as introduced - 87th Legislature (2011 - 2012) Posted on 01/24/2012 10:51am
A bill for an act
relating to property taxes; exempting the first $100,000 in value of each
commercial-industrial property from the state general levy; phasing-out the state
general levy on commercial-industrial property over 20 years; freezing the state
general levy on seasonal recreational property; increasing maximum homeowner
property tax refunds; providing for a temporary increase in the special property
tax refund; appropriating money; amending Minnesota Statutes 2010, section
275.025, subdivisions 1, 2, 4; Minnesota Statutes 2011 Supplement, section
290A.04, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
new text begin (a) new text end The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section.
new text begin
(b) The state general levy for seasonal residential recreational property is
$40,871,000 for taxes payable in 2013 and thereafter.
new text end
new text begin (c) new text end The state general levy base amount new text begin for commercial-industrial property new text end is
deleted text begin $592,000,000deleted text end new text begin $719,252,000.new text end For taxes payable in deleted text begin 2002deleted text end new text begin 2013, the state general levy
for commercial-industrial property is equal to the base amountnew text end . For taxes payable in
deleted text begin subsequent yearsdeleted text end new text begin 2014 to taxes payable in 2032new text end , the levy deleted text begin base amountdeleted text end is deleted text begin increaseddeleted text end new text begin
reducednew text end each year new text begin from the previous year's amount new text end by deleted text begin multiplying the levy base amount
for the prior year by the sum of one plus the rate of increase, if any, in the implicit price
deflator for government consumption expenditures and gross investment for state and
local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the year prior to
the year the taxes are payabledeleted text end new text begin five percent of the base amount. For taxes payable in 2033
and thereafter, the state general levy for commercial-industrial property is $0new text end .
new text begin (d) new text end The tax under this section is not treated as a local tax rate under section 469.177
and is not the levy of a governmental unit under chapters 276A and 473F.
new text begin (e) new text end The commissioner shall increase or decrease the preliminary or final deleted text begin ratedeleted text end new text begin ratesnew text end for
a year as necessary to account for errors and tax base changes that affected a preliminary
or final rate for either of the two preceding years. Adjustments are allowed to the extent
that the necessary information is available to the commissioner at the time the rates for a
year must be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.
new text begin (f) new text end The commissioner may, but need not, make adjustments if the total difference in
the tax levied for the year would be less than $100,000.
new text begin
This section is effective for taxes payable in 2013 and
thereafter.
new text end
Minnesota Statutes 2010, section 275.025, subdivision 2, is amended to read:
For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property
classified as class 3 or class 5(1) under section 273.13, deleted text begin except fordeleted text end new text begin excluding: (1) the
first $100,000 in value of each commercial-industrial property, (2) new text end electric generation
attached machinery under class 3new text begin ,new text end and new text begin (3) new text end property described in section 473.625. County
commercial-industrial tax capacity amounts are not adjusted for the captured net tax
capacity of a tax increment financing district under section 469.177, subdivision 2, the
net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net
tax capacities under chapter 276A or 473F.
new text begin
This section is effective for taxes payable in 2013 and
thereafter.
new text end
Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:
deleted text begin Ninety-five percent ofdeleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text begin five percent of the state general tax must be levied by applyingdeleted text end a uniform
rate to all seasonal residential recreational tax capacity. On or before October 1 each
year, the commissioner of revenue shall certify the preliminary state general levy rates to
each county auditor that must be used to prepare the notices of proposed property taxes
for taxes payable in the following year. By January 1 of each year, the commissioner
shall certify the final state general levy deleted text begin ratedeleted text end new text begin ratesnew text end to each county auditor that shall be
used in spreading taxes.
new text begin
This section is effective for taxes payable in 2013 and
thereafter.
new text end
Minnesota Statutes 2011 Supplement, section 290A.04, subdivision 2, is
amended to read:
A claimant whose property taxes payable are in excess
of the percentage of the household income stated below shall pay an amount equal to
the percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of property taxes payable.
The state refund equals the amount of property taxes payable that remain, up to the state
refund amount shown below.
Household Income |
Percent of Income |
Percent Paid by Claimant |
Maximum State Refund |
|
$0 to 1,549 |
1.0 percent |
15 percent |
$ |
2,460 |
1,550 to 3,089 |
1.1 percent |
15 percent |
$ |
2,460 |
3,090 to 4,669 |
1.2 percent |
15 percent |
$ |
2,460 |
4,670 to 6,229 |
1.3 percent |
20 percent |
$ |
2,460 |
6,230 to 7,769 |
1.4 percent |
20 percent |
$ |
2,460 |
7,770 to 10,879 |
1.5 percent |
20 percent |
$ |
2,460 |
10,880 to 12,429 |
1.6 percent |
20 percent |
$ |
2,460 |
12,430 to 13,989 |
1.7 percent |
20 percent |
$ |
2,460 |
13,990 to 15,539 |
1.8 percent |
20 percent |
$ |
2,460 |
15,540 to 17,079 |
1.9 percent |
25 percent |
$ |
2,460 |
17,080 to 18,659 |
2.0 percent |
25 percent |
$ |
2,460 |
18,660 to 21,759 |
2.1 percent |
25 percent |
$ |
2,460 |
21,760 to 23,309 |
2.2 percent |
30 percent |
$ |
2,460 |
23,310 to 24,859 |
2.3 percent |
30 percent |
$ |
2,460 |
24,860 to 26,419 |
2.4 percent |
30 percent |
$ |
2,460 |
26,420 to 32,629 |
2.5 percent |
35 percent |
$ |
2,460 |
32,630 to 37,279 |
2.6 percent |
35 percent |
$ |
2,460 |
37,280 to 46,609 |
2.7 percent |
35 percent |
$ |
deleted text begin
2,000 deleted text end new text begin 2,400 new text end |
46,610 to 54,369 |
2.8 percent |
35 percent |
$ |
deleted text begin
2,000 deleted text end new text begin 2,400 new text end |
54,370 to 62,139 |
2.8 percent |
40 percent |
$ |
deleted text begin
1,750 deleted text end new text begin 2,100 new text end |
62,140 to 69,909 |
3.0 percent |
40 percent |
$ |
deleted text begin
1,440 deleted text end new text begin 1,730 new text end |
69,910 to 77,679 |
3.0 percent |
40 percent |
$ |
deleted text begin
1,290 deleted text end new text begin 1,550 new text end |
77,680 to 85,449 |
3.0 percent |
40 percent |
$ |
deleted text begin
1,130 deleted text end new text begin 1,360 new text end |
85,450 to 90,119 |
3.5 percent |
45 percent |
$ |
deleted text begin
960 deleted text end new text begin 1,150 new text end |
90,120 to 93,239 |
3.5 percent |
45 percent |
$ |
deleted text begin
790 deleted text end new text begin 950 new text end |
93,240 to 97,009 |
3.5 percent |
50 percent |
$ |
deleted text begin
650 deleted text end new text begin 780 new text end |
97,010 to 100,779 |
3.5 percent |
50 percent |
$ |
deleted text begin
480 deleted text end new text begin 580 new text end |
The payment made to a claimant shall be the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
$100,780 or more.
new text begin
This section is effective for refund claims based on taxes
payable in 2012 and thereafter.
new text end
new text begin
(a) For property tax refund
claims under Minnesota Statutes, section 290A.04, subdivision 2h, based upon property
taxes payable in 2012, the state must pay a supplemental refund such that the combined
amount of the regular refund under Minnesota Statutes, section 290A.04, subdivision 2h,
and the supplemental refund is equal to 90 percent of the increase over the greater of (1) 12
percent of the payable 2011 property taxes, or (2) $100. The maximum combined refund
under Minnesota Statutes, section 290A.04, subdivision 2h, and this section is $1,000.
new text end
new text begin
(b) The supplemental refund amount must be determined by the commissioner of
revenue based upon the information submitted with the claim for the regular refund and
must be combined with the regular refund for payment.
new text end
new text begin
(c) Any supplemental refund paid under this section must be subtracted from
"property taxes payable" for the purposes of determining any refund amount under
Minnesota Statutes, section 290A.04, subdivision 2, based upon property taxes payable
in 2012.
new text end
new text begin
(d) Any supplemental refund paid under this section must be subtracted from
"property taxes payable" for taxes payable in 2012 for the purposes of determining any
refund amount under Minnesota Statutes, section 290A.04, subdivision 2h, based upon
property taxes payable in 2013.
new text end
new text begin
The amount necessary to make the payments required
under this section is appropriated to the commissioner of revenue from the general fund
for fiscal years 2013 and 2014.
new text end
new text begin
This section is effective for refund claims based on taxes
payable in 2012 only.
new text end