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SF 1829

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:23am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; property; prohibiting an increase in taxable market value for
certain homesteads owned by persons age 65 years or older; amending Minnesota
Statutes 2008, sections 273.11, subdivision 5, by adding a subdivision; 273.121,
subdivision 1; 276.04, subdivision 2.

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

Section 1.

Minnesota Statutes 2008, section 273.11, subdivision 5, is amended to read:


Subd. 5.

Boards of review and equalization.

Notwithstanding any other provision
of law to the contrary, the limitation contained in subdivisions 1 deleted text beginanddeleted text endnew text begin,new text end 1anew text begin, and 24new text end shall
also apply to the authority of the local board of review as provided in section 274.01,
the county board of equalization as provided in section 274.13, the State Board of
Equalization and the commissioner of revenue as provided in sections 270.11, subdivision
1
, 270.12, 270C.92, and 270C.94.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter, for taxes payable in 2010 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 273.11, is amended by adding a subdivision to
read:


new text begin Subd. 24. new text end

new text begin Certain homesteads of persons age 65 or older; valuation increase
prohibited.
new text end

new text begin (a) The taxable market value used for taxes levied in the current year on
class 1 property as defined in section 273.13, subdivision 22, and that portion of class 2a
property as defined in section 273.13, subdivision 23, consisting of the house, garage, and
surrounding one acre of land, may not exceed the property's taxable market value used
for taxes levied in the preceding year, provided that in the preceding year the property
was valued at $800,000 or less and is currently owned and occupied as a homestead by a
person that will be 65 years of age or older as of December 31 of the year in which the tax
is levied. In the case of a married couple, both of the spouses must be at least 65 years of
age as of December 31 of the year in which the tax is levied regardless of whether the
property is titled in the name of one spouse or both spouses, or titled in another way that
permits the property to have homestead status.
new text end

new text begin (b) An owner or owners must apply to the county assessor where the property is
located by August 1 of the levy year for which the valuation freeze under paragraph
(a) is first requested. The applicant or applicants must submit proof of age as required
by the assessor to determine eligibility for the valuation freeze under paragraph (a). In
succeeding years, applicants must submit whatever information the county assessor deems
necessary to determine the homestead status and continued eligibility under this section.
new text end

new text begin (c) This subdivision does not apply to any increase in estimated market value
attributable to improvements made to the homestead.
new text end

new text begin (d) The county assessor shall annually inform the public of the availability of the
valuation freeze under this subdivision as part of the notice published under section
273.121.
new text end

new text begin (e) The valuation freeze granted under this subdivision terminates when one of the
following occurs. The property:
new text end

new text begin (1) is sold or transferred;
new text end

new text begin (2) loses its homestead classification; or
new text end

new text begin (3) no longer qualifies for treatment under this section.
new text end

new text begin Upon termination the property shall be assessed for the current levy year as
otherwise provided by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter, for taxes payable in 2010 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 273.121, subdivision 1, is amended to read:


Subdivision 1.

Notice.

Any county assessor or city assessor having the powers of a
county assessor, valuing or classifying taxable real property shall in each year notify those
persons whose property is to be included on the assessment roll that year if the person's
address is known to the assessor, otherwise the occupant of the property. The notice shall
be in writing and shall be sent by ordinary mail at least ten days before the meeting of
the local board of appeal and equalization under section 274.01 or the review process
established under section 274.13, subdivision 1c. Upon written request by the owner of the
property, the assessor may send the notice in electronic form or by electronic mail instead
of on paper or by ordinary mail. It shall contain: (1) the market value for the current and
prior assessment, (2) the limited market value under section 273.11, subdivision 1a, for
the current and prior assessment, (3) the qualifying amount of any improvements under
section 273.11, subdivision 16, for the current assessment, (4) new text beginthe amount of any market
value increase prohibited under section 273.11, subdivision 24, (5)
new text endthe market value
subject to taxation after subtracting the amount of any qualifying improvements new text beginunder
clause (3) or any valuation freeze amount under clause (4)
new text endfor the current assessment,
deleted text begin (5)deleted text endnew text begin (6)new text end the classification of the property for the current and prior assessment, deleted text begin(6)deleted text endnew text begin (7)new text end a
note that if the property is homestead and at least 45 years old, improvements made to
the property may be eligible for a valuation exclusion under section 273.11, subdivision
16
, deleted text begin(7)deleted text endnew text begin (8)new text end the assessor's office address, and deleted text begin(8)deleted text endnew text begin (9)new text end the dates, places, and times set for the
meetings of the local board of appeal and equalization, the review process established
under section 274.13, subdivision 1c, and the county board of appeal and equalization.
The commissioner of revenue shall specify the form of the notice. The assessor shall
attach to the assessment roll a statement that the notices required by this section have been
mailed. Any assessor who is not provided sufficient funds from the assessor's governing
body to provide such notices, may make application to the commissioner of revenue
to finance such notices. The commissioner of revenue shall conduct an investigation
and, if satisfied that the assessor does not have the necessary funds, issue a certification
to the commissioner of finance of the amount necessary to provide such notices. The
commissioner of finance shall issue a warrant for such amount and shall deduct such
amount from any state payment to such county or municipality. The necessary funds to
make such payments are hereby appropriated. Failure to receive the notice shall in no way
affect the validity of the assessment, the resulting tax, the procedures of any board of
review or equalization, or the enforcement of delinquent taxes by statutory means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for valuation notices beginning
with the 2010 assessment.
new text end

Sec. 4.

Minnesota Statutes 2008, section 276.04, subdivision 2, is amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the
printing of the tax statements. The commissioner of revenue shall prescribe the form
of the property tax statement and its contents. The statement must contain a tabulated
statement of the dollar amount due to each taxing authority and the amount of the state
tax from the parcel of real property for which a particular tax statement is prepared. The
dollar amounts attributable to the county, the state tax, the voter approved school tax, the
other local school tax, the township or municipality, and the total of the metropolitan
special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must
be separately stated. The amounts due all other special taxing districts, if any, may be
aggregated except that any levies made by the regional rail authorities in the county of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be listed on a separate line directly under the appropriate county's levy. If the county
levy under this paragraph includes an amount for a lake improvement district as defined
under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount. In the case of Ramsey County,
if the county levy under this paragraph includes an amount for public library service
under section 134.07, the amount attributable for that purpose may be separated from the
remaining county levy amount. The amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount. The amount of the
tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
be separately stated. The dollar amounts, including the dollar amount of any special
assessments, may be rounded to the nearest even whole dollar. For purposes of this section
whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
The amount of market value excluded under section 273.11, subdivision 16, if any, must
also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's taxable market value after reductions under section 273.11,
subdivisions 1a deleted text beginanddeleted text endnew text begin,new text end 16new text begin, and 24new text end;

(3) the property's gross tax, before credits;

(4) for homestead residential and agricultural properties, the credits under section
273.1384;

(5) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and

(6) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax statements for taxes
payable in 2010 and thereafter.
new text end