Minnesota Legislature
HF 3672
as introduced - 86th Legislature (2009 - 2010) Posted on 03/15/2010 09:52am
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A bill for an act
relating to taxation; property tax refunds for renters; modifying the schedule,
reducing the percentage of rent constituting property taxes, and ending the
inflation adjustment of the brackets and maximum refund amounts; amending
Minnesota Statutes 2008, sections 290A.03, subdivisions 11, 13; 290A.04,
subdivisions 2a, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 290A.03, subdivision 11, is amended to
read:
Subd. 11.
Rent constituting property taxes.
"Rent constituting property taxes"
means deleted text begin 19deleted text end new text begin 14new text end percent of the gross rent actually paid in cash, or its equivalent, or the portion
of rent paid in lieu of property taxes, in any calendar year by a claimant for the right
of occupancy of the claimant's Minnesota homestead in the calendar year, and which
rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
chapter by the claimant.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in
2010 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2008, 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, and for homesteads which are park
trailers taxed as manufactured homes under section 168.012, subdivision 9, "property
taxes payable" shall also include deleted text begin 19deleted text end new text begin 14new text end 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 for claims based on rent paid in
2010 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2008, section 290A.04, subdivision 2a, is amended to read:
Subd. 2a.
Renters.
A claimant whose rent constituting property taxes exceeds the
percentage of the household income stated below must pay an amount equal to the percent
of income shown for the appropriate household income level along with the percent to
be paid by the claimant of the remaining amount of rent constituting property taxes. The
state refund equals the amount of rent constituting property taxes that remain, up to the
maximum state refund amount shown below.
| Household Income |
Percent of Income |
Percent Paid by Claimant |
Maximum State Refund |
|||
| $0 to deleted text begin 3,589 deleted text end new text begin 4,599 new text end |
1.0 percent |
5 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,520 new text end |
||
|
deleted text begin
3,590 to 4,779 deleted text end new text begin 4,600 to 6,119 new text end |
1.0 percent |
10 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,520 new text end |
||
|
deleted text begin
4,780 to 5,969 deleted text end new text begin 6,120 to 7,649 new text end |
1.1 percent |
10 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,520 new text end |
||
|
deleted text begin
5,970 to 8,369 deleted text end new text begin 7,650 to 10,719 new text end |
1.2 percent |
10 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,520 new text end |
||
|
deleted text begin
8,370 to 10,759 deleted text end new text begin 10,720 to 13,779 new text end |
1.3 percent |
15 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,520 new text end |
||
|
deleted text begin
10,760 to 11,949 deleted text end new text begin 13,780 to 15,299 new text end |
1.4 percent |
15 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,520 new text end |
||
|
deleted text begin
11,950 to 13,139 deleted text end new text begin 15,300 to 16,829 new text end |
1.4 percent |
20 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,520 new text end |
||
|
deleted text begin
13,140 to 15,539 deleted text end new text begin 16,830 to 19,899 new text end |
1.5 percent |
20 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,520 new text end |
||
|
deleted text begin
15,540 to 16,729 deleted text end new text begin 19,900 to 21,419 new text end |
1.6 percent |
20 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,380 new text end |
||
|
deleted text begin
16,730 to 17,919 deleted text end new text begin 21,420 to 22,949 new text end |
1.7 percent |
25 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,230 new text end |
||
|
deleted text begin
17,920 to 20,319 deleted text end new text begin 22,950 to 26,019 new text end |
1.8 percent |
25 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,060 new text end |
||
|
deleted text begin
20,320 to 21,509 deleted text end new text begin 26,020 to 27,549 new text end |
1.9 percent |
30 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 920 new text end |
||
|
deleted text begin
21,510 to 22,699 deleted text end new text begin 27,550 to 29,069 new text end |
2.0 percent |
30 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 770 new text end |
||
|
deleted text begin
22,700 to 23,899 deleted text end new text begin 29,070 to 30,609 new text end |
2.2 percent |
30 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 460 new text end |
||
|
deleted text begin
23,900 to 25,089 deleted text end new text begin 30,610 to 31,139 new text end |
deleted text begin 2.4deleted text end new text begin 2.5new text end percent |
30 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 150 new text end |
||
|
deleted text begin
25,090 to 26,289 deleted text end |
deleted text begin
2.6 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
||
|
deleted text begin
26,290 to 27,489 deleted text end |
deleted text begin
2.7 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
||
|
deleted text begin
27,490 to 28,679 deleted text end |
deleted text begin
2.8 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
||
|
deleted text begin
28,680 to 29,869 deleted text end |
deleted text begin
2.9 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
||
|
deleted text begin
29,870 to 31,079 deleted text end |
deleted text begin
3.0 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
||
|
deleted text begin
31,080 to 32,269 deleted text end |
deleted text begin
3.1 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
||
|
deleted text begin
32,270 to 33,459 deleted text end |
deleted text begin
3.2 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
||
|
deleted text begin
33,460 to 34,649 deleted text end |
deleted text begin
3.3 percent deleted text end |
deleted text begin
45 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,080 deleted text end |
||
|
deleted text begin
34,650 to 35,849 deleted text end |
deleted text begin
3.4 percent deleted text end |
deleted text begin
45 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
960 deleted text end |
||
|
deleted text begin
35,850 to 37,049 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
45 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
830 deleted text end |
||
|
deleted text begin
37,050 to 38,239 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
720 deleted text end |
||
|
deleted text begin
38,240 to 39,439 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
600 deleted text end |
||
|
deleted text begin
38,440 to 40,629 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
360 deleted text end |
||
|
deleted text begin
40,630 to 41,819 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
120 deleted text end |
||
The payment made to a claimant is the amount of the state refund calculated under
this subdivision. No payment is allowed if the claimant's household income is deleted text begin $41,820deleted text end new text begin
$31,140new text end or more.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in
2010 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2008, section 290A.04, subdivision 4, is amended to read:
Subd. 4.
Inflation adjustment.
Beginning for property tax refunds payable in
calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
income thresholds and the maximum refunds under deleted text begin subdivisionsdeleted text end new text begin subdivisionnew text end 2 deleted text begin and 2adeleted text end for
inflation. The commissioner shall make the inflation adjustments in accordance with
section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the
percentage increase shall be determined from the year ending on June 30, 2000, to the
year ending on June 30 of the year preceding that in which the refund is payable. The
commissioner shall use the appropriate percentage increase to annually adjust the income
thresholds and maximum refunds under deleted text begin subdivisionsdeleted text end new text begin subdivisionnew text end 2 deleted text begin and 2adeleted text end for inflation
without regard to whether or not the income tax brackets are adjusted for inflation in that
year. The commissioner shall round the thresholds and the maximum amounts, as adjusted
to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up
to the next $10 amount.
The commissioner shall annually announce the adjusted refund schedule at the same
time provided under section 290.06. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end