HF 2367

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:03am

A bill for an act
relating to property taxation; providing a property tax abatement for
newly-constructed residential structures in flood-damaged areas; appropriating
money.

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

Section 1. new text begin TAX ABATEMENT; NEWLY-CONSTRUCTED RESIDENTIAL
STRUCTURES IN FLOOD-DAMAGED AREAS.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (a) Property containing a residential structure qualifies
for a tax abatement under this section, if:
new text end

new text begin (1) the property is located in a city that meets the qualifications for the credit under
Minnesota Statutes, section 273.1398, subdivision 4;
new text end

new text begin (2) construction of the structure commenced after January 1, 2009, and is
substantially completed prior to December 31, 2010; and
new text end

new text begin (3) the property is classified as class 1a, 1b, 2a, 4a, 4b, 4bb, or 4d under Minnesota
Statutes, section 273.13.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin Application for the abatement authorized under this section
must be filed by January 2 of the year following the year in which construction began. The
application must be filed with the assessor of the county in which the property is located
on a form prescribed by the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Tax abated. new text end

new text begin (a) For a property qualifying under subdivision 1 and
classified as either 1a, 1b, 2a, 4b, or 4bb, the tax attributable to the market value of the
structure shall be abated. For a property qualifying under subdivision 1 and classified as
class 4a or 4d, the tax attributable to (i) $250,000 of market value, or (ii) the entire market
value of the structure, whichever is less, shall be abated.
new text end

new text begin (b) The abatement under paragraph (a) shall be in effect for two taxes payable years,
corresponding to the two assessment years after construction has begun. The abatement
shall not apply to any special assessments that have been levied against the property.
new text end

new text begin Subd. 4. new text end

new text begin Reimbursement. new text end

new text begin By May 1 of each taxes payable year in which an
abatement has been authorized under this section, the auditor shall report the amount of
taxes abated for each jurisdiction within the county to the commissioner of revenue, on a
form prescribed by the commissioner. On or before September 1 of each taxes payable
year in which an abatement has been authorized under this section, the commissioner of
revenue shall reimburse each local jurisdiction for the amount of taxes abated for the
year under this section.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the reimbursements
required under this section is annually appropriated to the commissioner of revenue from
the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment years 2010 to 2012,
for taxes payable in 2011 to 2013.
new text end