HF 3510

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

A bill for an act
relating to taxation; property; increasing the residential and agricultural market
value homestead credit maximums; restoring market value credit losses to cities;
amending Minnesota Statutes 2004, section 273.1384, subdivision 2; Minnesota
Statutes 2005 Supplement, section 273.1384, subdivision 1; Laws 2005, First
Special Session chapter 3, article 2, section 5.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 273.1384, subdivision 1,
is amended to read:

Subdivision 1.

Residential homestead market value credit.

Each county auditor
shall determine a homestead credit for each class 1a, 1b, 1c, and 2a homestead property
within the county equal to 0.4 percent of the first deleted text begin $76,000 deleted text end new text begin $85,000 new text end of market value of the
property minus .09 percent of the market value in excess of deleted text begin $76,000 deleted text end new text begin $85,000 new text end . 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 which
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, or solely because
both spouses do not 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 or prorated to one-half if both spouses do
not occupy the property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2007 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 273.1384, subdivision 2, is amended to read:

Subd. 2.

Agricultural homestead market value credit.

Property classified as
class 2a agricultural homestead is eligible for an agricultural credit. The credit is equal
to deleted text begin 0.3 deleted text end new text begin 0.4 new text end percent of the first $115,000 of the property's market value. The credit under
this subdivision is limited to deleted text begin $345 deleted text end new text begin $460 new text end for each homestead. The credit is reduced by
.05 percent of the market value in excess of $115,000, subject to a maximum reduction
of $115.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2007 and
thereafter.
new text end

Sec. 3.

Laws 2005, First Special Session chapter 3, article 2, section 5, is amended to
read:

Sec. 5. 2005 deleted text begin AND 2006 deleted text end CITY AID PAYMENTS.

In 2005 deleted text begin and 2006 deleted text end , market value credit reimbursements for each city payable under
Minnesota Statutes, section 273.1384, are reduced by the dollar amount of the 2003
reduction in market value credit reimbursements for that city due to Laws 2003, First
Special Session chapter 21, article 5, section 12. No city's 2005 deleted text begin or 2006 deleted text end market value
credit reimbursements are reduced to less than zero under this section. To the extent
sufficient information is available on each payment date, the commissioner shall pay the
annual 2005 deleted text begin and 2006 deleted text end market value credit reimbursement amounts, after reduction under
this section, to cities in equal installments on the dates specified in Minnesota Statutes,
section 273.1384.