HF 350

as introduced - 87th Legislature (2011 - 2012) Posted on 02/03/2011 10:50am

A bill for an act
relating to taxation; removing a limitation on the duration of a tax exemption for
homesteads of surviving spouses of disabled veterans; amending Minnesota
Statutes 2010, section 273.13, subdivision 34.

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

Section 1.

Minnesota Statutes 2010, section 273.13, subdivision 34, is amended to read:

Subd. 34.

Homestead of disabled veteran.

(a) All or a portion of the market value
of property owned by a veteran or by the veteran and the veteran's spouse qualifying
for homestead classification under subdivision 22 or 23 is excluded in determining the
property's taxable market value if it serves as the homestead of a military veteran, as
defined in section 197.447, who has a service-connected disability of 70 percent or more.
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, and must be certified by the
United States Veterans Administration as having a service-connected disability.

(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 deleted text begin for one additional
deleted text end deleted text begin assessment year or deleted text end until such time as the spouse sells, transfers, or otherwise disposes of
the property deleted text begin , whichever comes first deleted text end .

(d) 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.

(e) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the credit under section 273.1384, subdivision 1, or classification under
subdivision 22, paragraph (b).

(f) 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
(b), clause (2), and the property continues to qualify until there is a change in ownership.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2010, payable in
2011, and thereafter, and applies to homesteads that initially qualified for the exclusion
for taxes payable in 2009 and thereafter.
new text end