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Minnesota Legislature

Office of the Revisor of Statutes

HF 661

as introduced - 90th Legislature (2017 - 2018) Posted on 04/12/2018 04:38pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; property; allowing shareholders of manufactured home park
cooperatives to include a portion of ground lease payments when filing for the
homestead credit state refund; amending Minnesota Statutes 2016, sections 273.124,
subdivision 3a; 290A.03, subdivision 13.


Section 1.

Minnesota Statutes 2016, section 273.124, subdivision 3a, is amended to read:

Subd. 3a.

Manufactured home park cooperative.

(a) When a manufactured home park
is owned by a corporation or association organized under chapter 308A or 308B, and each
person who owns a share or shares in the corporation or association is entitled to occupy a
lot within the park, the corporation or association may claim homestead treatment for the
park. Each lot must be designated by legal description or number, and each lot is limited to
not more than one-half acre of land.

(b) The manufactured home park shall be entitled to homestead treatment if all of the
following criteria are met:

(1) the occupant or the cooperative corporation or association is paying the ad valorem
property taxes and any special assessments levied against the land and structure either
directly, or indirectly through dues to the corporation or association; and

(2) the corporation or association organized under chapter 308A or 308B is wholly
owned by persons having a right to occupy a lot owned by the corporation or association.

(c) A charitable corporation, organized under the laws of Minnesota with no outstanding
stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
qualifies for homestead treatment with respect to a manufactured home park if its members
hold residential participation warrants entitling them to occupy a lot in the manufactured
home park.

(d) "Homestead treatment" under this subdivision means the classification rate provided
for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
(5), item (ii)deleted text begin.deleted text endnew text begin, andnew text end the homestead market value exclusion under section 273.13, subdivision
35, does not apply deleted text beginand the property taxes assessed against the park shall not be included in
the determination of taxes payable for rent paid under section 290A.03
deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with claims for taxes payable
in 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:

Subd. 13.

Property taxes payable.

"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. No
apportionment or reduction of the "property taxes payable" shall be required for the use of
a portion of the claimant's homestead for a business purpose if the claimant does not deduct
any business depreciation expenses for the use of a portion of the homestead in the
determination of federal adjusted gross income. For homesteads which are manufactured
homes as defined in section 273.125, subdivision 8, deleted text beginand for homesteads which aredeleted text endnew text begin including
manufactured homes located in a manufactured home community owned by a cooperative
organized under chapter 308A or 308B, and
new text end park trailers taxed as manufactured homes
under section 168.012, subdivision 9, "property taxes payable" shall also include 17 percent
of the gross rent paid in the preceding year for the site on which the homestead is located.
When a homestead is owned by two or more persons as joint tenants or tenants in common,
such tenants shall determine between them which tenant may claim the property taxes
payable on the homestead. If they are unable to agree, the matter shall be referred to the
commissioner of revenue whose decision shall be final. Property taxes are considered payable
in the year prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have owned
and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
property must have been classified as homestead property pursuant to section 273.124, on
or before December 15 of the assessment year to which the "property taxes payable" relate;
or (ii) the claimant must provide documentation from the local assessor that application for
homestead classification has been made on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with claims for taxes payable
in 2018.
new text end