HF 2996

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

A bill for an act
relating to taxation; property; modifying local option disaster relief abatements;
amending Minnesota Statutes 2004, section 273.123, subdivision 7.

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

Section 1.

Minnesota Statutes 2004, section 273.123, subdivision 7, is amended to read:

Subd. 7.

Local option; other property.

new text begin (a) new text end The owner of homestead property
not qualifying for an adjustment in valuation pursuant to subdivisions 1 to 5 or of
nonhomestead property may receive a reduction in the amount of taxes payable on the
property for the year in which the destruction occurs and in the following year if:

deleted text begin (a) deleted text end new text begin (1) new text end 50 percent or more of the homestead dwelling or other structure, as
established by the county assessor, is unintentionally or accidentally destroyed and the
homestead is uninhabitable or the other structure is not usable;

deleted text begin (b) deleted text end new text begin (2) new text end the owner of the property makes written application to the county assessor as
soon as practical after the damage has occurred; and

deleted text begin (c) deleted text end new text begin (3) new text end the owner of the property makes written application to the county deleted text begin board deleted text end new text begin
auditor new text end .

new text begin (b) new text end The county deleted text begin board may deleted text end new text begin auditor shall give written notification to the county board
and to each of the other taxing districts in which the property is located. The notice must
state that the owner of the property has made application for a property tax reduction due
to the disaster, and must include the amount of tax reduction as calculated under paragraph
(c) for each of the taxing districts. The taxing districts have 30 days from the date of the
auditor's notice to certify to the county in writing of a decision to decline to abate the tax
on each of the affected properties. If no notice is given to the county within the 30 days,
a tax reduction by that taxing district shall be granted by the county board. The county
board shall new text end grant a reduction in the amount of property tax which the owner must pay on
the qualifying property in the year of destruction and in the following year new text begin for each taxing
district including the county that has not declined the reduction under this paragraph new text end .

new text begin (c) new text end Any reduction in the amount of tax payable deleted text begin which is deleted text end deleted text begin authorized deleted text end new text begin granted new text end by
county board action new text begin under paragraph (b) new text end shall be calculated based upon the number of
months that the home is uninhabitable or the other structure is unusable. The amount of
net tax due from the taxpayer shall be multiplied by a fraction, the numerator of which
is the number of months the dwelling was occupied by that taxpayer, or the number of
months the other structure was used by the taxpayer, and the denominator of which is
12. For purposes of this subdivision, if a structure is occupied or used for a fraction of
a month, it is considered a month. "Net tax" is defined as the amount of tax after the
subtraction of all of the state paid property tax credits.

new text begin (d) new text end If application is made following payment of all property taxes due for the year
of destruction, the amount of the reduction new text begin from all of the taxing districts new text end granted by the
county board shall be refunded to the taxpayer by the county treasurer as soon as practical.

new text begin (e) new text end Any reductions or refunds deleted text begin approved by the county board deleted text end new text begin made under this
subdivision new text end shall not be subject to approval by the commissioner of revenue.

new text begin (f) new text end deleted text begin The county board deleted text end new text begin Each of the taxing districts new text end may levy in the following year the
amount of tax dollars lost to deleted text begin the county government deleted text end new text begin its taxing district new text end as a result of the
reductions granted deleted text begin pursuant to deleted text end new text begin under new text end this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reductions made in 2006 and
thereafter.
new text end