SF 3233

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; providing an income tax credit 
  1.3             for owners of homesteads with defects that cause 
  1.4             public health problems; appropriating money; amending 
  1.5             Minnesota Statutes 1996, section 290.06, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 290.06, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 26.  [CREDIT FOR REHABILITATION OF CERTAIN 
  1.11  HOMESTEADS.] (a) As used in this subdivision, "qualified 
  1.12  homestead rehabilitation expenditures" means an expense that 
  1.13  meets the following requirements: 
  1.14     (1) the expenditure is incurred to remedy a physical 
  1.15  condition of the taxpayer's homestead that presents a health 
  1.16  hazard to the occupants.  Expenditures for cosmetic improvements 
  1.17  to the residence and for other purposes not directly related to 
  1.18  remedying conditions that are health hazards do not qualify for 
  1.19  the credit under this subdivision; 
  1.20     (2) the potentially hazardous condition of the homestead 
  1.21  was caused by faulty construction or subsequent modifications to 
  1.22  the dwelling or by failure to meet the requirements for 
  1.23  classification as a category 1 house as defined in Minnesota 
  1.24  Rules, part 7670; 
  1.25     (3) the dwelling is classified as a homestead under section 
  1.26  273.124; and 
  2.1      (4) the taxpayer provides information satisfactory to the 
  2.2   commissioner verifying the existence of a health hazard 
  2.3   presented by the condition of the structure, the taxpayer's lack 
  2.4   of recourse against the contractor or other party responsible 
  2.5   for the faulty or substandard construction or modification, and 
  2.6   the necessity and reasonableness of the expenditure to remedy 
  2.7   the condition. 
  2.8      (b) A taxpayer may take as a credit against the tax due 
  2.9   from the taxpayer and a spouse, if any, under this chapter an 
  2.10  amount equal to 50 percent of the qualified homestead 
  2.11  rehabilitation expenditures as defined in this subdivision. 
  2.12     (c) If the amount of the credit exceeds the taxpayer's 
  2.13  liability under this chapter, the excess amount of the credit 
  2.14  must be refunded to the claimant by the commissioner, and an 
  2.15  amount sufficient to pay the refunds is appropriated annually to 
  2.16  the commissioner from the general fund. 
  2.17     Sec. 2.  [EFFECTIVE DATE.] 
  2.18     Section 1 is effective for taxable years beginning after 
  2.19  December 31, 1997.