HF 2354

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

  1.1                          A bill for an act 
  1.2             relating to taxes; providing that homestead property 
  1.3             tax increases are deferred for certain homeowners aged 
  1.4             65 or older; amending Minnesota Statutes 1995 
  1.5             Supplement, sections 275.065, subdivision 3; 275.08, 
  1.6             subdivision 1b; and 276.04, subdivision 2; proposing 
  1.7             coding for new law in Minnesota Statutes, chapter 273. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [273.113] [HOMESTEADS OF PERSONS AT LEAST AGE 
  1.10  65; TAX INCREASE DEFERRED.] 
  1.11     Subdivision 1.  [PROGRAM QUALIFICATIONS.] If the net tax 
  1.12  payable on class 1 property as defined in section 273.13, 
  1.13  subdivision 22, and that part of class 2a property as defined in 
  1.14  section 273.13, subdivision 23, consisting of the house, garage, 
  1.15  and surrounding one acre of land, is greater than its net tax 
  1.16  payable for the base year, the amount of the increase may be 
  1.17  deferred under this section, if all of the following conditions 
  1.18  are met: 
  1.19     (1) the owners or, in the case of property owned by a 
  1.20  married couple in joint tenancy or tenancy in common, at least 
  1.21  one of the owners, are at least 65 years of age on January 1 of 
  1.22  the current tax payable year; 
  1.23     (2) the property qualifies for full homestead 
  1.24  classification for both the previous and current tax payable 
  1.25  years; 
  1.26     (3) the owner or owners have owned and occupied the 
  2.1   property for both years; 
  2.2      (4) the owner's or owners' total household income, as 
  2.3   defined in section 290A.03, subdivision 5, for the calendar year 
  2.4   preceding the year of application does not exceed $35,000; 
  2.5      (5) there are no delinquent property taxes, penalties, or 
  2.6   interest on the property; and 
  2.7      (6) the owner or owners have applied for deferment under 
  2.8   this section as required in subdivision 2. 
  2.9      For purposes of this section, the base year is the year for 
  2.10  which deferment under this section is first requested and 
  2.11  approved. 
  2.12     Subd. 2.  [INITIAL APPLICATION FOR DEFERMENT.] An owner or 
  2.13  owners of property described in subdivision 1 may apply to the 
  2.14  county auditor for deferment under this section by July 1 of the 
  2.15  year before the year for which deferment is first requested.  An 
  2.16  owner may apply in the year in which the owner becomes 65 years 
  2.17  old, provided that no deferment of property taxes is made until 
  2.18  the first calendar year after the owner becomes 65 years old.  
  2.19  The application must be prescribed by the commissioner of 
  2.20  revenue and must include the following items and any other 
  2.21  information that the commissioner deems necessary: 
  2.22     (1) a certified copy of the birth certificate or other 
  2.23  acceptable proof of age of the owner or owners; 
  2.24     (2) the name, address, and social security number of the 
  2.25  owner or owners; 
  2.26     (3) a copy of the property tax statement for the current 
  2.27  payable year for the homesteaded property; 
  2.28     (4) the owner's household income for the previous calendar 
  2.29  year; and 
  2.30     (5) information on any mortgage loans secured by mortgages 
  2.31  on the property, including the current balance on the mortgage 
  2.32  loans and the number of years remaining on the mortgage loans. 
  2.33     Subd. 3.  [APPROVAL; RECORDING.] Upon approval of the 
  2.34  initial application under subdivision 2, the county auditor 
  2.35  shall notify the owner.  The county auditor shall record or file 
  2.36  a notice of the approved application in the office of the county 
  3.1   recorder, or county registrar of titles, whichever is 
  3.2   applicable, in the county where the qualifying property is 
  3.3   located.  The owner shall pay the recording or filing fees. 
  3.4      Subd. 4.  [ANNUAL CERTIFICATION BY TAXPAYER.] Annually on 
  3.5   or before June 1, an owner whose initial application has been 
  3.6   approved under subdivision 3, shall complete a certification 
  3.7   form and return it to the county auditor.  The certification 
  3.8   must state whether or not the owner wishes to have any increase 
  3.9   in net property taxes for the following year deferred.  If the 
  3.10  owner elects to have an increase in property taxes deferred, the 
  3.11  certification must state the homeowner's total household income 
  3.12  for the previous calendar year and contain proof or any other 
  3.13  information that the commissioner deems necessary.  If an 
  3.14  owner's total household income for the previous calendar year 
  3.15  exceeds $35,000, no tax may be deferred for taxes payable the 
  3.16  following year. 
  3.17     Subd. 5.  [DEFERRED TAX AMOUNT.] The difference between the 
  3.18  net property taxes payable on the qualifying homestead and the 
  3.19  net property taxes payable for the base year is the "deferred 
  3.20  property tax amount" for that taxes payable year.  The deferred 
  3.21  tax amounts must not include any special assessments levied by 
  3.22  any local unit of government.  Any tax attributable to new 
  3.23  improvements made to the property after the initial application 
  3.24  has been approved under subdivision 5 must be excluded when 
  3.25  determining any subsequent deferred property tax amounts. 
  3.26     Subd. 6.  [LIMITATION ON TOTAL AMOUNT OF DEFERRED TAXES.] 
  3.27  The total amount of deferred taxes on a property and interest, 
  3.28  when added to the balance owing on any mortgages on the property 
  3.29  at the time of the initial application, may not exceed 90 
  3.30  percent of the assessor's estimated market value of the property.
  3.31     Subd. 7.  [INTEREST; LIEN.] Taxes deferred under this 
  3.32  section are deemed a loan to the taxpayer from the taxing 
  3.33  districts that levied the tax.  Interest is computed on the 
  3.34  deferred taxes as provided in section 270.75, subdivision 5.  
  3.35  The deferred taxes and interest constitute a lien as provided 
  3.36  under section 272.31.  The lien for deferred taxes and interest 
  4.1   under this section has the same priority as other liens under 
  4.2   section 272.31, except that mortgages or a vendor's interest in 
  4.3   contracts for deed recorded or filed prior to the recording or 
  4.4   filing of the notice under subdivision 3 have priority over the 
  4.5   lien for deferred taxes and interest.  Taxes deferred in future 
  4.6   years are included in and have the same priority as the lien for 
  4.7   deferred taxes and interest for the first year, which is always 
  4.8   higher in priority than any mortgages or other liens filed or 
  4.9   recorded after the notice recorded or filed under subdivision 
  4.10  3.  The county treasurer or auditor shall maintain records of 
  4.11  the deferred taxes and shall list the amount of deferred taxes 
  4.12  for the year as a lien against the property on the property tax 
  4.13  statement.  In any certification of unpaid taxes for a tax 
  4.14  parcel, the county auditor shall clearly distinguish between 
  4.15  taxes payable in the current year, deferred taxes and interest, 
  4.16  and delinquent taxes.  
  4.17     Subd. 8.  [PROPERTY TAX REFUNDS.] For purposes of 
  4.18  qualifying for the regular property tax refund or the special 
  4.19  refund for homeowners under chapter 290A, the qualifying tax is 
  4.20  the full amount of taxes, including the deferred portions of the 
  4.21  tax.  If property taxes are deferred under this section, any 
  4.22  regular or special property tax refunds based upon property 
  4.23  taxes on the property must be paid by the commissioner of 
  4.24  revenue to the county auditor.  The county auditor shall reduce 
  4.25  the amount of the deferred taxes by the amount of the refund and 
  4.26  distribute it to the taxing districts as provided in subdivision 
  4.27  11.  If the total of the regular and the special property tax 
  4.28  refund amounts exceeds the amounts of the deferred taxes, the 
  4.29  commissioner shall remit the excess to the owner or owners. 
  4.30     Subd. 9.  [ALLOCATION OF REVENUE LOSS.] The county auditor 
  4.31  shall allocate the deferred tax amount under this section among 
  4.32  the taxing districts in proportion to each taxing district's tax 
  4.33  rate for taxes payable for the year those taxes are deferred 
  4.34  relative to the total tax rate being levied against the property 
  4.35  for taxes payable for the year those taxes are deferred.  The 
  4.36  allocations shall reduce the distributions paid by the county 
  5.1   treasurer to the taxing districts under sections 276.11 and 
  5.2   276.111.  
  5.3      Subd. 10.  [LENGTH AND TERMINATION OF DEFERMENT; PAYMENT OF 
  5.4   DEFERRED TAXES.] (a) The deferment of taxes under this section 
  5.5   terminates when one of the following occurs: 
  5.6      (1) the property is sold or transferred; 
  5.7      (2) the death of the qualifying owner(s); 
  5.8      (3) an applicant desires to discontinue the deferment; or 
  5.9      (4) the property no longer qualifies as a homestead. 
  5.10     (b) A property is not terminated from the program because 
  5.11  an owner chooses not to participate or does not meet the 
  5.12  household income limits for a given year or because there is no 
  5.13  increase in net taxes payable on the property for a given year 
  5.14  after the homestead's initial enrollment into the program. 
  5.15     Subd. 11.  [PAYMENT UPON TERMINATION.] Upon the termination 
  5.16  of the deferment under subdivision 10, the amount of deferred 
  5.17  taxes and interest becomes due and payable to the county 
  5.18  treasurer within 90 days.  The county auditor shall record a 
  5.19  notice of termination of deferment.  The amount of any recording 
  5.20  fees must be added to the amount due.  Upon receipt of the 
  5.21  payment, the county treasurer shall issue a receipt to the 
  5.22  person making the payment upon request.  Upon receipt by the 
  5.23  county treasurer of the amount of deferred taxes and interest, 
  5.24  the political subdivisions' loans to the owner or owners are 
  5.25  deemed paid in full.  The county auditor shall allocate and the 
  5.26  county treasurer shall distribute the payment to the taxing 
  5.27  districts in the same manner that the deferral was allocated and 
  5.28  distributed under subdivision 9.  
  5.29     Subd. 12.  [PUBLICATION OF PROGRAM.] The county auditor 
  5.30  shall annually inform the public of the availability of 
  5.31  treatment under this subdivision. 
  5.32     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  5.33  275.065, subdivision 3, is amended to read: 
  5.34     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  5.35  county auditor shall prepare and the county treasurer shall 
  5.36  deliver after November 10 and on or before November 24 each 
  6.1   year, by first class mail to each taxpayer at the address listed 
  6.2   on the county's current year's assessment roll, a notice of 
  6.3   proposed property taxes and, in the case of a town, final 
  6.4   property taxes.  
  6.5      (b) The commissioner of revenue shall prescribe the form of 
  6.6   the notice. 
  6.7      (c) The notice must inform taxpayers that it contains the 
  6.8   amount of property taxes each taxing authority other than a town 
  6.9   proposes to collect for taxes payable the following year and, 
  6.10  for a town, the amount of its final levy.  It must clearly state 
  6.11  that each taxing authority, including regional library districts 
  6.12  established under section 134.201, and including the 
  6.13  metropolitan taxing districts as defined in paragraph (i), but 
  6.14  excluding all other special taxing districts and towns, will 
  6.15  hold a public meeting to receive public testimony on the 
  6.16  proposed budget and proposed or final property tax levy, or, in 
  6.17  case of a school district, on the current budget and proposed 
  6.18  property tax levy.  It must clearly state the time and place of 
  6.19  each taxing authority's meeting and an address where comments 
  6.20  will be received by mail.  
  6.21     (d) The notice must state for each parcel: 
  6.22     (1) the market value of the property as determined under 
  6.23  section 273.11, and used for computing property taxes payable in 
  6.24  the following year and for taxes payable in the current year; 
  6.25  and, in the case of residential property, whether the property 
  6.26  is classified as homestead or nonhomestead.  The notice must 
  6.27  clearly inform taxpayers of the years to which the market values 
  6.28  apply and that the values are final values; 
  6.29     (2) by county, city or town, school district excess 
  6.30  referenda levy, remaining school district levy, regional library 
  6.31  district, if in existence, the total of the metropolitan special 
  6.32  taxing districts as defined in paragraph (i) and the sum of the 
  6.33  remaining special taxing districts, and as a total of the taxing 
  6.34  authorities, including all special taxing districts, the 
  6.35  proposed or, for a town, final net tax on the property for taxes 
  6.36  payable the following year and the actual tax for taxes payable 
  7.1   the current year.  The notice shall state the amount of any tax 
  7.2   deferrals accruing to the property under section 273.113 and 
  7.3   shall reflect the net tax after the application of that 
  7.4   section.  For the purposes of this subdivision, "school district 
  7.5   excess referenda levy" means school district taxes for operating 
  7.6   purposes approved at referendums, including those taxes based on 
  7.7   net tax capacity as well as those based on market value.  
  7.8   "School district excess referenda levy" does not include school 
  7.9   district taxes for capital expenditures approved at referendums 
  7.10  or school district taxes to pay for the debt service on bonds 
  7.11  approved at referenda.  In the case of the city of Minneapolis, 
  7.12  the levy for the Minneapolis library board and the levy for 
  7.13  Minneapolis park and recreation shall be listed separately from 
  7.14  the remaining amount of the city's levy.  In the case of a 
  7.15  parcel where tax increment or the fiscal disparities areawide 
  7.16  tax applies, the proposed tax levy on the captured value or the 
  7.17  proposed tax levy on the tax capacity subject to the areawide 
  7.18  tax must each be stated separately and not included in the sum 
  7.19  of the special taxing districts; and 
  7.20     (3) the increase or decrease in the amounts in clause (2) 
  7.21  from taxes payable in the current year to proposed or, for a 
  7.22  town, final taxes payable the following year, expressed as a 
  7.23  dollar amount and as a percentage. 
  7.24     (e) The notice must clearly state that the proposed or 
  7.25  final taxes do not include the following: 
  7.26     (1) special assessments; 
  7.27     (2) levies approved by the voters after the date the 
  7.28  proposed taxes are certified, including bond referenda, school 
  7.29  district levy referenda, and levy limit increase referenda; 
  7.30     (3) amounts necessary to pay cleanup or other costs due to 
  7.31  a natural disaster occurring after the date the proposed taxes 
  7.32  are certified; 
  7.33     (4) amounts necessary to pay tort judgments against the 
  7.34  taxing authority that become final after the date the proposed 
  7.35  taxes are certified; and 
  7.36     (5) the contamination tax imposed on properties which 
  8.1   received market value reductions for contamination. 
  8.2      (f) Except as provided in subdivision 7, failure of the 
  8.3   county auditor to prepare or the county treasurer to deliver the 
  8.4   notice as required in this section does not invalidate the 
  8.5   proposed or final tax levy or the taxes payable pursuant to the 
  8.6   tax levy. 
  8.7      (g) If the notice the taxpayer receives under this section 
  8.8   lists the property as nonhomestead and the homeowner provides 
  8.9   satisfactory documentation to the county assessor that the 
  8.10  property is owned and has been used as the owner's homestead 
  8.11  prior to June 1 of that year, the assessor shall reclassify the 
  8.12  property to homestead for taxes payable in the following year. 
  8.13     (h) In the case of class 4 residential property used as a 
  8.14  residence for lease or rental periods of 30 days or more, the 
  8.15  taxpayer must either: 
  8.16     (1) mail or deliver a copy of the notice of proposed 
  8.17  property taxes to each tenant, renter, or lessee; or 
  8.18     (2) post a copy of the notice in a conspicuous place on the 
  8.19  premises of the property.  
  8.20     The notice must be mailed or posted by the taxpayer by 
  8.21  November 27 or within three days of receipt of the notice, 
  8.22  whichever is later.  A taxpayer may notify the county treasurer 
  8.23  of the address of the taxpayer, agent, caretaker, or manager of 
  8.24  the premises to which the notice must be mailed in order to 
  8.25  fulfill the requirements of this paragraph. 
  8.26     (i) For purposes of this subdivision, subdivisions 5a and 
  8.27  6, "metropolitan special taxing districts" means the following 
  8.28  taxing districts in the seven-county metropolitan area that levy 
  8.29  a property tax for any of the specified purposes listed below: 
  8.30     (1) metropolitan council under section 473.132, 473.167, 
  8.31  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  8.32     (2) metropolitan airports commission under section 473.667, 
  8.33  473.671, or 473.672; and 
  8.34     (3) metropolitan mosquito control commission under section 
  8.35  473.711. 
  8.36     For purposes of this section, any levies made by the 
  9.1   regional rail authorities in the county of Anoka, Carver, 
  9.2   Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  9.3   398A shall be included with the appropriate county's levy and 
  9.4   shall be discussed at that county's public hearing. 
  9.5      Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  9.6   275.08, subdivision 1b, is amended to read: 
  9.7      Subd. 1b.  The amounts certified under section 275.07 by an 
  9.8   individual local government unit, except for any amounts 
  9.9   certified under sections 124A.03, subdivision 2a, and 275.61, 
  9.10  shall be divided by the total net tax capacity of all taxable 
  9.11  properties within the local government unit's taxing 
  9.12  jurisdiction.  The resulting ratio, the local government's local 
  9.13  tax rate, multiplied by each property's net tax capacity shall 
  9.14  be each property's tax for that local government unit before 
  9.15  reduction by any credits or by the application of section 
  9.16  273.113.  
  9.17     Any amount certified to the county auditor under section 
  9.18  124A.03, subdivision 2a, or 275.61, after the dates given in 
  9.19  those sections, shall be divided by the total estimated market 
  9.20  value of all taxable properties within the taxing district.  The 
  9.21  resulting ratio, the taxing district's new referendum tax rate, 
  9.22  multiplied by each property's estimated market value shall be 
  9.23  each property's new referendum tax before reduction by any 
  9.24  credits. 
  9.25     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  9.26  276.04, subdivision 2, is amended to read: 
  9.27     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
  9.28  shall provide for the printing of the tax statements.  The 
  9.29  commissioner of revenue shall prescribe the form of the property 
  9.30  tax statement and its contents.  The statement must contain a 
  9.31  tabulated statement of the dollar amount due to each taxing 
  9.32  authority from the parcel of real property for which a 
  9.33  particular tax statement is prepared.  The dollar amounts due 
  9.34  the county, township or municipality, the total of the 
  9.35  metropolitan special taxing districts as defined in section 
  9.36  275.065, subdivision 3, paragraph (i), school district excess 
 10.1   referenda levy, remaining school district levy, and the total of 
 10.2   other voter approved referenda levies based on market value 
 10.3   under section 275.61 must be separately stated.  The amounts due 
 10.4   all other special taxing districts, if any, may be aggregated.  
 10.5   For the purposes of this subdivision, "school district excess 
 10.6   referenda levy" means school district taxes for operating 
 10.7   purposes approved at referenda, including those taxes based on 
 10.8   net tax capacity as well as those based on market value.  
 10.9   "School district excess referenda levy" does not include school 
 10.10  district taxes for capital expenditures approved at referendums 
 10.11  or school district taxes to pay for the debt service on bonds 
 10.12  approved at referenda.  The amount of the tax on contamination 
 10.13  value imposed under sections 270.91 to 270.98, if any, must also 
 10.14  be separately stated.  The dollar amounts, including the dollar 
 10.15  amount of any special assessments, may be rounded to the nearest 
 10.16  even whole dollar.  For purposes of this section whole 
 10.17  odd-numbered dollars may be adjusted to the next higher 
 10.18  even-numbered dollar.  The amount of market value excluded under 
 10.19  section 273.11, subdivision 16, if any, must also be listed on 
 10.20  the tax statement.  The statement shall include the following 
 10.21  sentence, printed in upper case letters in boldface print:  "THE 
 10.22  STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.  
 10.23  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING 
 10.24  CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."  
 10.25     (b) The property tax statements for manufactured homes and 
 10.26  sectional structures taxed as personal property shall contain 
 10.27  the same information that is required on the tax statements for 
 10.28  real property.  
 10.29     (c) Real and personal property tax statements must contain 
 10.30  the following information in the order given in this paragraph.  
 10.31  The information must contain the current year tax information in 
 10.32  the right column with the corresponding information for the 
 10.33  previous year in a column on the left: 
 10.34     (1) the property's estimated market value under section 
 10.35  273.11, subdivision 1; 
 10.36     (2) the property's taxable market value after reductions 
 11.1   under section 273.11, subdivisions 1a and 16; 
 11.2      (3) the property's gross tax, calculated by multiplying the 
 11.3   property's gross tax capacity times the total local tax rate and 
 11.4   adding to the result the sum of the aids enumerated in clause 
 11.5   (3) (4); 
 11.6      (4) a total of the following aids: 
 11.7      (i) education aids payable under chapters 124 and 124A; 
 11.8      (ii) local government aids for cities, towns, and counties 
 11.9   under chapter 477A; and 
 11.10     (iii) disparity reduction aid under section 273.1398; 
 11.11     (5) for homestead residential and agricultural properties, 
 11.12  the homestead and agricultural credit aid apportioned to the 
 11.13  property.  This amount is obtained by multiplying the total 
 11.14  local tax rate by the difference between the property's gross 
 11.15  and net tax capacities under section 273.13.  This amount must 
 11.16  be separately stated and identified as "homestead and 
 11.17  agricultural credit."  For purposes of comparison with the 
 11.18  previous year's amount for the statement for taxes payable in 
 11.19  1990, the statement must show the homestead credit for taxes 
 11.20  payable in 1989 under section 273.13, and the agricultural 
 11.21  credit under section 273.132 for taxes payable in 1989; 
 11.22     (6) any credits received under sections 273.119; 273.123; 
 11.23  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 11.24  473H.10, except that the amount of credit received under section 
 11.25  273.135 must be separately stated and identified as "taconite 
 11.26  tax relief"; and 
 11.27     (7) the amount of property tax deferrals on the property 
 11.28  under section 273.113; and 
 11.29     (8) the net tax payable in the manner required in paragraph 
 11.30  (a).  
 11.31     The commissioner of revenue shall certify to the county 
 11.32  auditor the actual or estimated aids enumerated in clauses (3) 
 11.33  and (4) that local governments will receive in the following 
 11.34  year.  In the case of a county containing a city of the first 
 11.35  class, for taxes levied in 1991, and for all counties for taxes 
 11.36  levied in 1992 and thereafter, the commissioner must certify 
 12.1   this amount by September 1.  
 12.2      Sec. 5.  [EFFECTIVE DATE.] 
 12.3      Sections 1 to 4 are effective for taxes payable in 1997 and 
 12.4   subsequent years.