SF 392

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; reducing the time 
  1.3             period required for certain recreational property 
  1.4             occupied by a relative to qualify as homestead; 
  1.5             amending Minnesota Statutes 1994, section 273.124, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 273.124, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
  1.11  that is occupied and used for the purposes of a homestead by its 
  1.12  owner, who must be a Minnesota resident, is a residential 
  1.13  homestead.  
  1.14     Agricultural land, as defined in section 273.13, 
  1.15  subdivision 23, that is occupied and used as a homestead by its 
  1.16  owner, who must be a Minnesota resident, is an agricultural 
  1.17  homestead. 
  1.18     Dates for establishment of a homestead and homestead 
  1.19  treatment provided to particular types of property are as 
  1.20  provided in this section.  
  1.21     Property of a trustee, beneficiary, or grantor of a trust 
  1.22  is not disqualified from receiving homestead benefits if the 
  1.23  homestead requirements under this chapter are satisfied. 
  1.24     The assessor shall require proof, as provided in 
  1.25  subdivision 13, of the facts upon which classification as a 
  1.26  homestead may be determined.  Notwithstanding any other law, the 
  2.1   assessor may at any time require a homestead application to be 
  2.2   filed in order to verify that any property classified as a 
  2.3   homestead continues to be eligible for homestead status. 
  2.4      When there is a name change or a transfer of homestead 
  2.5   property, the assessor may reclassify the property in the next 
  2.6   assessment unless a homestead application is filed to verify 
  2.7   that the property continues to qualify for homestead 
  2.8   classification. 
  2.9      (b) For purposes of this section, homestead property shall 
  2.10  include property which is used for purposes of the homestead but 
  2.11  is separated from the homestead by a road, street, lot, 
  2.12  waterway, or other similar intervening property.  The term "used 
  2.13  for purposes of the homestead" shall include but not be limited 
  2.14  to uses for gardens, garages, or other outbuildings commonly 
  2.15  associated with a homestead, but shall not include vacant land 
  2.16  held primarily for future development.  In order to receive 
  2.17  homestead treatment for the noncontiguous property, the owner 
  2.18  shall apply for it to the assessor by July 1 of the year when 
  2.19  the treatment is initially sought.  After initial qualification 
  2.20  for the homestead treatment, additional applications for 
  2.21  subsequent years are not required. 
  2.22     (c) Residential real estate that is occupied and used for 
  2.23  purposes of a homestead by a relative of the owner is a 
  2.24  homestead but only to the extent of the homestead treatment that 
  2.25  would be provided if the related owner occupied the property.  
  2.26  For purposes of this paragraph, "relative" means a parent, 
  2.27  stepparent, child, stepchild, grandparent, grandchild, brother, 
  2.28  sister, uncle, or aunt.  This relationship may be by blood or 
  2.29  marriage.  Property that was classified as seasonal recreational 
  2.30  residential property at the time when treatment under this 
  2.31  paragraph would first apply shall continue to be classified as 
  2.32  seasonal recreational residential property for the first four 
  2.33  two assessment years beginning after the date when the relative 
  2.34  of the owner occupies the property as a homestead; this delay 
  2.35  also applies to property that, in the absence of this paragraph, 
  2.36  would have been classified as seasonal recreational residential 
  3.1   property at the time when the residence was constructed.  
  3.2   Neither the related occupant nor the owner of the property may 
  3.3   claim a property tax refund under chapter 290A for a homestead 
  3.4   occupied by a relative.  In the case of a residence located on 
  3.5   agricultural land, only the house, garage, and immediately 
  3.6   surrounding one acre of land shall be classified as a homestead 
  3.7   under this paragraph, except as provided in paragraph (d). 
  3.8      (d) Agricultural property that is occupied and used for 
  3.9   purposes of a homestead by a relative of the owner, is a 
  3.10  homestead, only to the extent of the homestead treatment that 
  3.11  would be provided if the related owner occupied the property, 
  3.12  and only if all of the following criteria are met: 
  3.13     (1) the relative who is occupying the agricultural property 
  3.14  is a son, daughter, father, or mother of the owner of the 
  3.15  agricultural property or a son or daughter of the spouse of the 
  3.16  owner of the agricultural property, 
  3.17     (2) the owner of the agricultural property must be a 
  3.18  Minnesota resident, 
  3.19     (3) the owner of the agricultural property must not receive 
  3.20  homestead treatment on any other agricultural property in 
  3.21  Minnesota, and 
  3.22     (4) the owner of the agricultural property is limited to 
  3.23  only one agricultural homestead per family under this paragraph. 
  3.24     Neither the related occupant nor the owner of the property 
  3.25  may claim a property tax refund under chapter 290A for a 
  3.26  homestead occupied by a relative qualifying under this 
  3.27  paragraph.  For purposes of this paragraph, "agricultural 
  3.28  property" means the house, garage, other farm buildings and 
  3.29  structures, and agricultural land. 
  3.30     Application must be made to the assessor by the owner of 
  3.31  the agricultural property to receive homestead benefits under 
  3.32  this paragraph.  The assessor may require the necessary proof 
  3.33  that the requirements under this paragraph have been met. 
  3.34     (e) In the case of property owned by a property owner who 
  3.35  is married, the assessor must not deny homestead treatment in 
  3.36  whole or in part if only one of the spouses occupies the 
  4.1   property and the other spouse is absent due to:  (1) marriage 
  4.2   dissolution proceedings, (2) legal separation, (3) employment or 
  4.3   self-employment in another location as provided under 
  4.4   subdivision 13, or (4) residence in a nursing home or boarding 
  4.5   care facility. 
  4.6      Sec. 2.  [EFFECTIVE DATE.] 
  4.7      Section 1 is effective for taxes assessed in 1995, payable 
  4.8   in 1996, and thereafter.  It applies to property that has been 
  4.9   occupied by a relative of the owner for two assessment years as 
  4.10  of the 1995 assessment, and thereafter.