SF 3779

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing a property tax rebate.

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

Section 1. new text begin PROPERTY TAX REBATE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility; amount. new text end

new text begin (a) An individual or a trust that is the record
owner of a homestead when the property tax statement is prepared for taxes payable in
2006 is eligible for a property tax rebate under this section, unless the property taxes on
the homestead are delinquent within the meaning of Minnesota Statutes, section 290A.10.
new text end

new text begin (b) On or before October 1, 2006, the commissioner of revenue shall pay the eligible
owner a property tax rebate equal to ten percent of the property taxes payable in 2006
on the homestead.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Homestead" means property qualifying as a homestead under Minnesota
Statutes, section 290A.03, subdivision 6, for property taxes payable in 2006.
new text end

new text begin (d) "Property taxes payable" has the meaning given in Minnesota Statutes, section
290A.03, subdivision 13, except that any adjustments provided under Minnesota Statutes,
section 29A.03, subdivision 13, to line 1 of the property tax statement do not apply.
new text end

new text begin Subd. 3. new text end

new text begin County to provide data. new text end

new text begin (a) The county auditor shall provide the
following data to the commissioner of revenue for each homestead in the county:
new text end

new text begin (1) the name or names of the property owner or owners;
new text end

new text begin (2) the mailing address of the property owner;
new text end

new text begin (3) the Social Security number of each property owner;
new text end

new text begin (4) the amount of property taxes payable in 2006 for the property; and
new text end

new text begin (5) whether property taxes are delinquent on the homestead within the meaning
of Minnesota Statutes, section 290A.10.
new text end

new text begin (b) The county auditor shall provide the data to the commissioner electronically in
the format and manner and at the time or times specified by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Joint rebate rules. new text end

new text begin If a homestead is owned by two or more persons as
joint tenants or tenants in common, the commissioner shall pay the rebate to all of the
tenants jointly.
new text end

new text begin Subd. 5. new text end

new text begin Deceased individuals. new text end

new text begin If a rebate is received by the estate of a deceased
individual after the probate estate has been closed, and if the original rebate check is
returned to the commissioner with a copy of the decree of descent or final account of the
estate, Social Security numbers, and addresses of the beneficiaries, the commissioner may
issue separate checks in proportion to their share in the residuary estate in the names of
the residuary beneficiaries of the estate.
new text end

new text begin Subd. 6. new text end

new text begin Application of other law. new text end

new text begin (a) The property tax rebate is a "Minnesota tax
law" for purposes of Minnesota Statutes, section 270B.01, subdivision 8.
new text end

new text begin (b) The property tax rebate is "an overpayment of any tax collected by the
commissioner" for purposes of Minnesota Statutes, section 270C.64.
new text end

new text begin (c) The property tax rebate is a refund subject to revenue recapture under Minnesota
Statutes, chapter 270A. The commissioner of revenue shall remit the entire refund to the
claimant agency, which shall, upon the request of a joint owner who does not owe the debt,
refund a share of the joint property tax rebate to the joint owner who does not owe the debt
equal to the requesting owner's proportionate ownership of the property. The requesting
owner must certify this share to the agency, along with appropriate documentation.
new text end

new text begin Subd. 7. new text end

new text begin Lapse of entitlement. new text end

new text begin If the commissioner of revenue cannot locate an
individual entitled to a rebate by July 1, 2008, or if an individual to whom a rebate was
issued has not cashed the check by July 1, 2008, the right to the rebate lapses and the
check must be deposited in the general fund.
new text end

new text begin Subd. 8. new text end

new text begin Claims for unpaid rebates. new text end

new text begin Individuals entitled to a tax rebate under
subdivision 1 but who did not receive one, and individuals who receive a rebate that was
incorrectly computed, must file a claim with the commissioner before July 1, 2008, in a
form prescribed by the commissioner. These claims must be treated as if they are a claim
for refund under Minnesota Statutes, section 289A.50, subdivisions 4 and 7.
new text end

new text begin Subd. 9. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the property tax rebates
and interest provided in this section is appropriated from the general fund to the
commissioner of revenue in fiscal year 2006 and is available until June 30, 2008.
new text end

new text begin Subd. 10. new text end

new text begin Illegally cashed checks. new text end

new text begin If a rebate check is cashed by someone other
than the payee or payees of the check, and the commissioner of revenue determines that
the check has been forged or improperly endorsed or the commissioner determines that
a rebate was overstated or erroneously issued, the commissioner may issue an order of
assessment for the amount of the check or the amount the check is overstated against
the person or persons cashing it. The assessment must be made within two years after
the check is cashed, but if cashing the check constitutes theft under Minnesota Statutes,
section 609.52, or forgery under Minnesota Statutes, section 609.631, the assessment can
be made at any time. The assessment may be appealed administratively and judicially. The
commissioner may take action to collect the assessment in the same manner as provided by
Minnesota Statutes, chapter 270C, for any other order of the commissioner assessing tax.
new text end

new text begin Subd. 11. new text end

new text begin Authority to contract with vendor. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 9.031, 16A.40, 16B.49, and any other law to the contrary, the commissioner
of revenue may take whatever actions the commissioner deems necessary to pay the
rebates required by this section, and may, in consultation with the commissioner of
finance, contract with a private vendor or vendors to process, print, and mail the rebate
checks or warrants required under this section and receive and disburse state funds to pay
those checks or warrants.
new text end

new text begin Subd. 12. new text end

new text begin Electronic payment. new text end

new text begin The commissioner may pay rebates required by this
section by electronic funds transfer to individuals who requested that their 2005 individual
income tax refund be paid through electronic funds transfer. The commissioner may make
the electronic funds transfer payments to the same financial institution and into the same
account as the 2005 individual income tax refund.
new text end

new text begin Subd. 13. new text end

new text begin Adjustments. new text end

new text begin A property tax rebate of $307,300,000 is authorized
for fiscal year 2006. The commissioner of finance shall certify by July 15, 2006,
the preliminary fiscal 2006 general fund net nondedicated revenues. If certified
net nondedicated revenues are less than the amount forecast in February 2006, the
commissioner shall proportionally decrease all rebates under this section to rebate the
entire amount of the certified net nondedicated revenues. The adjustments under this
subdivision are not a rule subject to Minnesota Statutes, chapter 14.
new text end

new text begin Subd. 14. new text end

new text begin Contingent upon resolution of lawsuit. new text end

new text begin No property tax rebates must
be paid under this section, unless the Minnesota Supreme Court reverses the district
court's order, dated December 20, 2005, finding the health impact fee under Minnesota
Statutes, section 256.9658, unconstitutional and in violation of the settlement agreement
in State v. Philip Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second Judicial
District), and allows the state to continue imposing and collecting the health impact fee.
If this contingency is not satisfied by August 1, 2006, no rebates must be paid and the
appropriations in this section and section 2, subdivision 1, are canceled.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end

Sec. 2. new text begin APPROPRIATIONS; TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation; administration.
new text end

new text begin new text end

new text begin (a) $....... is appropriated in fiscal year 2006 from the general fund to the
commissioner of revenue to administer the property tax rebates in section 1. Any
unencumbered balance remaining on June 30, 2006, does not cancel but is available
for expenditure by the commissioner of revenue until June 30, 2007. Notwithstanding
Minnesota Statutes, section 16A.285, the commissioner of revenue may not use this
appropriation for any purpose other than administering the property tax rebates. This is a
onetime appropriation and may not be added to the agency's budget base.
new text end

new text begin (b) $....... is appropriated in fiscal year 2006 from the general fund to the
commissioner of finance to pay the cost of clearing property tax rebate checks through
commercial banks. Any unencumbered balance remaining on June 30, 2006, does
not cancel but is available for expenditure by the commissioner until June 30, 2007.
Notwithstanding Minnesota Statutes, section 16A.285, the commissioner may not use this
appropriation for any purpose other than paying the cost of clearing rebate checks.
new text end

new text begin Subd. 2. new text end

new text begin Transfer; tax relief account. new text end

new text begin The balance in the tax relief account under
Minnesota Statutes, section 16A.152, subdivision 4, is transferred to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end