as introduced - 89th Legislature (2015 - 2016) Posted on 03/12/2015 02:09pm
A bill for an act
relating to taxation; property; requiring property tax credits for overvalued
property; proposing coding for new law in Minnesota Statutes, chapter 274.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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Notwithstanding any other provision to the contrary,
when the value of a property is reduced by a local, special, or county board of appeal and
equalization, the state board of equalization, an order from the Minnesota Tax Court, or an
abatement to correct an error in valuation, the taxpayer shall receive a tax credit in the
manner prescribed under subdivision 2.
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When the value of property
is reduced as provided in subdivision 1, the assessor shall determine the total accumulated
amount of taxes paid for the prior three years on that property and subtract from that
amount the amount of taxes due for the prior three years under the property's reduced
value to obtain the property's reduced value tax balance. The assessor shall credit the
reduced value tax balance against the taxpayer's succeeding year's property taxes due
according to the following schedule:
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(1) if the reduced value tax balance is less than 25 percent of the current year's total
property taxes due, it shall be credited to the taxpayer in the succeeding year; or
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(2) if the reduced value tax balance is 25 percent or more of the current year's total
property taxes due, it shall be credited to the taxpayer at a rate of 25 percent of the
property taxes due per year until credited in full.
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The reduced value tax balance credit calculated under
subdivision 2 shall reduce the tax payable to each jurisdiction in proportion to the total
taxes payable on the property.
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This section is effective beginning with property taxes
payable in 2016.
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