HF 2204

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:00am

A bill for an act
relating to taxation; property; enhancing the property tax refund and reducing
the market value homestead credit; amending Minnesota Statutes 2008, sections 273.1384, subdivision 1; 290A.04, subdivision 2.

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

Section 1.

Minnesota Statutes 2008, section 273.1384, subdivision 1, is amended to
read:

Subdivision 1.

Residential homestead market value credit.

Each county auditor
shall determine a homestead credit for each class 1a, 1b, and 2a homestead property
within the county equal to 0.4 percent of the first $76,000 $75,000 of market value of
the property minus .09 0.1 percent of the market value in excess of $76,000 $75,000.
The credit amount may not be less than zero. In the case of an agricultural or resort
homestead, only the market value of the house, garage, and immediately surrounding one
acre of land is eligible in determining the property's homestead credit. In the case of a
property that is classified as part homestead and part nonhomestead, (i) the credit shall
apply only to the homestead portion of the property, but (ii) if a portion of a property is
classified as nonhomestead solely because not all the owners occupy the property, not all
the owners have qualifying relatives occupying the property, or solely because not all the
spouses of owners occupy the property, the credit amount shall be initially computed as
if that nonhomestead portion were also in the homestead class and then prorated to the
owner-occupant's percentage of ownership. For the purpose of this section, when an
owner-occupant's spouse does not occupy the property, the percentage of ownership for
the owner-occupant spouse is one-half of the couple's ownership percentage.

EFFECTIVE DATE.

This section is effective for taxes payable in 2010 and
thereafter.

Sec. 2.

Minnesota Statutes 2008, 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, up to the state
refund amount shown below.

Household Income		Percent of Income	Percent Paid by Claimant	Maximum State Refund
$0 to 1,189		1.0 percent	15 percent	$	1,850 2,040
1,190 to 2,379		1.1 percent	15 percent	$	1,850 2,040
2,380 to 3,589		1.2 percent	15 percent	$	1,800 1,980
3,590 to 4,789		1.3 percent	20 percent	$	1,800 1,980
4,790 to 5,979		1.4 percent	20 percent	$	1,730 1,900
5,980 to 8,369		1.5 percent	20 percent	$	1,730 1,900
8,370 to 9,559		1.6 percent	25 percent	$	1,670 1,840
9,560 to 10,759		1.7 percent	25 percent	$	1,670 1,840
10,760 to 11,949		1.8 percent	25 percent	$	1,610 1,770
11,950 to 13,139		1.9 percent	30 percent	$	1,610 1,770
13,140 to 14,349		2.0 percent	30 percent	$	1,540 1,690
14,350 to 16,739		2.12.0 percent	30 percent	$	1,540 1,690
16,740 to 17,929		2.22.0 percent	35 percent	$	1,480 1,630
17,930 to 19,119		2.32.0 percent	35 percent	$	1,480 1,630
19,120 to 20,319		2.42.1 percent	35 percent	$	1,420 1,560
20,320 to 25,099		2.52.2 percent	40 percent	$	1,420 1,560
25,100 to 28,679		2.62.3 percent	40 percent	$	1,360 1,500
28,680 to 35,849		2.72.5 percent	40 percent	$	1,360 1,500
35,850 to 41,819		2.82.6 percent	45 percent	$	1,240 1,360
41,820 to 47,799		3.02.8 percent	45 percent	$	1,240 1,360
47,800 to 53,779		3.23.0 percent	45 percent	$	1,110 1,220
53,780 to 59,749		3.5 percent	50 percent	$	990 1,090
59,750 to 65,729		3.5 percent	50 percent	$	870 960
65,730 to 69,319		3.5 percent	50 percent	$	740 810
69,320 to 71,719		3.5 percent	50 percent	$	610 670
71,720 to 74,619		3.5 percent	50 percent	$	500 550
74,620 to 77,519		3.5 percent	50 percent	$	370 410

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.

EFFECTIVE DATE.

This section is effective beginning with refunds based on
property taxes payable in 2010.