as introduced - 89th Legislature (2015 - 2016) Posted on 03/15/2016 09:51am
A bill for an act
relating to taxation; property; modifying the disabled veteran's exclusion;
amending Minnesota Statutes 2014, section 273.13, subdivision 34.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read:
(a) All or a
portion of the market value of property owned by a veteran and serving as the veteran's
homestead under this section is excluded in determining the property's taxable market
value if the veteran has a service-connected disability of 70 percent or more as certified
by the United States Department of Veterans Affairs. To qualify for exclusion under this
subdivision, the veteran must have been honorably discharged from the United States
armed forces, as indicated by United States Government Form DD214 or other official
military discharge papers.
(b)deleted text begin(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); anddeleted text endnew text beginnew text end
deleted text begin
(2) for a total (100 percent) and permanent disability, $300,000 of market value is
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(c) If a disabled veteran qualifying for a valuation exclusion deleted text beginunder paragraph
(b), clause (2),deleted text endnew text beginnew text end predeceases
the veteran's spouse, and if upon the death of the veteran the spouse holds the legal or
beneficial title to the homestead and permanently resides there, the exclusion shall carry
over to the benefit of the veteran's spouse for the current taxes payable year and for eight
additional taxes payable years or until such time as the spouse remarries, or sells, transfers,
or otherwise disposes of the property, whichever comes first. Qualification under this
paragraph requires an annual application under paragraph (h).
(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit deleted text begindescribed indeleted text endnew text beginnew text end paragraph (b), deleted text beginclause (2)deleted text endnew text beginnew text end, for eight taxes payable years, or until such time as the spouse
remarries or sells, transfers, or otherwise disposes of the property, whichever comes first.
(e) If a veteran meets the disability criteria of paragraph (a) but does not own
property classified as homestead in the state of Minnesota, then the homestead of the
veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
would otherwise qualify for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property
consisting of the house and garage and immediately surrounding one acre of land qualifies
for the valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the market value exclusion under subdivision 35, or classification under
subdivision 22, paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by July 1 of each assessment year, except that an annual reapplication
is not required deleted text beginoncedeleted text endnew text beginnew text end a property new text beginnew text end
new text beginnew text endhas been accepted for a valuation exclusion under paragraph (a) deleted text beginanddeleted text endnew text beginnew text end
new text beginnew text end qualifies deleted text beginfor the benefit described in paragraph (b), clause (2),deleted text end new text beginnew text end and deleted text beginthe propertydeleted text end
new text beginnew text end continues deleted text beginto qualify until there is a change indeleted text endnew text beginnew text end ownership.
For an application received after July 1 of any calendar year, the exclusion shall become
effective for the following assessment year.
(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of
the United States Department of Veterans Affairs for assistance as the primary provider
of personal care services for an eligible veteran under the Program of Comprehensive
Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
(4) "veteran" has the meaning given the term in section 197.447.
(k) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.
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