HF 4255

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/28/2024 06:02pm

A bill for an act
relating to taxation; providing a payment to owners of homesteads based on the
November forecast; amending Minnesota Statutes 2023 Supplement, section
16A.152, subdivision 2; proposing coding for new law in Minnesota Statutes,
chapter 290A.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 16A.152, subdivision 2, is
amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
$2,852,098,000;

(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve; deleted text begin and
deleted text end

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5, by the same amount deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) for a forecast in November only, the amount remaining, if any, after transfers in
clauses (1) to (4), to make adjustments under section 290A.50.
new text end

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [290A.50] SURPLUS REFUND.
new text end

new text begin Subdivision 1. new text end

new text begin Determination. new text end

new text begin By January 30 of each assessment year, the assessor of
each county must certify to the commissioner of revenue a list of each homestead in the
county for the current assessment year that qualifies for homestead treatment under section
273.124, subdivision 1, except that only owner-occupied homesteads are included. The list
must include the address of each homestead property and the name of the property owners.
new text end

new text begin Subd. 2. new text end

new text begin Refund amount. new text end

new text begin (a) Homesteads certified under subdivision 1 are due a surplus
refund. The surplus refund amount under this section is equal to the amount under section
16A.152, subdivision 2, clause (5), in the immediately preceding November forecast, divided
by the total number of homesteads certified under subdivision 1.
new text end

new text begin (b) If the amount available under section 16A.152, subdivision 2, clause (5), in the
immediately preceding November forecast is less than $170,000,000, the refund amount
under this section is $0.
new text end

new text begin Subd. 3. new text end

new text begin Payments. new text end

new text begin By June 30 of any year in which the refund amount under subdivision
2 is greater than $0, the commissioner must make payment of the refund amount to the
property owner of each homestead in the list certified under subdivision 1. Only one payment
is to be made for each homestead.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount necessary to make payments under this section is
annually appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 1, 2025.
new text end