SF 3117

as introduced - 86th Legislature (2009 - 2010) Posted on 03/08/2010 12:42pm

A bill for an act
relating to property taxation; extending the time for surviving spouses to receive
the disabled veteran homestead market value exclusion; amending Minnesota
Statutes 2008, section 273.13, subdivision 34.

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

Section 1.

Minnesota Statutes 2008, section 273.13, subdivision 34, is amended to read:

Subd. 34.

Homestead of disabled veteran.

(a) All or a portion of the market value
of property owned by a veteran or by the veteran and the veteran's spouse qualifying
for homestead classification under subdivision 22 or 23 is excluded in determining the
property's taxable market value if it serves as the homestead of a military veteran, as
defined in section 197.447, who has a service-connected disability of 70 percent or more.
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, and must be certified by the
United States Veterans Administration as having a service-connected disability.

(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.

(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse new text begin is less than 50 years of age and new text end 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 one additional assessment year or until such time as the spouse sells, transfers,
or otherwise disposes of the property, whichever comes first.

new text begin (d) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse is at least 50 years of age and 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 until such time as the spouse sells, transfers, or otherwise disposes of the property,
or remarries.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end 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.

deleted text begin (e) deleted text end new text begin (f) new text end A property qualifying for a valuation exclusion under this subdivision is
not eligible for the credit under section 273.1384, subdivision 1, or classification under
subdivision 22, paragraph (b).

deleted text begin (f) deleted text end new text begin (g) new text end 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 once a property has been accepted for a valuation exclusion
under paragraph (b), clause (2), and the property continues to qualify until there is a
change in ownership.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and
thereafter.
new text end