HF 1831

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing for deduction of 
  1.3             certain property tax refunds on the property tax 
  1.4             statement; appropriating money; amending Minnesota 
  1.5             Statutes 1994, sections 270A.03, subdivision 7; 
  1.6             270B.12, by adding subdivisions; 273.124, subdivision 
  1.7             13; 275.065, subdivision 3; 276.04, subdivision 2; 
  1.8             276.09; 276.111; 289A.60, subdivision 12; 290A.03, 
  1.9             subdivision 13; 290A.04, subdivision 2h; 290A.07; 
  1.10            290A.15; and 290A.18; proposing coding for new law in 
  1.11            Minnesota Statutes, chapters 13; 276; and 290A. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [13.515] [PROPERTY TAX DATA.] 
  1.14     The following data calculated or maintained by political 
  1.15  subdivisions and shown on property tax statements under section 
  1.16  276.09 are classified as private data on individuals, pursuant 
  1.17  to section 13.02, subdivision 12:  (1) property tax refund 
  1.18  amounts under section 276.04, subdivision 2, paragraph (c), 
  1.19  clause (8); and (2) the property tax after deduction of the 
  1.20  property tax refunds under section 276.04, subdivision 2, 
  1.21  paragraph (c), clause (9). 
  1.22     Sec. 2.  Minnesota Statutes 1994, section 270A.03, 
  1.23  subdivision 7, is amended to read: 
  1.24     Subd. 7.  [REFUND.] "Refund" means an individual income tax 
  1.25  refund or political contribution refund, pursuant to chapter 
  1.26  290,; or a property tax credit or refund, pursuant to chapter 
  1.27  290A, other than a refund which has been certified to or 
  1.28  calculated by the county auditor under section 276.012.  
  2.1      For purposes of this chapter, lottery prizes, as set forth 
  2.2   in section 349A.08, subdivision 8, shall be treated as refunds. 
  2.3      In the case of a joint property tax refund payable to 
  2.4   spouses under chapter 290A, the refund shall be considered as 
  2.5   belonging to each spouse in the proportion of the total refund 
  2.6   that equals each spouse's proportion of the total income 
  2.7   determined under section 290A.03, subdivision 3.  The 
  2.8   commissioner shall remit the entire refund to the claimant 
  2.9   agency, which shall, upon the request of the spouse who does not 
  2.10  owe the debt, determine the amount of the refund belonging to 
  2.11  that spouse and refund the amount to that spouse. 
  2.12     Sec. 3.  Minnesota Statutes 1994, section 270B.12, is 
  2.13  amended by adding a subdivision to read: 
  2.14     Subd. 10.  [PROPERTY TAX REFUNDS.] The commissioner may 
  2.15  disclose to a county auditor and treasurer, and to their 
  2.16  designated agents or employees, the property tax refund amounts 
  2.17  for each parcel of homestead property in the county as 
  2.18  determined by the commissioner under chapter 290A. 
  2.19     Sec. 4.  Minnesota Statutes 1994, section 270B.12, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 11.  [SOCIAL SECURITY NUMBERS.] For purposes of 
  2.22  determining and administering homestead status and property tax 
  2.23  refunds, the commissioner may disclose to a county auditor, 
  2.24  county treasurer, county assessor, the county recorder or 
  2.25  registrar of deeds and their designated agents or employees, and 
  2.26  those officials may disclose to each other and to the 
  2.27  commissioner, the parcel identification number and the names and 
  2.28  social security numbers of the owners of homestead property and 
  2.29  their spouses. 
  2.30     Sec. 5.  Minnesota Statutes 1994, section 273.124, 
  2.31  subdivision 13, is amended to read: 
  2.32     Subd. 13.  [HOMESTEAD APPLICATION.] (a) A person who meets 
  2.33  the homestead requirements under subdivision 1 must file a 
  2.34  homestead application with the county assessor to initially 
  2.35  obtain homestead classification. 
  2.36     (b) On or before January 2, 1993, each county assessor 
  3.1   shall mail a homestead application to the owner of each parcel 
  3.2   of property within the county which was classified as homestead 
  3.3   for the 1992 assessment year.  The format and contents of a 
  3.4   uniform homestead application shall be prescribed by the 
  3.5   commissioner of revenue.  The commissioner shall consult with 
  3.6   the chairs of the house and senate tax committees on the 
  3.7   contents of the homestead application form.  The application 
  3.8   must clearly inform the taxpayer that this application must be 
  3.9   signed by all owners who occupy the property or by the 
  3.10  qualifying relative and returned to the county assessor in order 
  3.11  for the property to continue receiving homestead treatment.  The 
  3.12  envelope containing the homestead application shall clearly 
  3.13  identify its contents and alert the taxpayer of its necessary 
  3.14  immediate response. 
  3.15     (c) Every property owner applying for homestead 
  3.16  classification must furnish to the county assessor the social 
  3.17  security number of each occupant who is listed as an owner of 
  3.18  the property on the deed of record, the name and address of each 
  3.19  owner who does not occupy the property, and the name and social 
  3.20  security number of each owner's spouse who occupies the 
  3.21  property.  The application must be signed by each owner who 
  3.22  occupies the property and by each owner's spouse who occupies 
  3.23  the property, or, in the case of property that qualifies as a 
  3.24  homestead under subdivision 1, paragraph (c), by the qualifying 
  3.25  relative. 
  3.26     If a property owner occupies a homestead, the property 
  3.27  owner's spouse may not claim another property as a homestead 
  3.28  unless the property owner and the property owner's spouse file 
  3.29  with the assessor an affidavit or other proof required by the 
  3.30  assessor stating that the property owner's spouse does not 
  3.31  occupy the homestead because marriage dissolution proceedings 
  3.32  are pending, the spouses are legally separated, or the spouse's 
  3.33  employment or self-employment location requires the spouse to 
  3.34  have a separate homestead.  The assessor may require proof of 
  3.35  employment or self-employment and employment or self-employment 
  3.36  location, or proof of dissolution proceedings or legal 
  4.1   separation. 
  4.2      If the social security number or affidavit or other proof 
  4.3   is not provided, the county assessor shall classify the property 
  4.4   as nonhomestead. 
  4.5      The social security numbers or affidavits or other proofs 
  4.6   of the property owners and spouses are private data on 
  4.7   individuals as defined by section 13.02, subdivision 12, but, 
  4.8   notwithstanding that section, the private data may be disclosed 
  4.9   to the commissioner of revenue, or, for purposes of proceeding 
  4.10  under the revenue recapture act to recover personal property 
  4.11  taxes owing, to the county treasurer. 
  4.12     (d) If residential real estate is occupied and used for 
  4.13  purposes of a homestead by a relative of the owner and qualifies 
  4.14  for a homestead under subdivision 1, paragraph (c), in order for 
  4.15  the property to receive homestead status, a homestead 
  4.16  application must be filed with the assessor.  The social 
  4.17  security number of each relative occupying the property and the 
  4.18  social security number of each owner who is related to an 
  4.19  occupant of the property shall be required on the homestead 
  4.20  application filed under this subdivision.  If a different 
  4.21  relative of the owner subsequently occupies the property, the 
  4.22  owner of the property must notify the assessor within 30 days of 
  4.23  the change in occupancy.  The social security number of a 
  4.24  relative occupying the property is private data on individuals 
  4.25  as defined by section 13.02, subdivision 12, but may be 
  4.26  disclosed to the commissioner of revenue.  
  4.27     (e) The homestead application shall also notify the 
  4.28  property owners that the application filed under this section 
  4.29  will not be mailed annually and that if the property is granted 
  4.30  homestead status for the 1993 assessment, or any assessment year 
  4.31  thereafter, that same property shall remain classified as 
  4.32  homestead until the property is sold or transferred to another 
  4.33  person, or the owners or the relatives no longer use the 
  4.34  property as their homestead.  Upon the sale or transfer of the 
  4.35  homestead property, a certificate of value must be timely filed 
  4.36  with the county auditor as provided under section 272.115.  
  5.1   Failure to notify the assessor within 30 days that the property 
  5.2   has been sold, transferred, or that the owner or the relative is 
  5.3   no longer occupying the property as a homestead, shall result in 
  5.4   the penalty provided under this subdivision and the property 
  5.5   will lose its current homestead status. 
  5.6      (f) If the homestead application is not returned within 30 
  5.7   days, the county will send a second application to the present 
  5.8   owners of record.  The notice of proposed property taxes 
  5.9   prepared under section 275.065, subdivision 3, shall reflect the 
  5.10  property's classification.  Beginning with assessment year 1993 
  5.11  for all properties, If a homestead application has not been 
  5.12  filed with the county by December 15, the assessor shall 
  5.13  classify the property as nonhomestead for the current assessment 
  5.14  year for taxes payable in the following year, provided that the 
  5.15  owner may be entitled to receive the homestead classification by 
  5.16  proper application under section 375.192. 
  5.17     (g) At the request of the commissioner, each county must 
  5.18  give the commissioner a list that includes the name and social 
  5.19  security number of each property owner and the property owner's 
  5.20  spouse occupying the property, or relative of a property owner, 
  5.21  applying for homestead classification under this subdivision.  
  5.22  The commissioner shall use the information provided on the lists 
  5.23  as appropriate under the law, including for the detection of 
  5.24  improper claims by owners, or relatives of owners, under chapter 
  5.25  290A.  
  5.26     (h) If, in comparing the lists supplied by the counties, 
  5.27  the commissioner finds that a property owner is claiming more 
  5.28  than one homestead, the commissioner shall notify the 
  5.29  appropriate counties.  Within 90 days of the notification, the 
  5.30  county assessor shall investigate to determine if the homestead 
  5.31  classification was properly claimed.  If the property owner does 
  5.32  not qualify, the county assessor shall notify the county auditor 
  5.33  who will determine the amount of homestead benefits that had 
  5.34  been improperly allowed.  For the purpose of this section, 
  5.35  "homestead benefits" means the tax reduction resulting from the 
  5.36  classification as a homestead under section 273.13, the taconite 
  6.1   homestead credit under section 273.135, and the supplemental 
  6.2   homestead credit under section 273.1391, and the property tax 
  6.3   refunds under chapter 290A deducted on the property tax 
  6.4   statement. 
  6.5      The county auditor shall send a notice to the owners of the 
  6.6   affected property, demanding reimbursement of the homestead 
  6.7   benefits plus a penalty equal to 100 percent of the homestead 
  6.8   benefits.  The property owners may appeal the county's 
  6.9   determination by filing a notice of appeal with the Minnesota 
  6.10  tax court within 60 days of the date of the notice from the 
  6.11  county.  If the amount of homestead benefits and penalty is not 
  6.12  paid within 60 days, and if no appeal has been filed, the county 
  6.13  auditor shall certify the amount of taxes and penalty to the 
  6.14  succeeding year's tax list to be collected as part of the 
  6.15  property taxes.  In the case of a manufactured home, the amount 
  6.16  shall be certified to the current year's tax list for collection.
  6.17     (i) Any amount of homestead benefits recovered by the 
  6.18  county from the property owner shall be distributed to the 
  6.19  county, city or town, and school district where the property is 
  6.20  located in the same proportion that each taxing district's levy 
  6.21  was to the total of the three taxing districts' levy for the 
  6.22  current year.  Any amount recovered attributable to property tax 
  6.23  refunds reimbursed to the county by the state shall be paid to 
  6.24  the commissioner of revenue for deposit in the fund from which 
  6.25  it was paid.  Any amount recovered attributable to taconite 
  6.26  homestead credit shall be transmitted to the St. Louis county 
  6.27  auditor to be deposited in the taconite property tax relief 
  6.28  account.  The total amount of penalty collected must be 
  6.29  deposited in the county general fund. 
  6.30     (j) If a property owner has applied for more than one 
  6.31  homestead and the county assessors cannot determine which 
  6.32  property should be classified as homestead, the county assessors 
  6.33  will refer the information to the commissioner.  The 
  6.34  commissioner shall make the determination and notify the 
  6.35  counties within 60 days. 
  6.36     (k) In addition to lists of homestead properties, the 
  7.1   commissioner may ask the counties to furnish lists of all 
  7.2   properties and the record owners. 
  7.3      Sec. 6.  Minnesota Statutes 1994, section 275.065, 
  7.4   subdivision 3, is amended to read: 
  7.5      Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  7.6   county auditor shall prepare and the county treasurer shall 
  7.7   deliver after November 10 and on or before November 24 each 
  7.8   year, by first class mail to each taxpayer at the address listed 
  7.9   on the county's current year's assessment roll, a notice of 
  7.10  proposed property taxes and, in the case of a town, final 
  7.11  property taxes.  
  7.12     (b) The commissioner of revenue shall prescribe the form of 
  7.13  the notice. 
  7.14     (c) The notice must inform taxpayers that it contains the 
  7.15  amount of property taxes each taxing authority other than a town 
  7.16  proposes to collect for taxes payable the following year and, 
  7.17  for a town, the amount of its final levy.  It must clearly state 
  7.18  that each taxing authority, including regional library districts 
  7.19  established under section 134.201, and including the 
  7.20  metropolitan taxing districts as defined in paragraph (i), but 
  7.21  excluding all other special taxing districts and towns, will 
  7.22  hold a public meeting to receive public testimony on the 
  7.23  proposed budget and proposed or final property tax levy, or, in 
  7.24  case of a school district, on the current budget and proposed 
  7.25  property tax levy.  It must clearly state the time and place of 
  7.26  each taxing authority's meeting and an address where comments 
  7.27  will be received by mail.  The notice must include the estimated 
  7.28  percentage increase in Minnesota personal income, provided by 
  7.29  the commissioner of revenue under section 275.064, in a way to 
  7.30  facilitate comparison of the proposed budget and levy increases 
  7.31  with the increase in personal income.  For 1993, the notice must 
  7.32  clearly state that each taxing authority holding a public 
  7.33  meeting will describe the increases or decreases of the total 
  7.34  budget, including employee and independent contractor 
  7.35  compensation in the prior year, current year, and the proposed 
  7.36  budget year.  
  8.1      (d) The notice must state for each parcel: 
  8.2      (1) the market value of the property as determined under 
  8.3   section 273.11, and used for computing property taxes payable in 
  8.4   the following year and for taxes payable in the current year; 
  8.5   and, in the case of residential property, whether the property 
  8.6   is classified as homestead or nonhomestead.  The notice must 
  8.7   clearly inform taxpayers of the years to which the market values 
  8.8   apply and that the values are final values; 
  8.9      (2) by county, city or town, school district excess 
  8.10  referenda levy, remaining school district levy, regional library 
  8.11  district, if in existence, the total of the metropolitan special 
  8.12  taxing districts as defined in paragraph (i) and the sum of the 
  8.13  remaining special taxing districts, and as a total of the taxing 
  8.14  authorities, including all special taxing districts, the 
  8.15  proposed or, for a town, final net tax on the property for taxes 
  8.16  payable the following year, including separate deductions for 
  8.17  the property tax refunds under section 290A.04, subdivisions 2 
  8.18  and 2h, and the actual tax for taxes payable the current year, 
  8.19  including separate deductions for the property tax refunds under 
  8.20  section 290A.04, subdivisions 2 and 2h.  For the purposes of 
  8.21  this subdivision, "school district excess referenda levy" means 
  8.22  school district taxes for operating purposes approved at 
  8.23  referendums, including those taxes based on net tax capacity as 
  8.24  well as those based on market value.  "School district excess 
  8.25  referenda levy" does not include school district taxes for 
  8.26  capital expenditures approved at referendums or school district 
  8.27  taxes to pay for the debt service on bonds approved at 
  8.28  referenda.  In the case of the city of Minneapolis, the levy for 
  8.29  the Minneapolis library board and the levy for Minneapolis park 
  8.30  and recreation shall be listed separately from the remaining 
  8.31  amount of the city's levy.  In the case of a parcel where tax 
  8.32  increment or the fiscal disparities areawide tax applies, the 
  8.33  proposed tax levy on the captured value or the proposed tax levy 
  8.34  on the tax capacity subject to the areawide tax must each be 
  8.35  stated separately and not included in the sum of the special 
  8.36  taxing districts; and 
  9.1      (3) the increase or decrease in the amounts in clause (2) 
  9.2   from taxes payable in the current year to proposed or, for a 
  9.3   town, final taxes payable the following year, expressed as a 
  9.4   dollar amount and as a percentage. 
  9.5      (e) The notice must clearly state that the proposed or 
  9.6   final taxes do not include the following and that these items 
  9.7   may increase the proposed tax shown on the notice: 
  9.8      (1) special assessments; 
  9.9      (2) levies approved by the voters after the date the 
  9.10  proposed taxes are certified, including bond referenda, school 
  9.11  district levy referenda, and levy limit increase referenda; 
  9.12     (3) amounts necessary to pay cleanup or other costs due to 
  9.13  a natural disaster occurring after the date the proposed taxes 
  9.14  are certified; 
  9.15     (4) amounts necessary to pay tort judgments against the 
  9.16  taxing authority that become final after the date the proposed 
  9.17  taxes are certified; and 
  9.18     (5) the contamination tax imposed on properties which 
  9.19  received market value reductions for contamination.  
  9.20  The notice must state that the deduction for a property tax 
  9.21  refund under section 290A.04, subdivision 2h, is contingent upon 
  9.22  continuity in ownership of the property.  
  9.23     (f) Except as provided in subdivision 7, failure of the 
  9.24  county auditor to prepare or the county treasurer to deliver the 
  9.25  notice as required in this section does not invalidate the 
  9.26  proposed or final tax levy or the taxes payable pursuant to the 
  9.27  tax levy. 
  9.28     (g) If the notice the taxpayer receives under this section 
  9.29  lists the property as nonhomestead and the homeowner provides 
  9.30  satisfactory documentation to the county assessor that the 
  9.31  property is owned and has been used as the owner's homestead 
  9.32  prior to June 1 of that year, the assessor shall reclassify the 
  9.33  property to homestead for taxes payable in the following year. 
  9.34     (h) In the case of class 4 residential property used as a 
  9.35  residence for lease or rental periods of 30 days or more, the 
  9.36  taxpayer must either: 
 10.1      (1) mail or deliver a copy of the notice of proposed 
 10.2   property taxes to each tenant, renter, or lessee; or 
 10.3      (2) post a copy of the notice in a conspicuous place on the 
 10.4   premises of the property.  
 10.5      (i) For purposes of this subdivision, subdivisions 5a and 
 10.6   6, "metropolitan special taxing districts" means the following 
 10.7   taxing districts in the seven-county metropolitan area that levy 
 10.8   a property tax for any of the specified purposes listed below: 
 10.9      (1) metropolitan council under section 473.132, 473.167, 
 10.10  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 10.11     (2) metropolitan airports commission under section 473.667, 
 10.12  473.671, or 473.672; and 
 10.13     (3) metropolitan mosquito control commission under section 
 10.14  473.711. 
 10.15     For purposes of this section, any levies made by the 
 10.16  regional rail authorities in the county of Anoka, Carver, 
 10.17  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 10.18  398A shall be included with the appropriate county's levy and 
 10.19  shall be discussed at that county's public hearing. 
 10.20     The notice must be mailed or posted by the taxpayer by 
 10.21  November 27 or within three days of receipt of the notice, 
 10.22  whichever is later.  A taxpayer may notify the county treasurer 
 10.23  of the address of the taxpayer, agent, caretaker, or manager of 
 10.24  the premises to which the notice must be mailed in order to 
 10.25  fulfill the requirements of this paragraph. 
 10.26     Sec. 7.  [276.012] [COMPUTATION AND ADMINISTRATION OF 
 10.27  PROPERTY TAX REFUNDS.] 
 10.28     (a) On or before October 1 each year, the commissioner of 
 10.29  revenue shall certify to the county auditor the property tax 
 10.30  refund amount under section 290A.04, subdivision 2, for each 
 10.31  parcel of homestead property as defined in section 290A.04, 
 10.32  subdivision 6, other than a manufactured home assessed under 
 10.33  section 273.125, subdivision 8, paragraph (c), that qualifies 
 10.34  for a refund relating to taxes payable in the current year. 
 10.35     (b) The county auditor shall compute the refund for 
 10.36  purposes of the proposed property tax notice for each parcel of 
 11.1   homestead property as defined in section 290A.04, subdivision 6, 
 11.2   other than a manufactured home assessed under section 273.125, 
 11.3   subdivision 8, paragraph (c), that may qualify for a refund 
 11.4   under section 290A.04, subdivision 2h, for taxes payable in the 
 11.5   subsequent year.  
 11.6      (c) After certification of the levies by taxing districts 
 11.7   under section 275.07, the county auditor shall compute the 
 11.8   refund for each parcel of homestead property as defined in 
 11.9   section 290A.04, subdivision 6, other than a manufactured home 
 11.10  assessed under section 273.125, subdivision 8, paragraph (c), 
 11.11  that qualifies for a refund under section 290A.04, subdivision 
 11.12  2h, for taxes payable in the current year. 
 11.13     (d) The county auditor shall separately certify the amounts 
 11.14  in paragraphs (a) and (c) to the county treasurer who shall 
 11.15  reflect the amounts as property tax deductions on the property 
 11.16  tax statement under section 276.04 for taxes payable in the 
 11.17  current year, provided that to receive the refunds, the property 
 11.18  must be classified as homestead property under section 273.13 
 11.19  for taxes payable in the year the refund is payable.  
 11.20     (e) The county auditor shall annually separately certify 
 11.21  the costs of the property tax refunds under section 290A.04, 
 11.22  subdivisions 2 and 2h, to the department of revenue with the 
 11.23  abstract of tax lists under section 275.29. 
 11.24     Sec. 8.  Minnesota Statutes 1994, section 276.04, 
 11.25  subdivision 2, is amended to read: 
 11.26     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 11.27  shall provide for the printing of the tax statements.  The 
 11.28  commissioner of revenue shall prescribe the form of the property 
 11.29  tax statement and its contents.  The statement must contain the 
 11.30  parcel identification number and a county identification number 
 11.31  in the upper right corner of the statement.  The statement must 
 11.32  contain the qualifying tax amount to be used by the taxpayer in 
 11.33  claiming a property tax refund under section 290A.04, 
 11.34  subdivision 2, in the form and location determined by the 
 11.35  commissioner of revenue.  The statement must contain a tabulated 
 11.36  statement of the dollar amount due to each taxing authority from 
 12.1   the parcel of real property for which a particular tax statement 
 12.2   is prepared.  The dollar amounts due the county, township or 
 12.3   municipality, the total of the metropolitan special taxing 
 12.4   districts as defined in section 275.065, subdivision 3, 
 12.5   paragraph (i), school district excess referenda levy, remaining 
 12.6   school district levy, and the total of other voter approved 
 12.7   referenda levies based on market value under section 275.61 must 
 12.8   be separately stated.  The amounts due all other special taxing 
 12.9   districts, if any, may be aggregated.  For the purposes of this 
 12.10  subdivision, "school district excess referenda levy" means 
 12.11  school district taxes for operating purposes approved at 
 12.12  referenda, including those taxes based on market value.  "School 
 12.13  district excess referenda levy" does not include school district 
 12.14  taxes for capital expenditures approved at referendums or school 
 12.15  district taxes to pay for the debt service on bonds approved at 
 12.16  referenda.  The amount of the tax on contamination value imposed 
 12.17  under sections 270.91 to 270.98, if any, must also be separately 
 12.18  stated.  The dollar amounts, including the dollar amount of any 
 12.19  special assessments, may be rounded to the nearest even whole 
 12.20  dollar.  For purposes of this section whole odd-numbered dollars 
 12.21  may be adjusted to the next higher even-numbered dollar.  The 
 12.22  amount of market value excluded under section 273.11, 
 12.23  subdivision 16, if any, must also be listed on the tax 
 12.24  statement.  The statement shall include the following sentence, 
 12.25  printed in upper case letters in boldface print:  "THE STATE OF 
 12.26  MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.  THE STATE 
 12.27  OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING CREDITS AND 
 12.28  REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."  
 12.29     (b) The property tax statements for manufactured homes and 
 12.30  sectional structures taxed as personal property shall contain 
 12.31  the same information that is required on the tax statements for 
 12.32  real property.  
 12.33     (c) Real and personal property tax statements must contain 
 12.34  the following information in the order given in this paragraph.  
 12.35  The information must contain the current year tax information in 
 12.36  the right column with the corresponding information for the 
 13.1   previous year in a column on the left: 
 13.2      (1) the property's estimated market value under section 
 13.3   273.11, subdivision 1; 
 13.4      (2) the property's taxable market value after reductions 
 13.5   under section 273.11, subdivisions 1a and 16; 
 13.6      (3) the property's gross tax, calculated by multiplying the 
 13.7   property's gross tax capacity times the total local tax rate and 
 13.8   adding to the result the sum of the aids enumerated in clause 
 13.9   (3); 
 13.10     (4) a total of the following aids: 
 13.11     (i) education aids payable under chapters 124 and 124A; 
 13.12     (ii) local government aids for cities, towns, and counties 
 13.13  under chapter 477A; and 
 13.14     (iii) disparity reduction aid under section 273.1398; 
 13.15     (5) for homestead residential and agricultural properties, 
 13.16  the homestead and agricultural credit aid apportioned to the 
 13.17  property.  This amount is obtained by multiplying the total 
 13.18  local tax rate by the difference between the property's gross 
 13.19  and net tax capacities under section 273.13.  This amount must 
 13.20  be separately stated and identified as "homestead and 
 13.21  agricultural credit."  For purposes of comparison with the 
 13.22  previous year's amount for the statement for taxes payable in 
 13.23  1990, the statement must show the homestead credit for taxes 
 13.24  payable in 1989 under section 273.13, and the agricultural 
 13.25  credit under section 273.132 for taxes payable in 1989; 
 13.26     (6) any credits received under sections 273.119; 273.123; 
 13.27  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 13.28  473H.10, except that the amount of credit received under section 
 13.29  273.135 must be separately stated and identified as "taconite 
 13.30  tax relief"; and 
 13.31     (7) the net tax payable in the manner required in paragraph 
 13.32  (a).; 
 13.33     (8) for eligible homestead properties, the property tax 
 13.34  refunds under section 290A.04, subdivisions 2 and 2h, if any, 
 13.35  shown separately as deductions on the statement; and 
 13.36     (9) the tax after deduction of the property tax refunds 
 14.1   under clause (8). 
 14.2      (d) The commissioner of revenue shall certify to the county 
 14.3   auditor the actual or estimated aids enumerated in clauses (3) 
 14.4   and (4) that local governments will receive in the following 
 14.5   year.  In the case of a county containing a city of the first 
 14.6   class, for taxes levied in 1991, and for all counties for taxes 
 14.7   levied in 1992 and thereafter, The commissioner must certify 
 14.8   this amount by September 1.  
 14.9      Sec. 9.  Minnesota Statutes 1994, section 276.09, is 
 14.10  amended to read: 
 14.11     276.09 [SETTLEMENT BETWEEN AUDITOR AND TREASURER.] 
 14.12     On the later of May 20 of each year or 26 calendar days 
 14.13  after the postmark date on the envelopes containing real or 
 14.14  personal property tax statements, the county treasurer shall 
 14.15  make full settlement with the county auditor of all receipts 
 14.16  collected for all purposes, from the date of the last settlement 
 14.17  up to and including each day mentioned.  The county auditor 
 14.18  shall, within 30 days after the settlement, send an abstract of 
 14.19  it to the state auditor in the form prescribed by the state 
 14.20  auditor.  At the settlement the treasurer shall make complete 
 14.21  returns of the receipts on the current tax list, showing the 
 14.22  amount collected on account of the several funds included in the 
 14.23  list. 
 14.24     Settlement of receipts from the later of May 20 or the 
 14.25  actual settlement date to December 31 of each year must be made 
 14.26  as provided in section 276.111. 
 14.27     For purposes of this section, "receipts" includes all tax 
 14.28  payments received by the county treasurer on or before the 
 14.29  settlement date and all property tax refunds paid to the county 
 14.30  treasurer under section 290A.07.  
 14.31     Sec. 10.  Minnesota Statutes 1994, section 276.111, is 
 14.32  amended to read: 
 14.33     276.111 [DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.] 
 14.34     Within 14 business days after July 20, the county treasurer 
 14.35  shall pay to each taxing district 100 percent of the estimated 
 14.36  collections arising from taxes levied by and belonging to the 
 15.1   taxing district from the settlement day determined in section 
 15.2   276.09 to July 25. 
 15.3      Within seven business days after October 15, the county 
 15.4   treasurer shall pay to the school districts 50 percent of the 
 15.5   estimated collections arising from taxes levied by and belonging 
 15.6   to the school district from the settlement day determined in 
 15.7   section 276.09 July 25 to October 20.  The remaining 50 percent 
 15.8   of the estimated tax collections must be paid to the school 
 15.9   district within the next seven business days.  Within ten 
 15.10  business days after November 15, the county treasurer shall pay 
 15.11  to the school district 100 percent of the estimated collections 
 15.12  arising from taxes levied by and belonging to the school 
 15.13  districts from October 20 to November 20. 
 15.14     Within ten business days after November 15, the county 
 15.15  treasurer shall pay to each taxing district, except any school 
 15.16  district, 100 percent of the estimated collections arising from 
 15.17  taxes levied by and belonging to each taxing district from the 
 15.18  settlement day determined in section 276.09 July 25 to November 
 15.19  20. 
 15.20     On or before January 5, the county treasurer shall make 
 15.21  full settlement with the county auditor of all receipts 
 15.22  collected from the settlement day determined in section 276.09 
 15.23  to December 31.  After subtracting any tax distributions that 
 15.24  have been made to the taxing districts in July, October, and 
 15.25  November, the treasurer shall pay to each of the taxing 
 15.26  districts on or before January 25, the balance of the tax 
 15.27  amounts collected on behalf of each taxing district.  Interest 
 15.28  accrues at an annual rate of eight percent and must be paid to 
 15.29  the taxing district if this final settlement amount is not paid 
 15.30  by January 25.  Interest must be paid upon appropriation from 
 15.31  the general revenue fund of the county.  If not paid, it may be 
 15.32  recovered by the taxing district in a civil action. 
 15.33     Sec. 11.  Minnesota Statutes 1994, section 289A.60, 
 15.34  subdivision 12, is amended to read: 
 15.35     Subd. 12.  [PENALTIES RELATING TO PROPERTY TAX REFUNDS.] 
 15.36  (a) If the commissioner determines that a property tax refund 
 16.1   claim is or was excessive and was filed with fraudulent intent, 
 16.2   the claim must be disallowed in full.  If the claim has been 
 16.3   paid, the amount disallowed may be recovered by assessment and 
 16.4   collection. 
 16.5      (b) If it is determined that a property tax refund claim is 
 16.6   excessive and was negligently prepared, ten percent of the 
 16.7   corrected claim must be disallowed.  If the claim has been paid, 
 16.8   the amount disallowed must be recovered by assessment and 
 16.9   collection.  
 16.10     (c) An owner or managing agent who knowingly fails to give 
 16.11  a certificate of rent constituting property tax to a renter, as 
 16.12  required by section 290A.19, paragraph (a), is liable to the 
 16.13  commissioner for a penalty of $100 for each failure. 
 16.14     (d) If the owner or managing agent knowingly gives rent 
 16.15  certificates that report total rent constituting property taxes 
 16.16  in excess of the amount of actual rent constituting property 
 16.17  taxes paid on the rented part of a property, the owner or 
 16.18  managing agent is liable for a penalty equal to the greater of 
 16.19  (1) $100 or (2) 50 percent of the excess that is reported.  An 
 16.20  overstatement of rent constituting property taxes is presumed to 
 16.21  be knowingly made if it exceeds by ten percent or more the 
 16.22  actual rent constituting property taxes. 
 16.23     (e) No property tax refund claim based on rent paid, or on 
 16.24  property taxes payable in the case of a manufactured home 
 16.25  assessed under section 273.125, subdivision 8, paragraph (c), is 
 16.26  allowed if the initial claim is filed more than one year after 
 16.27  the original due date for filing the claim.  
 16.28     (f) Except as provided in paragraph (e), no property tax 
 16.29  refund claim based on property taxes payable filed after the 
 16.30  original due date for filing the claim may be paid.  No 
 16.31  extensions of time for filing may be granted. 
 16.32     Sec. 12.  Minnesota Statutes 1994, section 290A.03, 
 16.33  subdivision 13, is amended to read: 
 16.34     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
 16.35  payable" means the property tax exclusive of special 
 16.36  assessments, penalties, and interest payable on a claimant's 
 17.1   homestead before reductions made under section 273.13 but after 
 17.2   deductions made under sections 273.135, 273.1391, 273.42, 
 17.3   subdivision 2, and any other state paid property tax credits in 
 17.4   any calendar year other than property tax refunds determined 
 17.5   under chapter 290A.  In the case of a claimant who makes ground 
 17.6   lease payments, "property taxes payable" includes the amount of 
 17.7   the payments directly attributable to the property taxes 
 17.8   assessed against the parcel on which the house is located.  No 
 17.9   apportionment or reduction of the "property taxes payable" shall 
 17.10  be required for the use of a portion of the claimant's homestead 
 17.11  for a business purpose if the claimant does not deduct any 
 17.12  business depreciation expenses for the use of a portion of the 
 17.13  homestead in the determination of federal adjusted gross 
 17.14  income.  For homesteads which are manufactured homes as defined 
 17.15  in section 274.19, subdivision 8 assessed under section 273.125, 
 17.16  subdivision 8, paragraph (c), "property taxes payable" shall 
 17.17  also include the amount of the gross rent paid in the preceding 
 17.18  year for the site on which the homestead is located, which is 
 17.19  attributable to the net tax paid on the site.  The amount 
 17.20  attributable to property taxes shall be determined by 
 17.21  multiplying the net tax on the parcel by a fraction, the 
 17.22  numerator of which is the gross rent paid for the calendar year 
 17.23  for the site and the denominator of which is the gross rent paid 
 17.24  for the calendar year for the parcel.  When a homestead is owned 
 17.25  by two or more persons as joint tenants or tenants in common, 
 17.26  such tenants shall determine between them which tenant may claim 
 17.27  the property taxes payable on the homestead.  If they are unable 
 17.28  to agree, the matter shall be referred to the commissioner of 
 17.29  revenue whose decision shall be final.  Property taxes are 
 17.30  considered payable in the year prescribed by law for payment of 
 17.31  the taxes. 
 17.32     In the case of a claim relating to "property taxes 
 17.33  payable," the claimant must have owned and occupied the 
 17.34  homestead on January 2 of the year in which the tax is 
 17.35  payable to which the "property taxes payable" used in computing 
 17.36  the refund relate, and (i) the property must have been 
 18.1   classified as homestead property pursuant to section 273.13, 
 18.2   subdivision 22 or 23, on or before December 15 of the assessment 
 18.3   year to which the "property taxes payable" relate; or (ii) the 
 18.4   claimant must provide documentation from the local assessor that 
 18.5   application for homestead classification has been made on or 
 18.6   before December August 15 of the year in which the "property 
 18.7   taxes payable" were payable and that the assessor has approved 
 18.8   the application. 
 18.9      No refunds under section 290A.04, subdivision 2 or 2h may 
 18.10  be deducted on the property tax statement unless the property is 
 18.11  classified as homestead property for taxes payable in the year 
 18.12  the property tax refund is paid. 
 18.13     Sec. 13.  Minnesota Statutes 1994, section 290A.04, 
 18.14  subdivision 2h, is amended to read: 
 18.15     Subd. 2h.  (a) If the gross property taxes payable on a 
 18.16  homestead increase more than 12 percent over the net property 
 18.17  taxes payable in the prior year on the same property that is 
 18.18  owned and occupied by the same owner on January 2 of both years, 
 18.19  and the amount of that increase is $100 or more for taxes 
 18.20  payable in 1995 and 1996, a claimant who is, a homeowner shall 
 18.21  be allowed an additional refund equal to 60 percent of the 
 18.22  amount of the increase over the greater of 12 percent of the 
 18.23  prior year's net property taxes payable or $100 for taxes 
 18.24  payable in 1995 and 1996.  This subdivision shall not apply to 
 18.25  any increase in the gross property taxes payable attributable to 
 18.26  improvements made to the homestead after the assessment date for 
 18.27  the prior year's taxes.  
 18.28     The maximum refund allowed under this subdivision is $1,000.
 18.29     (b) For purposes of this subdivision, the following terms 
 18.30  have the meanings given: 
 18.31     (1) "Net property taxes payable" means property taxes 
 18.32  payable minus refund amounts for which the claimant qualifies 
 18.33  pursuant to subdivision 2 and this subdivision.  
 18.34     (2) "Gross property taxes" means net property taxes payable 
 18.35  determined without regard to the refund allowed under this 
 18.36  subdivision. 
 19.1      (c) In addition to the other proofs required by this 
 19.2   chapter, each claimant under this subdivision shall file with 
 19.3   the property tax refund return a copy of the property tax 
 19.4   statement for taxes payable in the preceding year or other 
 19.5   documents required by the commissioner. 
 19.6      (d) On or before December 1, 1995, the commissioner shall 
 19.7   estimate the cost of making the payments provided by this 
 19.8   subdivision for taxes payable in 1996.  Notwithstanding the open 
 19.9   appropriation provision of section 290A.23, if the estimated 
 19.10  total refund claims for taxes payable in 1996 exceed $5,500,000, 
 19.11  the commissioner shall first reduce the 60 percent refund rate 
 19.12  enough, but to no lower a rate than 50 percent, so that the 
 19.13  estimated total refund claims do not exceed $5,500,000.  If the 
 19.14  commissioner estimates that total claims will exceed $5,500,000 
 19.15  at a 50 percent refund rate, the commissioner shall also reduce 
 19.16  the $1,000 maximum refund amount by enough so that total 
 19.17  estimated refund claims do not exceed $5,500,000. 
 19.18     The determinations of the revised thresholds by the 
 19.19  commissioner are not rules subject to chapter 14.  
 19.20     (e) Upon request, the appropriate county official shall 
 19.21  make available the names and addresses of the property taxpayers 
 19.22  who may be eligible for the additional property tax refund under 
 19.23  this section.  The information shall be provided on a magnetic 
 19.24  computer disk.  The county may recover its costs by charging the 
 19.25  person requesting the information the reasonable cost for 
 19.26  preparing the data.  The information may not be used for any 
 19.27  purpose other than for notifying the homeowner of potential 
 19.28  eligibility and assisting the homeowner, without charge, in 
 19.29  preparing a refund claim. 
 19.30     Sec. 14.  Minnesota Statutes 1994, section 290A.07, is 
 19.31  amended to read: 
 19.32     290A.07 [TIME FOR AND MANNER OF PAYMENT.] 
 19.33     Subdivision 1.  [GENERAL FUND.] Allowable claims filed 
 19.34  pursuant to the provisions of this chapter and the refund under 
 19.35  section 290A.04, subdivision 2h, shall be paid by the 
 19.36  commissioner from the general fund as provided in this section.  
 20.1      Subd. 2a.  [PAYMENT TO CLAIMANT.] A claimant who is a 
 20.2   renter or a homeowner who occupies a manufactured home, as 
 20.3   defined in section 273.125, subdivision 8, paragraph (c), shall 
 20.4   receive full payment after August 1 and before August 15 or 60 
 20.5   days after receipt of the application, whichever is later.  
 20.6      Subd. 3.  [PAYMENT TO COUNTY TREASURER AS DEDUCTION ON 
 20.7   PROPERTY TAX STATEMENT.] A claimant In the case of property not 
 20.8   included in subdivision 2a shall receive full payment after 
 20.9   September 15 and before September 30., payment of a refund under 
 20.10  section 290A.04, subdivision 2, is made as a deduction on the 
 20.11  property tax statement for the homestead for taxes payable the 
 20.12  following year, and payment of a refund under section 290A.04, 
 20.13  subdivision 2h, is made as a deduction on the property tax 
 20.14  statement for the homestead for taxes payable in the current 
 20.15  year.  
 20.16     Subd. 4.  [PAYMENT TO COUNTY TREASURER.] Annually on or 
 20.17  before July 20, the commissioner shall pay the amount of the 
 20.18  property tax refunds under section 290A.04, subdivisions 2 and 
 20.19  2h, certified by the county auditor under section 276.012, 
 20.20  paragraph (e), to the county treasurer for settlement and 
 20.21  distribution under sections 276.09 to 276.111. 
 20.22     Sec. 15.  Minnesota Statutes 1994, section 290A.15, is 
 20.23  amended to read: 
 20.24     290A.15 [CLAIM APPLIED AGAINST OUTSTANDING LIABILITY.] 
 20.25     The amount of any claim otherwise payable under this 
 20.26  chapter may be applied by the commissioner against any 
 20.27  delinquent tax liability of the claimant or spouse of the 
 20.28  claimant payable to the department of revenue.  This section 
 20.29  does not apply to (1) refunds under section 290A.04, subdivision 
 20.30  2, that have been certified by the commissioner of revenue to 
 20.31  the county auditor under section 276.012, or (2) refunds under 
 20.32  section 290A.04, subdivision 2h, determined by the county 
 20.33  auditor under section 276.012. 
 20.34     Sec. 16.  Minnesota Statutes 1994, section 290A.18, is 
 20.35  amended to read: 
 20.36     290A.18 [RIGHT TO FILE CLAIM; RIGHT TO RECEIVE CREDIT.] 
 21.1      Subdivision 1.  [CLAIM BY SURVIVING SPOUSE OR DEPENDENT.] 
 21.2   Except as provided in subdivision 3, if a person entitled to 
 21.3   relief under this chapter dies prior to receiving relief, the 
 21.4   surviving spouse or dependent of the person shall be entitled to 
 21.5   file the claim and receive relief.  If there is no surviving 
 21.6   spouse or dependent, the right to the credit shall lapse.  
 21.7      Subd. 2.  [CLAIMANT CANNOT BE LOCATED.] Except as provided 
 21.8   in subdivision 3, if the commissioner cannot locate the claimant 
 21.9   within two years from the date that the original warrant was 
 21.10  issued, or if a claimant to whom a warrant has been issued does 
 21.11  not cash that warrant within two years from the date the warrant 
 21.12  was issued, the right to the credit shall lapse, and the warrant 
 21.13  shall be deposited in the general fund. 
 21.14     Subd. 3.  [RIGHT TO RECEIVE REFUND NOT PERSONAL TO 
 21.15  CLAIMANT.] Property tax refunds under section 290A.04, 
 21.16  subdivisions 2 and 2h, are paid as a deduction on the property 
 21.17  tax statement of the property as provided in section 290A.07, 
 21.18  subdivision 3.  The right to receive the deduction is not 
 21.19  personal to the claimant or to a surviving spouse or dependent 
 21.20  of the claimant. 
 21.21     Sec. 17.  [290A.26] [APPROPRIATION; COUNTY COSTS.] 
 21.22     $2,650,000 is appropriated for fiscal year 1997, and 
 21.23  $2,370,000 is appropriated for fiscal year 1998, and each year 
 21.24  thereafter, to the commissioner of revenue to pay counties for 
 21.25  the costs of implementing and administering the property tax 
 21.26  refunds for homeowners.  The commissioner shall make the 
 21.27  payments annually, on July 20 of each year.  Each county auditor 
 21.28  shall determine the county's costs and certify the costs to the 
 21.29  commissioner at the time and in the manner directed by the 
 21.30  commissioner.  The commissioner shall review the costs, and may 
 21.31  limit or correct them, return them to the county for changes, or 
 21.32  request additional information or documentation.  The 
 21.33  commissioner shall apportion the available appropriation to each 
 21.34  county in the same proportion that the county's expenses as 
 21.35  finally determined by the commissioner are to the sum of all the 
 21.36  counties' expenses. 
 22.1      Sec. 18.  [1996 LEVY; TRUTH IN TAXATION NOTICE.] 
 22.2      For taxes payable in 1997 only, the notice of proposed 
 22.3   property taxes under Minnesota Statutes, section 275.065, 
 22.4   subdivision 3, shall state that beginning with property taxes 
 22.5   payable in 1997, the homestead property tax refund calculated 
 22.6   under Minnesota Statutes, section 290A.04, subdivision 2, and 
 22.7   the special refund for property tax increases under Minnesota 
 22.8   Statutes, section 290A.04, subdivision 2h, shall be paid as a 
 22.9   deduction from the net tax on the property for all qualifying 
 22.10  properties other than manufactured homes assessed under 
 22.11  Minnesota Statutes, section 273.125, subdivision 8, paragraph 
 22.12  (c).  The notice shall clearly notify the taxpayer that these 
 22.13  deductions are shown on the notice of proposed taxes for taxes 
 22.14  payable in 1997, and that the actual tax for taxes payable in 
 22.15  1997 may be greater than the amount shown on the notice if the 
 22.16  ownership or classification of the property changes before the 
 22.17  refunds are paid.  The commissioner of revenue shall prescribe 
 22.18  the form and wording of the statement required in this section.  
 22.19  The commissioner may prescribe that the statement be included 
 22.20  with the notice of proposed property taxes as a separate 
 22.21  addendum.  At least five working days before distribution to the 
 22.22  counties, the notice prescribed by the commissioner of revenue 
 22.23  under this section must be submitted to the chairs of the senate 
 22.24  committee on taxes and tax laws and the house tax committee for 
 22.25  their advice and approval. 
 22.26     Sec. 19.  [PROPERTY TAX REFUNDS FOR TAXES PAYABLE IN 1997; 
 22.27  TRANSITION PROVISION.] 
 22.28     Notwithstanding the provisions of Minnesota Statutes, 
 22.29  chapter 290A, or any other law to the contrary, the property tax 
 22.30  refund amounts under Minnesota Statutes, section 290A.04, 
 22.31  subdivisions 2 and 2h, relating to property taxes payable in 
 22.32  1996, as paid by the commissioner to the claimants under 
 22.33  Minnesota Statutes, section 290A.07, subdivision 3, shall be the 
 22.34  amounts certified on October 1, 1996, by the commissioner of 
 22.35  revenue to the county auditors.  The refund amounts under 
 22.36  Minnesota Statutes, section 290A.04, subdivision 2, are the 
 23.1   amounts that the county auditor shall show as a deduction on the 
 23.2   property tax statement for taxes payable in 1997.  The county 
 23.3   auditor shall calculate the amounts of the refund under 
 23.4   Minnesota Statutes, section 290A.04, subdivision 2h, for taxes 
 23.5   payable in 1997, and show that amount as a deduction on the 1997 
 23.6   property tax statement. 
 23.7      Sec. 20.  [APPROPRIATION.] 
 23.8      $95,000 is appropriated for the fiscal year ending June 30, 
 23.9   1997, from the general fund in the state treasury to the 
 23.10  commissioner of revenue for purposes of implementing and 
 23.11  administering this article. 
 23.12     Sec. 21.  [EFFECTIVE DATE.] 
 23.13     Sections 1 to 16 are effective for property tax refunds 
 23.14  payable as deductions on property tax statements in 1997 and 
 23.15  thereafter.