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HF 3305

as introduced - 88th Legislature (2013 - 2014) Posted on 03/27/2014 02:22pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/27/2014

Current Version - as introduced

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A bill for an act
relating to taxation; property; reinstating the residential homestead market
value credit and repealing the homestead market value exclusion; amending
Minnesota Statutes 2012, sections 126C.01, subdivision 3; 273.13, subdivision
34; 273.1384, subdivisions 3, 4, by adding a subdivision; 273.1393; 469.174,
subdivision 25; 469.177, subdivision 1; Minnesota Statutes 2013 Supplement,
sections 273.032; 273.124, subdivisions 3a, 13b; 276.04, subdivision 2; repealing
Minnesota Statutes 2012, section 273.13, subdivision 35; Minnesota Statutes
2013 Supplement, section 469.177, subdivision 1d.

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

Section 1.

Minnesota Statutes 2012, section 126C.01, subdivision 3, is amended to read:


Subd. 3.

Referendum market value.

"Referendum market value" means the
market value of all taxable property, excluding property classified as class 2, 4c(4), or
4c(12) under section 273.13. The portion of class 2a property consisting of the house,
garage, and surrounding one acre of land of an agricultural homestead is included in
referendum market value. deleted text beginFor the purposes of this subdivision, in the case of class 1a,
1b, or 2a property, "market value" means the value prior to the exclusion under section
273.13, subdivision 35.
deleted text end Any class of property, or any portion of a class of property, that is
included in the definition of referendum market value and that has a class rate of less than
one percent under section 273.13 shall have a referendum market value equal to its market
value times its class rate, multiplied by 100.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:


273.032 MARKET VALUE DEFINITION.

(a) Unless otherwise provided, for the purpose of determining any property tax
levy limitation based on market value or any limit on net debt, the issuance of bonds,
certificates of indebtedness, or capital notes based on market value, any qualification to
receive state aid based on market value, or any state aid amount based on market value,
the terms "market value," "estimated market value," and "market valuation," whether
equalized or unequalized, mean the estimated market value of taxable property within the
local unit of government before any of the following or similar adjustments for:

(1) the market value exclusions under:

(i) section 273.11, subdivisions 14a and 14c (vacant platted land);

(ii) section 273.11, subdivision 16 (certain improvements to homestead property);

(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
properties);

(iv) section 273.11, subdivision 21 (homestead property damaged by mold);

(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);

(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family
caregiver);

deleted text begin (vii) section 273.13, subdivision 35 (homestead market value exclusion);deleted text end or

(2) the deferment of value under:

(i) the Minnesota Agricultural Property Tax Law, section 273.111;

(ii) the Aggregate Resource Preservation Law, section 273.1115;

(iii) the Minnesota Open Space Property Tax Law, section 273.112;

(iv) the rural preserves property tax program, section 273.114; or

(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or

(3) the adjustments to tax capacity for:

(i) tax increment financing under sections 469.174 to 469.1794;

(ii) fiscal disparities under chapter 276A or 473F; or

(iii) powerline credit under section 273.425.

(b) Estimated market value under paragraph (a) also includes the market value
of tax-exempt property if the applicable law specifically provides that the limitation,
qualification, or aid calculation includes tax-exempt property.

(c) Unless otherwise provided, "market value," "estimated market value," and
"market valuation" for purposes of property tax levy limitations and calculation of state
aid, refer to the estimated market value for the previous assessment year and for purposes
of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
refer to the estimated market value as last finally equalized.

(d) For purposes of a provision of a home rule charter or of any special law that is not
codified in the statutes and that imposes a levy limitation based on market value or any limit
on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2013 Supplement, 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 class rate provided for
class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5),
item (ii). The homestead market value deleted text beginexclusiondeleted text endnew text begin creditnew text end under section deleted text begin273.13, subdivision
35
deleted text endnew text begin 273.1384new text end, does not apply and the property taxes assessed against the park shall not be
included in the determination of taxes payable for rent paid under section 290A.03.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 4.

Minnesota Statutes 2013 Supplement, section 273.124, subdivision 13b,
is amended to read:


Subd. 13b.

Improper homestead.

(a) If the commissioner finds that a property
owner may be claiming a fraudulent homestead, the commissioner shall notify the
appropriate counties. Within 90 days of the notification, the county assessor shall
investigate to determine if the homestead classification was properly claimed. If the
property owner does not qualify, the county assessor shall notify the county auditor who
will determine the amount of homestead benefits that had been improperly allowed. For
the purpose of this subdivision, "homestead benefits" means deleted text beginthe tax reduction resulting
from the classification as a homestead and the homestead market value exclusion under
section 273.13,
deleted text end the taconite homestead credit under section 273.135, the new text beginresidential and
new text endagricultural homestead deleted text begincreditdeleted text endnew text begin creditsnew text end under section 273.1384, and the supplemental
homestead credit under section 273.1391.

The county auditor shall send a notice to the person who owned the affected property
at the time the homestead application related to the improper homestead was filed,
demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
of the homestead benefits. The person notified may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section
278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax
Court within 60 days of the date of the notice from the county. Procedurally, the appeal
is governed by the provisions in chapter 271 which apply to the appeal of a property tax
assessment or levy, but without requiring any prepayment of the amount in controversy. If
the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
has been filed, the county auditor shall certify the amount of taxes and penalty to the county
treasurer. The county treasurer will add interest to the unpaid homestead benefits and
penalty amounts at the rate provided in section 279.03 for real property taxes becoming
delinquent in the calendar year during which the amount remains unpaid. Interest may be
assessed for the period beginning 60 days after demand for payment was made.

If the person notified is the current owner of the property, the treasurer may add the
total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
otherwise payable on the property by including the amounts on the property tax statements
under section 276.04, subdivision 3. The amounts added under this paragraph to the ad
valorem taxes shall include interest accrued through December 31 of the year preceding
the taxes payable year for which the amounts are first added. These amounts, when added
to the property tax statement, become subject to all the laws for the enforcement of real or
personal property taxes for that year, and for any subsequent year.

If the person notified is not the current owner of the property, the treasurer may
collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment
of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
tax obligations of the person who owned the property at the time the application related to
the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
those amounts on the tax lists against the property as provided in this paragraph to the extent
that the current owner agrees in writing. On all demands, billings, property tax statements,
and related correspondence, the county must list and state separately the amounts of
homestead benefits, penalty, interest and costs being demanded, billed or assessed.

(b) Any amount of homestead benefits recovered by the county from the property
owner shall be distributed to the county, city or town, and school district where the
property is located in the same proportion that each taxing district's levy was to the total
of the three taxing districts' levy for the current year. Any amount recovered attributable
to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
deposited in the taconite property tax relief account. Any amount recovered that is
attributable to supplemental homestead credit is to be transmitted to the commissioner of
revenue for deposit in the general fund of the state treasury. The total amount of penalty
collected must be deposited in the county general fund.

(c) If a property owner has applied for more than one homestead and the county
assessors cannot determine which property should be classified as homestead, the county
assessors will refer the information to the commissioner. The commissioner shall make
the determination and notify the counties within 60 days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 5.

Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:


Subd. 34.

Homestead of disabled veteran or family caregiver.

(a) All or a
portion of the market value of property owned by a veteran and serving as the veteran's
homestead under this section is excluded in determining the property's taxable market
value if the veteran has a service-connected disability of 70 percent or more as certified
by the United States Department of Veterans Affairs. To qualify for exclusion under this
subdivision, the veteran must have been honorably discharged from the United States
armed forces, as indicated by United States Government Form DD214 or other official
military discharge papers.

(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.

(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse for the current taxes
payable year and for five additional taxes payable years or until such time as the spouse
remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
Qualification under this paragraph requires an annual application under paragraph (h).

(d) If the spouse of a member of any branch or unit of the United States armed
forces who dies due to a service-connected cause while serving honorably in active
service, as indicated on United States Government Form DD1300 or DD2064, holds
the legal or beneficial title to a homestead and permanently resides there, the spouse is
entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years,
or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
property, whichever comes first.

(e) If a veteran meets the disability criteria of paragraph (a) but does not own
property classified as homestead in the state of Minnesota, then the homestead of the
veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
would otherwise qualify for under paragraph (b).

(f) In the case of an agricultural homestead, only the portion of the property
consisting of the house and garage and immediately surrounding one acre of land qualifies
for the valuation exclusion under this subdivision.

(g) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the deleted text beginmarket value exclusion under subdivision 35deleted text endnew text begin residential homestead market
value credit under section 273.1384
new text end, or classification under subdivision 22, paragraph (b).

(h) To qualify for a valuation exclusion under this subdivision a property owner
must apply to the assessor by July 1 of each assessment year, except that an annual
reapplication is not required once a property has been accepted for a valuation exclusion
under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
the property continues to qualify until there is a change in ownership. For an application
received after July 1 of any calendar year, the exclusion shall become effective for the
following assessment year.

(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.

(j) For purposes of this subdivision:

(1) "active service" has the meaning given in section 190.05;

(2) "own" means that the person's name is present as an owner on the property deed;

(3) "primary family caregiver" means a person who is approved by the secretary of
the United States Department of Veterans Affairs for assistance as the primary provider
of personal care services for an eligible veteran under the Program of Comprehensive
Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
and

(4) "veteran" has the meaning given the term in section 197.447.

(k) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 6.

Minnesota Statutes 2012, section 273.1384, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Residential homestead market value credit. new text end

new text begin Each county auditor shall
determine a homestead credit for each class 1a, 1b, and 2a homestead property within the
county equal to 0.4 percent of the first $76,000 of market value of the property minus .09
percent of the market value in excess of $76,000. The credit amount may not be less than
zero. In the case of an agricultural or resort homestead, only the market value of the
house, garage, and immediately surrounding one acre of land is eligible in determining the
property's homestead credit. In the case of a property that is classified as part homestead
and part nonhomestead, (i) the credit shall apply only to the homestead portion of the
property, but (ii) if a portion of a property is classified as nonhomestead solely because not
all the owners occupy the property, not all the owners have qualifying relatives occupying
the property, or solely because not all the spouses of owners occupy the property, the
credit amount shall be initially computed as if that nonhomestead portion were also in
the homestead class and then prorated to the owner-occupant's percentage of ownership.
For the purpose of this section, when an owner-occupant's spouse does not occupy the
property, the percentage of ownership for the owner-occupant spouse is one-half of the
couple's ownership percentage.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 7.

Minnesota Statutes 2012, section 273.1384, subdivision 3, is amended to read:


Subd. 3.

Credit reimbursements.

The county auditor shall determine the tax
reductions allowed under deleted text beginsubdivision 2deleted text endnew text begin this sectionnew text end within the county for each taxes
payable year and shall certify that amount to the commissioner of revenue as a part of the
abstracts of tax lists submitted by the county auditors under section 275.29. Any prior
year adjustments shall also be certified on the abstracts of tax lists. The commissioner
shall review the certifications for accuracy, and may make such changes as are deemed
necessary, or return the certification to the county auditor for correction. The credit under
this section must be used to proportionately reduce the net tax capacity-based property tax
payable to each local taxing jurisdiction as provided in section 273.1393.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 8.

Minnesota Statutes 2012, section 273.1384, subdivision 4, is amended to read:


Subd. 4.

Payment.

(a) The commissioner of revenue shall reimburse each local
taxing jurisdiction, other than school districts, for the tax reductions granted under
deleted text beginsubdivision 2deleted text endnew text begin this sectionnew text end in two equal installments on October 31 and December 26 of the
taxes payable year for which the reductions are granted, including in each payment the prior
year adjustments certified on the abstracts for that taxes payable year. The reimbursements
related to tax increments shall be issued in one installment each year on December 26.

(b) The commissioner of revenue shall certify the total of the tax reductions granted
under deleted text beginsubdivision 2deleted text endnew text begin this sectionnew text end for each taxes payable year within each school district to
the commissioner of the Department of Education and the commissioner of education shall
pay the reimbursement amounts to each school district as provided in section 273.1392.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 9.

Minnesota Statutes 2012, section 273.1393, is amended to read:


273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) new text beginhomestead and new text endagricultural deleted text begincreditdeleted text endnew text begin creditsnew text end as provided in section 273.1384;

(8) taconite homestead credit as provided in section 273.135;

(9) supplemental homestead credit as provided in section 273.1391; and

(10) the bovine tuberculosis zone credit, as provided in section 273.113.

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 10.

Minnesota Statutes 2013 Supplement, section 276.04, subdivision 2, is
amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing
of the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated.
The amounts due all other special taxing districts, if any, may be aggregated except that
any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
line directly under the appropriate county's levy. If the county levy under this paragraph
includes an amount for a lake improvement district as defined under sections 103B.501
to 103B.581, the amount attributable for that purpose must be separately stated from the
remaining county levy amount. In the case of Ramsey County, if the county levy under this
paragraph includes an amount for public library service under section 134.07, the amount
attributable for that purpose may be separated from the remaining county levy amount.
The amount of the tax on homesteads qualifying under the senior citizens' property tax
deferral program under chapter 290B is the total amount of property tax before subtraction
of the deferred property tax amount. The amount of the tax on contamination value
imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar
amounts, including the dollar amount of any special assessments, may be rounded to the
nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
be adjusted to the next higher even-numbered dollar. The amount of market value excluded
under section 273.11, subdivision 16, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

deleted text begin (2) the property's homestead market value exclusion under section 273.13,
subdivision 35;
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end the property's taxable market value under section 272.03, subdivision 15;

deleted text begin (4)deleted text endnew text begin (3)new text end the property's gross tax, before credits;

deleted text begin (5)deleted text endnew text begin (4)new text end for homestead new text beginresidential and new text endagricultural properties, the deleted text begincreditdeleted text endnew text begin creditsnew text end under
section 273.1384;

deleted text begin (6)deleted text endnew text begin (5)new text end any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and

deleted text begin (7)deleted text endnew text begin (6)new text end the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 11.

Minnesota Statutes 2012, section 469.174, subdivision 25, is amended to read:


Subd. 25.

Increment.

"Increment," "tax increment," "tax increment revenues,"
"revenues derived from tax increment," and other similar terms for a district include:

(1) taxes paid by the captured net tax capacity, but excluding any excess taxes, as
computed under section 469.177;

(2) the proceeds from the sale or lease of property, tangible or intangible, to the
extent the property was purchased by the authority with tax increments;

(3) principal and interest received on loans or other advances made by the authority
with tax increments;

(4) interest or other investment earnings on or from tax increments; deleted text beginand
deleted text end

(5) repayments or return of tax increments made to the authority under agreements
for districts for which the request for certification was made after August 1, 1993deleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) the market value homestead credit paid to the authority under section 273.1384.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 12.

Minnesota Statutes 2012, section 469.177, subdivision 1, is amended to read:


Subdivision 1.

Original net tax capacity.

(a) Upon or after adoption of a tax
increment financing plan, the auditor of any county in which the district is situated shall,
upon request of the authority, certify the original net tax capacity of the tax increment
financing district and that portion of the district overlying any subdistrict as described in the
tax increment financing plan and shall certify in each year thereafter the amount by which
the original net tax capacity has increased or decreased as a result of a change in tax exempt
status of property within the district and any subdistrict, reduction or enlargement of the
district or changes pursuant to subdivision 4. The auditor shall certify the amount within 30
days after receipt of the request and sufficient information to identify the parcels included in
the district. The certification relates to the taxes payable year as provided in subdivision 6.

(b) If the classification under section 273.13 of property located in a district changes
to a classification that has a different assessment ratio, the original net tax capacity of that
property must be redetermined at the time when its use is changed as if the property had
originally been classified in the same class in which it is classified after its use is changed.

(c) The amount to be added to the original net tax capacity of the district as a result
of previously tax exempt real property within the district becoming taxable equals the net
tax capacity of the real property as most recently assessed pursuant to section 273.18 or, if
that assessment was made more than one year prior to the date of title transfer rendering
the property taxable, the net tax capacity assessed by the assessor at the time of the
transfer. If improvements are made to tax exempt property after the municipality approves
the district and before the parcel becomes taxable, the assessor shall, at the request of
the authority, separately assess the estimated market value of the improvements. If the
property becomes taxable, the county auditor shall add to original net tax capacity, the net
tax capacity of the parcel, excluding the separately assessed improvements. If substantial
taxable improvements were made to a parcel after certification of the district and if the
property later becomes tax exempt, in whole or part, as a result of the authority acquiring
the property through foreclosure or exercise of remedies under a lease or other revenue
agreement or as a result of tax forfeiture, the amount to be added to the original net tax
capacity of the district as a result of the property again becoming taxable is the amount
of the parcel's value that was included in original net tax capacity when the parcel was
first certified. The amount to be added to the original net tax capacity of the district as a
result of enlargements equals the net tax capacity of the added real property as most
recently certified by the commissioner of revenue as of the date of modification of the tax
increment financing plan pursuant to section 469.175, subdivision 4.

(d) If the net tax capacity of a property increases because the property no longer
qualifies under the Minnesota Agricultural Property Tax Law, section 273.111; the
Minnesota Open Space Property Tax Law, section 273.112; or the Metropolitan
Agricultural Preserves Act, chapter 473H, the Rural Preserve Property Tax Program
under section 273.114, or because platted, unimproved property is improved or market
value is increased after approval of the plat under section 273.11, subdivision 14a or 14b,
the increase in net tax capacity must be added to the original net tax capacity. deleted text beginIf the
net tax capacity of a property increases because the property no longer qualifies for the
homestead market value exclusion under section 273.13, subdivision 35, the increase in
net tax capacity must be added to original net tax capacity if the original construction of
the affected home was completed before the date the assessor certified the original net
tax capacity of the district.
deleted text end

(e) The amount to be subtracted from the original net tax capacity of the district as a
result of previously taxable real property within the district becoming tax exempt or
qualifying in whole or part for an exclusion from taxable market value, or a reduction in
the geographic area of the district, shall be the amount of original net tax capacity initially
attributed to the property becoming tax exempt, being excluded from taxable market
value, or being removed from the district. If the net tax capacity of property located within
the tax increment financing district is reduced by reason of a court-ordered abatement,
stipulation agreement, voluntary abatement made by the assessor or auditor or by order
of the commissioner of revenue, the reduction shall be applied to the original net tax
capacity of the district when the property upon which the abatement is made has not been
improved since the date of certification of the district and to the captured net tax capacity
of the district in each year thereafter when the abatement relates to improvements made
after the date of certification. The county auditor may specify reasonable form and content
of the request for certification of the authority and any modification thereof pursuant to
section 469.175, subdivision 4.

(f) If a parcel of property contained a substandard building or improvements described
in section 469.174, subdivision 10, paragraph (e), that were demolished or removed and if
the authority elects to treat the parcel as occupied by a substandard building under section
469.174, subdivision 10, paragraph (b), or by improvements under section 469.174,
subdivision 10
, paragraph (e), the auditor shall certify the original net tax capacity of the
parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated
market value of the parcel for the year in which the building or other improvements were
demolished or removed, but applying the class rates for the current year.

(g) For a redevelopment district qualifying under section 469.174, subdivision 10,
paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
the land as the original tax capacity for any parcel in the district that contains a building
that suffered substantial damage as a result of the disaster or emergency.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2012, section 273.13, subdivision 35, new text end new text begin is repealed.
new text end

new text begin (b) Minnesota Statutes 2013 Supplement, section 469.177, subdivision 1d, new text end new text begin is
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and
thereafter.
new text end