HF 2323

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; property tax; allowing certain 
  1.3             cooperative property used for residential nonhomestead 
  1.4             or seasonal residential recreational purposes to be 
  1.5             assessed and valued separately; amending Minnesota 
  1.6             Statutes 1995 Supplement, section 273.124, subdivision 
  1.7             3. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.10  273.124, subdivision 3, is amended to read: 
  1.11     Subd. 3.  [COOPERATIVES AND CHARITABLE CORPORATIONS; 
  1.12  HOMESTEAD AND OTHER PROPERTY.] (a) When one or more dwellings, 
  1.13  or one or more buildings which each contain several dwelling 
  1.14  units, are property is owned by a corporation or association 
  1.15  organized under chapter 308A, and each person who owns a share 
  1.16  or shares in the corporation or association is entitled to 
  1.17  occupy a dwelling building on the property, or dwelling a unit 
  1.18  in the within a building on the property, the corporation or 
  1.19  association may claim homestead treatment for each dwelling, or 
  1.20  for each unit in the case of a building containing several 
  1.21  dwelling units, for the dwelling or for the part of the value of 
  1.22  the building occupied by a shareholder.  Each dwelling building 
  1.23  or unit must be designated by legal description or number, and.  
  1.24  The net tax capacity of each dwelling building or unit that 
  1.25  qualifies for assessment as a homestead under this subdivision 
  1.26  must include not more than one-half acre of land, if platted, 
  2.1   nor more than 80 acres if unplatted.  The net tax capacity of 
  2.2   the building or buildings containing several dwelling 
  2.3   units property is the sum of the net tax capacities of each of 
  2.4   the respective buildings or units comprising the building 
  2.5   property, including the net tax capacity of each unit's or 
  2.6   building's proportionate share of the land and any common 
  2.7   buildings.  To qualify for the treatment provided by this 
  2.8   subdivision, the corporation or association must be wholly owned 
  2.9   by persons having a right to occupy a dwelling building or 
  2.10  dwelling unit owned by the corporation or association.  A 
  2.11  charitable corporation organized under the laws of Minnesota and 
  2.12  not otherwise exempt thereunder with no outstanding stock 
  2.13  qualifies for homestead treatment with respect to member 
  2.14  residents of the dwelling units who have purchased and hold 
  2.15  residential participation warrants entitling them to occupy the 
  2.16  units. 
  2.17     (b) To the extent provided in paragraph (a), a cooperative 
  2.18  or corporation organized under chapter 308A may obtain separate 
  2.19  assessment and valuation, and separate property tax statements 
  2.20  for each residential homestead, residential nonhomestead, or for 
  2.21  each seasonal residential recreational building or unit not used 
  2.22  for commercial purposes.  The appropriate class rates under 
  2.23  section 273.13 shall be applicable as if each building or unit 
  2.24  were a separate tax parcel; provided, however, that the tax 
  2.25  parcel which exists at the time the cooperative or corporation 
  2.26  makes application under this subdivision shall be a single 
  2.27  parcel for purposes of property taxes or the enforcement and 
  2.28  collection thereof, other than as provided in paragraph (a) or 
  2.29  (b). 
  2.30     (c) A member of a corporation or association may initially 
  2.31  obtain the separate assessment and valuation and separate 
  2.32  property tax statements, as provided in paragraph (b), by 
  2.33  applying to the assessor by June 30 of the assessment year. 
  2.34     (d) When a building, or dwelling units within a building, 
  2.35  no longer qualify under this subdivision paragraph (a) or (b), 
  2.36  the current owner must notify the assessor within 60 30 days.  
  3.1   Failure to notify the assessor within 60 30 days shall result in 
  3.2   the loss of benefits under this subdivision paragraph (a) or (b) 
  3.3   for taxes payable in the year that the failure is discovered.  
  3.4   For these purposes, "benefits under this subdivision paragraph 
  3.5   (a) or (b)" means the difference in the net tax capacity of 
  3.6   the building or units which no longer qualify as computed 
  3.7   under this subdivision paragraph (a) or (b) and as computed 
  3.8   under the otherwise applicable law, times the local tax rate 
  3.9   applicable to the building for that taxes payable year.  Upon 
  3.10  discovery of a failure to notify, the assessor shall inform the 
  3.11  auditor of the difference in net tax capacity for the building 
  3.12  or buildings in which units no longer qualify, and the auditor 
  3.13  shall calculate the benefits under this subdivision paragraph 
  3.14  (a) or (b).  Such amount, plus a penalty equal to 100 percent of 
  3.15  that amount, shall then be demanded of the building's owner.  
  3.16  The property owner may appeal the county's determination by 
  3.17  serving copies of a petition for review with county officials as 
  3.18  provided in section 278.01 and filing a proof of service as 
  3.19  provided in section 278.01 with the Minnesota tax court within 
  3.20  60 days of the date of the notice from the county.  The appeal 
  3.21  shall be governed by the tax court procedures provided in 
  3.22  chapter 271, for cases relating to the tax laws as defined in 
  3.23  section 271.01, subdivision 5; disregarding sections 273.125, 
  3.24  subdivision 5, and 278.03, but including section 278.05, 
  3.25  subdivision 2.  If the amount of the benefits under this 
  3.26  subdivision paragraph (a) or (b) and penalty are not paid within 
  3.27  60 days, and if no appeal has been filed, the county auditor 
  3.28  shall certify the amount of the benefit and penalty to the 
  3.29  succeeding year's tax list to be collected as part of the 
  3.30  property taxes on the affected buildings property. 
  3.31     Sec. 2.  [EFFECTIVE DATE.] 
  3.32     Section 1 is effective for the 1996 assessment and 
  3.33  thereafter, for taxes payable in 1997 and thereafter.