as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; property; limiting increases in 1.3 market value for residential property; amending 1.4 Minnesota Statutes 1996, section 273.11, subdivision 1.5 1a. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 1996, section 273.11, 1.8 subdivision 1a, is amended to read: 1.9 Subd. 1a. [LIMITED MARKET VALUE.] (a) For taxes payable in 1.10 1998, a property classified as agricultural homestead or 1.11 nonhomestead, residential homestead or nonhomestead, residential 1.12 real estate containing four or more units, or noncommercial 1.13 seasonal recreational residential may not have a market value 1.14 for property tax purposes greater than 110 percent of its market 1.15 value or, if applicable, its limited market value, used in 1.16 determining property taxes payable in 1996. 1.17 (b) For taxes payable in 1999 and thereafter, in the case 1.18 of all property classified as agricultural homestead or 1.19 nonhomestead, residential homestead or nonhomestead, residential 1.20 real estate containing four or more units, or noncommercial 1.21 seasonal recreational residential, the assessor shall compare 1.22 the value with that determined in the preceding assessment. The 1.23 amount of the increase entered in the current assessment shall 1.24 not exceed
the greater of (1) ten percent of the value in the1.25 preceding assessment, or (2) one-third of the difference between2.1 the current assessment and the preceding assessmentthe lesser 2.2 of (1) five percent of the market value determined under this 2.3 subdivision for the preceding assessment year, or (2) an amount 2.4 equal to the market value determined under this subdivision for 2.5 the preceding assessment year multiplied by the percentage rate 2.6 of increase, if any, in the Consumer Price Index for all urban 2.7 consumers as determined by the United States Department of 2.8 Labor, Bureau of Labor Statistics, for the 12-month period 2.9 ending October 31 of the preceding assessment year. This 2.10 limitation shall not apply to increases in value due to 2.11 improvements. For purposes of this subdivision, the term 2.12 "assessment" means the value prior to any exclusion under 2.13 subdivision 16. 2.14 (c) For the first assessment year after the sale or 2.15 conveyance of property for which the assessor's estimated market 2.16 value is greater than the market value determined under this 2.17 subdivision, the value of the property, for property tax 2.18 purposes shall be increased to the assessor's estimated market 2.19 value. 2.20 The provisions of this subdivision shall be in effect only2.21 for assessment years 1993 through 1997.2.22 (d) For purposes of the assessment/sales ratio study 2.23 conducted under section 124.2131, and the computation of state 2.24 aids paid under chapters 124, 124A, and 477A, market values and 2.25 net tax capacities determined under this subdivision and 2.26 subdivision 16, shall be used. 2.27 Sec. 2. [EFFECTIVE DATE.] 2.28 Section 1 is effective for taxes levied in 1997 and 2.29 thereafter, for taxes payable in 1998 and thereafter.