as introduced - 92nd Legislature (2021 - 2022) Posted on 03/23/2022 12:30pm
A bill for an act
relating to taxation; property; modifying the homestead market value exclusion;
amending Minnesota Statutes 2020, section 273.13, subdivision 35.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2020, section 273.13, subdivision 35, is amended to read:
(a) Prior to determining a property's
net tax capacity under this section, property classified as class 1a or 1b under subdivision
22, and the portion of property classified as class 2a under subdivision 23 consisting of the
house, garage, and surrounding one acre of land, shall be eligible for a market value exclusion
as determined under paragraph (b).
(b) For a homestead valued at deleted text begin$76,000deleted text endnew text beginnew text end or less, the exclusion is 40 percent of
market value. For a homestead valued between deleted text begin$76,000deleted text endnew text beginnew text end and deleted text begin$413,800deleted text endnew text beginnew text end,
the exclusion is deleted text begin$30,400deleted text endnew text beginnew text end minus nine percent of the valuation over deleted text begin$76,000deleted text endnew text beginnew text end.
For a homestead valued at deleted text begin$413,800deleted text endnew text beginnew text end or more, there is no valuation exclusion. The
valuation exclusion shall be rounded to the nearest whole dollar, and may not be less than
(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior
to determining the amount of the valuation exclusion under this subdivision.
(d) In the case of a property that is classified as part homestead and part nonhomestead,
(i) the exclusion 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 exclusion 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.
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