HF 2469

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to property taxation; providing for a limit
on homestead property taxes based on the income of the
homeowner; amending Minnesota Statutes 2004, sections
290A.03, subdivision 13; 290A.04, subdivisions 1, 2;
290A.23, subdivision 3; repealing Minnesota Statutes
2004, sections 273.1384, subdivision 1; 290A.04,
subdivision 2h.

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

Section 1.

Minnesota Statutes 2004, section 290A.03,
subdivision 13, is amended to read:

Subd. 13.

Property taxes payable.

"Property taxes
payable" means the property tax exclusive of special
assessments, penalties, and interest payable on a claimant's
homestead after deductions made under sections 273.135,
273.1384, 273.1391, 273.42, subdivision 2, and any other state
paid property tax credits in any calendar year, deleted text begin and after any
refund claimed and allowable under section 290A.04, subdivision
2h, deleted text end that is first payable in the year that the property tax is
payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the
payments directly attributable to the property taxes assessed
against the parcel on which the house is located. No
apportionment or reduction of the "property taxes payable" shall
be required for the use of a portion of the claimant's homestead
for a business purpose if the claimant does not deduct any
business depreciation expenses for the use of a portion of the
homestead in the determination of federal adjusted gross
income. For homesteads which are manufactured homes as defined
in section 273.125, subdivision 8, and for homesteads which are
park trailers taxed as manufactured homes under section 168.012,
subdivision 9, "property taxes payable" shall also include 19
percent of the gross rent paid in the preceding year for the
site on which the homestead is located. When a homestead is
owned by two or more persons as joint tenants or tenants in
common, such tenants shall determine between them which tenant
may claim the property taxes payable on the homestead. If they
are unable to agree, the matter shall be referred to the
commissioner of revenue whose decision shall be final. Property
taxes are considered payable in the year prescribed by law for
payment of the taxes.

In the case of a claim relating to "property taxes
payable," the claimant must have owned and occupied the
homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead
property pursuant to section 273.124, on or before December 15
of the assessment year to which the "property taxes payable"
relate; or (ii) the claimant must provide documentation from the
local assessor that application for homestead classification has
been made on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has
approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims
filed in 2006 and thereafter based on property taxes payable in
2006 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 290A.04,
subdivision 1, is amended to read:

Subdivision 1.

Refund.

A refund shall be allowed each
new text begin qualifying new text end claimant deleted text begin in the amount that deleted text end new text begin based on the relationship
between new text end property taxes payable or rent constituting property
taxes deleted text begin exceed the percentage of deleted text end new text begin and new text end the household income of the
claimant deleted text begin specified in subdivision 2 or 2a deleted text end in the year for which
the taxes were levied or in the year in which the rent was paid
as specified in subdivision 2 or 2a. deleted text begin If the amount of property
taxes payable or rent constituting property taxes is equal to or
less than the percentage of the household income of the claimant
specified in subdivision 2 or 2a in the year for which the taxes
were levied or in the year in which the rent was paid, the
claimant shall not be eligible for a state refund pursuant to
this section.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims
filed in 2006 and thereafter based on property taxes payable in
2006 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2004, section 290A.04,
subdivision 2, is amended to read:

Subd. 2.

Homeowners.

new text begin (a) new text end 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 new text begin under this paragraph
new text end equals the amount of property taxes payable that remain, up to
the new text begin maximum new text end state refund amount shown below.

Percent Percent Maximum
Household Income of Income Paid by State
Claimant Refund
$0 to 1,189 1.0 percent 15 percent $1,450
1,190 to 2,379 1.1 percent 15 percent $1,450
2,380 to 3,589 1.2 percent 15 percent $1,410
3,590 to 4,789 1.3 percent 20 percent $1,410
4,790 to 5,979 1.4 percent 20 percent $1,360
5,980 to 8,369 1.5 percent 20 percent $1,360
8,370 to 9,559 1.6 percent 25 percent $1,310
9,560 to 10,759 1.7 percent 25 percent $1,310
10,760 to 11,949 1.8 percent 25 percent $1,260
11,950 to 13,139 1.9 percent 30 percent $1,260
13,140 to 14,349 2.0 percent 30 percent $1,210
14,350 to 16,739 2.1 percent 30 percent $1,210
16,740 to 17,929 2.2 percent 35 percent $1,160
17,930 to 19,119 2.3 percent 35 percent $1,160
19,120 to 20,319 2.4 percent 35 percent $1,110
20,320 to 25,099 2.5 percent 40 percent $1,110
25,100 to 28,679 2.6 percent 40 percent $1,070
28,680 to 35,849 2.7 percent 40 percent $1,070
35,850 to 41,819 2.8 percent 45 percent $970
41,820 to 47,799 3.0 percent 45 percent $970
47,800 to 53,779 3.2 percent 45 percent $870
53,780 to 59,749 3.5 percent 50 percent $780
59,750 to 65,729 4.0 percent 50 percent $680
65,730 to 69,319 4.0 percent 50 percent $580
69,320 to 71,719 4.0 percent 50 percent $480
71,720 to 74,619 4.0 percent 50 percent $390
74,620 to 77,519 4.0 percent 50 percent $290

deleted text begin The payment made to a claimant shall be the amount of the
state refund calculated under this subdivision. deleted text end No deleted text begin payment
deleted text end new text begin refund new text end is allowed new text begin under this paragraph new text end if the claimant's
household income is $77,520 or more.

new text begin (b) A claimant shall be eligible for a refund equal to the
amount that the claimant's property taxes payable, net of any
refund determined under paragraph (a), exceed four percent of
household income.
new text end

new text begin (c) A claimant's property tax refund shall be the sum of
the refund amount determined under paragraph (a) and the refund
amount determined under paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims
filed in 2006 and thereafter based on property taxes payable in
2006 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2004, section 290A.23,
subdivision 3, is amended to read:

Subd. 3.

Annual appropriation.

deleted text begin For payments made after
July 1, 1996, deleted text end There is annually appropriated from the general
fund to the commissioner of revenue the amount necessary to make
the payments required under section 290A.04,
deleted text begin subdivisions deleted text end new text begin subdivision new text end 2 deleted text begin and 2h deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims
filed in 2006 and thereafter based on property taxes payable in
2006 and thereafter.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, section 273.1384, subdivision
1, is repealed.
new text end

new text begin (b) Minnesota Statutes 2004, section 290A.04, subdivision
2h, is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) of this section is
effective for property taxes payable in 2006 and thereafter.
Paragraph (b) of this section is effective for claims based on
taxes payable in 2006 and thereafter.
new text end