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HF 2998

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2016 01:25pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; property; allowing shareholders of manufactured home park
cooperatives to include a portion of ground lease payments when filing for the
homestead credit state refund; amending Minnesota Statutes 2014, sections
273.124, subdivision 3a; 290A.03, subdivision 13.


Section 1.

Minnesota Statutes 2014, section 273.124, subdivision 3a, is amended to read:

Subd. 3a.

Manufactured home park cooperative.

(a) When a manufactured home
park is owned by a corporation or association organized under chapter 308A or 308B,
and each person who owns a share or shares in the corporation or association is entitled
to occupy a lot within the park, the corporation or association may claim homestead
treatment for the park. Each lot must be designated by legal description or number, and
each lot is limited to not more than one-half acre of land.

(b) The manufactured home park shall be entitled to homestead treatment if all
of the following criteria are met:

(1) the occupant or the cooperative corporation or association is paying the ad
valorem property taxes and any special assessments levied against the land and structure
either directly, or indirectly through dues to the corporation or association; and

(2) the corporation or association organized under chapter 308A or 308B is wholly
owned by persons having a right to occupy a lot owned by the corporation or association.

(c) A charitable corporation, organized under the laws of Minnesota with no
outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
park if its members hold residential participation warrants entitling them to occupy a lot
in the manufactured home park.

(d) "Homestead treatment" under this subdivision means the classification rate
provided for class 4c property classified under section 273.13, subdivision 25, paragraph
(d), clause (5), item (ii)deleted text begin.deleted text endnew text begin, andnew text end the homestead market value exclusion under section 273.13,
subdivision 35, does not apply deleted text beginand the property taxes assessed against the park shall not
be included in the determination of taxes payable for rent paid under section 290A.03
deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with claims for taxes
payable in 2017.
new text end

Sec. 2.

Minnesota Statutes 2014, 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, and after
any refund claimed and allowable under section 290A.04, subdivision 2h, 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, deleted text beginand for homesteads
which are
deleted text endnew text begin including manufactured homes located in a manufactured home community
owned by a cooperative organized under chapter 308A or 308B, and
new text end park trailers taxed as
manufactured homes under section 168.012, subdivision 9, "property taxes payable" shall
also include 17 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 beginning with claims for taxes
payable in 2017.
new text end