Minnesota Legislature
SF 1633
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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5.33
A bill for an act
relating to property taxation; property tax refund; increasing property tax refunds
for homeowners; modifying household income for persons age 65 or older;
amending Minnesota Statutes 2006, sections 290A.03, subdivision 3; 290A.04,
subdivisions 2, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 290A.03, subdivision 3, is amended to
read:
Subd. 3.
Income.
(1) "Income" means the sum of the following:
(a) federal adjusted gross income as defined in the Internal Revenue Code; and
(b) the sum of the following amounts to the extent not included in clause (a):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section
469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness
of a solvent individual excluded from gross income under section 108(g) of the Internal
Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments
received under the federal Social Security Act, supplemental security income, and veterans
benefits), which was not exclusively funded by the claimant or spouse, or which was
funded exclusively by the claimant or spouse and which funding payments were excluded
from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality
or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or
sick pay as a result of accident, sickness, or other disability, whether funded through
insurance or otherwise;
(x) a lump sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account,
including a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
of the Internal Revenue Code; or deferred compensation plan under section 457 of the
Internal Revenue Code;
(xii) nontaxable scholarship or fellowship grants;
(xiii) the amount of deduction allowed under section 199 of the Internal Revenue
Code; and
(xiv) the amount of deduction allowed under section 220 or 223 of the Internal
Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected
in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.
(2) "Income" does not include:
(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and
102;
(b) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(c) surplus food or other relief in kind supplied by a governmental agency;
(d) relief granted under this chapter;
(e) child support payments received under a temporary or final decree of dissolution
or legal separation; or
(f) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
2001, Public Law 107-16.
(3) The sum of the following amounts may be subtracted from income:
(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(e) for the claimant's fifth dependent, the exemption amount; deleted text begin and
deleted text end
(f) if the claimant deleted text begin or claimant's spousedeleted text end was disabled or attained the age of 65
on or before December 31 of the year for which the taxes were levied or rent paid, the
exemption amountnew text begin multiplied by 1.4; and
new text end
new text begin (g) if the claimant's spouse was disabled or attained the age of 65 on or before
December 31 of the year for which the taxes were levied or rent paid, the exemption
amount multiplied by 1.4new text end .
For purposes of this subdivision, the "exemption amount" means the exemption
amount under section 151(d) of the Internal Revenue Code for the taxable year for which
the income is reported.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for claims filed based on
rent paid in 2007, and property taxes payable in 2008 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2006, section 290A.04, subdivision 2, is amended to read:
Subd. 2.
Homeowners.
new text begin (a) new text end 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 |
|
deleted text begin
$0 to 1,189 deleted text end |
1.0 percent |
15 percent |
deleted text begin
$1,450 deleted text end |
|
new text begin
$0 to 1,519 new text end |
new text begin
$1,850 new text end |
||
|
deleted text begin
1,190 to 2,379 deleted text end |
1.1 percent |
15 percent |
deleted text begin
$1,450 deleted text end |
|
new text begin
1,520 to 3,029 new text end |
new text begin
$1,850 new text end |
||
|
deleted text begin
2,380 to 3,589 deleted text end |
1.2 percent |
15 percent |
deleted text begin
$1,410 deleted text end |
|
new text begin
3,030 to 4,579 new text end |
new text begin
$1,790 new text end |
||
|
deleted text begin
3,590 to 4,789 deleted text end |
1.3 percent |
20 percent |
deleted text begin
$1,410 deleted text end |
|
new text begin
4,580 to 6,119 new text end |
new text begin
$1,790 new text end |
||
|
deleted text begin
4,790 to 5,979 deleted text end |
1.4 percent |
20 percent |
deleted text begin
$1,360 deleted text end |
|
new text begin
6,120 to 7,639 new text end |
new text begin
$1,730 new text end |
||
|
deleted text begin
5,980 to 8,369 deleted text end |
1.5 percent |
20 percent |
deleted text begin
$1,360 deleted text end |
|
new text begin
7,640 to 10,679 new text end |
new text begin
$1,730 new text end |
||
|
deleted text begin
8,370 to 9,559 deleted text end |
1.6 percent |
25 percent |
deleted text begin
$1,310 deleted text end |
|
new text begin
10,680 to 12,209 new text end |
new text begin
$1,670 new text end |
||
|
deleted text begin
9,560 to 10,759 deleted text end |
1.7 percent |
25 percent |
deleted text begin
$1,310 deleted text end |
|
new text begin
12,210 to 13,739 new text end |
new text begin
$1,670 new text end |
||
|
deleted text begin
10,760 to 11,949 deleted text end |
1.8 percent |
25 percent |
deleted text begin
$1,260 deleted text end |
|
new text begin
13,740 to 15,259 new text end |
new text begin
$1,600 new text end |
||
|
deleted text begin
11,950 to 13,139 deleted text end |
1.9 percent |
30 percent |
deleted text begin
$1,260 deleted text end |
|
new text begin
15,260 to 16,779 new text end |
new text begin
$1,600 new text end |
||
|
deleted text begin
13,140 to 14,349 deleted text end |
2.0 percent |
30 percent |
deleted text begin
$1,210 deleted text end |
|
new text begin
16,780 to 18,319 new text end |
new text begin
$1,540 new text end |
||
|
deleted text begin
14,350 to 16,739 deleted text end |
2.1 percent |
30 percent |
deleted text begin
$1,210 deleted text end |
|
new text begin
18,320 to 21,379 new text end |
new text begin
$1,540 new text end |
||
|
deleted text begin
16,740 to 17,929 deleted text end |
2.2 percent |
35 percent |
deleted text begin
$1,160 deleted text end |
|
new text begin
21,380 to 22,899 new text end |
new text begin
$1,480 new text end |
||
|
deleted text begin
17,930 to 19,119 deleted text end |
2.3 percent |
35 percent |
deleted text begin
$1,160 deleted text end |
|
new text begin
22,900 to 24,409 new text end |
new text begin
$1,480 new text end |
||
|
deleted text begin
19,120 to 20,319 deleted text end |
2.4 percent |
35 percent |
deleted text begin
$1,110 deleted text end |
|
new text begin
24,410 to 25,949 new text end |
new text begin
$1,410 new text end |
||
|
deleted text begin
20,320 to 25,099 deleted text end |
2.5 percent |
40 percent |
deleted text begin
$1,110 deleted text end |
|
new text begin
25,950 to 32,049 new text end |
new text begin
$1,410 new text end |
||
|
deleted text begin
25,100 to 28,679 deleted text end |
2.6 percent |
40 percent |
deleted text begin
$1,070 deleted text end |
|
new text begin
32,050 to 36,629 new text end |
new text begin
$1,360 new text end |
||
|
deleted text begin
28,680 to 35,849 deleted text end |
2.7 percent |
40 percent |
deleted text begin
$1,070 deleted text end |
|
new text begin
36,630 to 45,779 new text end |
new text begin
$1,360 new text end |
||
|
deleted text begin
35,850 to 41,819 deleted text end |
2.8 percent |
45 percent |
deleted text begin $ 970deleted text end |
|
new text begin
45,780 to 53,409 new text end |
new text begin
$1,230 new text end |
||
|
deleted text begin
41,820 to 47,799 deleted text end |
3.0 percent |
45 percent |
deleted text begin $ 970deleted text end |
|
new text begin
53,410 to 61,049 new text end |
new text begin
$1,230 new text end |
||
|
deleted text begin
47,800 to 53,779 deleted text end |
3.2 percent |
45 percent |
deleted text begin $ 870deleted text end |
|
new text begin
61,050 to 68,679 new text end |
new text begin
$1,110 new text end |
||
|
deleted text begin
53,780 to 59,749 deleted text end |
3.5 percent |
50 percent |
deleted text begin $ 780deleted text end |
|
new text begin
68,680 to 76,309 new text end |
new text begin
$990 new text end |
||
|
deleted text begin
59,750 to 65,729 deleted text end |
4.0 percent |
50 percent |
deleted text begin $ 680deleted text end |
|
new text begin
76,310 to 83,939 new text end |
new text begin
$870 new text end |
||
|
deleted text begin
65,730 to 69,319 deleted text end |
4.0 percent |
50 percent |
deleted text begin $ 580deleted text end |
|
new text begin
83,940 to 88,529 new text end |
new text begin
$740 new text end |
||
|
deleted text begin
69,320 to 71,719 deleted text end |
4.0 percent |
50 percent |
deleted text begin $ 480deleted text end |
|
new text begin
88,530 to 91,589 new text end |
new text begin
$610 new text end |
||
|
deleted text begin
71,720 to 74,619 deleted text end |
4.0 percent |
50 percent |
deleted text begin $ 390deleted text end |
|
new text begin
91,590 to 95,299 new text end |
new text begin
$500 new text end |
||
|
deleted text begin
74,620 to 77,519 deleted text end |
4.0 percent |
50 percent |
deleted text begin $ 290deleted text end |
|
new text begin
95,300 to 98,999 new text end |
new text begin
$370 new text end |
new text begin (b) 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 deleted text begin $77,520deleted text end new text begin $99,000new text end or more.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for claims filed based on
property taxes payable in 2008.
new text end
Sec. 3.
Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:
Subd. 4.
Inflation adjustment.
deleted text begin Beginning for property tax refunds payable in
calendar year 2002,deleted text end new text begin (a)new text end The commissioner shall annually adjust the dollar amounts of the
income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
new text begin (b) Beginning for property tax refunds payable in 2009, new text end the commissioner shall
make the inflation adjustments new text begin to the dollar amounts in subdivision 2 new text end in accordance with
section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the
percentage increase shall be determined from the year ending on June 30, deleted text begin 2000deleted text end new text begin 2007new text end , to
the year ending on June 30 of the year preceding that in which the refund is payable.
new text begin
(c) Beginning for property tax refunds payable in 2002, the commissioner shall
make the inflation adjustments to the dollar amounts in subdivision 2a in accordance with
section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the
percentage increase shall be determined from the year ending on June 30, 2000, to the
year ending on June 30 of the year preceding that in which the refund is payable.
new text end
new text begin (d) new text end The commissioner shall use the appropriate percentage increase to annually
adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
inflation without regard to whether or not the income tax brackets are adjusted for inflation
in that year. The commissioner shall round the thresholds and the maximum amounts,
as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
round it up to the next $10 amount.
new text begin (e) new text end The commissioner shall annually announce the adjusted refund schedule at the
same time provided under section 290.06. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end