relating to property taxation; restoring the market value homestead credit;
amending Minnesota Statutes 2010, sections 126C.01, subdivision 3, as
amended; 273.13, subdivision 34, as amended; 273.1384, subdivisions 3, as
amended, 4, as amended; 273.1393, as amended; 276.04, subdivision 2, as
amended; 477A.011, subdivision 20, as amended; repealing Laws 2011, First
Special Session chapter 7, article 6, section 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2010, section 126C.01, subdivision 3, as amended by
Laws 2011, First Special Session chapter 7, article 6, section 2, is amended to read:
Subd. 3. Referendum market value.
"Referendum market value" means the market
value of all taxable property, excluding property classified as class 2, noncommercial
4c(1), or 4c(4) under section
. The portion of class 2a property consisting of the
house, garage, and surrounding one acre of land of an agricultural homestead is included
in referendum market value.
For the purposes of this subdivision, in the case of class 1a,
1.16 1b, or 2a property, "market value" means the value prior to the exclusion under section
1.17 273.13, subdivision 35 .
Any class of property, or any portion of a class of property, that is
included in the definition of referendum market value and that has a class rate of less than
one percent under section
shall have a referendum market value equal to its market
value times its class rate, multiplied by 100.
1.21EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
Sec. 2. Minnesota Statutes 2010, section 273.13, subdivision 34, as amended by Laws
2011, First Special Session chapter 7, article 5, section 8, is amended to read:
Subd. 34. Homestead of disabled veteran or family caregiver.
(a) All or a
portion of the market value of property owned by a veteran and serving as the veteran's
homestead under this section is excluded in determining the property's taxable market
value if the veteran has a service-connected disability of 70 percent or more as certified
by the United States Department of Veterans Affairs. To qualify for exclusion 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.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is
(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), 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 exclusion shall carry over to the benefit of the veteran's spouse for the current taxes
payable year and for five additional taxes payable years or until such time as the spouse
remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
Qualification under this paragraph requires an annual application under paragraph (h).
(d) If the spouse of a member of any branch or unit of the United States armed
forces who dies due to a service-connected cause while serving honorably in active
service, as indicated on United States Government Form DD1300 or DD2064, holds
the legal or beneficial title to a homestead and permanently resides there, the spouse is
entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years,
or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
property, whichever comes first.
(e) If a veteran meets the disability criteria of paragraph (a) but does not own
property classified as homestead in the state of Minnesota, then the homestead of the
veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
would otherwise qualify for under paragraph (b).
(f) 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 the valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the
market value exclusion under subdivision 35 credit under section 273.1384,
, or classification under subdivision 22, paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner
must apply to the assessor by July 1 of each assessment year, except that an annual
reapplication is not required once a property has been accepted for a valuation exclusion
under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
the property continues to qualify until there is a change in ownership. For an application
received after July 1 of any calendar year, the exclusion shall become effective for the
following assessment year.
(i) A first-time application by a qualifying spouse for the market value exclusion
under paragraph (d) must be made any time within two years of the death of the service
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of
the United States Department of Veterans Affairs for assistance as the primary provider
of personal care services for an eligible veteran under the Program of Comprehensive
Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
(4) "veteran" has the meaning given the term in section
(k) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.
3.24EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
Sec. 3. Minnesota Statutes 2010, section 273.1384, subdivision 3, as amended by Laws
2011, First Special Session chapter 7, article 6, section 4, is amended to read:
Subd. 3. Credit reimbursements.
The county auditor shall determine the tax
reductions allowed under
subdivision 2 this section
within the county for each taxes
payable year and shall certify that amount to the commissioner of revenue as a part of the
abstracts of tax lists submitted by the county auditors under section
. Any prior
year adjustments shall also be certified on the abstracts of tax lists. The commissioner
shall review the certifications for accuracy, and may make such changes as are deemed
necessary, or return the certification to the county auditor for correction. The
under this section must be used to proportionately reduce the net tax capacity-based
property tax payable to each local taxing jurisdiction as provided in section
4.3EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
Sec. 4. Minnesota Statutes 2010, section 273.1384, subdivision 4, as amended by Laws
2011, First Special Session chapter 7, article 6, section 5, is amended to read:
Subd. 4. Payment.
(a) The commissioner of revenue shall reimburse each local
taxing jurisdiction, other than school districts, for the tax reductions granted under
subdivision 2 this section
in two equal installments on October 31 and December 26 of
the taxes payable year for which the reductions are granted, including in each payment
the prior year adjustments certified on the abstracts for that taxes payable year. The
reimbursements related to tax increments shall be issued in one installment each year on
(b) The commissioner of revenue shall certify the total of the tax reductions granted
subdivision 2 this section
for each taxes payable year within each school district to
the commissioner of the Department of Education and the commissioner of education shall
pay the reimbursement amounts to each school district as provided in section
4.18EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
Sec. 5. Minnesota Statutes 2010, section 273.1393, as amended by Laws 2011, First
Special Session chapter 7, article 6, section 6, is amended to read:
4.22273.1393 COMPUTATION OF NET PROPERTY TAXES.
Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:
(1) disaster credit as provided in sections
(2) powerline credit as provided in section
(3) agricultural preserves credit as provided in section
(4) enterprise zone credit as provided in section
(5) disparity reduction credit;
(6) conservation tax credit as provided in section
(7) homestead and
as provided in section
(8) taconite homestead credit as provided in section
(9) supplemental homestead credit as provided in section
(10) the bovine tuberculosis zone credit, as provided in section
The combination of all property tax credits must not exceed the gross tax amount.
5.3EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
Sec. 6. Minnesota Statutes 2010, section 276.04, subdivision 2, as amended by Laws
2011, First Special Session chapter 7, article 6, section 7, 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), 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 sections
, 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 under section
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
the property's homestead market value exclusion under section
the property's taxable market value after reductions under
, subdivisions 1a and 16
273.13, subdivision 35
the property's gross tax, before credits;
for homestead residential and
agricultural properties, the
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
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.
6.29EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
Sec. 7. Minnesota Statutes 2010, section 477A.011, subdivision 20, as amended by
Laws 2011, First Special Session chapter 7, article 6, section 14, is amended to read:
Subd. 20. City net tax capacity.
"City net tax capacity" means (1) the net tax
capacity computed using the net tax capacity rates in section
for taxes payable
in the year of the aid distribution, and the market values
, after the exclusion in section
7.1 273.13, subdivision 35 ,
for taxes payable in the year prior to the aid distribution plus (2)
a city's fiscal disparities distribution tax capacity under section
276A.06, subdivision 2
paragraph (b), or
473F.08, subdivision 2
, paragraph (b), for taxes payable in the year prior
to that for which aids are being calculated. The market value utilized in computing city
net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
industrial property as defined in section
276A.01, subdivision 3
473F.02, subdivision 3
multiplied by the ratio determined pursuant to section
276A.06, subdivision 2
473F.08, subdivision 2
, paragraph (a), (2) the market value of the captured value
of tax increment financing districts as defined in section
469.177, subdivision 2
, and (3)
the market value of transmission lines deducted from a city's total net tax capacity under
. The city net tax capacity will be computed using equalized market values.
7.12EFFECTIVE DATE.This section is effective for aids payable in calendar year
7.132013 and thereafter.
Sec. 8. REPEALER.
7.15Laws 2011, First Special Session chapter 7, article 6, section 3, is repealed, and
7.16pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes 2010, section
7.17273.1384, subdivision 1, is revived.
7.18EFFECTIVE DATE.This section is effective for taxes payable in 2013 and