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Minnesota Legislature

Office of the Revisor of Statutes

SF 516

as introduced - 91st Legislature (2019 - 2020) Posted on 01/28/2019 02:50pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; property; requiring a fractional homestead to be determined
based on the percentage of ownership specified in the county land records;
amending Minnesota Statutes 2018, sections 273.124, by adding a subdivision;
273.13, subdivision 35; 273.1384, subdivision 2.

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

Section 1.

Minnesota Statutes 2018, section 273.124, is amended by adding a subdivision
to read:


new text begin Subd. 23. new text end

new text begin Fractional homesteads. new text end

new text begin In the case of property that is classified as part
homestead and part nonhomestead solely because not all the owners occupy or farm the
property, not all the owners have qualifying relatives occupying or farming the property,
or not all the spouses of owners occupy the property, the portions of property classified as
part homestead and part nonhomestead must correspond to the ownership percentages that
each owner has in the property, as determined by the land records in the county recorder's
office or registrar of titles. If the ownership percentages of each owner cannot be determined
by reference to the land records, the portions of property classified as part homestead and
part nonhomestead must correspond to the ownership percentages each owner would have
if they each owned an equal share of the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments beginning in 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, section 273.13, subdivision 35, is amended to read:


Subd. 35.

Homestead market value exclusion.

(a) Prior to determining a property's
net tax capacity under this section, property classified as class 1a or 1b under subdivision
22, and the portion of property classified as class 2a under subdivision 23 consisting of the
house, garage, and surrounding one acre of land, shall be eligible for a market value exclusion
as determined under paragraph (b).

(b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market
value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400
minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or
more, there is no valuation exclusion. The valuation exclusion shall be rounded to the nearest
whole dollar, and may not be less than zero.

(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior
to determining the amount of the valuation exclusion under this subdivision.

(d) In the case of a property that is classified as part homestead and part nonhomestead,
(i) the exclusion 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 exclusion 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 ownershipnew text begin, as determined by the land
records in the county recorder's office or registrar of titles
new text end. 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 2020 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2018, section 273.1384, subdivision 2, is amended to read:


Subd. 2.

Agricultural homestead market value credit.

Property classified as agricultural
homestead under section 273.13, subdivision 23, paragraph (a), is eligible for an agricultural
credit. The credit is computed using the property's agricultural credit market value, defined
for this purpose as the property's market value excluding the market value of the house,
garage, and immediately surrounding one acre of land. The credit is equal to 0.3 percent of
the first $115,000 of the property's agricultural credit market value plus 0.1 percent of the
property's agricultural credit market value in excess of $115,000, subject to a maximum
credit of $490. In the case of property that is classified as part homestead and part
nonhomestead solely because not all the owners occupy or farm the property, not all the
owners have qualifying relatives occupying or farming the property, or solely because not
all the spouses of owners occupy the property, the credit is computed on the amount of
agricultural credit market value corresponding to the new text beginowner-occupant's new text endpercentage of
deleted text begin homestead. the percentage of homestead is equal to 100 divided by the number of owners
of the property, or, in the case of a trust, the number of grantors of the trust that owns the
property
deleted text endnew text begin ownership, as determined by the land records in the county recorder's office or
registrar of titles
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2020 and thereafter.
new text end