HF 3851

as introduced - 89th Legislature (2015 - 2016) Posted on 04/07/2016 02:55pm

A bill for an act
relating to taxation; changing the renters' property tax refund into a refundable
credit on the individual income tax form; making conforming changes; amending
Minnesota Statutes 2014, sections 290A.04, subdivisions 2a, 5; 290A.07,
subdivision 2a; 290A.25; proposing coding for new law in Minnesota Statutes,
chapter 290; repealing Minnesota Statutes 2014, section 290A.23, subdivision 1.

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

Section 1.

new text begin [290.0693] RENTERS' PROPERTY TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin An individual or married couple filing jointly is
allowed a credit against the tax imposed under this chapter in the amount authorized under
section 290A.04, subdivision 2a.
new text end

new text begin Subd. 2. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that the taxpayer is eligible
to receive under subdivision 1 exceeds the taxpayer's tax liability under this chapter, the
commissioner shall refund the excess to the applicant.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the refunds required under
this section is appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015, and for claims for refunds based on rent paid in calendar year 2016
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2014, 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
deleted text begin state refund deleted text end new text begin renters property tax credit under section 290.0693 new text end equals the amount of rent
constituting property taxes that remain, up to the maximum deleted text begin state refund deleted text end new text begin credit new text end amount
shown below.

Household Income	Percent of Income	Percent Paid by Claimant	Maximum deleted text begin State deleted text end deleted text begin Refund deleted text end new text begin Credit new text end
$0 to 4,909	1.0 percent	5 percent	$	2,000
4,910 to 6,529	1.0 percent	10 percent	$	2,000
6,530 to 8,159	1.1 percent	10 percent	$	1,950
8,160 to 11,439	1.2 percent	10 percent	$	1,900
11,440 to 14,709	1.3 percent	15 percent	$	1,850
14,710 to 16,339	1.4 percent	15 percent	$	1,800
16,340 to 17,959	1.4 percent	20 percent	$	1,750
17,960 to 21,239	1.5 percent	20 percent	$	1,700
21,240 to 22,869	1.6 percent	20 percent	$	1,650
22,870 to 24,499	1.7 percent	25 percent	$	1,650
24,500 to 27,779	1.8 percent	25 percent	$	1,650
27,780 to 29,399	1.9 percent	30 percent	$	1,650
29,400 to 34,299	2.0 percent	30 percent	$	1,650
34,300 to 39,199	2.0 percent	35 percent	$	1,650
39,200 to 45,739	2.0 percent	40 percent	$	1,650
45,740 to 47,369	2.0 percent	45 percent	$	1,500
47,370 to 49,009	2.0 percent	45 percent	$	1,350
49,010 to 50,649	2.0 percent	45 percent	$	1,150
50,650 to 52,269	2.0 percent	50 percent	$	1,000
52,270 to 53,909	2.0 percent	50 percent	$	900
53,910 to 55,539	2.0 percent	50 percent	$	500
55,540 to 57,169	2.0 percent	50 percent	$	200

The deleted text begin payment made to a claimant is the amount of the state refund deleted text end new text begin total credit allowed
under section 290.0693 is the amount new text end calculated under this subdivision. No deleted text begin payment deleted text end new text begin
credit new text end is allowed if the claimant's household income is $57,170 or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refunds based on rent
paid in calendar year 2016 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2014, section 290A.04, subdivision 5, is amended to read:

Subd. 5.

Combined renter and homeowner refund.

In the case of a claimant who
is entitled to a refund in a calendar year for claims based both on rent constituting property
taxes and property taxes payable, the deleted text begin refund allowable equals the sum of the refunds
allowable deleted text end new text begin claimant must claim the homeowner refund under this chapter and the renters'
property tax credit under section 290.0693 separately new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refunds based on
property taxes payable in 2016 and thereafter, and for rent paid in calendar year 2016
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2014, section 290A.07, subdivision 2a, is amended to read:

Subd. 2a.

Time new text begin or method new text end of payment to renter or manufactured home
homeowner.

new text begin (a) new text end A claimant who is deleted text begin a renter or deleted text end a homeowner who occupies a manufactured
home, as defined in section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as
a manufactured home under section 168.012, subdivision 9, shall receive full payment after
August 1 and before August 15 or 60 days after receipt of the application, whichever is later.

new text begin (b) A renter eligible for a refund under section 290A.04, subdivision 2a, must claim
the refund amount as a credit under section 290.0693.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refunds based on rent
paid in calendar year 2016 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2014, section 290A.25, is amended to read:

290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.

Annually, the commissioner of revenue shall furnish a list to the county assessor
containing the names and Social Security numbers of persons who have applied for both
homestead classification under section 273.13 and a deleted text begin property tax refund as a renter under
this chapter deleted text end new text begin renters' property tax credit under section 290.0693 new text end .

Within 90 days of the notification, the county assessor shall investigate to determine
if the homestead classification was improperly 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 has been improperly allowed. For the purpose of this section,
"homestead benefits" has the meaning given in section 273.124, subdivision 13b. The
county auditor shall send a notice to persons 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 with the
Minnesota Tax Court within 60 days of the date of the notice from the county as provided
in section 273.124, subdivision 13b.

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 for delinquent personal property taxes
for the period beginning 60 days after demand for payment was made until payment. If
the person notified is the current owner of the property, the treasurer may add the total
amount of benefits, penalty, interest, and costs to the real estate taxes otherwise payable on
the property in the following 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 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 benefits, penalty, interest, and costs, and
instead extend those amounts on the tax lists against the property for taxes payable in the
following year to the extent that the current owner agrees in writing.

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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refunds based on
property taxes payable in 2016 and thereafter, and for rent paid in calendar year 2016
and thereafter.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 290A.23, subdivision 1, 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 claims for refunds based on rent
paid in calendar year 2016 and thereafter.
new text end