HF 4142

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing a property tax rebate; providing for the sale of
certain state lands to offset administrative costs of the rebate; appropriating
money.

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

Section 1. new text begin PROPERTY TAX REBATE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility; amount. new text end

new text begin (a) An owner of a homestead is eligible for
a property tax rebate under this section, unless the property taxes on the homestead are
delinquent within the meaning of Minnesota Statutes, section 290A.10.
new text end

new text begin (b) On or before October 1, 2006, the commissioner of revenue shall pay the eligible
owner a property tax rebate equal to nine percent of the property taxes payable in 2006
on the homestead.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Homestead" means property qualifying as a homestead under Minnesota
Statutes, section 290A.03, subdivision 6, for property taxes payable in 2006.
new text end

new text begin (d) "Owner" means the individual or trust that is the taxpayer of record for the
homestead when the property tax statement was prepared for property taxes payable
in 2006.
new text end

new text begin (e) "Property taxes payable" has the meaning given in Minnesota Statutes, section
290A.03, subdivision 13, except that any adjustments provided under Minnesota Statutes,
section 290A.03, subdivision 13, to line 1 of the property tax statement do not apply.
new text end

new text begin Subd. 3. new text end

new text begin County to provide data. new text end

new text begin (a) The county auditor shall provide the
following data to the commissioner of revenue for each homestead in the county:
new text end

new text begin (1) the name or names of the property owner or owners;
new text end

new text begin (2) the mailing address of the property owner;
new text end

new text begin (3) the amount of property taxes payable in 2006 for the property; and
new text end

new text begin (4) whether property taxes are delinquent on the homestead within the meaning
of Minnesota Statutes, section 290A.10.
new text end

new text begin (b) The county auditor shall provide the data to the commissioner electronically in
the format and manner and at the time or times specified by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Joint rebate rules. new text end

new text begin If a homestead is owned by two or more persons as
joint tenants or tenants in common, the commissioner shall pay the rebate to all of the
tenants jointly.
new text end

new text begin Subd. 5. new text end

new text begin Deceased individuals. new text end

new text begin If a rebate is received by the estate of a deceased
individual after the probate estate has been closed, and if the original rebate check is
returned to the commissioner with a copy of the decree of descent or final account of the
estate and addresses of the beneficiaries, the commissioner may issue separate checks in
proportion to their share in the residuary estate in the names of the residuary beneficiaries
of the estate.
new text end

new text begin Subd. 6. new text end

new text begin Application of other law. new text end

new text begin (a) The property tax rebate is a "Minnesota tax
law" for purposes of Minnesota Statutes, section 270B.01, subdivision 8.
new text end

new text begin (b) The property tax rebate is "an overpayment of any tax collected by the
commissioner" for purposes of Minnesota Statutes, section 270C.64, and payment of the
rebate is a refund of taxes under Minnesota Statutes, section 289A.50.
new text end

new text begin Subd. 7. new text end

new text begin Lapse of entitlement. new text end

new text begin If the commissioner of revenue cannot locate an
individual entitled to a rebate by July 1, 2008, or if an individual to whom a rebate was
issued has not cashed the check by July 1, 2008, the right to the rebate lapses and the
check must be deposited in the general fund.
new text end

new text begin Subd. 8. new text end

new text begin Claims for unpaid rebates. new text end

new text begin Individuals entitled to a tax rebate under
subdivision 1 but who did not receive one, and individuals who receive a rebate that was
incorrectly computed, must file a claim with the commissioner before July 1, 2008, in a
form prescribed by the commissioner. These claims must be treated as if they are a claim
for refund under Minnesota Statutes, section 289A.50, subdivisions 4 and 7.
new text end

new text begin Subd. 9. new text end

new text begin Illegally cashed checks. new text end

new text begin If a rebate check is cashed by someone other
than the payee or payees of the check, and the commissioner of revenue determines that
the check has been forged or improperly endorsed or the commissioner determines that
a rebate was overstated or erroneously issued, the commissioner may issue an order of
assessment for the amount of the check or the amount the check is overstated against
the person or persons cashing it. The assessment must be made within two years after
the check is cashed, but if cashing the check constitutes theft under Minnesota Statutes,
section 609.52, or forgery under Minnesota Statutes, section 609.631, the assessment can
be made at any time. The assessment may be appealed administratively and judicially. The
commissioner may take action to collect the assessment in the same manner as provided by
Minnesota Statutes, chapter 270C, for any other order of the commissioner assessing tax.
new text end

new text begin Subd. 10. new text end

new text begin Authority to contract with vendor. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 9.031, 16A.40, 16B.49, and any other law to the contrary, the commissioner
of revenue may take whatever actions the commissioner deems necessary to pay the
rebates required by this section, and may, in consultation with the commissioner of
finance, contract with a private vendor or vendors to process, print, and mail the rebate
checks or warrants required under this section and receive and disburse state funds to pay
those checks or warrants.
new text end

new text begin Subd. 11. new text end

new text begin Adjustments. new text end

new text begin A property tax rebate of $276,570,000 is authorized
for fiscal year 2006. The commissioner of finance shall certify by July 15, 2006,
the preliminary fiscal 2006 general fund net nondedicated revenues. If certified
net nondedicated revenues are less than the amount forecast in February 2006, the
commissioner shall proportionally decrease all rebates under this section to rebate the
entire amount of the certified net nondedicated revenues. The adjustments under this
subdivision are not a rule subject to Minnesota Statutes, chapter 14.
new text end

new text begin Subd. 12. new text end

new text begin Contingent upon resolution of lawsuit. new text end

new text begin No property tax rebates must be
paid under this section, unless the Minnesota Supreme Court reverses the district court's
order, dated December 20, 2005, finding the health impact fee under Minnesota Statutes,
section 256.9658, unconstitutional and in violation of the settlement agreement in State v.
Philip Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second Judicial District),
and allows the state to continue imposing and collecting the health impact fee. If this
contingency is not satisfied by August 1, 2006, no rebates must be paid, and any land sales
under section 2 and the appropriations in section 3, subdivision 1, are canceled.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end

Sec. 2. new text begin SALE OF STATE LAND.
new text end

new text begin Subdivision 1. new text end

new text begin State land sales. new text end

new text begin The commissioner of administration shall
coordinate with the head of each department or agency having control of state-owned land
to identify and sell at least $1,100,000 of state-owned land. This amount is in addition to
land sales required in Laws 2005, chapter 156, article 2, section 45, or under any other
law. Sales should be completed according to law and as provided in this section as soon as
practicable but no later than June 30, 2007. Notwithstanding Minnesota Statutes, sections
16B.281, 16B.282, 94.09, and 94.10, or any other law to the contrary, the commissioner
may offer land for public sale by only providing notice of lands or an offer of sale of lands
to state departments or agencies, the University of Minnesota, cities, counties, towns,
school districts, or other public entities.
new text end

new text begin Subd. 2. new text end

new text begin Anticipated savings. new text end

new text begin Notwithstanding Minnesota Statutes, section
94.16, subdivision 3, or other law to the contrary, the amount of the proceeds from the
sale of land under this section that exceeds the actual expenses of selling the land must
be deposited in the general fund, except as otherwise provided by the commissioner of
finance. Notwithstanding Minnesota Statutes, section 16B.283 or 94.11, the commissioner
of finance may establish the timing of payments for land purchased under this section. If
the total of all money deposited into the general fund from the proceeds of the sale of land
under this section is anticipated to be less than $1,260,000, the governor must allocate the
amount of the difference as reductions to general fund operating expenditures for other
executive agencies for the biennium ending June 30, 2007.
new text end

new text begin Subd. 3. new text end

new text begin Sale of state lands revolving loan fund. new text end

new text begin $55,000 is appropriated from
the general fund in fiscal year 2007 to the commissioner of administration for purposes
of paying the actual expenses of selling state-owned lands to achieve the anticipated
savings required in this section. From the gross proceeds of land sales under this section,
the commissioner of administration must cancel the amount of the appropriation in this
subdivision to the general fund by June 30, 2007.
new text end

Sec. 3. new text begin APPROPRIATIONS; TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation; administration.
new text end

new text begin (a) $907,900 is appropriated in fiscal year 2006 from the general fund to the
commissioner of revenue to administer the property tax rebates in section 1. Any
unencumbered balance remaining on June 30, 2006, does not cancel but is available
for expenditure by the commissioner of revenue until June 30, 2007. Notwithstanding
Minnesota Statutes, section 16A.285, the commissioner of revenue may not use this
appropriation for any purpose other than administering the property tax rebates. This is a
onetime appropriation and may not be added to the agency's budget base.
new text end

new text begin (b) $186,000 is appropriated in fiscal year 2006 from the general fund to the
commissioner of finance to pay the cost of clearing property tax rebate checks through
commercial banks. Any unencumbered balance remaining on June 30, 2006, does
not cancel but is available for expenditure by the commissioner until June 30, 2007.
Notwithstanding Minnesota Statutes, section 16A.285, the commissioner may not use this
appropriation for any purpose other than paying the cost of clearing rebate checks.
new text end

new text begin Subd. 2. new text end

new text begin Transfer; tax relief account. new text end

new text begin The balance in the tax relief account under
Minnesota Statutes, section 16A.1522, subdivision 4, is transferred to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end