SF 1339

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:20am

A bill for an act
relating to taxation; property; establishing a limit on homeowner property taxes as
a percentage of household income; reducing the market value homestead credit;
amending Minnesota Statutes 2008, sections 273.1384, subdivision 1; 290A.03,
subdivision 13; 290A.04, by adding a subdivision; 290A.23, subdivision 3;
repealing Minnesota Statutes 2008, section 290A.04, subdivision 2h.

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

Section 1.

Minnesota Statutes 2008, 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 deleted text begin 0.4 deleted text end new text begin 0.37 new text end percent of the first $76,000 of market value of the property
minus .09 percent of the market value in excess of $76,000. 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 2010 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 290A.03, subdivision 13, is amended to read:

Subd. 13.

Property taxes payable.

"Property taxes payable" means the property
tax exclusive of special assessments, penalties, and interest payable on a claimant's
homestead after deductions made under sections 273.135, 273.1384, 273.1391, 273.42,
subdivision 2, and any other state paid property tax credits in any calendar year deleted text begin , and
after any refund claimed and allowable under section 290A.04, subdivision 2h, that is
first payable in the year that the property tax is payable deleted text end . In the case of a claimant who
makes ground lease payments, "property taxes payable" includes the amount of the
payments directly attributable to the property taxes assessed against the parcel on which
the house is located. No apportionment or reduction of the "property taxes payable" shall
be required for the use of a portion of the claimant's homestead for a business purpose if
the claimant does not deduct any business depreciation expenses for the use of a portion
of the homestead in the determination of federal adjusted gross income. For homesteads
which are manufactured homes as defined in section 273.125, subdivision 8, and for
homesteads which are park trailers taxed as manufactured homes under section 168.012,
subdivision 9, "property taxes payable" shall also include 19 percent of the gross rent paid
in the preceding year for the site on which the homestead is located. When a homestead
is owned by two or more persons as joint tenants or tenants in common, such tenants
shall determine between them which tenant may claim the property taxes payable on the
homestead. If they are unable to agree, the matter shall be referred to the commissioner of
revenue whose decision shall be final. Property taxes are considered payable in the year
prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have
owned and occupied the homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead property pursuant to section
273.124, on or before December 15 of the assessment year to which the "property taxes
payable" relate; or (ii) the claimant must provide documentation from the local assessor
that application for homestead classification has been made on or before December 15
of the year in which the "property taxes payable" were payable and that the assessor has
approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims filed in 2010 and thereafter
based on property taxes payable in 2010 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 290A.04, is amended by adding a subdivision
to read:

new text begin Subd. 2k. new text end

new text begin Limit refund. new text end

new text begin A claimant who is a homeowner and who has household
income less than the maximum income that can qualify for a refund under subdivision 2, is
eligible for a refund equal to the amount that the claimant's property taxes payable, net of
any refund determined under subdivision 2, exceeds six percent of the claimant's household
income. This refund is in addition to any refund determined under subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims filed in 2010 and thereafter
based on property taxes payable in 2010 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2008, section 290A.23, subdivision 3, is amended to read:

Subd. 3.

Annual appropriation.

For payments made after July 1, 1996, there is
annually appropriated from the general fund to the commissioner of revenue the amount
necessary to make the payments required under section 290A.04, subdivisions 2 and deleted text begin 2h deleted text end new text begin 2k new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims filed in 2010 and thereafter
based on property taxes payable in 2010 and thereafter.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 290A.04, subdivision 2h, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims filed in 2010 and thereafter
based on property taxes payable in 2010 and thereafter.
new text end