HF 4186

as introduced - 90th Legislature (2017 - 2018) Posted on 03/22/2018 02:23pm

A bill for an act
relating to taxation; property; modifying classification rate for community land
trust properties; amending Minnesota Statutes 2016, section 273.11, subdivision
12.

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

Section 1.

Minnesota Statutes 2016, section 273.11, subdivision 12, is amended to read:

Subd. 12.

Community land trusts.

(a) A community land trust, as defined under chapter
462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which
qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02,
subdivision 6, which has received funding from the Minnesota housing finance agency for
purposes of the community land trust program. The Minnesota Housing Finance Agency
shall set the criteria for community land trusts.

(b) All occupants of a community land trust building must have a family income of less
than 80 percent of the greater of (1) the state median income, or (2) the area or county
median income, as most recently determined by the Department of Housing and Urban
Development. Before the community land trust can rent or sell a unit to an applicant, the
community land trust shall verify to the satisfaction of the administering agency or the city
that the family income of each person or family applying for a unit in the community land
trust building is within the income criteria provided in this paragraph. The administering
agency or the city shall verify to the satisfaction of the county assessor that the occupant
meets the income criteria under this paragraph. The property tax benefits under paragraph
(c) shall be granted only to property owned or rented by persons or families within the
qualifying income limits. The family income criteria and verification is only necessary at
the time of initial occupancy in the property.

(c) A unit which is owned by the occupant and used as a homestead by the occupant
qualifies for homestead treatment as class 1a under section 273.13, subdivision 22 new text begin , but shall
receive the same classification rate as the first tier of class 4d property under section 273.13,
subdivision 25 new text end . A unit which is rented by the occupant and used as a homestead by the
occupant shall be class 4a or 4b property, under section 273.13, subdivision 25, whichever
is applicable new text begin , but shall receive the same classification rate as the first tier of class 4d property
under section 273.13, subdivision 25 new text end . Any remaining portion of the property not used for
residential purposes shall be classified by the assessor in the appropriate class based upon
the use of that portion of the property owned by the community land trust. The land upon
which the building is located shall be assessed at the same classification rate as the units
within the building, provided that if the building contains some units assessed as class 1a
and some units assessed as class 4a or 4b, the market value of the land will be assessed in
the same proportions as the value of the building.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2019.
new text end