SF 357

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; refundable tax credit; making 
  1.3             the property tax rebate permanent; appropriating 
  1.4             money; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 290. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [290.0675] [ANNUAL PROPERTY TAX REBATE.] 
  1.8      (a) A credit is allowed against the tax imposed under this 
  1.9   chapter to an individual, other than a dependent, as defined in 
  1.10  sections 151 and 152 of the Internal Revenue Code, disregarding 
  1.11  section 152(b)(3) of the Internal Revenue Code, equal to 20 
  1.12  percent of the qualified property tax paid during the taxable 
  1.13  year.  The maximum amount of qualifying property tax to which 
  1.14  the credit applies is $5,000. 
  1.15     (b) For property owned and occupied by the taxpayer during 
  1.16  the taxable year for which the credit is claimed, qualified 
  1.17  property tax means property taxes payable as defined in section 
  1.18  290A.03, subdivision 13, and deductible by the individual under 
  1.19  section 164 of the Internal Revenue Code, except the requirement 
  1.20  in section 290A.03, subdivision 13, that the taxpayer own and 
  1.21  occupy the property on January 2 of the payable year does not 
  1.22  apply.  In the case of agricultural land assessed as part of a 
  1.23  homestead under section 273.13, subdivision 23, the owner may 
  1.24  calculate the credit on all property taxes on the homestead, 
  1.25  except to the extent the owner is required to furnish a rent 
  2.1   certificate under section 290A.19, to a tenant leasing a part of 
  2.2   the farm homestead. 
  2.3      (c) For a renter, the qualified property tax means the 
  2.4   amount of rent constituting property taxes under section 
  2.5   290A.03, subdivision 11, based on rent paid in the taxable 
  2.6   year.  If two or more renters could be claimants under chapter 
  2.7   290A, with regard to the rent constituting property taxes, the 
  2.8   rules under section 290A.03, subdivision 8, paragraph (f), apply 
  2.9   to determine the amount of the credit for the individual. 
  2.10     (d) For an individual who both owned and rented principal 
  2.11  residences during the taxable year, qualified taxes are the sum 
  2.12  of the amounts under paragraphs (b) and (c). 
  2.13     (e) If the amount of the credit under this section exceeds 
  2.14  the taxpayer's tax liability, the commissioner shall refund the 
  2.15  excess. 
  2.16     (f) To claim a credit under this section, the taxpayer must 
  2.17  attach a copy of the property tax statement and certificate of 
  2.18  rent paid, as applicable, and provide any additional information 
  2.19  the commissioner requires. 
  2.20     (g) Any refunds in excess of liability must be paid within 
  2.21  60 days from the date the claim is received by the commissioner 
  2.22  of revenue. 
  2.23     (h) An amount sufficient to pay refunds under this section 
  2.24  is appropriated to the commissioner of revenue from the general 
  2.25  fund beginning in fiscal year 2000. 
  2.26     Sec. 2.  [APPROPRIATION.] 
  2.27     $3,000,000 is appropriated from the general fund to the 
  2.28  commissioner of revenue for the cost of administering section 1 
  2.29  for fiscal years 2000 and 2001. 
  2.30     Sec. 3.  [EFFECTIVE DATE.] 
  2.31     Section 1 is effective for taxable years beginning after 
  2.32  December 31, 1998.