SF 1596

as introduced - 87th Legislature (2011 - 2012) Posted on 05/07/2012 07:43pm

A bill for an act
relating to property taxes; exempting the first $100,000 in value of each
commercial-industrial property from the state general levy; phasing-out the state
general levy on commercial-industrial property over 20 years; freezing the state
general levy on seasonal recreational property; increasing maximum homeowner
property tax refunds; providing for a temporary increase in the special property
tax refund; appropriating money; amending Minnesota Statutes 2010, section
275.025, subdivisions 1, 2, 4; Minnesota Statutes 2011 Supplement, section
290A.04, subdivision 2.

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

Section 1.

Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:

Subdivision 1.

Levy amount.

new text begin (a) new text end The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section.

new text begin (b) The state general levy for seasonal residential recreational property is
$40,871,000 for taxes payable in 2013 and thereafter.
new text end

new text begin (c) new text end The state general levy base amount new text begin for commercial-industrial property new text end is
deleted text begin $592,000,000 deleted text end new text begin $719,252,000. new text end For taxes payable in deleted text begin 2002 deleted text end new text begin 2013, the state general levy
for commercial-industrial property is equal to the base amount new text end . For taxes payable in
deleted text begin subsequent years deleted text end new text begin 2014 to taxes payable in 2032 new text end , the levy deleted text begin base amount deleted text end is deleted text begin increased deleted text end new text begin
reduced new text end each year new text begin from the previous year's amount new text end by deleted text begin multiplying the levy base amount
for the prior year by the sum of one plus the rate of increase, if any, in the implicit price
deflator for government consumption expenditures and gross investment for state and
local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the year prior to
the year the taxes are payable deleted text end new text begin five percent of the base amount. For taxes payable in 2033
and thereafter, the state general levy for commercial-industrial property is $0 new text end .

new text begin (d) new text end The tax under this section is not treated as a local tax rate under section 469.177
and is not the levy of a governmental unit under chapters 276A and 473F.

new text begin (e) new text end The commissioner shall increase or decrease the preliminary or final deleted text begin rate deleted text end new text begin rates new text end for
a year as necessary to account for errors and tax base changes that affected a preliminary
or final rate for either of the two preceding years. Adjustments are allowed to the extent
that the necessary information is available to the commissioner at the time the rates for a
year must be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

new text begin (f) new text end The commissioner may, but need not, make adjustments if the total difference in
the tax levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2010, section 275.025, subdivision 2, is amended to read:

Subd. 2.

Commercial-industrial tax capacity.

For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property
classified as class 3 or class 5(1) under section 273.13, deleted text begin except for deleted text end new text begin excluding: (1) the
first $100,000 in value of each commercial-industrial property, (2) new text end electric generation
attached machinery under class 3 new text begin , new text end and new text begin (3) new text end property described in section 473.625. County
commercial-industrial tax capacity amounts are not adjusted for the captured net tax
capacity of a tax increment financing district under section 469.177, subdivision 2, the
net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net
tax capacities under chapter 276A or 473F.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Apportionment and deleted text end Levy of state general tax.

deleted text begin Ninety-five percent of deleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text begin five percent of the state general tax must be levied by applying deleted text end a uniform
rate to all seasonal residential recreational tax capacity. On or before October 1 each
year, the commissioner of revenue shall certify the preliminary state general levy rates to
each county auditor that must be used to prepare the notices of proposed property taxes
for taxes payable in the following year. By January 1 of each year, the commissioner
shall certify the final state general levy deleted text begin rate deleted text end new text begin rates new text end to each county auditor that shall be
used in spreading taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and
thereafter.
new text end

Sec. 4.

Minnesota Statutes 2011 Supplement, section 290A.04, subdivision 2, is
amended to read:

Subd. 2.

Homeowners.

A claimant whose property taxes payable are in excess
of the percentage of the household income stated below shall pay an amount equal to
the percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of property taxes payable.
The state refund equals the amount of property taxes payable that remain, up to the state
refund amount shown below.

Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
$0 to 1,549	1.0 percent	15 percent	$	2,460
1,550 to 3,089	1.1 percent	15 percent	$	2,460
3,090 to 4,669	1.2 percent	15 percent	$	2,460
4,670 to 6,229	1.3 percent	20 percent	$	2,460
6,230 to 7,769	1.4 percent	20 percent	$	2,460
7,770 to 10,879	1.5 percent	20 percent	$	2,460
10,880 to 12,429	1.6 percent	20 percent	$	2,460
12,430 to 13,989	1.7 percent	20 percent	$	2,460
13,990 to 15,539	1.8 percent	20 percent	$	2,460
15,540 to 17,079	1.9 percent	25 percent	$	2,460
17,080 to 18,659	2.0 percent	25 percent	$	2,460
18,660 to 21,759	2.1 percent	25 percent	$	2,460
21,760 to 23,309	2.2 percent	30 percent	$	2,460
23,310 to 24,859	2.3 percent	30 percent	$	2,460
24,860 to 26,419	2.4 percent	30 percent	$	2,460
26,420 to 32,629	2.5 percent	35 percent	$	2,460
32,630 to 37,279	2.6 percent	35 percent	$	2,460
37,280 to 46,609	2.7 percent	35 percent	$	deleted text begin 2,000 deleted text end new text begin 2,400 new text end
46,610 to 54,369	2.8 percent	35 percent	$	deleted text begin 2,000 deleted text end new text begin 2,400 new text end
54,370 to 62,139	2.8 percent	40 percent	$	deleted text begin 1,750 deleted text end new text begin 2,100 new text end
62,140 to 69,909	3.0 percent	40 percent	$	deleted text begin 1,440 deleted text end new text begin 1,730 new text end
69,910 to 77,679	3.0 percent	40 percent	$	deleted text begin 1,290 deleted text end new text begin 1,550 new text end
77,680 to 85,449	3.0 percent	40 percent	$	deleted text begin 1,130 deleted text end new text begin 1,360 new text end
85,450 to 90,119	3.5 percent	45 percent	$	deleted text begin 960 deleted text end new text begin 1,150 new text end
90,120 to 93,239	3.5 percent	45 percent	$	deleted text begin 790 deleted text end new text begin 950 new text end
93,240 to 97,009	3.5 percent	50 percent	$	deleted text begin 650 deleted text end new text begin 780 new text end
97,010 to 100,779	3.5 percent	50 percent	$	deleted text begin 480 deleted text end new text begin 580 new text end

The payment made to a claimant shall be the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
$100,780 or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on taxes
payable in 2012 and thereafter.
new text end

Sec. 5. new text begin SUPPLEMENTAL TARGETING REFUND FOR TAXES PAYABLE IN
2012 ONLY.
new text end

new text begin Subdivision 1. new text end

new text begin Determination of supplemental refund. new text end

new text begin (a) For property tax refund
claims under Minnesota Statutes, section 290A.04, subdivision 2h, based upon property
taxes payable in 2012, the state must pay a supplemental refund such that the combined
amount of the regular refund under Minnesota Statutes, section 290A.04, subdivision 2h,
and the supplemental refund is equal to 90 percent of the increase over the greater of (1) 12
percent of the payable 2011 property taxes, or (2) $100. The maximum combined refund
under Minnesota Statutes, section 290A.04, subdivision 2h, and this section is $1,000.
new text end

new text begin (b) The supplemental refund amount must be determined by the commissioner of
revenue based upon the information submitted with the claim for the regular refund and
must be combined with the regular refund for payment.
new text end

new text begin (c) Any supplemental refund paid under this section must be subtracted from
"property taxes payable" for the purposes of determining any refund amount under
Minnesota Statutes, section 290A.04, subdivision 2, based upon property taxes payable
in 2012.
new text end

new text begin (d) Any supplemental refund paid under this section must be subtracted from
"property taxes payable" for taxes payable in 2012 for the purposes of determining any
refund amount under Minnesota Statutes, section 290A.04, subdivision 2h, based upon
property taxes payable in 2013.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the payments required
under this section is appropriated to the commissioner of revenue from the general fund
for fiscal years 2013 and 2014.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on taxes
payable in 2012 only.
new text end