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Minnesota Legislature

Office of the Revisor of Statutes

SF 498

as introduced - 91st Legislature (2019 - 2020) Posted on 01/28/2019 02:05pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; property; expanding the senior citizens' property tax deferral
program to terminally ill homeowners; amending Minnesota Statutes 2018, sections
290B.01; 290B.02; 290B.03, subdivision 1; 290B.04, subdivisions 1, 6, 7, by
adding a subdivision; 290B.08; 290B.10.

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

Section 1.

Minnesota Statutes 2018, section 290B.01, is amended to read:


290B.01 PURPOSE.

Minnesota's system of ad valorem property taxation does not adequately recognize the
unique financial circumstances of homestead property owned and occupied by low-income
senior citizensnew text begin or the terminally illnew text end. It is therefore declared to be in the public interest of this
state to stabilize tax burdens on homestead property owned by qualifying low-income senior
citizens new text beginand the terminally ill new text endthrough a deferral of certain property taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for deferral of taxes
payable in 2020 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2018, section 290B.02, is amended to read:


290B.02 CITATION.

This program shall be named the "new text beginproperty tax deferral program for new text endsenior deleted text begincitizens'deleted text end
deleted text begin property tax deferral programdeleted text endnew text begin citizens and the terminally illnew text end."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for deferral of taxes
payable in 2020 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2018, section 290B.03, subdivision 1, is amended to read:


Subdivision 1.

Program qualifications.

The qualifications for the new text beginproperty tax deferral
program for
new text endsenior deleted text begincitizens' property tax deferral programdeleted text end new text begincitizens and the terminally ill new text endare
as follows:

(1) the property must be owned and occupied as a homestead by new text begineither:
new text end

new text begin (i) new text enda person 65 years of age or oldernew text begin; or
new text end

new text begin (ii) a person diagnosed as terminally illnew text end.

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 agenew text begin.
For purposes of this section, a "person diagnosed as terminally ill" means a person receiving
a diagnosis certified by the person's treating health care provider that the person has a
probable life expectancy of under one year
new text end;

(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 $60,000;

(3) the homestead must have been owned and occupied as the homestead of at least one
of the qualifying homeowners for at least 15 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 for deferral of taxes
payable in 2020 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2018, section 290B.04, subdivision 1, is amended to read:


Subdivision 1.

Initial application.

(a) A taxpayer meeting the program qualifications
under section 290B.03 may apply to the commissioner of revenue for the deferral of taxes.
Applications are due on or before July 1 for deferral of any of the following year's property
taxes. A taxpayer may apply in the year in which the taxpayer becomes 65 years old, provided
that no deferral of property taxes will be made until the calendar year after the taxpayer
becomes 65 years old. The application, which shall be prescribed by the commissioner of
revenue, shall include the following items and any other information which the commissioner
deems necessary:

(1) the name, address, and Social Security number of the owner or owners;

(2) a copy of the property tax statement for the current payable year for the homesteaded
property;

(3) the initial year of ownership and occupancy as a homestead;

(4) the owner's household income for the previous calendar year; deleted text beginand
deleted text end

new text begin (5) if applicable under section 290B.03, subdivision 1, clause (1), item (ii), a certification
by the person's treating health care provider that the taxpayer has a probable life expectancy
of under one year. The certification must be as of a date not more than 30 days prior to
submission of the application; and
new text end

deleted text begin (5)deleted text end new text begin(6) new text endinformation on any mortgage loans or other amounts secured by mortgages or
other liens against the property, for which purpose the commissioner may require the
applicant to provide a copy of the mortgage note, the mortgage, or a statement of the balance
owing on the mortgage loan provided by the mortgage holder. The commissioner may
require the appropriate documents in connection with obtaining and confirming information
on unpaid amounts secured by other liens.

The application must state that program participation is voluntary. The application must
also state that the deferred amount depends directly on the applicant's household income,
and that program participation includes authorization for the annual deferred amount, the
cumulative deferral and interest that appear on each year's notice prepared by the county
under subdivision 6, is public data.

The application must state that program participants may claim the property tax refund
based on the full amount of property taxes eligible for the refund, including any deferred
amounts. The application must also state that property tax refunds will be used to offset any
deferral and interest under this program, and that any other amounts subject to revenue
recapture under section 270A.03, subdivision 7, will also be used to offset any deferral and
interest under this program.

(b) As part of the initial application process, the commissioner may require the applicant
to obtain at the applicant's own cost and submit:

(1) if the property is registered property under chapter 508 or 508A, a copy of the original
certificate of title in the possession of the county registrar of titles (sometimes referred to
as "condition of register"); or

(2) if the property is abstract property, a report prepared by a licensed abstracter showing
the last deed and any unsatisfied mortgages, liens, judgments, and state and federal tax lien
notices which were recorded on or after the date of that last deed with respect to the property
or to the applicant.

The certificate or report under clauses (1) and (2) need not include references to any
documents filed or recorded more than 40 years prior to the date of the certification or report.
The certification or report must be as of a date not more than 30 days prior to submission
of the application.

The commissioner may also require the county recorder or county registrar of the county
where the property is located to provide copies of recorded documents related to the applicant
or the property, for which the recorder or registrar shall not charge a fee. The commissioner
may use any information available to determine or verify eligibility under this section. The
household income from the application is private data on individuals as defined in section
13.02, subdivision 12.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for deferral of taxes
payable in 2020 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2018, section 290B.04, is amended by adding a subdivision to
read:


new text begin Subd. 5a. new text end

new text begin Certification; person terminally ill. new text end

new text begin (a) A person whose initial application
was submitted and approved as qualifying under section 290B.03, subdivision 1, clause (1),
item (ii), must provide to the commissioner of revenue by July 1 annually a certification by
the person's treating health care provider that the taxpayer remains a person diagnosed as
terminally ill, as defined in section 290B.03, subdivision 1. The certification must be as of
a date not more than 30 days prior to submission of the certification.
new text end

new text begin (b) Upon the death of the qualifying terminally ill person, the person's spouse, or the
administrator of the person's estate, must notify the commissioner of revenue in writing
within 30 days of the qualifying terminally ill person's death.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for deferral of taxes
payable in 2020 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2018, section 290B.04, subdivision 6, is amended to read:


Subd. 6.

Annual notice to participant.

Annually, on or before July 1, the county auditor
shall notify, in writing, each participant in the county who is in the deleted text beginsenior citizen'sdeleted text end deferral
program of the current year's deferred taxes and the total cumulative deferred taxes and
accrued interest on the participant's property as of that date.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for deferral of taxes
payable in 2020 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2018, section 290B.04, subdivision 7, is amended to read:


Subd. 7.

Payment of delinquent taxes and special assessments.

Upon approval of a
senior citizen's new text beginor terminally ill person's new text endinitial application, the commissioner of revenue
shall pay to the treasurer of the county where the property is located the amount of any
delinquent property taxes, penalties, interest, and delinquent special assessments and interest
on the property which is the subject of the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for deferral of taxes
payable in 2020 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2018, section 290B.08, is amended to read:


290B.08 TERMINATION OF DEFERRAL; PAYMENT OF DEFERRED TAXES.

Subdivision 1.

Termination.

(a) The deferral of taxes granted under this chapter
terminates when one of the following occurs:

(1) the property is sold or transferred;

(2) the death of all qualifying homeownersnew text begin with respect to applications approved under
section 290B.03, subdivision 1, clause (1), item (i), or the death of the qualifying homeowner
with respect to applications approved under section 290B.03, subdivision 1, clause (1), item
(ii)
new text end;

(3) the homeowner notifies the commissioner in writing that the homeowner desires to
discontinue the deferral; or

(4) the property no longer qualifies as a homestead.

(b) A property is not terminated from the program because no deferred property tax
amount is determined on the homestead for any given year after the homestead's initial
enrollment into the program.

Subd. 2.

Payment upon termination.

Upon the termination of the deferral under
subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments and
interest, plus the recording or filing fees under both section 290B.04, subdivision 2, and
this subdivision becomes due and payable to the commissioner within 90 days of termination
of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2), new text begin
except that termination under subdivision 1, paragraph (a), clause (2), relating to the death
of a qualifying homeowner under section 290B.03, subdivision 1, clause (1), item (ii),
becomes due and payable within one year of termination,
new text endand within one year of termination
of the deferral for terminations under subdivision 1, paragraph (a), clauses (3) and (4). No
additional interest is due on the deferral if timely paid. On receipt of payment, the
commissioner shall within ten days notify the auditor of the county in which the parcel is
located, identifying the parcel to which the payment applies and shall remit the recording
or filing fees under section 290B.04, subdivision 2, and this subdivision to the auditor. A
notice of termination of deferral, containing the legal description and the recording or filing
data for the notice of qualification for deferral under section 290B.04, subdivision 2, shall
be prepared and recorded or filed by the county auditor in the same office in which the
notice of qualification for deferral under section 290B.04, subdivision 2, was recorded or
filed, and the county auditor shall mail a copy of the notice of termination to the property
owner. The property owner shall pay the recording or filing fees. Upon recording or filing
of the notice of termination of deferral, the notice of qualification for deferral under section
290B.04, subdivision 2, and the lien created by it are discharged. If the deferral is not timely
paid, the penalty, interest, lien, forfeiture, and other rules for the collection of ad valorem
property taxes apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for deferral of taxes
payable in 2020 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2018, section 290B.10, is amended to read:


290B.10 new text beginPROPERTY TAX DEFERRAL PROGRAM FOR new text endSENIOR deleted text beginDEFERRAL
PROGRAM
deleted text endnew text begin CITIZENS AND THE TERMINALLY ILLnew text end; INFORMATION
PROVIDED.

The commissioner of revenue shall provide information about the new text beginproperty tax deferral
program for
new text endsenior deleted text begindeferral programdeleted text end new text begincitizens and the terminally ill new text endand eligibility criteria
for the program in the instruction booklet prepared for taxpayers to use in applying for
property tax refunds under chapter 290A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for deferral of taxes
payable in 2020 and thereafter.
new text end