SF 745

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; property tax; allowing certain 
  1.3             towns and cities to transfer their local board of 
  1.4             review duties and responsibilities to the county; 
  1.5             amending Minnesota Statutes 1996, sections 271.01, 
  1.6             subdivision 5; 273.121; 274.01; and 274.13, by adding 
  1.7             subdivisions. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 271.01, 
  1.10  subdivision 5, is amended to read: 
  1.11     Subd. 5.  [JURISDICTION.] The tax court shall have 
  1.12  statewide jurisdiction.  Except for an appeal to the supreme 
  1.13  court or any other appeal allowed under this subdivision, the 
  1.14  tax court shall be the sole, exclusive, and final authority for 
  1.15  the hearing and determination of all questions of law and fact 
  1.16  arising under the tax laws of the state, as defined in this 
  1.17  subdivision, in those cases that have been appealed to the tax 
  1.18  court and in any case that has been transferred by the district 
  1.19  court to the tax court.  The tax court shall have no 
  1.20  jurisdiction in any case that does not arise under the tax laws 
  1.21  of the state or in any criminal case or in any case determining 
  1.22  or granting title to real property or in any case that is under 
  1.23  the probate jurisdiction of the district court.  The small 
  1.24  claims division of the tax court shall have no jurisdiction in 
  1.25  any case dealing with property valuation or assessment for 
  1.26  property tax purposes until the taxpayer has appealed the 
  2.1   valuation or assessment to the county board of equalization, and 
  2.2   in those towns and cities which have not transferred their 
  2.3   duties to the county, the town or city board of equalization and 
  2.4   to the county board of equalization, except for those taxpayers 
  2.5   whose original assessments are determined by the commissioner of 
  2.6   revenue.  The tax court shall have no jurisdiction in any case 
  2.7   involving an order of the state board of equalization unless a 
  2.8   taxpayer contests the valuation of property.  Laws governing 
  2.9   taxes, aids, and related matters administered by the 
  2.10  commissioner of revenue, laws dealing with property valuation, 
  2.11  assessment or taxation of property for property tax purposes, 
  2.12  and any other laws that contain provisions authorizing review of 
  2.13  taxes, aids, and related matters by the tax court shall be 
  2.14  considered tax laws of this state subject to the jurisdiction of 
  2.15  the tax court.  This subdivision shall not be construed to 
  2.16  prevent an appeal, as provided by law, to an administrative 
  2.17  agency, board of equalization, review under section 274.13, 
  2.18  subdivision 1c, or to the commissioner of revenue.  Wherever 
  2.19  used in this chapter, the term commissioner shall mean the 
  2.20  commissioner of revenue, unless otherwise specified. 
  2.21     Sec. 2.  Minnesota Statutes 1996, section 273.121, is 
  2.22  amended to read: 
  2.23     273.121 [VALUATION OF REAL PROPERTY, NOTICE.] 
  2.24     Any county assessor or city assessor having the powers of a 
  2.25  county assessor, valuing or classifying taxable real property 
  2.26  shall in each year notify those persons whose property is to be 
  2.27  assessed or reclassified that year if the person's address is 
  2.28  known to the assessor, otherwise the occupant of the property.  
  2.29  The notice shall be in writing and shall be sent by ordinary 
  2.30  mail at least ten days before the meeting of the local board of 
  2.31  review or equalization under section 274.01 or the review 
  2.32  process established under section 274.13, subdivision 1c.  It 
  2.33  shall contain:  (1) the market value, (2) the limited market 
  2.34  value under section 273.11, subdivision 1a, (3) the qualifying 
  2.35  amount of any improvements under section 273.11, subdivision 16, 
  2.36  (4) the market value subject to taxation after subtracting the 
  3.1   amount of any qualifying improvements, (5) the new 
  3.2   classification, (6) a note that if the property is homestead and 
  3.3   at least 35 years old, improvements made to the property may be 
  3.4   eligible for a valuation exclusion under section 273.11, 
  3.5   subdivision 16, (7) the assessor's office address, and (8) the 
  3.6   dates, places, and times set for the meetings of the local board 
  3.7   of review or equalization, the review process established under 
  3.8   section 274.13, subdivision 1c, and the county board of 
  3.9   equalization.  If the assessment roll is not complete, the 
  3.10  notice shall be sent by ordinary mail at least ten days prior to 
  3.11  the date on which the board of review has adjourned.  The 
  3.12  assessor shall attach to the assessment roll a statement that 
  3.13  the notices required by this section have been mailed.  Any 
  3.14  assessor who is not provided sufficient funds from the 
  3.15  assessor's governing body to provide such notices, may make 
  3.16  application to the commissioner of revenue to finance such 
  3.17  notices.  The commissioner of revenue shall conduct an 
  3.18  investigation and, if satisfied that the assessor does not have 
  3.19  the necessary funds, issue a certification to the commissioner 
  3.20  of finance of the amount necessary to provide such notices.  The 
  3.21  commissioner of finance shall issue a warrant for such amount 
  3.22  and shall deduct such amount from any state payment to such 
  3.23  county or municipality.  The necessary funds to make such 
  3.24  payments are hereby appropriated.  Failure to receive the notice 
  3.25  shall in no way affect the validity of the assessment, the 
  3.26  resulting tax, the procedures of any board of review or 
  3.27  equalization, or the enforcement of delinquent taxes by 
  3.28  statutory means. 
  3.29     Sec. 3.  Minnesota Statutes 1996, section 274.01, is 
  3.30  amended to read: 
  3.31     274.01 [BOARD OF REVIEW.] 
  3.32     Subdivision 1.  [ORDINARY BOARD; MEETINGS, DEADLINES, 
  3.33  GRIEVANCES.] (a) The town board of a town, or the council or 
  3.34  other governing body of a city, is the board of review 
  3.35  except (1) in cities whose charters provide for a board of 
  3.36  equalization or (2) in any city or town that has transferred its 
  4.1   local board of review power and duties to the county board as 
  4.2   provided in subdivision 3.  The county assessor shall fix a day 
  4.3   and time when the board or the board of equalization shall meet 
  4.4   in the assessment districts of the county.  On or before 
  4.5   February 15 of each year the assessor shall give written notice 
  4.6   of the time to the city or town clerk.  Notwithstanding the 
  4.7   provisions of any charter to the contrary, the meetings must be 
  4.8   held between April 1 and May 31 each year.  The clerk shall give 
  4.9   published and posted notice of the meeting at least ten days 
  4.10  before the date of the meeting.  
  4.11     If in any county, at least 25 percent of the total net tax 
  4.12  capacity of a city or town is noncommercial seasonal residential 
  4.13  recreational property classified under section 273.13, 
  4.14  subdivision 25, the county must hold two countywide 
  4.15  informational meetings on Saturdays.  The meetings will allow 
  4.16  noncommercial seasonal residential recreational taxpayers to 
  4.17  discuss their property valuation with the appropriate assessment 
  4.18  staff.  These Saturday informational meetings must be scheduled 
  4.19  to allow the owner of the noncommercial seasonal residential 
  4.20  recreational property the opportunity to attend one of the 
  4.21  meetings prior to the scheduled board of review for their city 
  4.22  or town.  The Saturday meeting dates must be contained on the 
  4.23  notice of valuation of real property under section 273.121.  
  4.24     The board shall meet at the office of the clerk to review 
  4.25  the assessment and classification of property in the town or 
  4.26  city.  No changes in valuation or classification which are 
  4.27  intended to correct errors in judgment by the county assessor 
  4.28  may be made by the county assessor after the board of review or 
  4.29  the county board of equalization has adjourned in those cities 
  4.30  or towns that hold a local board of review has adjourned; 
  4.31  however, corrections of errors that are merely clerical in 
  4.32  nature or changes that extend homestead treatment to property 
  4.33  are permitted after adjournment until the tax extension date for 
  4.34  that assessment year.  The changes must be fully documented and 
  4.35  maintained in the assessor's office and must be available for 
  4.36  review by any person.  A copy of the changes made during this 
  5.1   period in those cities or towns that hold a local board of 
  5.2   review must be sent to the county board no later than December 
  5.3   31 of the assessment year.  
  5.4      (b) The board shall determine whether the taxable property 
  5.5   in the town or city has been properly placed on the list and 
  5.6   properly valued by the assessor.  If real or personal property 
  5.7   has been omitted, the board shall place it on the list with its 
  5.8   market value, and correct the assessment so that each tract or 
  5.9   lot of real property, and each article, parcel, or class of 
  5.10  personal property, is entered on the assessment list at its 
  5.11  market value.  No assessment of the property of any person may 
  5.12  be raised unless the person has been duly notified of the intent 
  5.13  of the board to do so.  On application of any person feeling 
  5.14  aggrieved, the board shall review the assessment or 
  5.15  classification, or both, and correct it as appears just.  
  5.16     (c) A local board of review may reduce assessments upon 
  5.17  petition of the taxpayer but the total reductions must not 
  5.18  reduce the aggregate assessment made by the county assessor by 
  5.19  more than one percent.  If the total reductions would lower the 
  5.20  aggregate assessments made by the county assessor by more than 
  5.21  one percent, none of the adjustments may be made.  The assessor 
  5.22  shall correct any clerical errors or double assessments 
  5.23  discovered by the board of review without regard to the one 
  5.24  percent limitation.  
  5.25     (d) A majority of the members may act at the meeting, and 
  5.26  adjourn from day to day until they finish hearing the cases 
  5.27  presented.  The assessor shall attend, with the assessment books 
  5.28  and papers, and take part in the proceedings, but must not 
  5.29  vote.  The county assessor, or an assistant delegated by the 
  5.30  county assessor shall attend the meetings.  The board shall list 
  5.31  separately, on a form appended to the assessment book, all 
  5.32  omitted property added to the list by the board and all items of 
  5.33  property increased or decreased, with the market value of each 
  5.34  item of property, added or changed by the board, placed opposite 
  5.35  the item.  The county assessor shall enter all changes made by 
  5.36  the board in the assessment book.  
  6.1      (e) Except as provided in subdivision 3, if a person fails 
  6.2   to appear in person, by counsel, or by written communication 
  6.3   before the board after being duly notified of the board's intent 
  6.4   to raise the assessment of the property, or if a person feeling 
  6.5   aggrieved by an assessment or classification fails to apply for 
  6.6   a review of the assessment or classification, the person may not 
  6.7   appear before the county board of equalization for a review of 
  6.8   the assessment or classification.  This paragraph does not apply 
  6.9   if an assessment was made after the board meeting, as provided 
  6.10  in section 273.01, or if the person can establish not having 
  6.11  received notice of market value at least five days before the 
  6.12  local board of review meeting.  
  6.13     (f) The board of review or the board of equalization must 
  6.14  complete its work and adjourn within 20 days from the time of 
  6.15  convening stated in the notice of the clerk, unless a longer 
  6.16  period is approved by the commissioner of revenue.  No action 
  6.17  taken after that date is valid.  All complaints about an 
  6.18  assessment or classification made after the meeting of the board 
  6.19  must be heard and determined by the county board of 
  6.20  equalization.  A nonresident may, at any time, before the 
  6.21  meeting of the board of review file written objections to an 
  6.22  assessment or classification with the county assessor.  The 
  6.23  objections must be presented to the board of review at its 
  6.24  meeting by the county assessor for its consideration. 
  6.25     Subd. 2.  [SPECIAL BOARD; DUTIES DELEGATED.] The governing 
  6.26  body of a city, including a city whose charter provides for a 
  6.27  board of equalization, may appoint a special board of review.  
  6.28  The city may delegate to the special board of review all of the 
  6.29  powers and duties in subdivision 1.  The special board of review 
  6.30  shall serve at the direction and discretion of the appointing 
  6.31  body, subject to the restrictions imposed by law.  The 
  6.32  appointing body shall determine the number of members of the 
  6.33  board, the compensation and expenses to be paid, and the term of 
  6.34  office of each member.  At least one member of the special board 
  6.35  of review must be an appraiser, realtor, or other person 
  6.36  familiar with property valuations in the assessment district. 
  7.1      Subd. 3.  [LOCAL BOARD DUTIES TRANSFERRED TO COUNTY.] The 
  7.2   town board of any town or the governing body of any home rule 
  7.3   charter or statutory city may transfer its powers and duties 
  7.4   under subdivision 1 to the county board, and no longer perform 
  7.5   the function of a local board.  A transfer of duties as 
  7.6   permitted under this subdivision must be communicated to the 
  7.7   county assessor, in writing, before December 1 of any year to be 
  7.8   effective for the following year's assessment.  This transfer of 
  7.9   duties to the county may either be permanent or for a specified 
  7.10  number of years, provided that the transfer cannot be for less 
  7.11  than three years.  Its length must be stated in writing.  A town 
  7.12  or city may renew its option to transfer.  The option to 
  7.13  transfer duties under this subdivision is only available to a 
  7.14  town or city for which assessment is done by the county. 
  7.15     Sec. 4.  Minnesota Statutes 1996, section 274.13, is 
  7.16  amended by adding a subdivision to read: 
  7.17     Subd. 1b.  [ASSESSMENT CHANGES.] No changes in valuation or 
  7.18  classification that are intended to correct errors in judgment 
  7.19  by the county assessor may be made by the county assessor after 
  7.20  the county board of equalization has adjourned; however, 
  7.21  corrections of errors that are merely clerical in nature or 
  7.22  changes that extend homestead treatment to property are 
  7.23  permitted after adjournment until the tax extension date for 
  7.24  that assessment year.  The changes must be fully documented and 
  7.25  maintained in the assessor's office and must be available for 
  7.26  review by any person. 
  7.27     Sec. 5.  Minnesota Statutes 1996, section 274.13, is 
  7.28  amended by adding a subdivision to read: 
  7.29     Subd. 1c.  [ALTERNATIVE REVIEW OPTION.] The county shall 
  7.30  notify taxpayers whose town or city elected to transfer its 
  7.31  powers and duties under section 274.01 to the county.  Prior to 
  7.32  the time of the meeting of the county board of equalization, the 
  7.33  county shall make available to those taxpayers a procedure for a 
  7.34  review of its assessments, including, but not limited to, open 
  7.35  book meetings.  This alternative review process shall take place 
  7.36  in March, April, or May.  
  8.1      Sec. 6.  [EFFECTIVE DATE.] 
  8.2      Sections 1 to 5 are effective the day following final 
  8.3   enactment.