SF 2663

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; property; providing for recovery 
  1.3             of improperly claimed homestead benefits; amending 
  1.4             Minnesota Statutes 1994, section 290A.25; Minnesota 
  1.5             Statutes 1995 Supplement, section 273.124, subdivision 
  1.6             13. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.9   273.124, subdivision 13, is amended to read: 
  1.10     Subd. 13.  [HOMESTEAD APPLICATION.] (a) A person who meets 
  1.11  the homestead requirements under subdivision 1 must file a 
  1.12  homestead application with the county assessor to initially 
  1.13  obtain homestead classification. 
  1.14     (b) On or before January 2, 1993, each county assessor 
  1.15  shall mail a homestead application to the owner of each parcel 
  1.16  of property within the county which was classified as homestead 
  1.17  for the 1992 assessment year.  The format and contents of a 
  1.18  uniform homestead application shall be prescribed by the 
  1.19  commissioner of revenue.  The commissioner shall consult with 
  1.20  the chairs of the house and senate tax committees on the 
  1.21  contents of the homestead application form.  The application 
  1.22  must clearly inform the taxpayer that this application must be 
  1.23  signed by all owners who occupy the property or by the 
  1.24  qualifying relative and returned to the county assessor in order 
  1.25  for the property to continue receiving homestead treatment.  The 
  1.26  envelope containing the homestead application shall clearly 
  2.1   identify its contents and alert the taxpayer of its necessary 
  2.2   immediate response. 
  2.3      (c) Every property owner applying for homestead 
  2.4   classification must furnish to the county assessor the social 
  2.5   security number of each occupant who is listed as an owner of 
  2.6   the property on the deed of record, the name and address of each 
  2.7   owner who does not occupy the property, and the name and social 
  2.8   security number of each owner's spouse who occupies the 
  2.9   property.  The application must be signed by each owner who 
  2.10  occupies the property and by each owner's spouse who occupies 
  2.11  the property, or, in the case of property that qualifies as a 
  2.12  homestead under subdivision 1, paragraph (c), by the qualifying 
  2.13  relative. 
  2.14     If a property owner occupies a homestead, the property 
  2.15  owner's spouse may not claim another property as a homestead 
  2.16  unless the property owner and the property owner's spouse file 
  2.17  with the assessor an affidavit or other proof required by the 
  2.18  assessor stating that the property qualifies as a homestead 
  2.19  under subdivision 1, paragraph (e). 
  2.20     Owners or spouses occupying residences owned by their 
  2.21  spouses and previously occupied with the other spouse, either of 
  2.22  whom fail to include the other spouse's name and social security 
  2.23  number on the homestead application or provide the affidavits or 
  2.24  other proof requested, will be deemed to have elected to receive 
  2.25  only partial homestead treatment of their residence.  The 
  2.26  remainder of the residence will be classified as nonhomestead 
  2.27  residential.  When an owner or spouse's name and social security 
  2.28  number appear on homestead applications for two separate 
  2.29  residences and only one application is signed, the owner or 
  2.30  spouse will be deemed to have elected to homestead the residence 
  2.31  for which the application was signed. 
  2.32     The social security numbers or affidavits or other proofs 
  2.33  of the property owners and spouses are private data on 
  2.34  individuals as defined by section 13.02, subdivision 12, but, 
  2.35  notwithstanding that section, the private data may be disclosed 
  2.36  to the commissioner of revenue, or, for purposes of proceeding 
  3.1   under the revenue recapture act to recover personal property 
  3.2   taxes owing, to the county treasurer. 
  3.3      (d) If residential real estate is occupied and used for 
  3.4   purposes of a homestead by a relative of the owner and qualifies 
  3.5   for a homestead under subdivision 1, paragraph (c), in order for 
  3.6   the property to receive homestead status, a homestead 
  3.7   application must be filed with the assessor.  The social 
  3.8   security number of each relative occupying the property and the 
  3.9   social security number of each owner who is related to an 
  3.10  occupant of the property shall be required on the homestead 
  3.11  application filed under this subdivision.  If a different 
  3.12  relative of the owner subsequently occupies the property, the 
  3.13  owner of the property must notify the assessor within 30 days of 
  3.14  the change in occupancy.  The social security number of a 
  3.15  relative occupying the property is private data on individuals 
  3.16  as defined by section 13.02, subdivision 12, but may be 
  3.17  disclosed to the commissioner of revenue.  
  3.18     (e) The homestead application shall also notify the 
  3.19  property owners that the application filed under this section 
  3.20  will not be mailed annually and that if the property is granted 
  3.21  homestead status for the 1993 assessment, or any assessment year 
  3.22  thereafter, that same property shall remain classified as 
  3.23  homestead until the property is sold or transferred to another 
  3.24  person, or the owners, the spouse of the owner, or the relatives 
  3.25  no longer use the property as their homestead.  Upon the sale or 
  3.26  transfer of the homestead property, a certificate of value must 
  3.27  be timely filed with the county auditor as provided under 
  3.28  section 272.115.  Failure to notify the assessor within 30 days 
  3.29  that the property has been sold, transferred, or that the owner, 
  3.30  the spouse of the owner, or the relative is no longer occupying 
  3.31  the property as a homestead, shall result in the penalty 
  3.32  provided under this subdivision and the property will lose its 
  3.33  current homestead status. 
  3.34     (f) If the homestead application is not returned within 30 
  3.35  days, the county will send a second application to the present 
  3.36  owners of record.  The notice of proposed property taxes 
  4.1   prepared under section 275.065, subdivision 3, shall reflect the 
  4.2   property's classification.  Beginning with assessment year 1993 
  4.3   for all properties, If a homestead application has not been 
  4.4   filed with the county by December 15, the assessor shall 
  4.5   classify the property as nonhomestead for the current assessment 
  4.6   year for taxes payable in the following year, provided that the 
  4.7   owner may be entitled to receive the homestead classification by 
  4.8   proper application under section 375.192. 
  4.9      (g) At the request of the commissioner, each county must 
  4.10  give the commissioner a list that includes the name and social 
  4.11  security number of each property owner and the property owner's 
  4.12  spouse occupying the property, or relative of a property owner, 
  4.13  applying for homestead classification under this subdivision.  
  4.14  The commissioner shall use the information provided on the lists 
  4.15  as appropriate under the law, including for the detection of 
  4.16  improper claims by owners, or relatives of owners, under chapter 
  4.17  290A.  
  4.18     (h) If, in comparing the lists supplied by the counties, 
  4.19  the commissioner finds that a property owner may be claiming a 
  4.20  fraudulent homestead, the commissioner shall notify the 
  4.21  appropriate counties.  Within 90 days of the notification, the 
  4.22  county assessor shall investigate to determine if the homestead 
  4.23  classification was properly claimed.  If the property owner does 
  4.24  not qualify, the county assessor shall notify the county auditor 
  4.25  who will determine the amount of homestead benefits that had 
  4.26  been improperly allowed.  For the purpose of this section, 
  4.27  "homestead benefits" means the tax reduction resulting from the 
  4.28  classification as a homestead under section 273.13, the taconite 
  4.29  homestead credit under section 273.135, and the supplemental 
  4.30  homestead credit under section 273.1391. 
  4.31     The county auditor shall send a notice to persons who 
  4.32  signed the owners of the affected property homestead application 
  4.33  related to the improper homestead, demanding reimbursement of 
  4.34  the homestead benefits plus a penalty equal to 100 percent of 
  4.35  the homestead benefits.  The property owners person notified may 
  4.36  appeal the county's determination by filing a notice of appeal 
  5.1   serving copies of a petition for review with county officials as 
  5.2   provided in section 278.01 and filing proof of service as 
  5.3   provided in section 278.01 with the Minnesota tax court within 
  5.4   60 days of the date of the notice from the 
  5.5   county.  Procedurally, the appeal is governed by the provisions 
  5.6   in chapter 271 which apply to the appeal of a property tax 
  5.7   assessment or levy, but without requiring any prepayment of the 
  5.8   amount in controversy.  If the amount of homestead benefits and 
  5.9   penalty is not paid within 60 days, and if no appeal has been 
  5.10  filed, the county auditor shall certify the amount of taxes and 
  5.11  penalty to the succeeding year's tax list to be collected as 
  5.12  part of the property taxes.  In the case of a manufactured home, 
  5.13  the amount shall be certified to the current year's tax list for 
  5.14  collection county treasurer.  The county treasurer will add 
  5.15  interest to the unpaid homestead benefits and penalty amounts at 
  5.16  the rate provided for delinquent personal property taxes for the 
  5.17  period beginning 60 days after demand for payment was made until 
  5.18  payment.  If the application related to the improperly allowed 
  5.19  homestead was signed by the current owner of the property, the 
  5.20  treasurer may add the total amount of benefits, penalty, 
  5.21  interest, and costs to the real estate taxes otherwise payable 
  5.22  on the property in the following year.  If the application 
  5.23  related to the improperly allowed homestead was not signed by 
  5.24  the current owner of the property, the treasurer may collect the 
  5.25  amounts due under the revenue recapture act in chapter 270A, or 
  5.26  use any of the powers granted in sections 277.20 and 277.21 
  5.27  without exclusion, to enforce payment of the benefits, penalty, 
  5.28  interest, and costs, as if those amounts were delinquent tax 
  5.29  obligations of the occupant who signed the application related 
  5.30  to the improperly allowed homestead.  The treasurer may relieve 
  5.31  a prior owner of personal liability for the benefits, penalty, 
  5.32  interest, and costs, and instead extend those amounts on the tax 
  5.33  lists against the property for taxes payable in the following 
  5.34  year to the extent that the current owner agrees in writing. 
  5.35     (i) Any amount of homestead benefits recovered by the 
  5.36  county from the property owner shall be distributed to the 
  6.1   county, city or town, and school district where the property is 
  6.2   located in the same proportion that each taxing district's levy 
  6.3   was to the total of the three taxing districts' levy for the 
  6.4   current year.  Any amount recovered attributable to taconite 
  6.5   homestead credit shall be transmitted to the St. Louis county 
  6.6   auditor to be deposited in the taconite property tax relief 
  6.7   account.  The total amount of penalty collected must be 
  6.8   deposited in the county general fund. 
  6.9      (j) If a property owner has applied for more than one 
  6.10  homestead and the county assessors cannot determine which 
  6.11  property should be classified as homestead, the county assessors 
  6.12  will refer the information to the commissioner.  The 
  6.13  commissioner shall make the determination and notify the 
  6.14  counties within 60 days. 
  6.15     (k) In addition to lists of homestead properties, the 
  6.16  commissioner may ask the counties to furnish lists of all 
  6.17  properties and the record owners. 
  6.18     Sec. 2.  Minnesota Statutes 1994, section 290A.25, is 
  6.19  amended to read: 
  6.20     290A.25 [VERIFICATION OF SOCIAL SECURITY NUMBERS.] 
  6.21     Annually, the commissioner of revenue shall furnish a list 
  6.22  to the county assessor containing the names and social security 
  6.23  numbers of persons who have applied for both homestead 
  6.24  classification under section 273.13 and a property tax refund as 
  6.25  a renter under this chapter.  
  6.26     Within 90 days of the notification, the county assessor 
  6.27  shall investigate to determine if the homestead classification 
  6.28  was improperly claimed.  If the property owner does not qualify, 
  6.29  the county assessor shall notify the county auditor who will 
  6.30  determine the amount of homestead benefits that has been 
  6.31  improperly allowed.  For the purpose of this section, "homestead 
  6.32  benefits" means the tax reduction resulting from the 
  6.33  classification as a homestead under section 273.13, and the 
  6.34  taconite homestead credit under section 273.1391 has the meaning 
  6.35  given in section 273.124, subdivision 13, paragraph (h).  The 
  6.36  county auditor shall send a notice to persons who signed the 
  7.1   owners of homestead application related to the improper 
  7.2   homestead property, demanding reimbursement of the homestead 
  7.3   benefits plus a penalty equal to 100 percent of the homestead 
  7.4   benefits.  The property owners person notified may appeal the 
  7.5   county's determination by filing a notice of appeal with the 
  7.6   Minnesota tax court within 60 days of the date of the notice 
  7.7   from the county as provided in section 273.124, subdivision 13, 
  7.8   paragraph (h). 
  7.9      If the amount of homestead benefits and penalty is not paid 
  7.10  within 60 days, and if no appeal has been filed, the county 
  7.11  auditor shall certify the amount of taxes and penalty to the 
  7.12  succeeding year's tax list to be collected as part of the 
  7.13  property taxes county treasurer.  The county treasurer will add 
  7.14  interest to the unpaid homestead benefits and penalty amounts at 
  7.15  the rate provided for delinquent personal property taxes for the 
  7.16  period beginning 60 days after demand for payment was made until 
  7.17  payment.  If the application related to the improperly allowed 
  7.18  homestead was signed by the current owner of the property, the 
  7.19  treasurer may add the total amount of benefits, penalty, 
  7.20  interest, and costs to the real estate taxes otherwise payable 
  7.21  on the property in the following year.  If the application 
  7.22  related to the improperly allowed homestead was not signed by 
  7.23  the current owner of the property, the treasurer may collect the 
  7.24  amounts due under the revenue recapture act in chapter 270A, or 
  7.25  use any of the powers granted in sections 277.20 and 277.21 
  7.26  without exclusion, to enforce payment of the benefits, penalty, 
  7.27  interest, and costs, as if those amounts were delinquent tax 
  7.28  obligations of the occupant who signed the application related 
  7.29  to the improperly allowed homestead.  The treasurer may relieve 
  7.30  a prior owner of personal liability for the benefits, penalty, 
  7.31  interest, and costs, and instead extend those amounts on the tax 
  7.32  lists against the property for taxes payable in the following 
  7.33  year to the extent that the current owner agrees in writing. 
  7.34     Any amount of homestead benefits recovered by the county 
  7.35  from the property owner shall be distributed to the county, city 
  7.36  or town, and school district where the property is located in 
  8.1   the same proportion that each taxing district's levy was to the 
  8.2   total of the three taxing districts' levy for the current year.  
  8.3   Any amount recovered attributable to taconite homestead credit 
  8.4   shall be transmitted to the St. Louis county auditor to be 
  8.5   deposited in the taconite property tax relief account.  The 
  8.6   total amount of penalty collected must be deposited in the 
  8.7   county general fund. 
  8.8      Sec. 3.  [EFFECTIVE DATE.] 
  8.9      Sections 1 and 2 are effective the day following final 
  8.10  enactment.