Minnesota Legislature
SF 3803
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/08/2022 08:55am
Current Version - as introduced
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4.1
A bill for an act
relating to taxation; property; modifying the senior citizens' property tax deferral
program; requiring notification of changes; amending Minnesota Statutes 2020,
sections 290B.03, subdivision 1; 290B.04, subdivisions 3, 4; 290B.05, subdivision
1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 290B.03, subdivision 1, is amended to read:
Subdivision 1.
Program qualifications.
The qualifications for the senior citizens'
property tax deferral program are as follows:
(1) the property must be owned and occupied as a homestead by a person 65 years of
age or older. In the case of a married couple, at least one of the spouses must be at least 65
years old at the time the first property tax deferral is granted, regardless of whether the
property is titled in the name of one spouse or both spouses, or titled in another way that
permits the property to have homestead status, and the other spouse must be at least 62 years
of age;
(2) the total household income of the qualifying homeowners, as defined in section
290A.03, subdivision 5, for the calendar year preceding the year of the initial application
may not exceed deleted text begin $60,000deleted text end new text begin $75,000new text end ;
(3) the homestead must have been owned and occupied as the homestead of at least one
of the qualifying homeowners for at least deleted text begin 15deleted text end new text begin fivenew text end years prior to the year the initial application
is filed;
(4) there are no state or federal tax liens or judgment liens on the homesteaded property;
(5) there are no mortgages or other liens on the property that secure future advances,
except for those subject to credit limits that result in compliance with clause (6); and
(6) the total unpaid balances of debts secured by mortgages and other liens on the
property, including unpaid and delinquent special assessments and interest and any delinquent
property taxes, penalties, and interest, but not including property taxes payable during the
year or debts secured by a residential PACE lien, as defined in section 216C.435, subdivision
10d, does not exceed 75 percent of the assessor's estimated market value for the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications received for deferral of
taxes payable in 2023 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2020, section 290B.04, subdivision 3, is amended to read:
Subd. 3.
Excess-income certification by taxpayer.
A taxpayer whose initial application
has been approved under subdivision 2 shall notify the commissioner of revenue in writing
by July 1 if the taxpayer's household income for the preceding calendar year exceeded
deleted text begin $60,000deleted text end new text begin $75,000new text end . The certification must state the homeowner's total household income for
the previous calendar year. No property taxes may be deferred under this chapter in any
year following the year in which a program participant filed or should have filed an
excess-income certification under this subdivision, unless the participant has filed a
resumption of eligibility certification as described in subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications received for deferral of
taxes payable in 2023 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2020, section 290B.04, subdivision 4, is amended to read:
Subd. 4.
Resumption of eligibility certification by taxpayer.
A taxpayer who has
previously filed an excess-income certification under subdivision 3 may resume program
participation if the taxpayer's household income for a subsequent year is deleted text begin $60,000deleted text end new text begin $75,000new text end
or less. If the taxpayer chooses to resume program participation, the taxpayer must notify
the commissioner of revenue in writing by July 1 of the year following a calendar year in
which the taxpayer's household income is deleted text begin $60,000deleted text end new text begin $75,000new text end or less. The certification must
state the taxpayer's total household income for the previous calendar year. Once a taxpayer
resumes participation in the program under this subdivision, participation will continue until
the taxpayer files a subsequent excess-income certification under subdivision 3 or until
participation is terminated under section 290B.08, subdivision 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications received for deferral of
taxes payable in 2023 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2020, section 290B.05, subdivision 1, is amended to read:
Subdivision 1.
Determination by commissioner.
The commissioner shall determine
each qualifying homeowner's "annual maximum property tax amount" following approval
of the homeowner's initial application and following the receipt of a resumption of eligibility
certification. The "annual maximum property tax amount" equals three percent of the
homeowner's total household income for the year preceding either the initial application or
the resumption of eligibility certification, whichever is applicable. Following approval of
the initial application, the commissioner shall determine the qualifying homeowner's
"maximum allowable deferral." No tax may be deferred relative to the appropriate assessment
year for any homeowner whose total household income for the previous year exceeds
deleted text begin $60,000deleted text end new text begin $75,000new text end . No tax shall be deferred in any year in which the homeowner does not
meet the program qualifications in section 290B.03. The maximum allowable total deferral
is equal to 75 percent of the assessor's estimated market value for the year, less the balance
of any mortgage loans and other amounts secured by liens against the property at the time
of application, including any unpaid and delinquent special assessments and interest and
any delinquent property taxes, penalties, and interest, but not including property taxes
payable during the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications received for deferral of
taxes payable in 2023 and thereafter.
new text end
Sec. 5. new text begin SENIOR CITIZENS' PROPERTY TAX DEFERRAL PROGRAM; NOTICE
OF CHANGES.
new text end
new text begin
By September 1, 2022, for homestead property classified under Minnesota Statutes,
section 273.13, subdivisions 22 and 23, each county auditor must deliver by first class mail
to each property owner at the address listed on the county's current year's assessment roll,
a notice prescribed by the commissioner of revenue that informs property owners that for
purposes of the senior citizens' property tax deferral program under Minnesota Statutes,
chapter 290B, effective beginning with property taxes payable in 2023, the homestead and
residency requirement was reduced from 15 years to five years, and the maximum household
income threshold increased from $60,000 to $75,000. The notice must also provide the
website for the Minnesota Department of Revenue where additional information on the
senior citizens' property tax deferral program, including application, may be obtained.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end