HF 2122

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property tax refunds; removing the maximum from the
homeowner refund; implementing an income phaseout for the special refund;
amending Minnesota Statutes 2006, section 290A.04, subdivisions 2, 2h, 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 290A.04, subdivision 2, is amended to
read:

Subd. 2.

Homeowners.

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 deleted text begin , up to the state
refund amount shown below deleted text end .

Household Income

Percent of Income

Percent Paid by Claimant

deleted text begin Maximum State Refund deleted text end

$0 to 1,189	1.0 percent	15 percent		deleted text begin $1,450 deleted text end
1,190 to 2,379	1.1 percent	15 percent		deleted text begin $1,450 deleted text end
2,380 to 3,589	1.2 percent	15 percent		deleted text begin $1,410 deleted text end
3,590 to 4,789	1.3 percent	20 percent		deleted text begin $1,410 deleted text end
4,790 to 5,979	1.4 percent	20 percent		deleted text begin $1,360 deleted text end
5,980 to 8,369	1.5 percent	20 percent		deleted text begin $1,360 deleted text end
8,370 to 9,559	1.6 percent	25 percent		deleted text begin $1,310 deleted text end
9,560 to 10,759	1.7 percent	25 percent		deleted text begin $1,310 deleted text end
10,760 to 11,949	1.8 percent	25 percent		deleted text begin $1,260 deleted text end
11,950 to 13,139	1.9 percent	30 percent		deleted text begin $1,260 deleted text end
13,140 to 14,349	2.0 percent	30 percent		deleted text begin $1,210 deleted text end
14,350 to 16,739	2.1 percent	30 percent		deleted text begin $1,210 deleted text end
16,740 to 17,929	2.2 percent	35 percent		deleted text begin $1,160 deleted text end
17,930 to 19,119	2.3 percent	35 percent		deleted text begin $1,160 deleted text end
19,120 to 20,319	2.4 percent	35 percent		deleted text begin $1,110 deleted text end
20,320 to 25,099	2.5 percent	40 percent		deleted text begin $1,110 deleted text end
25,100 to 28,679	2.6 percent	40 percent		deleted text begin $1,070 deleted text end
28,680 to 35,849	2.7 percent	40 percent		deleted text begin $1,070 deleted text end
35,850 to 41,819	2.8 percent	45 percent		deleted text begin $ . 970 deleted text end
41,820 to 47,799	3.0 percent	45 percent		deleted text begin $ . 970 deleted text end
47,800 to 53,779	3.2 percent	45 percent		deleted text begin $ . 870 deleted text end
53,780 to 59,749	3.5 percent	50 percent		deleted text begin $ . 780 deleted text end
59,750 to 65,729	4.0 percent	50 percent		deleted text begin $ . 680 deleted text end
65,730 to 69,319	4.0 percent	50 percent		deleted text begin $ . 580 deleted text end
69,320 to 71,719	4.0 percent	50 percent		deleted text begin $ . 480 deleted text end
71,720 to 74,619	4.0 percent	50 percent		deleted text begin $ . 390 deleted text end
74,620 to 77,519	4.0 percent	50 percent		deleted text begin $ . 290 deleted 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
$77,520 or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on taxes payable in
2008 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read:

Subd. 2h.

Additional refund.

(a) If the gross property taxes payable on a homestead
increase more than 12 percent over the property taxes payable in the prior year on the same
property that is owned and occupied by the same owner on January 2 of both years, and the
amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed
an additional refund equal to 60 percent of the amount of the increase over the greater of
12 percent of the prior year's property taxes payable or $100. This subdivision shall not
apply to any increase in the gross property taxes payable attributable to improvements
made to the homestead after the assessment date for the prior year's taxes. This subdivision
shall not apply to any increase in the gross property taxes payable attributable to the
termination of valuation exclusions under section 273.11, subdivision 16.

The maximum refund allowed under this subdivision is $1,000. new text begin The maximum
refund allowed under this subdivision is reduced by ten percent of household income in
excess of $200,000.
new text end

(b) For purposes of this subdivision "gross property taxes payable" means property
taxes payable determined without regard to the refund allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each claimant under
this subdivision shall file with the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other documents required by the
commissioner.

(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
refund under this section. The information shall be provided on a magnetic computer
disk. The county may recover its costs by charging the person requesting the information
the reasonable cost for preparing the data. The information may not be used for any
purpose other than for notifying the homeowner of potential eligibility and assisting the
homeowner, without charge, in preparing a refund claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on taxes payable in
2008 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:

Subd. 4.

Inflation adjustment.

new text begin (a) new text end Beginning for property tax refunds payable
in calendar year 2002, the commissioner shall annually adjust the dollar amounts of
the income thresholds new text begin under subdivisions 2 and 2a new text end and the maximum refunds under
deleted text begin subdivisions 2 and deleted text end new text begin subdivision new text end 2a for inflation. The commissioner shall make the inflation
adjustments in accordance with section 1(f) of the Internal Revenue Code, except that
for purposes of this subdivision the percentage increase shall be determined from the
year ending on June 30, 2000, to the year ending on June 30 of the year preceding that
in which the refund is payable.

new text begin (b) Beginning for property tax refunds payable in calendar year 2009, the
commissioner shall annually adjust the dollar amounts of the income threshold and the
maximum refund under subdivision 2h for inflation. The commissioner shall make the
inflation adjustments in accordance with section 1(f) of the Internal Revenue Code, except
that for purposes of this subdivision the percentage increase shall be determined from the
year ending on June 30, 2007, to the year ending on June 30 of the year preceding that
in which the refund is payable.
new text end

new text begin (c) new text end The commissioner shall use the appropriate percentage increase to annually
adjust the income thresholds and maximum refunds under subdivisions 2 new text begin , new text end deleted text begin and deleted text end 2a new text begin ,
and 2h new text end for inflation without regard to whether or not the income tax brackets are
adjusted for inflation in that year. The commissioner shall round the thresholds and the
maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the
commissioner shall round it up to the next $10 amount.

The commissioner shall annually announce the adjusted refund schedule at the same
time provided under section 290.06. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end