Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 383-S.F.No. 1709 
                  An act relating to taxation; property tax refund; 
                  uncapping the appropriation for targeting for 1994 
                  only; requiring that certain information be made 
                  available; providing notification to homeowners of 
                  certain eligibility changes; appropriating money; 
                  amending Minnesota Statutes 1993 Supplement, section 
                  290A.04, subdivision 2h. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        290A.04, subdivision 2h, is amended to read: 
           Subd. 2h.  (a) If the gross property taxes payable on a 
        homestead increase more than 12 percent over the net property 
        taxes payable in the prior year on the same property that is 
        owned and occupied by the same owner on January 2 of both years, 
        and the amount of that increase is $80 or more for taxes payable 
        in 1993, and $100 or more for taxes payable in 1994, 1995, and 
        1996, a claimant who is a homeowner shall be allowed an 
        additional refund equal to 75 percent of the amount of the 
        increase over the greater of 12 percent of the prior year's net 
        property taxes payable or $80 for taxes payable in 1993, and 75 
        percent of the amount of the increase over the greater of 12 
        percent of the prior year's net property taxes payable or $100 
        for taxes payable in 1994, 1995, and 1996.  This subdivision 
        shall not apply to any increase in the gross property taxes 
        payable attributable to improvements made to the homestead after 
        the assessment date for the prior year's taxes. 
           The maximum refund allowed under this subdivision is $1,500.
           (b) For purposes of this subdivision, the following terms 
        have the meanings given: 
           (1) "Net property taxes payable" means property taxes 
        payable minus refund amounts for which the claimant qualifies 
        pursuant to subdivision 2 and this subdivision.  
           (2) "Gross property taxes" means net property taxes payable 
        determined without regard to the refund allowed under this 
        subdivision. 
           (c) In addition to the other proofs required by this 
        chapter, each claimant under this subdivision shall file with 
        the property tax refund return a copy of the property tax 
        statement for taxes payable in the preceding year or other 
        documents required by the commissioner. 
           (d) On or before December 1, 1993, 1994, and 1995, the 
        commissioner shall estimate the cost of making the payments 
        provided by this subdivision for taxes payable in the following 
        year.  Notwithstanding the open appropriation provision of 
        section 290A.23, if the estimated total refund claims for taxes 
        payable in 1994, 1995, and 1996 exceed $5,500,000, for each of 
        the three two years the commissioner shall increase the $100 
        amount of tax increase which must occur before a taxpayer 
        qualifies for a refund, and increase by an equal amount the $100 
        threshold used in determining the amount of the refund, so that 
        the estimated total refund claims do not exceed $5,500,000 for 
        taxes payable in 1994, for taxes payable in 1995, or for taxes 
        payable in 1996. 
           The determinations of the revised thresholds by the 
        commissioner are not rules subject to chapter 14.  
           (e) Upon request, the appropriate county official shall 
        make available the names and addresses of the property taxpayers 
        who may be eligible for the additional property tax refund under 
        this section.  The information shall be provided on a magnetic 
        computer disk.  The county may recover its costs by charging the 
        person requesting the information the reasonable cost for 
        preparing the data.  The information may not be used for any 
        purpose other than for notifying the homeowner of potential 
        eligibility and assisting the homeowner, without charge, in 
        preparing a refund claim. 
           Sec. 2.  [NOTIFICATION TO HOMEOWNERS OF RETROACTIVE 
        CHANGES.] 
           (a) If a county has not mailed its payable 1994 property 
        tax statements, or if a county has mailed only a portion of its 
        payable 1994 property tax statements, the county may include a 
        notice to the homeowner in the envelope containing the property 
        tax statement alerting the homeowner of the retroactive change 
        in eligibility made by this act.  The notice to the homeowner 
        must read as follows: 
           "Attention Homeowners! A new law increases the funding for 
        special property tax refunds for taxes payable in 1994.  You may 
        be eligible for a special property tax refund if: 
           (1) The 1994 property taxes on your homestead increased 12 
        percent or more over your 1993 taxes and that increase was at 
        least $100; or 
           (2) You received a refund last year under this program. 
           If you meet either of the above two criteria, obtain a copy 
        of the M-1PR property tax refund form.  On the back of that form 
        is Schedule 1 for determining whether you are eligible to 
        receive a special tax refund.  The printed amount, however, 
        shown on lines 25 and 27, has been changed by the new law from 
        $300 to $100.  Complete that schedule by comparing your 
        qualifying property tax amount to a $100 amount on lines 25 and 
        27, rather than the $300 amount printed on the form. 
           If you qualify for a refund, send the completed M-1PR to 
        the Department of Revenue.  If you have already filed an M-1PR 
        this year for a special tax refund, you do not need to file a 
        second form.  Your refund will be recomputed based upon a $100 
        minimum increase. 
           If you have any questions, call ....... county at 
        (telephone number)." 
           (b) If a county has mailed all or a portion of its payable 
        1994 property tax statements, or decides not to include the 
        notice to homeowners as described in paragraph (a) along with 
        its 1994 property tax statements, the county must notify the 
        commissioner of revenue by April 15, 1994, by providing a list 
        to the commissioner containing the name, mailing address, and 
        social security number of every taxpayer:  (1) who owns a parcel 
        of homestead property in the county, and (2) whose gross 
        property taxes on that property have increased by 12 percent or 
        more for the current taxes payable year over the prior taxes 
        payable year.  In compiling the list, each county shall exclude 
        relative-homestead parcels and may exclude from the list those 
        homeowners who received a notice with the property tax statement 
        as provided in paragraph (a).  The list must be on the type of 
        electronic data storage media designated by the commissioner and 
        must be provided in the sequence, form, and format designated by 
        the commissioner, whose designations in this regard are not 
        rules subject to chapter 14. 
           (c) On or before May 15, 1994, the commissioner shall mail 
        a notice to the homeowners in those counties for which a list 
        has been provided as contained in paragraph (b).  The 
        commissioner shall also mail a notice on or before May 15, 1994 
        to any additional homeowners who filed an M-1PR Schedule 1 for 
        property taxes payable in 1993.  The notice the commissioner 
        mails to the homeowner must read as follows: 
           "Attention Homeowners! A new law increases the funding for 
        special property tax refunds for taxes payable in 1994.  You may 
        be eligible for a special property tax refund for 1994 since 
        either: 
           (1) The 1994 property taxes on your homestead increased by 
        12 percent or more over your 1993 taxes and that increase was at 
        least $100; or 
           (2) You received a refund last year under this program. 
           Enclosed is a copy of the M-1PR property tax refund form.  
        On the back of that form is Schedule 1 for determining whether 
        you are eligible to receive a special tax refund.  The printed 
        amount, however, shown on lines 25 and 27, has been changed by 
        the new law from $300 to $100.  Complete that schedule by 
        comparing your qualifying property tax amount to a $100 amount 
        on lines 25 and 27, rather than the $300 amount printed on the 
        form. 
           If you qualify for a refund, send the completed M-1PR to 
        the Department of Revenue.  If you have already filed an M-1PR 
        for a special refund, you do not need to file a second form.  
        Your refund will be recomputed based upon a $100 minimum 
        increase. 
           If you have any questions, call 296-3781 (from the Twin 
        Cities area) or 1-800-652-9094 (toll-free from elsewhere)." 
           (d) If the commissioner decides to revise the M-1PR 
        Schedule 1 by changing the amount on lines 25 and 27 from $300 
        to $100, then the notice the commissioner mails to the homeowner 
        must read as follows: 
           "Attention Homeowners! A new law increases the funding for 
        special property tax refunds for taxes payable in 1994.  You may 
        be eligible for a special property tax refund for 1994 since 
        either: 
           (1) The 1994 property taxes on your homestead increased by 
        12 percent or more over your 1993 taxes and that increase was at 
        least $100; or 
           (2) You received a refund last year under this program. 
           Enclosed is a copy of a revised M-1PR property tax refund 
        form, Schedule 1.  That schedule is used for determining whether 
        you are eligible to receive a special tax refund.  The printed 
        amount shown on lines 25 and 27 has been changed by the new law 
        to $100.  Complete that schedule by comparing your qualifying 
        property tax amount to the $100 amount on lines 25 and 27. 
           If you qualify for a refund, send the completed M-1PR to 
        the Department of Revenue.  If you have already filed an M-1PR 
        for a special refund, you do not need to file a second form.  
        Your refund will be recomputed based upon a $100 minimum 
        increase. 
           If you have any questions, call 296-3781 (from the Twin 
        Cities area) or 1-800-652-9094 (toll-free from elsewhere)." 
           Sec. 3.  [APPROPRIATION.] 
           Notwithstanding the appropriation in section 290A.23, 
        subdivision 2, the amount of refunds in excess of $5,500,000 is 
        appropriated from the general fund to the commissioner of 
        revenue to pay the additional amount needed for the total refund 
        claims for taxes payable in 1994 under section 1. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Section 1 is effective for refunds based on the payable 
        1994 property tax levy.  The commissioner of revenue shall 
        compute the refunds based on the payable 1994 property tax levy 
        using the $100 amount of tax increase as specified in section 1, 
        paragraph (a).  Section 2 is effective the day following final 
        enactment. 
           Presented to the governor March 28, 1994 
           Signed by the governor March 31, 1994, 9:14 a.m.