SF 2184

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; modifying the homestead local option disaster
abatement provisions; amending Minnesota Statutes 2006, section 273.123,
subdivision 7.

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

Section 1.

Minnesota Statutes 2006, section 273.123, subdivision 7, is amended to read:

Subd. 7.

Local option; other property.

The owner of homestead property
not qualifying for an adjustment in valuation pursuant to subdivisions 1 to 5 or of
nonhomestead property may receive a reduction in the amount of taxes payable on the
property for the year in which the destruction occurs and in the following year if:

(a) 50 percent or more of the homestead dwelling or other structure, as established
by the county assessor, is new text begin :
new text end

new text begin (1) new text end unintentionally or accidentally destroyed new text begin , or new text end

new text begin (2) destroyed by arson or vandalism, by someone other than the owner,
new text end

and the homestead is uninhabitable or the other structure is not usable;

(b) the owner of the property makes written application to the county assessor as
soon as practical after the damage has occurred; and

(c) the owner of the property makes written application to the county board.

The county board may grant a reduction in the amount of property tax which the
owner must pay on the qualifying property in the year of destruction and in the following
year. Any reduction in the amount of tax payable which is authorized by county board
action shall be calculated based upon the number of months that the home is uninhabitable
or the other structure is unusable. The amount of net tax due from the taxpayer shall be
multiplied by a fraction, the numerator of which is the number of months the dwelling
was occupied by that taxpayer, or the number of months the other structure was used by
the taxpayer, and the denominator of which is 12. For purposes of this subdivision, if a
structure is occupied or used for a fraction of a month, it is considered a month. "Net tax"
is defined as the amount of tax after the subtraction of all of the state paid property tax
credits. If application is made following payment of all property taxes due for the year of
destruction, the amount of the reduction granted by the county board shall be refunded to
the taxpayer by the county treasurer as soon as practical.

Any reductions or refunds approved by the county board shall not be subject to
approval by the commissioner of revenue.

The county board may levy in the following year the amount of tax dollars lost to the
county government as a result of the reductions granted pursuant to this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for destruction that occurs in calendar
year 2006 and thereafter.
new text end