SF 3261

as introduced - 90th Legislature (2017 - 2018) Posted on 03/20/2018 08:26am

A bill for an act
relating to property taxes; disabled veterans homestead exclusion; modifying the
spousal benefit; amending the application requirement; amending Minnesota
Statutes 2017 Supplement, section 273.13, subdivision 34.

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

Section 1.

Minnesota Statutes 2017 Supplement, section 273.13, subdivision 34, is amended
to read:

Subd. 34.

Homestead of disabled veteran or family caregiver.

(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)(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 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 deleted text begin and
for eight additional taxes payable years or deleted text end until such time as the spouse remarries, or sells,
transfers, or otherwise disposes of the property, whichever comes first new text begin , except as otherwise
provided in paragraph (n) new text end . Qualification under this paragraph requires an application under
paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
marital status, ownership of the property, or use of the property as a permanent residence.

(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 described in paragraph (b), clause (2), deleted text begin for eight taxes payable years, or deleted text end until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
whichever comes first new text begin , except as otherwise provided in paragraph (n) new text end .

(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
deleted text begin apply to the assessor by July 1 of the first assessment year for which the exclusion is sought.
For an application received after July 1, the exclusion shall become effective for the following
assessment year. deleted text end new text begin file an application with the assessor. After verifying that the applicant
qualifies for the exclusion, the county assessor must notify the auditor, and the auditor must
recalculate the taxes on the property for the current taxes payable year based on the exclusion.
The county must then issue an abatement of taxes due in the current taxes payable year
based on the difference between the taxes as initially calculated and the taxes based on the
value remaining after the exclusion, prorated for the remainder of the year based on the
later of the date the application was received or the date the property first qualified for the
exclusion. If the abatement is made after all or a portion of the taxes being abated have been
paid, the portion already paid must be refunded to the taxpayer by the county treasurer as
soon as practical. Abatements granted under this paragraph are not subject to approval by
the county board. new text end Except as provided in paragraph (c), the owner of a property that has been
accepted for a valuation exclusion must notify the assessor if there is a change in ownership
of the property or in the use of the property as a homestead. new text begin When a property qualifying for
a market value exclusion under this subdivision is sold or transferred, the exclusion must
be removed for taxes payable in the following year, provided that the new owner may file
a claim for an exclusion if eligible.
new text end

(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; and

(4) "veteran" has the meaning given the term in section 197.447.

(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
under paragraph (b), clause (2), deleted text begin for eight taxes payable years or deleted text end until the spouse remarries
or sells, transfers, or otherwise disposes of the property new text begin , except as otherwise provided in
paragraph (n), new text end if:

(1) the spouse files a first-time application within two years of the death of the service
member or by June 1, 2019, whichever is later;

(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;

(3) the veteran met the honorable discharge requirements of paragraph (a); and

(4) the United States Department of Veterans Affairs certifies that:

(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or

(ii) the spouse has been awarded dependency and indemnity compensation.

(l) 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.

(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

new text begin (n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
the legal or beneficial title to the property may continue to receive the exclusion for a
property other than the property for which the exclusion was initially granted until the spouse
remarries or sells, transfers, or otherwise disposes of the property, provided that:
new text end

new text begin (1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
under this paragraph;
new text end

new text begin (2) the spouse holds the legal or beneficial title to the property for which the continuation
of the exclusion is sought under this paragraph, and permanently resides there;
new text end

new text begin (3) the market value of the property for which the exclusion is sought under this paragraph
is less than or equal to the market value of the property that first received the exclusion, as
determined by the estimated market value of each property on the date of the sale of the
property that first received the exclusion; and
new text end

new text begin (4) the spouse has not previously received the benefit under this paragraph for a property
other than the property for which the exclusion is sought.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable beginning in 2018.
new text end