Minnesota Legislature
SF 2676
as introduced - 91st Legislature (2019 - 2020) Posted on 03/25/2019 04:38pm
Current Version - as introduced
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A bill for an act
relating to taxation; property; modifying certain deadlines; amending Minnesota
Statutes 2018, sections 273.124, subdivisions 9, 13; 273.13, subdivision 34.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2018, section 273.124, subdivision 9, is amended to read:
Subd. 9.
Homestead established after assessment date.
Any property that was not
used for the purpose of a homestead on the assessment date, but which was used for the
purpose of a homestead on December deleted text begin 1deleted text end new text begin 31new text end of a year, constitutes class 1 or class 2a.
Any taxpayer meeting the requirements of this subdivision must notify the county
assessor, or the assessor who has the powers of the county assessor under section 273.063,
in writing, by December deleted text begin 15deleted text end new text begin 31new text end of the year of occupancy in order to qualify under this
subdivision. The assessor must not deny full homestead treatment to a property that is
partially homesteaded on January 2 but occupied for the purpose of a full homestead on
December deleted text begin 1deleted text end new text begin 31new text end of a year.
The county assessor and the county auditor may make the necessary changes on their
assessment and tax records to provide for proper homestead classification as provided in
this subdivision.
If homestead classification has not been requested as of December deleted text begin 15deleted text end new text begin 31new text end , the assessor
will classify the property as nonhomestead for the current assessment year for taxes payable
in the following year, provided that the owner of any property qualifying under this
subdivision, which has not been accorded the benefits of this subdivision, may be entitled
to receive homestead classification by proper application as provided in section 375.192.
The county assessor may publish in a newspaper of general circulation within the county
a notice requesting the public to file an application for homestead as soon as practicable
after acquisition of a homestead, but no later than December deleted text begin 15deleted text end new text begin 31new text end .
The county assessor shall publish in a newspaper of general circulation within the county
no later than December 1 of each year a notice informing the public of the requirement to
file an application for homestead by December deleted text begin 15deleted text end new text begin 31new text end .
In the case of manufactured homes assessed as personal property, the homestead must
be established, and a homestead classification requested, by May 29 of the assessment year.
The assessor may include information on these deadlines for manufactured homes assessed
as personal property in the published notice or notices.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessments in 2019.
new text end
Sec. 2.
Minnesota Statutes 2018, section 273.124, subdivision 13, is amended to read:
Subd. 13.
Homestead application.
(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.
(b) The commissioner shall prescribe the content, format, and manner of the homestead
application required to be filed under this chapter pursuant to section 270C.30. The
application must clearly inform the taxpayer that this application must be signed by all
owners who occupy the property or by the qualifying relative and returned to the county
assessor in order for the property to receive homestead treatment.
(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner of
the property on the deed of record, the name and address of each owner who does not occupy
the property, and the name and Social Security number of each owner's spouse. The
application must be signed by each owner who occupies the property and by each owner's
spouse who occupies the property, or, in the case of property that qualifies as a homestead
under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number on the homestead application or provide the affidavits or other proof
requested, will be deemed to have elected to receive only partial homestead treatment of
their residence. The remainder of the residence will be classified as nonhomestead residential.
When an owner or spouse's name and Social Security number appear on homestead
applications for two separate residences and only one application is signed, the owner or
spouse will be deemed to have elected to homestead the residence for which the application
was signed.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number of each relative occupying the property and the name
and Social Security number of the spouse of a relative occupying the property shall be
required on the homestead application filed under this subdivision. If a different relative of
the owner subsequently occupies the property, the owner of the property must notify the
assessor within 30 days of the change in occupancy. The Social Security number of a relative
occupying the property or the spouse of a relative occupying the property is private data on
individuals as defined by section 13.02, subdivision 12, but may be disclosed to the
commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.
(f) If a homestead application has not been filed with the county by December deleted text begin 15deleted text end new text begin 31new text end ,
the assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessments in 2019.
new text end
Sec. 3.
Minnesota Statutes 2018, 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 and
for eight additional taxes payable years or until such time as the spouse remarries, or sells,
transfers, or otherwise disposes of the property, whichever comes first. 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), for eight taxes payable years, or until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
whichever comes first.
(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
apply to the assessor by deleted text begin July 1deleted text end new text begin December 31new text end of the first assessment year for which the
exclusion is sought. For an application received after deleted text begin July 1deleted text end new text begin December 31new text end , the exclusion
shall become effective for the following assessment year. 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.
(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), for eight taxes payable years or until the spouse remarries
or sells, transfers, or otherwise disposes of the property 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 EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessments in 2019.
new text end