SF 2686

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; property tax refund; providing a 
  1.3             property tax refund as a credit against income tax for 
  1.4             certain owners of seasonal residential recreational 
  1.5             property; amending Minnesota Statutes 1996, sections 
  1.6             290.06, by adding a subdivision; 290A.02; 290A.03, by 
  1.7             adding a subdivision; 290A.04, by adding subdivisions; 
  1.8             290A.09; and 290A.10; Minnesota Statutes 1997 
  1.9             Supplement, section 290A.04, subdivision 2j. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1996, section 290.06, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 26.  [CREDIT FOR PROPERTY TAXES PAID ON SEASONAL 
  1.14  RESIDENTIAL RECREATIONAL PROPERTY.] A taxpayer may take as a 
  1.15  credit against the tax due from the taxpayer and a spouse, if 
  1.16  any, under this chapter the credit allowed under section 
  1.17  290A.04, subdivision 7.  The credit allowed may not exceed the 
  1.18  tax due under this chapter.  In the case of a nonresident, or a 
  1.19  part-year resident, the credit must be allocated based on the 
  1.20  ratio in subdivision 2c. 
  1.21     Sec. 2.  Minnesota Statutes 1996, section 290A.02, is 
  1.22  amended to read: 
  1.23     290A.02 [PURPOSE.] 
  1.24     The purpose of this chapter is to provide property tax 
  1.25  relief to certain persons who own or rent their homesteads, and 
  1.26  to persons who own seasonal residential recreational property. 
  1.27     Sec. 3.  Minnesota Statutes 1996, section 290A.03, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 16.  [SEASONAL RESIDENTIAL RECREATIONAL 
  2.3   PROPERTY.] "Seasonal residential recreational property" means 
  2.4   that portion of section 273.13, subdivision 25, paragraph (d), 
  2.5   clause (1), property that is devoted to noncommercial temporary 
  2.6   and seasonal residential occupancy for recreation purposes. 
  2.7      Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  2.8   290A.04, subdivision 2j, is amended to read: 
  2.9      Subd. 2j.  [SEASONAL RESIDENTIAL RECREATIONAL CREDIT.] If 
  2.10  the net gross property taxes payable on a seasonal residential 
  2.11  recreational property not used for commercial purposes, 
  2.12  classified under section 273.13, subdivision 25, increase more 
  2.13  than ten percent over its net property taxes payable in the 
  2.14  previous year, and if the amount of the increase is $100 or 
  2.15  more, a claimant who is an owner of the property in both years 
  2.16  is allowed a credit under section 290.06, subdivision 25, equal 
  2.17  to 75 percent of the first $300 of the excess of the increase 
  2.18  over ten percent.  This subdivision does not apply to the 
  2.19  portion of an increase in taxes payable that are attributable to 
  2.20  improvements to the property.  
  2.21     In addition to the other proofs required by this chapter, 
  2.22  each claimant under this subdivision shall file with the 
  2.23  application a copy of the property tax statement for property 
  2.24  taxes payable in the current year and the previous year and any 
  2.25  other documents required by the commissioner. 
  2.26     For purposes of this subdivision, (1) "net property taxes 
  2.27  payable" means property taxes payable minus refund amounts for 
  2.28  which the claimant qualifies under subdivision 7 and minus 
  2.29  credit amounts for which a claimant qualify's qualifies under 
  2.30  this subdivision for the previous year, and (2) "gross property 
  2.31  taxes payable" means net property taxes determined without 
  2.32  regard to a refund allowed under this subdivision. 
  2.33     The credit under this subdivision is effective for property 
  2.34  taxes payable in 1998, for credits under section 290.06, 
  2.35  subdivision 25, for tax year 1998, income tax returns filed in 
  2.36  1999; and for property taxes payable in 1999, for credits under 
  3.1   section 290.06, subdivision 25, for tax year 1999, income tax 
  3.2   returns filed in 2000. 
  3.3      Sec. 5.  Minnesota Statutes 1996, section 290A.04, is 
  3.4   amended by adding a subdivision to read: 
  3.5      Subd. 5a.  [COMBINED SEASONAL RECREATIONAL AND EITHER 
  3.6   RENTER OR HOMEOWNER REFUND.] A claimant who is entitled to a 
  3.7   refund as a homeowner under subdivision 2 or as a renter under 
  3.8   subdivision 2a may also receive a refund as an owner of seasonal 
  3.9   residential recreational property under subdivision 7.  
  3.10     Sec. 6.  Minnesota Statutes 1996, section 290A.04, is 
  3.11  amended by adding a subdivision to read: 
  3.12     Subd. 7.  [OWNERS OF SEASONAL RESIDENTIAL RECREATIONAL 
  3.13  PROPERTY.] A claimant who is a Minnesota resident and an owner 
  3.14  of seasonal residential recreational property whose property 
  3.15  taxes on the seasonal residential recreational property for 
  3.16  taxes payable in 1998 and subsequent years are in excess of the 
  3.17  percentage of household income stated in subdivision 2 shall pay 
  3.18  an amount equal to the percentage of income shown for the 
  3.19  appropriate household income level in subdivision 2 along with 
  3.20  the percentage to be paid by the claimant of the remaining 
  3.21  amount of property taxes payable.  The state refund equals the 
  3.22  amount of property taxes payable that remain, up to the maximum 
  3.23  refund amount shown in subdivision 2.  Any refund amount under 
  3.24  this subdivision shall be in addition to any refunds allowed 
  3.25  under subdivision 2 or 2a.  No payment is allowed if the 
  3.26  claimant's household income exceeds the maximum income shown in 
  3.27  subdivision 2.  The claimant shall receive the refund only as a 
  3.28  credit under section 290.06, subdivision 26, against individual 
  3.29  income tax liability for the tax year in which the property 
  3.30  taxes are payable.  In calculating the refund amount for 
  3.31  seasonal recreational property, the claimant shall use the 
  3.32  current year's schedule in subdivision 2 as adjusted for 
  3.33  inflation and the immediate prior year's property taxes payable 
  3.34  amount on the seasonal residential recreational property. 
  3.35     Sec. 7.  Minnesota Statutes 1996, section 290A.09, is 
  3.36  amended to read: 
  4.1      290A.09 [PROOF OF CLAIM.] 
  4.2      Every claimant shall supply to the department of revenue, 
  4.3   in support of the claim, proof of eligibility under this 
  4.4   chapter, including but not limited to amount of rent paid or 
  4.5   property taxes accrued, name and address of owner or managing 
  4.6   agent of property rented, changes in homestead, household 
  4.7   membership, household income, size and nature of property 
  4.8   claimed as a homestead or as seasonal residential recreational 
  4.9   property. 
  4.10     Disabled persons filing claims shall submit proof of 
  4.11  disability in the form and manner as the department may 
  4.12  prescribe.  The department may require examination and 
  4.13  certification by the claimant's physician or by a physician 
  4.14  designated by the department.  The cost of any examination shall 
  4.15  be borne by the claimant, unless the examination proves the 
  4.16  disability, in which case the cost of the examination shall be 
  4.17  borne by the department. 
  4.18     A determination of disability of a claimant by the social 
  4.19  security administration under Title II or Title XVI of the 
  4.20  Social Security Act shall constitute presumptive proof of 
  4.21  disability. 
  4.22     Sec. 8.  Minnesota Statutes 1996, section 290A.10, is 
  4.23  amended to read: 
  4.24     290A.10 [PROOF OF TAXES PAID.] 
  4.25     Every claimant who files a claim for relief for property 
  4.26  taxes payable shall include with the claim a property tax 
  4.27  statement or a reproduction thereof in a form deemed 
  4.28  satisfactory by the commissioner of revenue indicating that 
  4.29  there are no delinquent property taxes on the homestead or 
  4.30  seasonal residential recreational property.  Indication on the 
  4.31  property tax statement from the county treasurer that there are 
  4.32  no delinquent taxes on the homestead or seasonal residential 
  4.33  recreational property shall be sufficient proof.  Taxes included 
  4.34  in a confession of judgment under section 279.37 shall not 
  4.35  constitute delinquent taxes as long as the claimant is current 
  4.36  on the payments required to be made under section 279.37. 
  5.1      Sec. 9.  [EFFECTIVE DATE.] 
  5.2      Sections 1 to 8 are effective for tax year 1998 and 
  5.3   following years based on property taxes payable in 1998 and 
  5.4   thereafter.