HF 2357

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the property tax refund; increasing the 
  1.3             percentage of rent constituting property taxes; 
  1.4             amending Minnesota Statutes 1998, sections 290A.03, 
  1.5             subdivisions 11 and 13. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 290A.03, 
  1.8   subdivision 11, is amended to read: 
  1.9      Subd. 11.  [RENT CONSTITUTING PROPERTY TAXES.] "Rent 
  1.10  constituting property taxes" means 19 28 percent of the gross 
  1.11  rent actually paid in cash, or its equivalent, or the portion of 
  1.12  rent paid in lieu of property taxes, in any calendar year by a 
  1.13  claimant for the right of occupancy of the claimant's Minnesota 
  1.14  homestead in the calendar year, and which rent constitutes the 
  1.15  basis, in the succeeding calendar year of a claim for relief 
  1.16  under this chapter by the claimant. 
  1.17     Sec. 2.  Minnesota Statutes 1998, section 290A.03, 
  1.18  subdivision 13, is amended to read: 
  1.19     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
  1.20  payable" means the property tax exclusive of special 
  1.21  assessments, penalties, and interest payable on a claimant's 
  1.22  homestead after deductions made under sections 273.135, 
  1.23  273.1382, 273.1391, 273.42, subdivision 2, and any other state 
  1.24  paid property tax credits in any calendar year.  In the case of 
  1.25  a claimant who makes ground lease payments, "property taxes 
  2.1   payable" includes the amount of the payments directly 
  2.2   attributable to the property taxes assessed against the parcel 
  2.3   on which the house is located.  No apportionment or reduction of 
  2.4   the "property taxes payable" shall be required for the use of a 
  2.5   portion of the claimant's homestead for a business purpose if 
  2.6   the claimant does not deduct any business depreciation expenses 
  2.7   for the use of a portion of the homestead in the determination 
  2.8   of federal adjusted gross income.  For homesteads which are 
  2.9   manufactured homes as defined in section 273.125, subdivision 8, 
  2.10  and for homesteads which are park trailers taxed as manufactured 
  2.11  homes under section 168.012, subdivision 9, "property taxes 
  2.12  payable" shall also include 19 28 percent of the gross rent paid 
  2.13  in the preceding year for the site on which the homestead is 
  2.14  located.  When a homestead is owned by two or more persons as 
  2.15  joint tenants or tenants in common, such tenants shall determine 
  2.16  between them which tenant may claim the property taxes payable 
  2.17  on the homestead.  If they are unable to agree, the matter shall 
  2.18  be referred to the commissioner of revenue whose decision shall 
  2.19  be final.  Property taxes are considered payable in the year 
  2.20  prescribed by law for payment of the taxes. 
  2.21     In the case of a claim relating to "property taxes 
  2.22  payable," the claimant must have owned and occupied the 
  2.23  homestead on January 2 of the year in which the tax is payable 
  2.24  and (i) the property must have been classified as homestead 
  2.25  property pursuant to section 273.124, on or before December 15 
  2.26  of the assessment year to which the "property taxes payable" 
  2.27  relate; or (ii) the claimant must provide documentation from the 
  2.28  local assessor that application for homestead classification has 
  2.29  been made on or before December 15 of the year in which the 
  2.30  "property taxes payable" were payable and that the assessor has 
  2.31  approved the application. 
  2.32     Sec. 3.  [EFFECTIVE DATE.] 
  2.33     Sections 1 and 2 are effective beginning for claims based 
  2.34  on rent paid in calendar year 1999.