Minnesota Session Laws - 1998, Regular Session

                            CHAPTER 304-S.F.No. 2041 
                  An act relating to taxation; allowing the 1997 
                  property tax rebate for prepayments of tax; amending 
                  Laws 1997, chapter 231, article 1, section 16, as 
                  amended. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Laws 1997, chapter 231, article 1, section 16, 
        as amended by Laws 1997, First Special Session chapter 5, 
        section 35, and Laws 1997, Third Special Session chapter 3, 
        section 11, is amended to read: 
           Sec. 16.  [PROPERTY TAX REBATE.] 
           (a) A credit is allowed against the tax imposed under 
        Minnesota Statutes, chapter 290, to an individual, other than as 
        a dependent, as defined in sections 151 and 152 of the Internal 
        Revenue Code, disregarding section 152(b)(3) of the Internal 
        Revenue Code, equal to 20 percent of the qualified property tax 
        paid in calendar year 1997 before January 1, 1998, for taxes 
        assessed in 1996.  
           (b) For property owned and occupied by the taxpayer during 
        1997, qualified tax means property taxes payable as defined in 
        Minnesota Statutes, section 290A.03, subdivision 13, assessed in 
        1996 and payable in 1997, except the requirement that the 
        taxpayer own and occupy the property on January 2, 1997, does 
        not apply.  The credit is allowed only to the individual and 
        spouse, if any, who paid the tax, whether directly, through an 
        escrow arrangement, or under a contractual agreement for the 
        purchase or sale of the property.  
           (c) For a renter, the qualified property tax means the 
        amount of rent constituting property taxes under Minnesota 
        Statutes, section 290A.03, subdivision 11, based on rent paid in 
        1997.  If two or more renters could be claimants under Minnesota 
        Statutes, chapter 290A with regard to the rent constituting 
        property taxes, the rules under Minnesota Statutes, section 
        290A.03, subdivision 8, paragraph (f), applies to determine the 
        amount of the credit for the individual. 
           (d) For an individual who both owned and rented principal 
        residences in calendar year 1997, qualified taxes are the sum of 
        the amounts under paragraphs (a) and (b). 
           (e) If the amount of the credit under this subdivision 
        exceeds the taxpayer's tax liability under this chapter, the 
        commissioner shall refund the excess. 
           (f) To claim a credit under this subdivision, the taxpayer 
        must attach a copy of the property tax statement and certificate 
        of rent paid, as applicable, and provide any additional 
        information the commissioner requires. 
           (g) An amount sufficient to pay refunds under this 
        subdivision is appropriated to the commissioner from the general 
        fund. 
           (h) This credit applies to taxable years beginning after 
        December 31, 1996, and before January 1, 1998. 
           (i) Payment of the credit under this section is subject to 
        Minnesota Statutes, chapter 270A, and any other provision 
        applicable to refunds under Minnesota Statutes, chapter 290. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 
           Presented to the governor March 17, 1998 
           Signed by the governor March 18, 1998, 4:17 p.m.