HF 2461

as introduced - 90th Legislature (2017 - 2018) Posted on 03/20/2017 01:29pm

A bill for an act
relating to property tax refunds; modifying the schedule for the homestead credit
state refund; amending Minnesota Statutes 2016, section 290A.04, subdivisions
2, 4.

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

Section 1.

Minnesota Statutes 2016, section 290A.04, subdivision 2, is amended to read:

Subd. 2.

Homeowners; homestead credit refund.

A claimant whose property taxes
payable are in excess of the percentage of the household income stated below shall pay an
amount equal to the percent of income shown for the appropriate household income level
along with the percent to be paid by the claimant of the remaining amount of property taxes
payable. The state refund equals the amount of property taxes payable that remain, up to
the state refund amount shown below.

Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
$0 to 1,619	1.0 percent	15 percent	$	2,580
1,620 to 3,229	1.1 percent	15 percent	$	2,580
3,230 to 4,889	1.2 percent	15 percent	$	2,580
4,890 to 6,519	1.3 percent	20 percent	$	2,580
6,520 to 8,129	1.4 percent	20 percent	$	2,580
8,130 to 11,389	1.5 percent	20 percent	$	2,580
11,390 to 13,009	1.6 percent	20 percent	$	2,580
13,010 to 14,649	1.7 percent	20 percent	$	2,580
14,650 to 16,269	1.8 percent	20 percent	$	2,580
16,270 to 17,879	1.9 percent	25 percent	$	2,580
17,880 to 22,779	2.0 percent	25 percent	$	2,580
22,780 to 24,399	2.0 percent	30 percent	$	2,580
24,400 to 27,659	2.0 percent	30 percent	$	2,580
27,660 to 39,029	2.0 percent	35 percent	$	2,580
39,030 to 56,919	2.0 percent	35 percent	$	2,090
56,920 to 65,049	2.0 percent	40 percent	$	1,830
65,050 to 73,189	2.1 percent	40 percent	$	1,510
73,190 to 81,319	2.2 percent	40 percent	$	1,350
81,320 to 89,449	2.3 percent	40 percent	$	1,180
89,450 to 94,339	2.4 percent	45 percent	$	1,000
94,340 to 97,609	2.5 percent	45 percent	$	830
97,610 to 101,559	2.5 percent	50 percent	$	680
101,560 to 105,499	2.5 percent	50 percent	$	500

Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
$0 to 1,699	1.0 percent	15 percent	$	2,800
1,700 to 3,389	1.1 percent	15 percent	$	2,800
3,390 to 5,139	1.2 percent	15 percent	$	2,800
5,140 to 6,849	1.3 percent	20 percent	$	2,800
6,850 to 8,539	1.4 percent	20 percent	$	2,800
8,540 to 11,959	1.5 percent	20 percent	$	2,800
11,960 to 13,669	1.6 percent	20 percent	$	2,800
13,670 to 15,389	1.7 percent	20 percent	$	2,800
15,390 to 17,089	1.8 percent	20 percent	$	2,800
17,090 to 18,779	1.9 percent	25 percent	$	2,800
18,780 to 23,929	1.9 percent	25 percent	$	2,800
23,930 to 25,629	1.9 percent	30 percent	$	2,800
25,630 to 29,059	1.9 percent	30 percent	$	2,800
29,060 to 40,999	1.9 percent	35 percent	$	2,800
41,000 to 59,789	1.9 percent	35 percent	$	2,800
59,790 to 68,329	1.9 percent	40 percent	$	2,800
68,330 to 76,879	2.0 percent	40 percent	$	2,800
76,880 to 81,549	2.0 percent	40 percent	$	2,800
81,550 to 85,419	2.0 percent	40 percent	$	2,050
85,420 to 93,959	2.0 percent	40 percent	$	1,300
93,960 to 99,099	2.0 percent	45 percent	$	1,200
99,100 to 102,539	2.3 percent	45 percent	$	1,100
102,540 to 106,679	2.3 percent	50 percent	$	1,000
106,680 to 110,819	2.3 percent	50 percent	$	800

The payment made to a claimant shall be the amount of the state refund calculated under
this subdivision. No payment is allowed if the claimant's household income is $105,500
$110,820 or more.

EFFECTIVE DATE.

This section is effective for refunds based on property taxes
payable in 2018 and thereafter.

Sec. 2.

Minnesota Statutes 2016, section 290A.04, subdivision 4, is amended to read:

Subd. 4.

Inflation adjustment.

(a) Beginning for property tax refunds payable in calendar
year 2002, the commissioner shall annually adjust the dollar amounts of the income thresholds
and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner
shall make the inflation adjustments in accordance with section 1(f) of the Internal Revenue
Code, except that for purposes of this subdivision the percentage increase shall be determined
as provided in this subdivision.

(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds
under subdivision 2 for inflation, the percentage increase shall be determined from the year
ending on June 30, 2013 2017, to the year ending on June 30 of the year preceding that in
which the refund is payable.

(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds
under subdivision 2a for inflation, the percentage increase shall be determined from the
year ending on June 30, 2013, to the year ending on June 30 of the year preceding that in
which the refund is payable.

(d) The commissioner shall use the appropriate percentage increase to annually adjust
the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation
without regard to whether or not the income tax brackets are adjusted for inflation in that
year. The commissioner shall round the thresholds and the maximum amounts, as adjusted
to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to
the next $10 amount.

(e) The commissioner shall annually announce the adjusted refund schedule at the same
time provided under section 290.06. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.

EFFECTIVE DATE.

This section is effective for claims based on property taxes payable
in 2018 and thereafter.