with the assessor an affidavit or other proof required by the assessor stating that
the property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously
occupied with the other spouse, either of whom fail to include the other spouse's name
and Social Security number on the homestead application or provide the affidavits or
other proof requested, will be deemed to have elected to receive only partial homestead
treatment of their residence. The remainder of the residence will be classified as
nonhomestead residential. When an owner or spouse's name and Social Security number
appear on homestead applications for two separate residences and only one application is
signed, the owner or spouse will be deemed to have elected to homestead the residence for
which the application was signed.
The Social Security numbers, state or federal tax returns or tax return information,
including the federal income tax schedule F required by this section, or affidavits or other
proofs of the property owners and spouses submitted under this or another section to
support a claim for a property tax homestead classification are private data on individuals as
defined by section
13.02, subdivision 12
, but, notwithstanding that section, the private data
may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the
Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(d) If residential real estate is occupied and used for purposes of a homestead by a
relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
order for the property to receive homestead status, a homestead application must be filed
with the assessor. The Social Security number of each relative and spouse of a relative
occupying the property shall be required on the homestead application filed under this
subdivision. If a different relative of the owner subsequently occupies the property, the
owner of the property must notify the assessor within 30 days of the change in occupancy.
The Social Security number of a relative or relative's spouse occupying the property
is private data on individuals as defined by section
13.02, subdivision 12
, but may be
disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that the
application filed under this section will not be mailed annually and that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or
the owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section
. Failure to
notify the assessor within 30 days that the property has been sold, transferred, or that the
owner, the spouse of the owner, or the relative is no longer occupying the property as a
homestead, shall result in the penalty provided under this subdivision and the property
will lose its current homestead status.
(f) If the homestead application is not returned within 30 days, the county will send a
second application to the present owners of record.
The notice of proposed property taxes
3.9 prepared under section
275.065, subdivision 3 , shall reflect the property's classification.
a homestead application has not been filed with the county by December 15, the assessor
shall classify the property as nonhomestead for the current assessment year for taxes
payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section
(g) At the request of the commissioner, each county must give the commissioner a
list that includes the name and Social Security number of each occupant of homestead
property who is the property owner, property owner's spouse, qualifying relative of a
property owner, or a spouse of a qualifying relative. The commissioner shall use the
information provided on the lists as appropriate under the law, including for the detection
of improper claims by owners, or relatives of owners, under chapter 290A.
(h) If the commissioner finds that a property owner may be claiming a fraudulent
homestead, the commissioner shall notify the appropriate counties. Within 90 days of
the notification, the county assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does not qualify, the county
assessor shall notify the county auditor who will determine the amount of homestead
benefits that had been improperly allowed. For the purpose of this section, "homestead
benefits" means the tax reduction resulting from the classification as a homestead under
, the taconite homestead credit under section
, the residential
homestead and agricultural homestead credits under section
, and the
supplemental homestead credit under section
The county auditor shall send a notice to the person who owned the affected property
at the time the homestead application related to the improper homestead was filed,
demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
of the homestead benefits. The person notified may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section
and filing proof of service as provided in section
with the Minnesota Tax
Court within 60 days of the date of the notice from the county. Procedurally, the appeal
is governed by the provisions in chapter 271 which apply to the appeal of a property tax
assessment or levy, but without requiring any prepayment of the amount in controversy. If
the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
has been filed, the county auditor shall certify the amount of taxes and penalty to the county
treasurer. The county treasurer will add interest to the unpaid homestead benefits and
penalty amounts at the rate provided in section
for real property taxes becoming
delinquent in the calendar year during which the amount remains unpaid. Interest may be
assessed for the period beginning 60 days after demand for payment was made.
If the person notified is the current owner of the property, the treasurer may add the
total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
otherwise payable on the property by including the amounts on the property tax statements
276.04, subdivision 3
. The amounts added under this paragraph to the ad
valorem taxes shall include interest accrued through December 31 of the year preceding
the taxes payable year for which the amounts are first added. These amounts, when added
to the property tax statement, become subject to all the laws for the enforcement of real or
personal property taxes for that year, and for any subsequent year.
If the person notified is not the current owner of the property, the treasurer may
collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
the powers granted in sections
without exclusion, to enforce payment
of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
tax obligations of the person who owned the property at the time the application related to
the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
those amounts on the tax lists against the property as provided in this paragraph to the extent
that the current owner agrees in writing. On all demands, billings, property tax statements,
and related correspondence, the county must list and state separately the amounts of
homestead benefits, penalty, interest and costs being demanded, billed or assessed.
(i) Any amount of homestead benefits recovered by the county from the property
owner shall be distributed to the county, city or town, and school district where the
property is located in the same proportion that each taxing district's levy was to the total
of the three taxing districts' levy for the current year. Any amount recovered attributable
to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
deposited in the taconite property tax relief account. Any amount recovered that is
attributable to supplemental homestead credit is to be transmitted to the commissioner of
revenue for deposit in the general fund of the state treasury. The total amount of penalty
collected must be deposited in the county general fund.
(j) If a property owner has applied for more than one homestead and the county
assessors cannot determine which property should be classified as homestead, the county
assessors will refer the information to the commissioner. The commissioner shall make
the determination and notify the counties within 60 days.
(k) In addition to lists of homestead properties, the commissioner may ask the
counties to furnish lists of all properties and the record owners. The Social Security
numbers and federal identification numbers that are maintained by a county or city
assessor for property tax administration purposes, and that may appear on the lists retain
their classification as private or nonpublic data; but may be viewed, accessed, and used by
the county auditor or treasurer of the same county for the limited purpose of assisting the
commissioner in the preparation of microdata samples under section
(l) On or before April 30 each year beginning in 2007, each county must provide the
commissioner with the following data for each parcel of homestead property by electronic
means as defined in section
289A.02, subdivision 8
(i) the property identification number assigned to the parcel for purposes of taxes
payable in the current year;
(ii) the name and Social Security number of each occupant of homestead property
who is the property owner, property owner's spouse, qualifying relative of a property
owner, or spouse of a qualifying relative;
(iii) the classification of the property under section
for taxes payable in the
current year and in the prior year;
(iv) an indication of whether the property was classified as a homestead for taxes
payable in the current year because of occupancy by a relative of the owner or by a
spouse of a relative;
(v) the property taxes payable as defined in section
290A.03, subdivision 13
, for the
current year and the prior year;
(vi) the market value of improvements to the property first assessed for tax purposes
for taxes payable in the current year;
(vii) the assessor's estimated market value assigned to the property for taxes payable
in the current year and the prior year;
(viii) the taxable market value assigned to the property for taxes payable in the
current year and the prior year;
(ix) whether there are delinquent property taxes owing on the homestead;
(x) the unique taxing district in which the property is located; and
(xi) such other information as the commissioner decides is necessary.
The commissioner shall use the information provided on the lists as appropriate
under the law, including for the detection of improper claims by owners, or relatives
of owners, under chapter 290A.
Sec. 2. [275.0645] TRUTH IN TAXATION.
6.5 Subdivision 1. Truth in taxation; budget meeting. (a) Notwithstanding any law
6.6or charter to the contrary, on or before September 1, each city with a population over
6.72,500, counties, school districts, and metropolitan special taxing districts as defined in
6.8section 275.065, subdivision 3, paragraph (i), shall hold a public meeting in which the
6.9budget and levy will be discussed and public input allowed, prior to the final adoption
6.10and levy determination.
6.11(b) At the meeting, which must not be scheduled before 6:00 p.m., the public must
6.12be allowed to speak. Each taxing jurisdiction must provide, to those in attendance,
6.13information including, but not limited to: (1) the jurisdiction's estimated proposed levy,
6.14prior final levy, and the percent change; (2) the tax rate for the jurisdiction's estimated
6.15proposed levy, current tax rate, and the percent change; and (3) a statement of reason for
6.16the increase or decrease from the prior year's levy, including the four most significant
6.17factors resulting in the change, and an accounting of the distribution of levy proceeds
6.18from the prior year. The county must provide a property percentile summary statement,
6.19consolidated for all applicable taxing jurisdictions, that identifies the proposed tax and
6.20current tax. The form of the percentile summary statement will be prescribed by the
6.21commissioner of the Department of Revenue. For purposes of this section, "estimated
6.22proposed levy" means the taxing jurisdiction's anticipated levy after consideration of
6.23significant factors impacting budget decisions.
6.24(c) Notice of the budget meeting and the same budget and levy information required
6.25under paragraph (b) must also be published on the taxing jurisdiction's Web site within
6.26five days prior to the hearing and the same information must be published in a newspaper
6.27with county-wide circulation within ten days prior to the hearing. Each taxing jurisdiction
6.28may also utilize any available social media to provide notice of its budget meeting.
6.29EFFECTIVE DATE.This section is effective for taxes payable in 2014.
Sec. 3. Minnesota Statutes 2012, section 275.065, subdivision 6, is amended to read:
Subd. 6. Adoption of budget and levy.
(a) The property tax levy certified under
by a city of any population, county, metropolitan special taxing district,
regional library district, or school district must not exceed the proposed levy determined
under subdivision 1, except by an amount up to the sum of the following amounts:
(1) the amount of a school district levy whose voters approved a referendum to
increase taxes under section
123B.63, subdivision 3
126C.17, subdivision 9
the proposed levy was certified;
(2) the amount of a city or county levy approved by the voters after the proposed
levy was certified;
(3) the amount of a levy to pay principal and interest on bonds approved by the
voters under section
after the proposed levy was certified;
(4) the amount of a levy to pay costs due to a natural disaster occurring after the
proposed levy was certified, if that amount is approved by the commissioner of revenue
under subdivision 6a;
(5) the amount of a levy to pay tort judgments against a taxing authority that become
final after the proposed levy was certified, if the amount is approved by the commissioner
of revenue under subdivision 6a;
(6) the amount of an increase in levy limits certified to the taxing authority by the
commissioner of education or the commissioner of revenue after the proposed levy was
(7) the amount required under section 126C.55;
(8) the levy to pay emergency debt certificates under section
issued after the proposed levy was certified; and
(9) the amount of unallotment under section
that was recertified under
275.07, subdivision 6
(b) This subdivision does not apply to towns and special taxing districts other than
regional library districts and metropolitan special taxing districts.
(c) Notwithstanding the requirements of this section, the employer is required to
meet and negotiate over employee compensation as provided for in chapter 179A.
7.26 (d) For purposes of this subdivision, "metropolitan special taxing districts" means
7.27the following taxing districts in the seven-county metropolitan area that levy a property
7.28tax for any of the specified purposes listed below:
7.29 (1) Metropolitan Council under section
7.31 (2) Metropolitan Airports Commission under section
7.33 (3) Metropolitan Mosquito Control Commission under section
7.34 For purposes of this section, any levies made by the regional rail authorities in the
7.35county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
7.36398A shall be included with the appropriate county's levy.
8.1EFFECTIVE DATE.This section is effective for taxes payable in 2014.
Sec. 4. Minnesota Statutes 2012, section 275.065, subdivision 7, is amended to read:
Subd. 7. Certification of compliance.
At the time the taxing authority certifies its
tax levy under section
, it shall certify to the commissioner of revenue its compliance
with this section. The certification must contain the information required by the
commissioner of revenue to determine compliance with this section and section 275.0645
If the commissioner determines that the taxing authority has failed to substantially comply
with the requirements of this section, the commissioner of revenue shall notify the county
auditor. The decision of the commissioner is final. When fixing rates under section
for a taxing authority that has not complied with this section, the county auditor must use
the taxing authority's previous year's levy, plus any additional amounts necessary to pay
principal and interest on general obligation bonds of the taxing authority for which its
taxing powers have been pledged if the bonds were issued before 1989.
8.14EFFECTIVE DATE.This section is effective for taxes payable in 2014.
Sec. 5. Minnesota Statutes 2012, section 275.07, subdivision 1, is amended to read:
Subdivision 1. Certification of levy.
(a) Except as provided under paragraph (b),
the taxes voted by cities, counties, school districts, and special districts shall be certified
by the proper authorities to the county auditor on or before five working days after
December 20 in each year. A town must certify the levy adopted by the town board to
the county auditor by September 15 each year. If the town board modifies the levy at a
special town meeting after September 15, the town board must recertify its levy to the
county auditor on or before five working days after December 20. If a city, town, county,
school district, or special district fails to certify its levy by that date, its levy shall be the
amount levied by it for the preceding year.
(b)(i) The taxes voted by counties under sections
shall be separately certified by the county to the county auditor on or before five working
days after December 20 in each year. The taxes certified shall not be reduced by the county
auditor by the aid received under section
273.1398, subdivision 3
. If a county fails to
certify its levy by that date, its levy shall be the amount levied by it for the preceding year.
(ii) For purposes of
the proposed property tax notice under section
the property tax statement under section
, for the first year in which the county
implements the provisions of this paragraph, the county auditor shall reduce the county's
levy for the preceding year to reflect any amount levied for water management purposes
under clause (i) included in the county's levy.
9.1EFFECTIVE DATE.This section is effective for taxes payable in 2014.
Sec. 6. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:
Subd. 2. Contents of tax statements.
(a) The treasurer shall provide for the
printing of the tax statements. The commissioner of revenue shall prescribe the form of
the property tax statement and its contents. The tax statement must not state or imply that
property tax credits are paid by the state of Minnesota. The statement must contain a
tabulated statement of the dollar amount due to each taxing authority and the amount of the
state tax from the parcel of real property for which a particular tax statement is prepared.
The dollar amounts attributable to the county, the state tax, the voter approved school tax,
the other local school tax, the township or municipality, and the total of the metropolitan
special taxing districts as defined in section
275.065, subdivision 3 , paragraph (i) 275.065,
9.12subdivision 6, paragraph (d)
, must be separately stated. The amounts due all other special
taxing districts, if any, may be aggregated except that any levies made by the regional
rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or
Washington under chapter 398A shall be listed on a separate line directly under the
appropriate county's levy. If the county levy under this paragraph includes an amount for a
lake improvement district as defined under sections
, the amount
attributable for that purpose must be separately stated from the remaining county levy
amount. In the case of Ramsey County, if the county levy under this paragraph includes an
amount for public library service under section
, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the
tax on homesteads qualifying under the senior citizens' property tax deferral program
under chapter 290B is the total amount of property tax before subtraction of the deferred
property tax amount. The amount of the tax on contamination value imposed under
, if any, must also be separately stated. The dollar amounts,
including the dollar amount of any special assessments, may be rounded to the nearest
even whole dollar. For purposes of this section whole odd-numbered dollars may be
adjusted to the next higher even-numbered dollar. The amount of market value excluded
273.11, subdivision 16
, if any, must also be listed on the tax statement.
(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.
(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:
(1) the property's estimated market value under section
273.11, subdivision 1
(2) the property's homestead market value exclusion under section
(3) the property's taxable market value after reductions under sections
subdivisions 1a and 16, and
273.13, subdivision 35
(4) the property's gross tax, before credits;
(5) for homestead agricultural properties, the credit under section
(6) any credits received under sections
273.1398, subdivision 4
, except that the amount of
credit received under section
must be separately stated and identified as "taconite
tax relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.
Sec. 7. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:
Subd. 2. Treatment of levy.
sections 275.065, subdivision 3, and
276.04, the county may report the tax attributable to any levy to pay principal and
interest on bonds or notes issued under this section as a separate line item on the proposed
property tax notice and the property tax statement. Notwithstanding any provision in
chapter 275 or 373 to the contrary, bonds or notes issued by Anoka County under this
section must not be included in the computation of the net debt of Anoka County.
Sec. 8. Minnesota Statutes 2012, section 469.1815, subdivision 1, is amended to read:
Subdivision 1. Inclusion in proposed and final levies.
The political subdivision
must add to its levy amount for the current year under sections
total estimated amount of all current year abatements granted. If all or a portion of an
abatement levy for a prior year was uncollected, the political subdivision may add the
uncollected amount to its abatement levy for the current year. The tax amounts shown
on the proposed notice under section
275.065, subdivision 3 , and
on the property tax
statement under section
276.04, subdivision 2
, are the total amounts before the reduction
of any abatements that will be granted on the property.
Sec. 9. REPEALER.
11.6Minnesota Statutes 2012, section 275.065, subdivision 3, is repealed.
11.7EFFECTIVE DATE.This section is effective for taxes payable in 2014.