HF 2733

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

  1.1                          A bill for an act 
  1.2             relating to property taxes; providing for a property 
  1.3             tax freeze for homeowners aged 65 or older; amending 
  1.4             Minnesota Statutes 1994, section 276.04, by adding a 
  1.5             subdivision; Minnesota Statutes 1995 Supplement, 
  1.6             sections 124.214, subdivision 2; 275.065, subdivision 
  1.7             3; 275.08, subdivision 1b; and 276.04, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.10  124.214, subdivision 2, is amended to read: 
  1.11     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
  1.12  sections 270.07, 375.192, or otherwise, the net tax capacity of 
  1.13  any school district for any taxable year is changed after the 
  1.14  taxes for that year have been spread by the county auditor and 
  1.15  the local tax rate as determined by the county auditor based 
  1.16  upon the original net tax capacity is applied upon the changed 
  1.17  net tax capacities, the county auditor shall, prior to February 
  1.18  1 of each year, certify to the commissioner of children, 
  1.19  families, and learning the amount of any resulting net revenue 
  1.20  loss that accrued to the school district during the preceding 
  1.21  year.  Each year, the commissioner shall pay an abatement 
  1.22  adjustment to the district in an amount calculated according to 
  1.23  the provisions of this subdivision.  This amount shall be 
  1.24  deducted from the amount of the levy authorized by section 
  1.25  124.912, subdivision 9.  The amount of the abatement adjustment 
  1.26  shall be the product of:  
  2.1      (1) the net revenue loss from abatements and from tax 
  2.2   reductions under section 276.04, subdivision 2a, as certified by 
  2.3   the county auditor, times 
  2.4      (2) the ratio of:  
  2.5      (a) the sum of the amounts of the district's certified levy 
  2.6   in the preceding year according to the following:  
  2.7      (i) section 124A.23 if the district received general 
  2.8   education aid according to that section for the second preceding 
  2.9   year; 
  2.10     (ii) section 124.226, subdivisions 1 and 4, if the district 
  2.11  received transportation aid according to section 124.225 for the 
  2.12  second preceding year; 
  2.13     (iii) section 124.243, if the district received capital 
  2.14  expenditure facilities aid according to that section for the 
  2.15  second preceding year; 
  2.16     (iv) section 124.244, if the district received capital 
  2.17  expenditure equipment aid according to that section for the 
  2.18  second preceding year; 
  2.19     (v) section 124.83, if the district received health and 
  2.20  safety aid according to that section for the second preceding 
  2.21  year; 
  2.22     (vi) sections 124.2713, 124.2714, and 124.2715, if the 
  2.23  district received aid for community education programs according 
  2.24  to any of those sections for the second preceding year; 
  2.25     (vii) section 124.2711, subdivision 2a, if the district 
  2.26  received early childhood family education aid according to 
  2.27  section 124.2711 for the second preceding year; 
  2.28     (viii) section 124.321, subdivision 3, if the district 
  2.29  received special education levy equalization aid according to 
  2.30  that section for the second preceding year; 
  2.31     (ix) section 124A.03, subdivision 1g, if the district 
  2.32  received referendum equalization aid according to that section 
  2.33  for the second preceding year; and 
  2.34     (x) section 124A.22, subdivision 4a, if the district 
  2.35  received training and experience aid according to that section 
  2.36  for the second preceding year; 
  3.1      (b) to the total amount of the district's certified levy in 
  3.2   the preceding October, plus or minus auditor's adjustments. 
  3.3      Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  3.4   275.065, subdivision 3, is amended to read: 
  3.5      Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  3.6   county auditor shall prepare and the county treasurer shall 
  3.7   deliver after November 10 and on or before November 24 each 
  3.8   year, by first class mail to each taxpayer at the address listed 
  3.9   on the county's current year's assessment roll, a notice of 
  3.10  proposed property taxes and, in the case of a town, final 
  3.11  property taxes.  
  3.12     (b) The commissioner of revenue shall prescribe the form of 
  3.13  the notice. 
  3.14     (c) The notice must inform taxpayers that it contains the 
  3.15  amount of property taxes each taxing authority other than a town 
  3.16  proposes to collect for taxes payable the following year and, 
  3.17  for a town, the amount of its final levy.  It must clearly state 
  3.18  that each taxing authority, including regional library districts 
  3.19  established under section 134.201, and including the 
  3.20  metropolitan taxing districts as defined in paragraph (i), but 
  3.21  excluding all other special taxing districts and towns, will 
  3.22  hold a public meeting to receive public testimony on the 
  3.23  proposed budget and proposed or final property tax levy, or, in 
  3.24  case of a school district, on the current budget and proposed 
  3.25  property tax levy.  It must clearly state the time and place of 
  3.26  each taxing authority's meeting and an address where comments 
  3.27  will be received by mail.  
  3.28     (d) The notice must state for each parcel: 
  3.29     (1) the market value of the property as determined under 
  3.30  section 273.11, and used for computing property taxes payable in 
  3.31  the following year and for taxes payable in the current year; 
  3.32  and, in the case of residential property, whether the property 
  3.33  is classified as homestead or nonhomestead.  The notice must 
  3.34  clearly inform taxpayers of the years to which the market values 
  3.35  apply and that the values are final values; 
  3.36     (2) by county, city or town, school district excess 
  4.1   referenda levy, remaining school district levy, regional library 
  4.2   district, if in existence, the total of the metropolitan special 
  4.3   taxing districts as defined in paragraph (i) and the sum of the 
  4.4   remaining special taxing districts, and as a total of the taxing 
  4.5   authorities, including all special taxing districts, the 
  4.6   proposed or, for a town, final net tax on the property for taxes 
  4.7   payable the following year and the actual tax for taxes payable 
  4.8   the current year.  The notice shall state the amount of any tax 
  4.9   reduction accruing to the property under section 276.04, 
  4.10  subdivision 2a, and shall reflect the net tax after the 
  4.11  application of that subdivision.  For the purposes of this 
  4.12  subdivision, "school district excess referenda levy" means 
  4.13  school district taxes for operating purposes approved at 
  4.14  referendums, including those taxes based on net tax capacity as 
  4.15  well as those based on market value.  "School district excess 
  4.16  referenda levy" does not include school district taxes for 
  4.17  capital expenditures approved at referendums or school district 
  4.18  taxes to pay for the debt service on bonds approved at 
  4.19  referenda.  In the case of the city of Minneapolis, the levy for 
  4.20  the Minneapolis library board and the levy for Minneapolis park 
  4.21  and recreation shall be listed separately from the remaining 
  4.22  amount of the city's levy.  In the case of a parcel where tax 
  4.23  increment or the fiscal disparities areawide tax applies, the 
  4.24  proposed tax levy on the captured value or the proposed tax levy 
  4.25  on the tax capacity subject to the areawide tax must each be 
  4.26  stated separately and not included in the sum of the special 
  4.27  taxing districts; and 
  4.28     (3) the increase or decrease in the amounts in clause (2) 
  4.29  from taxes payable in the current year to proposed or, for a 
  4.30  town, final taxes payable the following year, expressed as a 
  4.31  dollar amount and as a percentage. 
  4.32     (e) The notice must clearly state that the proposed or 
  4.33  final taxes do not include the following: 
  4.34     (1) special assessments; 
  4.35     (2) levies approved by the voters after the date the 
  4.36  proposed taxes are certified, including bond referenda, school 
  5.1   district levy referenda, and levy limit increase referenda; 
  5.2      (3) amounts necessary to pay cleanup or other costs due to 
  5.3   a natural disaster occurring after the date the proposed taxes 
  5.4   are certified; 
  5.5      (4) amounts necessary to pay tort judgments against the 
  5.6   taxing authority that become final after the date the proposed 
  5.7   taxes are certified; and 
  5.8      (5) the contamination tax imposed on properties which 
  5.9   received market value reductions for contamination. 
  5.10     (f) Except as provided in subdivision 7, failure of the 
  5.11  county auditor to prepare or the county treasurer to deliver the 
  5.12  notice as required in this section does not invalidate the 
  5.13  proposed or final tax levy or the taxes payable pursuant to the 
  5.14  tax levy. 
  5.15     (g) If the notice the taxpayer receives under this section 
  5.16  lists the property as nonhomestead and the homeowner provides 
  5.17  satisfactory documentation to the county assessor that the 
  5.18  property is owned and has been used as the owner's homestead 
  5.19  prior to June 1 of that year, the assessor shall reclassify the 
  5.20  property to homestead for taxes payable in the following year. 
  5.21     (h) In the case of class 4 residential property used as a 
  5.22  residence for lease or rental periods of 30 days or more, the 
  5.23  taxpayer must either: 
  5.24     (1) mail or deliver a copy of the notice of proposed 
  5.25  property taxes to each tenant, renter, or lessee; or 
  5.26     (2) post a copy of the notice in a conspicuous place on the 
  5.27  premises of the property.  
  5.28     The notice must be mailed or posted by the taxpayer by 
  5.29  November 27 or within three days of receipt of the notice, 
  5.30  whichever is later.  A taxpayer may notify the county treasurer 
  5.31  of the address of the taxpayer, agent, caretaker, or manager of 
  5.32  the premises to which the notice must be mailed in order to 
  5.33  fulfill the requirements of this paragraph. 
  5.34     (i) For purposes of this subdivision, subdivisions 5a and 
  5.35  6, "metropolitan special taxing districts" means the following 
  5.36  taxing districts in the seven-county metropolitan area that levy 
  6.1   a property tax for any of the specified purposes listed below: 
  6.2      (1) metropolitan council under section 473.132, 473.167, 
  6.3   473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  6.4      (2) metropolitan airports commission under section 473.667, 
  6.5   473.671, or 473.672; and 
  6.6      (3) metropolitan mosquito control commission under section 
  6.7   473.711. 
  6.8      For purposes of this section, any levies made by the 
  6.9   regional rail authorities in the county of Anoka, Carver, 
  6.10  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  6.11  398A shall be included with the appropriate county's levy and 
  6.12  shall be discussed at that county's public hearing. 
  6.13     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  6.14  275.08, subdivision 1b, is amended to read: 
  6.15     Subd. 1b.  The amounts certified under section 275.07 by an 
  6.16  individual local government unit, except for any amounts 
  6.17  certified under sections 124A.03, subdivision 2a, and 275.61, 
  6.18  shall be divided by the total net tax capacity of all taxable 
  6.19  properties within the local government unit's taxing 
  6.20  jurisdiction.  The resulting ratio, the local government's local 
  6.21  tax rate, multiplied by each property's net tax capacity shall 
  6.22  be each property's tax for that local government unit before 
  6.23  reduction by any credits or by the application of section 
  6.24  276.04, subdivision 2a.  
  6.25     Any amount certified to the county auditor under section 
  6.26  124A.03, subdivision 2a, or 275.61, after the dates given in 
  6.27  those sections, shall be divided by the total estimated market 
  6.28  value of all taxable properties within the taxing district.  The 
  6.29  resulting ratio, the taxing district's new referendum tax rate, 
  6.30  multiplied by each property's estimated market value shall be 
  6.31  each property's new referendum tax before reduction by any 
  6.32  credits. 
  6.33     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  6.34  276.04, subdivision 2, is amended to read: 
  6.35     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
  6.36  shall provide for the printing of the tax statements.  The 
  7.1   commissioner of revenue shall prescribe the form of the property 
  7.2   tax statement and its contents.  The statement must contain a 
  7.3   tabulated statement of the dollar amount due to each taxing 
  7.4   authority from the parcel of real property for which a 
  7.5   particular tax statement is prepared.  The dollar amounts due 
  7.6   the county, township or municipality, the total of the 
  7.7   metropolitan special taxing districts as defined in section 
  7.8   275.065, subdivision 3, paragraph (i), school district excess 
  7.9   referenda levy, remaining school district levy, and the total of 
  7.10  other voter approved referenda levies based on market value 
  7.11  under section 275.61 must be separately stated.  The amounts due 
  7.12  all other special taxing districts, if any, may be aggregated.  
  7.13  For the purposes of this subdivision, "school district excess 
  7.14  referenda levy" means school district taxes for operating 
  7.15  purposes approved at referenda, including those taxes based on 
  7.16  net tax capacity as well as those based on market value.  
  7.17  "School district excess referenda levy" does not include school 
  7.18  district taxes for capital expenditures approved at referendums 
  7.19  or school district taxes to pay for the debt service on bonds 
  7.20  approved at referenda.  The amount of the tax on contamination 
  7.21  value imposed under sections 270.91 to 270.98, if any, must also 
  7.22  be separately stated.  The dollar amounts, including the dollar 
  7.23  amount of any special assessments, may be rounded to the nearest 
  7.24  even whole dollar.  For purposes of this section whole 
  7.25  odd-numbered dollars may be adjusted to the next higher 
  7.26  even-numbered dollar.  The amount of market value excluded under 
  7.27  section 273.11, subdivision 16, if any, must also be listed on 
  7.28  the tax statement.  The statement shall include the following 
  7.29  sentence, printed in upper case letters in boldface print:  "THE 
  7.30  STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.  
  7.31  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING 
  7.32  CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."  
  7.33     (b) The property tax statements for manufactured homes and 
  7.34  sectional structures taxed as personal property shall contain 
  7.35  the same information that is required on the tax statements for 
  7.36  real property.  
  8.1      (c) Real and personal property tax statements must contain 
  8.2   the following information in the order given in this paragraph.  
  8.3   The information must contain the current year tax information in 
  8.4   the right column with the corresponding information for the 
  8.5   previous year in a column on the left: 
  8.6      (1) the property's estimated market value under section 
  8.7   273.11, subdivision 1; 
  8.8      (2) the property's taxable market value after reductions 
  8.9   under section 273.11, subdivisions 1a and 16; 
  8.10     (3) the property's gross tax, calculated by multiplying the 
  8.11  property's gross tax capacity times the total local tax rate and 
  8.12  adding to the result the sum of the aids enumerated in clause 
  8.13  (3) (4); 
  8.14     (4) a total of the following aids: 
  8.15     (i) education aids payable under chapters 124 and 124A; 
  8.16     (ii) local government aids for cities, towns, and counties 
  8.17  under chapter 477A; and 
  8.18     (iii) disparity reduction aid under section 273.1398; 
  8.19     (5) for homestead residential and agricultural properties, 
  8.20  the homestead and agricultural credit aid apportioned to the 
  8.21  property.  This amount is obtained by multiplying the total 
  8.22  local tax rate by the difference between the property's gross 
  8.23  and net tax capacities under section 273.13.  This amount must 
  8.24  be separately stated and identified as "homestead and 
  8.25  agricultural credit."  For purposes of comparison with the 
  8.26  previous year's amount for the statement for taxes payable in 
  8.27  1990, the statement must show the homestead credit for taxes 
  8.28  payable in 1989 under section 273.13, and the agricultural 
  8.29  credit under section 273.132 for taxes payable in 1989; 
  8.30     (6) any credits received under sections 273.119; 273.123; 
  8.31  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
  8.32  473H.10, except that the amount of credit received under section 
  8.33  273.135 must be separately stated and identified as "taconite 
  8.34  tax relief"; and 
  8.35     (7) the amount of any tax reduction resulting from the 
  8.36  property qualifying for treatment under subdivision 2a; and 
  9.1      (8) the net tax payable in the manner required in paragraph 
  9.2   (a).  
  9.3      The commissioner of revenue shall certify to the county 
  9.4   auditor the actual or estimated aids enumerated in clauses (3) 
  9.5   and (4) that local governments will receive in the following 
  9.6   year.  In the case of a county containing a city of the first 
  9.7   class, for taxes levied in 1991, and for all counties for taxes 
  9.8   levied in 1992 and thereafter, the commissioner must certify 
  9.9   this amount by September 1.  
  9.10     Sec. 5.  Minnesota Statutes 1994, section 276.04, is 
  9.11  amended by adding a subdivision to read: 
  9.12     Subd. 2a.  [HOMESTEADS OF PERSONS AT LEAST AGE 65; TAX 
  9.13  INCREASE PROHIBITED.] (a) The net tax payable on class 1 
  9.14  property as defined in section 273.13, subdivision 22, and that 
  9.15  part of class 2a property as defined in section 273.13, 
  9.16  subdivision 23, consisting of the house, garage, and surrounding 
  9.17  one acre of land, may not exceed its net tax payable for the 
  9.18  preceding year, if all of the following conditions are met: 
  9.19     (1) the owners or, in the case of property owned by a 
  9.20  married couple in joint tenancy or tenancy in common, at least 
  9.21  one of the owners, are at least 65 years of age on January 1 of 
  9.22  the current tax year; 
  9.23     (2) the property qualifies for full homestead 
  9.24  classification for both the previous and current tax years; 
  9.25     (3) the owner or owners have owned the property for both 
  9.26  years; and 
  9.27     (4) the owner or owners have applied for taxation under 
  9.28  this section as required in paragraph (b). 
  9.29     (b) An owner or owners must apply to the county auditor for 
  9.30  taxation under this subdivision by July 1 of the year before the 
  9.31  year for which treatment under paragraph (a) is first 
  9.32  requested.  The applicant or applicants must submit proof of age 
  9.33  and any other information required by the auditor to determine 
  9.34  eligibility for taxation under paragraph (a).  In succeeding 
  9.35  years, no application is necessary. 
  9.36     (c) This subdivision does not apply to any increase in net 
 10.1   property taxes attributable to improvements made to the 
 10.2   homestead. 
 10.3      (d) The county auditor shall annually inform the public of 
 10.4   the availability of treatment under this subdivision. 
 10.5      (e) Property that no longer qualifies for treatment under 
 10.6   this section shall be taxed as otherwise provided by law. 
 10.7      (f) The amount of any tax reduction resulting from the 
 10.8   application of this subdivision shall be allocated among the 
 10.9   taxing districts in proportion to each taxing district's tax 
 10.10  rate relative to the total tax rate being levied against the 
 10.11  property. 
 10.12     Sec. 6.  [EFFECTIVE DATE.] 
 10.13     Sections 1 to 5 are effective for taxes payable in 1997 and 
 10.14  subsequent years.