HF 2817

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; extending homestead 
  1.3             classification to certain property used for 
  1.4             nonhomestead purposes; amending Minnesota Statutes 
  1.5             2001 Supplement, sections 273.124, subdivision 11; 
  1.6             273.13, subdivision 22. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   273.124, subdivision 11, is amended to read: 
  1.10     Subd. 11.  [LIMITATION ON HOMESTEAD REDUCTIONS PROPERTY 
  1.11  CLASSIFIED AS BOTH HOMESTEAD AND NONHOMESTEAD.] If the assessor 
  1.12  has classified a property as part homestead and part 
  1.13  nonhomestead, the greater of (1) the value attributable to the 
  1.14  portion of the property classified as class 1 or class 2a; or 
  1.15  (2) $76,000, is entitled to classification as a homestead under 
  1.16  section 273.13, subdivision 22 or 23.  This subdivision does not 
  1.17  apply to residential property containing fewer than four 
  1.18  residential units. 
  1.19     If the assessor has classified a property as both homestead 
  1.20  and nonhomestead, the reductions in tax provided under sections 
  1.21  273.135 and 273.1391 apply to the value of both the homestead 
  1.22  and the nonhomestead portions of the property. 
  1.23     [EFFECTIVE DATE; RECOMPUTATION AND REFUND OF 2002 
  1.24  TAXES.] This section is effective for taxes levied in 2001, 
  1.25  payable in 2002, and thereafter.  The county assessor shall 
  1.26  notify the county auditor of the parcels of property that 
  2.1   qualify under this section for taxes payable in 2002.  On or 
  2.2   before May 1, 2002, the county auditor shall recompute the taxes 
  2.3   due for those parcels and notify each taxpayer of the recomputed 
  2.4   taxes.  If part of the taxes payable in 2002 have been paid, the 
  2.5   county auditor shall reduce the taxes remaining unpaid so that 
  2.6   the taxes paid plus the taxes due equal the recomputed tax.  If 
  2.7   the tax already paid on the parcel for taxes payable in 2002 
  2.8   exceeds the recomputed tax, the county treasurer shall pay a 
  2.9   refund of the amount paid that exceeds the 2002 tax as 
  2.10  recomputed under this section.  
  2.11     For taxes payable in 2002, the county auditor shall report 
  2.12  the additional amount of qualifying homestead market value 
  2.13  credit under this section to the commissioner of revenue in a 
  2.14  form prescribed by the commissioner.  Reimbursement of the 
  2.15  additional credit amounts to the local taxing jurisdiction must 
  2.16  be made at the same time as the regular reimbursements. 
  2.17     A taxing jurisdiction may include in its levy for taxes 
  2.18  payable in 2003 its net loss of tax revenues received pursuant 
  2.19  to this section.  This amount is in addition to and 
  2.20  notwithstanding any levy limits or other limitations to the 
  2.21  contrary. 
  2.22     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  2.23  273.13, subdivision 22, is amended to read: 
  2.24     Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  2.25  23 and in paragraphs (b) and (c), real estate which is 
  2.26  residential and used for homestead purposes is class 1a.  In the 
  2.27  case of a duplex or triplex in which one of the units is used 
  2.28  for homestead purposes, the entire property is deemed to be used 
  2.29  for homestead purposes.  The market value of class 1a property 
  2.30  must be determined based upon the value of the house, garage, 
  2.31  and land.  
  2.32     The first $500,000 of market value of class 1a property has 
  2.33  a net class rate of one percent of its market value; and the 
  2.34  market value of class 1a property that exceeds $500,000 has a 
  2.35  class rate of 1.25 percent of its market value. 
  2.36     (b) Class 1b property includes homestead real estate or 
  3.1   homestead manufactured homes used for the purposes of a 
  3.2   homestead by 
  3.3      (1) any blind person, or the blind person and the blind 
  3.4   person's spouse; or 
  3.5      (2) any person, hereinafter referred to as "veteran," who: 
  3.6      (i) served in the active military or naval service of the 
  3.7   United States; and 
  3.8      (ii) is entitled to compensation under the laws and 
  3.9   regulations of the United States for permanent and total 
  3.10  service-connected disability due to the loss, or loss of use, by 
  3.11  reason of amputation, ankylosis, progressive muscular 
  3.12  dystrophies, or paralysis, of both lower extremities, such as to 
  3.13  preclude motion without the aid of braces, crutches, canes, or a 
  3.14  wheelchair; and 
  3.15     (iii) has acquired a special housing unit with special 
  3.16  fixtures or movable facilities made necessary by the nature of 
  3.17  the veteran's disability, or the surviving spouse of the 
  3.18  deceased veteran for as long as the surviving spouse retains the 
  3.19  special housing unit as a homestead; or 
  3.20     (3) any person who: 
  3.21     (i) is permanently and totally disabled and 
  3.22     (ii) receives 90 percent or more of total household income, 
  3.23  as defined in section 290A.03, subdivision 5, from 
  3.24     (A) aid from any state as a result of that disability; or 
  3.25     (B) supplemental security income for the disabled; or 
  3.26     (C) workers' compensation based on a finding of total and 
  3.27  permanent disability; or 
  3.28     (D) social security disability, including the amount of a 
  3.29  disability insurance benefit which is converted to an old age 
  3.30  insurance benefit and any subsequent cost of living increases; 
  3.31  or 
  3.32     (E) aid under the federal Railroad Retirement Act of 1937, 
  3.33  United States Code Annotated, title 45, section 228b(a)5; or 
  3.34     (F) a pension from any local government retirement fund 
  3.35  located in the state of Minnesota as a result of that 
  3.36  disability; or 
  4.1      (G) pension, annuity, or other income paid as a result of 
  4.2   that disability from a private pension or disability plan, 
  4.3   including employer, employee, union, and insurance plans and 
  4.4      (iii) has household income as defined in section 290A.03, 
  4.5   subdivision 5, of $50,000 or less; or 
  4.6      (4) any person who is permanently and totally disabled and 
  4.7   whose household income as defined in section 290A.03, 
  4.8   subdivision 5, is 275 percent or less of the federal poverty 
  4.9   level. 
  4.10     Property is classified and assessed under clause (4) only 
  4.11  if the government agency or income-providing source certifies, 
  4.12  upon the request of the homestead occupant, that the homestead 
  4.13  occupant satisfies the disability requirements of this paragraph.
  4.14     Property is classified and assessed pursuant to clause (1) 
  4.15  only if the commissioner of economic security certifies to the 
  4.16  assessor that the homestead occupant satisfies the requirements 
  4.17  of this paragraph.  
  4.18     Permanently and totally disabled for the purpose of this 
  4.19  subdivision means a condition which is permanent in nature and 
  4.20  totally incapacitates the person from working at an occupation 
  4.21  which brings the person an income.  The first $32,000 market 
  4.22  value of class 1b property has a net class rate of .45 percent 
  4.23  of its market value.  The remaining market value of class 1b 
  4.24  property has a class rate using the rates for class 1a or class 
  4.25  2a property, whichever is appropriate, of similar market value.  
  4.26     (c) Class 1c property is commercial use real property that 
  4.27  abuts a lakeshore line and is devoted to temporary and seasonal 
  4.28  residential occupancy for recreational purposes but not devoted 
  4.29  to commercial purposes for more than 250 days in the year 
  4.30  preceding the year of assessment, and that includes a portion 
  4.31  used as a homestead by the owner, which includes a dwelling 
  4.32  occupied as a homestead by a shareholder of a corporation that 
  4.33  owns the resort or a partner in a partnership that owns the 
  4.34  resort, even if the title to the homestead is held by the 
  4.35  corporation or partnership.  For purposes of this clause, 
  4.36  property is devoted to a commercial purpose on a specific day if 
  5.1   any portion of the property, excluding the portion used 
  5.2   exclusively as a homestead, is used for residential occupancy 
  5.3   and a fee is charged for residential occupancy.  The first 
  5.4   $500,000 of market value of class 1c property has a class rate 
  5.5   of one percent, and the remaining market value of class 1c 
  5.6   property has a class rate of one percent, with the following 
  5.7   limitation:  the area of the property must not exceed 100 feet 
  5.8   of lakeshore footage for each cabin or campsite located on the 
  5.9   property up to a total of 800 feet and 500 feet in depth, 
  5.10  measured away from the lakeshore.  If any portion of the class 
  5.11  1c resort property is classified as class 4c under subdivision 
  5.12  25, the entire property must meet the requirements of 
  5.13  subdivision 25, paragraph (d), clause (1), to qualify for class 
  5.14  1c treatment under this paragraph. 
  5.15     (d) Class 1d property includes structures that meet all of 
  5.16  the following criteria: 
  5.17     (1) the structure is located on property that is classified 
  5.18  as agricultural property under section 273.13, subdivision 23; 
  5.19     (2) the structure is occupied exclusively by seasonal farm 
  5.20  workers during the time when they work on that farm, and the 
  5.21  occupants are not charged rent for the privilege of occupying 
  5.22  the property, provided that use of the structure for storage of 
  5.23  farm equipment and produce does not disqualify the property from 
  5.24  classification under this paragraph; 
  5.25     (3) the structure meets all applicable health and safety 
  5.26  requirements for the appropriate season; and 
  5.27     (4) the structure is not salable as residential property 
  5.28  because it does not comply with local ordinances relating to 
  5.29  location in relation to streets or roads. 
  5.30     The market value of class 1d property has the same class 
  5.31  rates as class 1a property under paragraph (a). 
  5.32     [EFFECTIVE DATE.] This section is effective for taxes 
  5.33  payable in 2003 and subsequent years.