HF 2286

as introduced - 91st Legislature (2019 - 2020) Posted on 03/11/2019 02:54pm

A bill for an act
relating to taxation; property tax refunds; establishing an automated system for
certificates of rent paid; requiring reporting of rent data; providing for retention
and classification of data; appropriating money; amending Minnesota Statutes
2018, section 290A.19; proposing coding for new law in Minnesota Statutes,
chapter 290A.

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

Section 1.

Minnesota Statutes 2018, section 290A.19, is amended to read:

290A.19 deleted text begin OWNER OR MANAGING AGENT TO FURNISH deleted text end RENT deleted text begin CERTIFICATE deleted text end new text begin
CERTIFICATES new text end .

new text begin Subdivision 1. new text end

new text begin Owner or managing agent to furnish rent certificate. new text end

(a) The owner
or managing agent of any property for which rent is paid for occupancy as a homestead
must furnish a certificate of rent paid to a person who is a renter on December 31, in the
form prescribed by the commissioner. If the renter moves before December 31, the owner
or managing agent may give the certificate to the renter at the time of moving, or mail the
certificate to the forwarding address if an address has been provided by the renter. The
certificate must be made available to the renter before February 1 of the year following the
year in which the rent was paid. The owner or managing agent must retain a duplicate of
each certificate or an equivalent record showing the same information for a period of three
years. The duplicate or other record must be made available to the commissioner upon
request.

(b) The commissioner may require the owner or managing agent, through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year deleted text begin , in deleted text end new text begin . The commissioner shall
prescribe new text end the content, format, and manner deleted text begin prescribed by the commissioner deleted text end new text begin of the form new text end
pursuant to section 270C.30. Prior to implementation, the commissioner, after consulting
with representatives of owners or managing agents, shall develop an implementation and
administration plan for the requirements of this paragraph that attempts to minimize financial
burdens, administration and compliance costs, and takes into consideration existing systems
of owners and managing agents.

(c) For the purposes of this section, "owner" includes a park owner as defined under
section 327C.01, subdivision 6, and "property" includes a lot as defined under section
327C.01, subdivision 3.

new text begin (d) Beginning with certificates of rent paid for 2021 rents, the owner or managing agent
must furnish certificates of rent paid that were created using the automated system on the
commissioner's website.
new text end

new text begin Subd. 2. new text end

new text begin Automated system for certificates of rent paid. new text end

new text begin (a) The commissioner must
develop and implement an electronic system for generating certificates of rent paid. The
system must allow an owner or managing agent to enter the information necessary to generate
a certificate of rent paid, and use the information provided to create a completed electronic
certificate for distribution to renters. An owner or managing agent is responsible for
furnishing the certificate to a renter in accordance with subdivision 1. The system must be
available for use for certificates of rent paid for 2020 rents.
new text end

new text begin (b) When generating a certificate of rent paid, the owner or managing agent must provide,
and the system must capture, information on the following items:
new text end

new text begin (1) the number of bedrooms in the rental unit;
new text end

new text begin (2) whether utilities are included in the rent amount reported; and
new text end

new text begin (3) the city, county, and five-digit zip code of the rental unit.
new text end

new text begin (c) The commissioner must retain data collected through the system as long as is necessary
to ensure compliance with chapter 290A and to prepare the annual report required under
section 290A.29. Data about an owner, managing agent, or renter gathered or maintained
through the system are return information and are classified under section 270B.02.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment adding and making changes to subdivision
1 is effective for refunds based on rents paid in 2021 and following years.
new text end

new text begin (b) The amendment adding subdivision 2 is effective July 1, 2019.
new text end

Sec. 2.

new text begin [290A.29] ANNUAL REPORT ON RENTS PAID IN MINNESOTA.
new text end

new text begin (a) Using data collected from the automated system under section 290A.19, subdivision
2, the commissioner must annually prepare and publish a report on rents in Minnesota. The
report must provide aggregated summary data on rents, broken out by number of bedrooms,
county, and other significant geographical regions. At a minimum, the report must describe:
new text end

new text begin (1) average and median rent amounts paid in the most recent year for which data is
available;
new text end

new text begin (2) to the extent data is available, year-to-year changes in the amount of rent paid; and
new text end

new text begin (3) differences between the data presented in the report and other existing data sources
on rents, including data from the United States Census Bureau.
new text end

new text begin (b) By March 15, 2022, and March 15 of each following year, the commissioner must
submit the report to the chairs and ranking members of the house and senate committees
with jurisdiction over taxes, property taxes, and housing policy.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text begin AUTOMATED RENTER'S CREDIT SYSTEM; APPROPRIATION.
new text end

new text begin $....... in fiscal year 2020 is appropriated from the general fund to the commissioner of
revenue to develop and implement the automated system required under section 290A.19,
subdivision 2.
new text end