1.1 	A bill for an act
1.2 	relating to taxation; providing for deduction of the special property tax refund on 
1.3 	the property tax statement; appropriating money;amending Minnesota Statutes 
1.4 	2004, sections 270A.03, subdivision 7; 290A.03, subdivision 13; 290A.04, 
1.5 	subdivision 2h; 290A.07, subdivisions 1, 3; 290A.15; 290A.18; Minnesota 
1.6 	Statutes 2005 Supplement, sections 273.124, subdivision 13; 276.04, subdivision 
1.7 	2; proposing coding for new law in Minnesota Statutes, chapter 276.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 270A.03, subdivision 7, is amended to 
1.10 	read:
1.11 		Subd. 7.Refund. "Refund" means an individual income tax refund or political 
1.12 	contribution refund, pursuant to chapter 290, other than a refund which has been calculated 
1.13 	by the county auditor under section 276.013, or a property tax credit or refund, pursuant to 
1.14 	chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.
1.15 	For purposes of this chapter, lottery prizes, as set forth in section  349A.08, 
1.16 	subdivision 8, and amounts granted to persons by the legislature on the recommendation 
1.17 	of the joint senate-house of representatives Subcommittee on Claims shall be treated 
1.18 	as refunds. 
1.19 	In the case of a joint property tax refund payable to spouses under chapter 290A, 
1.20 	the refund shall be considered as belonging to each spouse in the proportion of the total 
1.21 	refund that equals each spouse's proportion of the total income determined under section  
1.22 	290A.03, subdivision 3. In the case of a joint income tax refund under chapter 289A, the 
1.23 	refund shall be considered as belonging to each spouse in the proportion of the total 
1.24 	refund that equals each spouse's proportion of the total taxable income determined under 
1.25 	section  290.01, subdivision 29. The commissioner shall remit the entire refund to the 
2.1 	claimant agency, which shall, upon the request of the spouse who does not owe the debt, 
2.2 	determine the amount of the refund belonging to that spouse and refund the amount to 
2.3 	that spouse. For court fines, fees, and surcharges and court-ordered restitution under 
2.4 	section  611A.04, subdivision 2, the notice provided by the commissioner of revenue under 
2.5 	section  270A.07, subdivision 2, paragraph (b), serves as the appropriate legal notice 
2.6 	to the spouse who does not owe the debt. 

2.7 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
2.8 	payable in 2007 and thereafter.

2.9 	Sec. 2. Minnesota Statutes 2005 Supplement, section 273.124, subdivision 13, is 
2.10 	amended to read:
2.11 		Subd. 13.Homestead application. (a) A person who meets the homestead 
2.12 	requirements under subdivision 1 must file a homestead application with the county 
2.13 	assessor to initially obtain homestead classification.
2.14 	(b) On or before January 2, 1993, each county assessor shall mail a homestead 
2.15 	application to the owner of each parcel of property within the county which was 
2.16 	classified as homestead for the 1992 assessment year. The format and contents of a 
2.17 	uniform homestead application shall be prescribed by the commissioner of revenue. The 
2.18 	commissioner shall consult with the chairs of the house and senate tax committees on the 
2.19 	contents of the homestead application form. The application must clearly inform the 
2.20 	taxpayer that this application must be signed by all owners who occupy the property or 
2.21 	by the qualifying relative and returned to the county assessor in order for the property 
2.22 	to continue receiving homestead treatment. The envelope containing the homestead 
2.23 	application shall clearly identify its contents and alert the taxpayer of its necessary 
2.24 	immediate response.
2.25 	(c) Every property owner applying for homestead classification must furnish to the 
2.26 	county assessor the Social Security number of each occupant who is listed as an owner 
2.27 	of the property on the deed of record, the name and address of each owner who does not 
2.28 	occupy the property, and the name and Social Security number of each owner's spouse who 
2.29 	occupies the property. The application must be signed by each owner who occupies the 
2.30 	property and by each owner's spouse who occupies the property, or, in the case of property 
2.31 	that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
2.32 	If a property owner occupies a homestead, the property owner's spouse may not 
2.33 	claim another property as a homestead unless the property owner and the property owner's 
2.34 	spouse file with the assessor an affidavit or other proof required by the assessor stating that 
2.35 	the property qualifies as a homestead under subdivision 1, paragraph (e).
3.1 	Owners or spouses occupying residences owned by their spouses and previously 
3.2 	occupied with the other spouse, either of whom fail to include the other spouse's name 
3.3 	and Social Security number on the homestead application or provide the affidavits or 
3.4 	other proof requested, will be deemed to have elected to receive only partial homestead 
3.5 	treatment of their residence. The remainder of the residence will be classified as 
3.6 	nonhomestead residential. When an owner or spouse's name and Social Security number 
3.7 	appear on homestead applications for two separate residences and only one application is 
3.8 	signed, the owner or spouse will be deemed to have elected to homestead the residence for 
3.9 	which the application was signed.
3.10 	The Social Security numbers or affidavits or other proofs of the property owners 
3.11 	and spouses are private data on individuals as defined by section 13.02, subdivision 12, 
3.12 	but, notwithstanding that section, the private data may be disclosed to the commissioner 
3.13 	of revenue, or, for purposes of proceeding under the Revenue Recapture Act to recover 
3.14 	personal property taxes owing, to the county treasurer.
3.15 	(d) If residential real estate is occupied and used for purposes of a homestead by a 
3.16 	relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in 
3.17 	order for the property to receive homestead status, a homestead application must be filed 
3.18 	with the assessor. The Social Security number of each relative occupying the property and 
3.19 	the Social Security number of each owner who is related to an occupant of the property 
3.20 	shall be required on the homestead application filed under this subdivision. If a different 
3.21 	relative of the owner subsequently occupies the property, the owner of the property must 
3.22 	notify the assessor within 30 days of the change in occupancy. The Social Security number 
3.23 	of a relative occupying the property is private data on individuals as defined by section 
3.24 	13.02, subdivision 12, but may be disclosed to the commissioner of revenue.
3.25 	(e) The homestead application shall also notify the property owners that the 
3.26 	application filed under this section will not be mailed annually and that if the property 
3.27 	is granted homestead status for the 1993 assessment, or any assessment year thereafter, 
3.28 	that same property shall remain classified as homestead until the property is sold or 
3.29 	transferred to another person, or the owners, the spouse of the owner, or the relatives no 
3.30 	longer use the property as their homestead. Upon the sale or transfer of the homestead 
3.31 	property, a certificate of value must be timely filed with the county auditor as provided 
3.32 	under section 272.115. Failure to notify the assessor within 30 days that the property has 
3.33 	been sold, transferred, or that the owner, the spouse of the owner, or the relative is no 
3.34 	longer occupying the property as a homestead, shall result in the penalty provided under 
3.35 	this subdivision and the property will lose its current homestead status.
4.1 	(f) If the homestead application is not returned within 30 days, the county will send a 
4.2 	second application to the present owners of record. The notice of proposed property taxes 
4.3 	prepared under section 275.065, subdivision 3, shall reflect the property's classification. 
4.4 	Beginning with assessment year 1993 for all properties, if a homestead application has 
4.5 	not been filed with the county by December 15, the assessor shall classify the property 
4.6 	as nonhomestead for the current assessment year for taxes payable in the following year, 
4.7 	provided that the owner may be entitled to receive the homestead classification by proper 
4.8 	application under section 375.192.
4.9 	(g) At the request of the commissioner, each county must give the commissioner a 
4.10 	list that includes the name and Social Security number of each property owner and the 
4.11 	property owner's spouse occupying the property, or relative of a property owner, applying 
4.12 	for homestead classification under this subdivision. The commissioner shall use the 
4.13 	information provided on the lists as appropriate under the law, including for the detection 
4.14 	of improper claims by owners, or relatives of owners, under chapter 290A.
4.15 	(h) If the commissioner finds that a property owner may be claiming a fraudulent 
4.16 	homestead, the commissioner shall notify the appropriate counties. Within 90 days of 
4.17 	the notification, the county assessor shall investigate to determine if the homestead 
4.18 	classification was properly claimed. If the property owner does not qualify, the 
4.19 	county assessor shall notify the county auditor who will determine the amount of 
4.20 	homestead benefits that had been improperly allowed. For the purpose of this section, 
4.21 	"homestead benefits" means the tax reduction resulting from the classification as a 
4.22 	homestead under section 273.13, the taconite homestead credit under section 273.135, 
4.23 	the residential homestead and agricultural homestead credits under section 273.1384, and
4.24 	the supplemental homestead credit under section 273.1391, and the special property tax 
4.25 	refund under section 290A.04, subdivision 2h.
4.26 	The county auditor shall send a notice to the person who owned the affected property 
4.27 	at the time the homestead application related to the improper homestead was filed, 
4.28 	demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent 
4.29 	of the homestead benefits. The person notified may appeal the county's determination 
4.30 	by serving copies of a petition for review with county officials as provided in section 
4.31 	278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax 
4.32 	Court within 60 days of the date of the notice from the county. Procedurally, the appeal 
4.33 	is governed by the provisions in chapter 271 which apply to the appeal of a property tax 
4.34 	assessment or levy, but without requiring any prepayment of the amount in controversy. If 
4.35 	the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal 
4.36 	has been filed, the county auditor shall certify the amount of taxes and penalty to the county 
5.1 	treasurer. The county treasurer will add interest to the unpaid homestead benefits and 
5.2 	penalty amounts at the rate provided in section 279.03 for real property taxes becoming 
5.3 	delinquent in the calendar year during which the amount remains unpaid. Interest may be 
5.4 	assessed for the period beginning 60 days after demand for payment was made.
5.5 	If the person notified is the current owner of the property, the treasurer may add the 
5.6 	total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes 
5.7 	otherwise payable on the property by including the amounts on the property tax statements 
5.8 	under section 276.04, subdivision 3. The amounts added under this paragraph to the ad 
5.9 	valorem taxes shall include interest accrued through December 31 of the year preceding 
5.10 	the taxes payable year for which the amounts are first added. These amounts, when added 
5.11 	to the property tax statement, become subject to all the laws for the enforcement of real or 
5.12 	personal property taxes for that year, and for any subsequent year.
5.13 	If the person notified is not the current owner of the property, the treasurer may 
5.14 	collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of 
5.15 	the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment 
5.16 	of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent 
5.17 	tax obligations of the person who owned the property at the time the application related 
5.18 	to the improperly allowed homestead was filed. The treasurer may relieve a prior owner 
5.19 	of personal liability for the homestead benefits, penalty, interest, and costs, and instead 
5.20 	extend those amounts on the tax lists against the property as provided in this paragraph 
5.21 	to the extent that the current owner agrees in writing. On all demands, billings, property 
5.22 	tax statements, and related correspondence, the county must list and state separately the 
5.23 	amounts of homestead benefits, penalty, interest and costs being demanded, billed or 
5.24 	assessed.
5.25 	(i) Any amount of homestead benefits recovered by the county from the property 
5.26 	owner shall be distributed to the county, city or town, and school district where the property 
5.27 	is located in the same proportion that each taxing district's levy was to the total of the three 
5.28 	taxing districts' levy for the current year. Any amount recovered attributable to taconite 
5.29 	homestead credit shall be transmitted to the St. Louis County auditor to be deposited in 
5.30 	the taconite property tax relief account. Any amount recovered that is attributable to 
5.31 	supplemental homestead credit and the special property tax refund is to be transmitted to 
5.32 	the commissioner of revenue for deposit in the general fund of the state treasury. The total 
5.33 	amount of penalty collected must be deposited in the county general fund.
5.34 	(j) If a property owner has applied for more than one homestead and the county 
5.35 	assessors cannot determine which property should be classified as homestead, the county 
6.1 	assessors will refer the information to the commissioner. The commissioner shall make 
6.2 	the determination and notify the counties within 60 days.
6.3 	(k) In addition to lists of homestead properties, the commissioner may ask the 
6.4 	counties to furnish lists of all properties and the record owners. The Social Security 
6.5 	numbers and federal identification numbers that are maintained by a county or city 
6.6 	assessor for property tax administration purposes, and that may appear on the lists retain 
6.7 	their classification as private or nonpublic data; but may be viewed, accessed, and used by 
6.8 	the county auditor or treasurer of the same county for the limited purpose of assisting the 
6.9 	commissioner in the preparation of microdata samples under section 270C.12.
6.10 	(l) On or before April 30 each year beginning in 2007, each county must provide the 
6.11 	commissioner with the following data for each parcel of homestead property by electronic 
6.12 	means as defined in section 289A.02, subdivision 8:
6.13 	(i) the property identification number assigned to the parcel for purposes of taxes 
6.14 	payable in the current year;
6.15 	(ii) the name and Social Security number of each property owner and property 
6.16 	owner's spouse, as shown on the tax rolls for the current and the prior assessment year;
6.17 	(iii) the classification of the property under section 273.13 for taxes payable in the 
6.18 	current year and in the prior year;
6.19 	(iv) an indication of whether the property was classified as a homestead for taxes 
6.20 	payable in the current year or for taxes payable in the prior year because of occupancy by 
6.21 	a relative of the owner or by a spouse of a relative;
6.22 	(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
6.23 	current year and the prior year;
6.24 	(vi) the market value of improvements to the property first assessed for tax purposes 
6.25 	for taxes payable in the current year;
6.26 	(vii) the assessor's estimated market value assigned to the property for taxes payable 
6.27 	in the current year and the prior year;
6.28 	(viii) the taxable market value assigned to the property for taxes payable in the 
6.29 	current year and the prior year;
6.30 	(ix) whether there are delinquent property taxes owing on the homestead;
6.31 	(x) the unique taxing district in which the property is located; and
6.32 	(xi) such other information as the commissioner decides is necessary.
6.33 	The commissioner shall use the information provided on the lists as appropriate 
6.34 	under the law, including for the detection of improper claims by owners, or relatives 
6.35 	of owners, under chapter 290A.

7.1 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
7.2 	payable in 2007 and thereafter.

7.3 	Sec. 3. [276.013] COMPUTATION, ADMINISTRATION, AND PAYMENT OF 
7.4 	SPECIAL PROPERTY TAX REFUND.
7.5 	(a) The county auditor shall compute the refund for each parcel of homestead 
7.6 	property that qualifies for a special property tax refund under section 290A.04, subdivision 
7.7 	2h, for taxes payable in the current year and determine the amount of refund allocated 
7.8 	to each taxing jurisdiction by apportioning the refund in proportion to the net tax due to 
7.9 	each taxing jurisdiction.
7.10 	(b) The county auditor shall certify the amount in paragraph (a) to the county 
7.11 	treasurer who shall reflect the amounts as property tax deductions on the property tax 
7.12 	statement under section 276.04 for taxes payable in the current year.
7.13 	(c) The county auditor shall annually certify the amount of the special property tax 
7.14 	refund under section 290A.04, subdivision 2h, apportioned by taxing jurisdiction to the 
7.15 	commissioner of revenue with the abstract of tax lists under section 275.29.
7.16 	(d) The commissioner of revenue shall reimburse each taxing jurisdiction, other than 
7.17 	school districts, for the special property tax refund amount computed under this section 
7.18 	in two equal installments on October 31 and December 26 of the taxes payable year for 
7.19 	which the refund is allowed, including in each payment the prior year adjustments certified 
7.20 	on the abstracts for that taxes payable year. The reimbursements related to tax increments 
7.21 	shall be issued in one installment each year on December 26.
7.22 	(e) The commissioner of revenue shall certify the total of the special property tax 
7.23 	refunds determined under this section for each taxes payable year within each school 
7.24 	district to the commissioner of the Department of Education, and the commissioner of 
7.25 	education shall pay the reimbursement amounts to each school district as provided in 
7.26 	section  273.1392. 

7.27 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
7.28 	payable in 2007 and thereafter.

7.29 	Sec. 4. Minnesota Statutes 2005 Supplement, section 276.04, subdivision 2, is 
7.30 	amended to read:
7.31 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the 
7.32 	printing of the tax statements. The commissioner of revenue shall prescribe the form 
7.33 	of the property tax statement and its contents. The statement must contain a tabulated 
7.34 	statement of the dollar amount due to each taxing authority and the amount of the state 
8.1 	tax from the parcel of real property for which a particular tax statement is prepared. The 
8.2 	dollar amounts attributable to the county, the state tax, the voter approved school tax, the 
8.3 	other local school tax, the township or municipality, and the total of the metropolitan 
8.4 	special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must 
8.5 	be separately stated. The amounts due all other special taxing districts, if any, may be 
8.6 	aggregated except that any levies made by the regional rail authorities in the county of 
8.7 	Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
8.8 	shall be listed on a separate line directly under the appropriate county's levy. If the county 
8.9 	levy under this paragraph includes an amount for a lake improvement district as defined 
8.10 	under sections 103B.501 to 103B.581, the amount attributable for that purpose must be 
8.11 	separately stated from the remaining county levy amount. In the case of Ramsey County, 
8.12 	if the county levy under this paragraph includes an amount for public library service 
8.13 	under section 134.07, the amount attributable for that purpose may be separated from the 
8.14 	remaining county levy amount. The amount of the tax on homesteads qualifying under the 
8.15 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
8.16 	property tax before subtraction of the deferred property tax amount. The amount of the 
8.17 	tax on contamination value imposed under sections 270.91 to 270.98, if any, must also 
8.18 	be separately stated. The dollar amounts, including the dollar amount of any special 
8.19 	assessments, may be rounded to the nearest even whole dollar. For purposes of this section 
8.20 	whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. 
8.21 	The amount of market value excluded under section 273.11, subdivision 16, if any, must 
8.22 	also be listed on the tax statement.
8.23 	(b) The property tax statements for manufactured homes and sectional structures 
8.24 	taxed as personal property shall contain the same information that is required on the 
8.25 	tax statements for real property.
8.26 	(c) Real and personal property tax statements must contain the following information 
8.27 	in the order given in this paragraph. The information must contain the current year tax 
8.28 	information in the right column with the corresponding information for the previous year 
8.29 	in a column on the left:
8.30 	(1) the property's estimated market value under section 273.11, subdivision 1;
8.31 	(2) the property's taxable market value after reductions under section 273.11, 
8.32 	subdivisions 1a and 16;
8.33 	(3) the property's gross tax, calculated by adding the property's total property tax to 
8.34 	the sum of the aids enumerated in clause (4);
8.35 	(4) a total of the following aids:
9.1 	(i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C, 
9.2 	and 127A;
9.3 	(ii) local government aids for cities, towns, and counties under sections 477A.011 to 
9.4 	477A.04; and
9.5 	(iii) disparity reduction aid under section 273.1398;
9.6 	(5) for homestead residential and agricultural properties, the credits under section 
9.7 	273.1384;
9.8 	(6) any credits received under sections 273.119; 273.123; 273.135; 273.1391; 
9.9 	273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received 
9.10 	under section 273.135 must be separately stated and identified as "taconite tax relief"; and
9.11 	(7) for eligible homestead properties, the special property tax refund under section 
9.12 	290A.04, subdivision 2h, if any, shown separately as a deduction on the statement; and
9.13 	(8) the net tax payable in the manner required in paragraph (a).
9.14 	(d) If the county uses envelopes for mailing property tax statements and if the county 
9.15 	agrees, a taxing district may include a notice with the property tax statement notifying 
9.16 	taxpayers when the taxing district will begin its budget deliberations for the current 
9.17 	year, and encouraging taxpayers to attend the hearings. If the county allows notices to 
9.18 	be included in the envelope containing the property tax statement, and if more than 
9.19 	one taxing district relative to a given property decides to include a notice with the tax 
9.20 	statement, the county treasurer or auditor must coordinate the process and may combine 
9.21 	the information on a single announcement.
9.22 	The commissioner of revenue shall certify to the county auditor the actual or 
9.23 	estimated aids enumerated in paragraph (c), clause (4), that local governments will receive 
9.24 	in the following year. The commissioner must certify this amount by January 1 of each 
9.25 	year.

9.26 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
9.27 	payable in 2007 and thereafter.

9.28 	Sec. 5. Minnesota Statutes 2004, section 290A.03, subdivision 13, is amended to read:
9.29 		Subd. 13.Property taxes payable. "Property taxes payable" means the property 
9.30 	tax exclusive of special assessments, penalties, and interest payable on a claimant's 
9.31 	homestead after deductions made under sections  273.135,  273.1384,  273.1391,  273.42, 
9.32 	subdivision 2, and any other state paid property tax credits in any calendar year, and 
9.33 	after any refund claimed and allowable under section  290A.04, subdivision 2h, that is 
9.34 	first payable in the year that the property tax is payable. In the case of a claimant who 
9.35 	makes ground lease payments, "property taxes payable" includes the amount of the 
10.1 	payments directly attributable to the property taxes assessed against the parcel on which 
10.2 	the house is located. No apportionment or reduction of the "property taxes payable" shall 
10.3 	be required for the use of a portion of the claimant's homestead for a business purpose if 
10.4 	the claimant does not deduct any business depreciation expenses for the use of a portion 
10.5 	of the homestead in the determination of federal adjusted gross income. For homesteads 
10.6 	which are manufactured homes as defined in section  273.125, subdivision 8, and for 
10.7 	homesteads which are park trailers taxed as manufactured homes under section  168.012, 
10.8 	subdivision 9, "property taxes payable" shall also include 19 percent of the gross rent paid 
10.9 	in the preceding year for the site on which the homestead is located. When a homestead 
10.10 	is owned by two or more persons as joint tenants or tenants in common, such tenants 
10.11 	shall determine between them which tenant may claim the property taxes payable on the 
10.12 	homestead. If they are unable to agree, the matter shall be referred to the commissioner of 
10.13 	revenue whose decision shall be final. Property taxes are considered payable in the year 
10.14 	prescribed by law for payment of the taxes. 
10.15 	In the case of a claim relating to "property taxes payable," under section 290A.04, 
10.16 	subdivision 2, the claimant must have owned and occupied the homestead on January 2 
10.17 	of the year in which the tax is payable and (i) the property must have been classified 
10.18 	as homestead property pursuant to section  273.124, on or before December 15 of 
10.19 	the assessment year to which the "property taxes payable" relate; or (ii) the claimant 
10.20 	must provide documentation from the local assessor that application for homestead 
10.21 	classification has been made on or before December 15 of the year in which the "property 
10.22 	taxes payable" were payable and that the assessor has approved the application. 
10.23 	No refund under section 290A.04, subdivision 2h, may be deducted on the property 
10.24 	tax statement unless the property is classified as homestead property for the current taxes 
10.25 	payable year and the preceding year.

10.26 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
10.27 	payable in 2007 and thereafter.

10.28 	Sec. 6. Minnesota Statutes 2004, section 290A.04, subdivision 2h, is amended to read:
10.29 		Subd. 2h.AdditionalSpecial refund. (a) If the gross property taxes payable on a 
10.30 	homestead increase more than 12 percent over the property taxes payable in the prior year 
10.31 	on the same property that is owned and occupied by the same owner on January 2 of both 
10.32 	years, and the amount of that increase is $100 or more, a claimant who is a homeowner 
10.33 	shall be allowed an additionalthe property tax shall be reduced by a special refund equal 
10.34 	to 60 percent of the amount of the increase over the greater of 12 percent of the prior 
10.35 	year's property taxes payable or $100. This subdivision shall not apply to any increase 
11.1 	in the gross property taxes payable attributable to improvements made to the homestead 
11.2 	after the assessment date for the prior year's taxes. This subdivision shall not apply to any 
11.3 	increase in the gross property taxes payable attributable to the termination of valuation 
11.4 	exclusions under section   273.11, subdivision 16. 
11.5 	The maximum refund allowed under this subdivision is $1,000.
11.6 	(b) For purposes of this subdivision "gross property taxes payable" means property 
11.7 	taxes payable determined without regard to the refund allowed under this subdivision.
11.8 	(c) In addition to the other proofs required by this chapter, each claimant under 
11.9 	this subdivision shall file with the property tax refund return a copy of the property tax 
11.10 	statement for taxes payable in the preceding year or other documents required by the 
11.11 	commissioner.
11.12 	(d) Upon request, the appropriate county official shall make available the names and 
11.13 	addresses of the property taxpayers who may be eligible for the additional property tax 
11.14 	refund under this section. The information shall be provided on a magnetic computer 
11.15 	disk. The county may recover its costs by charging the person requesting the information 
11.16 	the reasonable cost for preparing the data. The information may not be used for any 
11.17 	purpose other than for notifying the homeowner of potential eligibility and assisting the 
11.18 	homeowner, without charge, in preparing a refund claim.

11.19 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
11.20 	payable in 2007 and thereafter.

11.21 	Sec. 7. Minnesota Statutes 2004, section 290A.07, subdivision 1, is amended to read:
11.22 		Subdivision 1.Authority. Allowable claims filed pursuant to the provisions of this 
11.23 	chapter other than the special property tax refund under section 290A.04, subdivision 2h, 
11.24 	shall be paid by the commissioner from the general fund, as provided in this section.

11.25 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
11.26 	payable in 2007 and thereafter.

11.27 	Sec. 8. Minnesota Statutes 2004, section 290A.07, subdivision 3, is amended to read:
11.28 		Subd. 3.Time of payment to other claimants. A claimant not included in 
11.29 	subdivision 2a shall receive full payment of a refund under section 290A.04, subdivision 
11.30 	2, after September 15 and before September 30.

11.31 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
11.32 	payable in 2007 and thereafter.

12.1 	Sec. 9. Minnesota Statutes 2004, section 290A.15, is amended to read:
12.2 	290A.15 CLAIM APPLIED AGAINST OUTSTANDING LIABILITY.
12.3 	The amount of any claim otherwise payable under this chapter may be applied by 
12.4 	the commissioner against any delinquent tax liability of any member of the household. If 
12.5 	there are two members of the household, the commissioner may apply only one-half of a 
12.6 	refund to the separate liability of either member of the household. This section does not 
12.7 	apply to special property tax refunds under section 290A.04, subdivision 2h, determined 
12.8 	by the county auditor under section 276.013.

12.9 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
12.10 	payable in 2007 and thereafter.

12.11 	Sec. 10. Minnesota Statutes 2004, section 290A.18, is amended to read:
12.12 	290A.18 RIGHT TO FILE CLAIM; RIGHT TO RECEIVE CREDIT.
12.13 		Subdivision 1.Claim by surviving spouse or dependent. Except as provided in 
12.14 	subdivision 3, if a person entitled to relief under this chapter dies prior to receiving relief, 
12.15 	the surviving spouse or dependent of the person shall be entitled to file the claim and 
12.16 	receive relief. If there is no surviving spouse or dependent, the right to the credit shall 
12.17 	lapse.
12.18 		Subd. 2.Claimant cannot be located. Except as provided in subdivision 3, if the 
12.19 	commissioner cannot locate the claimant within two years from the date that the original 
12.20 	warrant was issued, or if a claimant to whom a warrant has been issued does not cash that 
12.21 	warrant within two years from the date the warrant was issued, the right to the credit shall 
12.22 	lapse, and the warrant shall be deposited in the general fund.
12.23 		Subd. 3.Right to receive special property tax refund not personal to claimant.
 12.24 	Special property tax refunds under section 290A.04, subdivision 2h, are paid as a 
12.25 	deduction on the property tax statement as provided in section 290A.07, subdivision 3. 
12.26 	The right to receive the deduction is not personal to the claimant or to a surviving spouse 
12.27 	or dependent of the claimant.

12.28 	EFFECTIVE DATE. This section is effective for refunds for property taxes 
12.29 	payable in 2007 and thereafter.

12.30 	Sec. 11. APPROPRIATION; COUNTY COSTS.
 12.31 	$....... is appropriated for fiscal year 2007 to the commissioner of revenue to 
12.32 	reimburse counties for a portion of the costs of implementing the special property tax 
12.33 	refunds in section 290A.04, subdivision 2h. ....... percent of this amount is allocated 
13.1 	on a per-county basis and ....... percent is allocated on a per-homestead parcel basis. 
13.2 	The commissioner shall determine the amount per county and make the payments on 
13.3 	July 20, 2007.