Minnesota Legislature
SF 404
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to taxation; property; changing the residential homestead market value
credit; amending Minnesota Statutes 2006, section 273.1384, subdivision 1, by
adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to
read:
Subdivision 1.
Residential homestead market value credit.
Each county auditor
shall determine a homestead credit for each class 1a, 1b, and 2a homestead property
within the county equal to 0.4 percent of the deleted text begin first $76,000 ofdeleted text end market value of the
propertynew text begin up to the first tier residential homestead market value credit valuation limit
under subdivision 1anew text end minus deleted text begin .09deleted text end new text begin .304new text end percent of the market value in excess of deleted text begin $76,000deleted text end new text begin the
second tier residential homestead market value credit valuation limit under subdivision
1anew text end . The credit amount may not be less than zero. In the case of an agricultural or resort
homestead, only the market value of the house, garage, and immediately surrounding one
acre of land is eligible in determining the property's homestead credit. In the case of a
property that is classified as part homestead and part nonhomestead, (i) the credit shall
apply only to the homestead portion of the property, but (ii) if a portion of a property is
classified as nonhomestead solely because not all the owners occupy the property, not all
the owners have qualifying relatives occupying the property, or solely because not all the
spouses of owners occupy the property, the credit amount shall be initially computed as
if that nonhomestead portion were also in the homestead class and then prorated to the
owner-occupant's percentage of ownership. For the purpose of this section, when an
owner-occupant's spouse does not occupy the property, the percentage of ownership for
the owner-occupant spouse is one-half of the couple's ownership percentage.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2008 and
thereafter.
new text end
Sec. 2.
Minnesota Statutes 2006, section 273.1384, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Residential homestead market value credit valuation limits. new text end
new text begin
(a)
Beginning with assessment year 2007, the commissioner of revenue shall annually certify
the first and second tier residential homestead market value credit valuation limit as the
product of: (1) the ratio of the statewide average taxable market value of a residential
homestead in the preceding assessment year to the statewide average taxable market value
of a residential homestead for assessment year 2005; and (2) $76,000 for the first tier limit
and $350,000 for the second tier limit. The limits must be rounded to the nearest $1,000.
new text end
new text begin
(b) The commissioner shall certify the limits by January 2 of each assessment
year, except that for assessment year 2007, the commissioner shall certify the limit by
June 1, 2007.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2008 and
thereafter.
new text end