1.1                          A bill for an act 
  1.2             relating to taxation; providing an alternative 
  1.3             property tax refund formula; amending Minnesota 
  1.4             Statutes 1998, section 290A.04, subdivisions 1, 3, 4, 
  1.5             and by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 290A.04, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [REFUND.] A refund shall be allowed each 
  1.10  claimant in the amount that property taxes payable or rent 
  1.11  constituting property taxes exceed exceeds the greater of (1) 
  1.12  the percentage of the household income of the claimant specified 
  1.13  in subdivision 2 or 2a in the year for which the taxes were 
  1.14  levied or in the year in which the rent was paid as specified in 
  1.15  subdivision 2 or 2a or (2) the percentage of household income 
  1.16  specified in subdivision 2k.  If the amount of property taxes 
  1.17  payable or rent constituting property taxes is equal to or less 
  1.18  than the percentage of the household income of the claimant 
  1.19  specified in subdivision 2 or 2a and subdivision 2k in the year 
  1.20  for which the taxes were levied or in the year in which the rent 
  1.21  was paid, the claimant shall not be eligible for a state refund 
  1.22  pursuant to this section. 
  1.23     Sec. 2.  Minnesota Statutes 1998, section 290A.04, is 
  1.24  amended by adding a subdivision to read: 
  1.25     Subd. 2k.  [ALTERNATIVE REFUND COMPUTATION.] A claimant who 
  2.1   is either a homeowner or renter may be eligible for a refund 
  2.2   equal to the amount of property taxes payable or rent 
  2.3   constituting property taxes that exceeds the amount equal to the 
  2.4   percentage of income that applies to the claimant's income shown 
  2.5   in this subdivision. 
  2.6              Household Income               Percent of Income
  2.7                $0  to  $ 5,000                  1 percent
  2.8           $ 5,001  to  $10,000                  2 percent
  2.9           $10,001  to  $15,000                  2.5 percent
  2.10          $15,001  to  $20,000                  3 percent
  2.11          $20,001  to  $30,000                  4 percent
  2.12          $30,001  to  $40,000                  5 percent
  2.13          $40,001  to  $69,350 for homeowners   6 percent
  2.14          $40,001  to  $40,450 for renters      6 percent
  2.15  If the refund computed under this subdivision exceeds the refund 
  2.16  computed under subdivision 2 or 2a, the claimant shall receive 
  2.17  the refund under this subdivision in lieu of a refund under 
  2.18  subdivision 2 or 2a. 
  2.19     Sec. 3.  Minnesota Statutes 1998, section 290A.04, 
  2.20  subdivision 3, is amended to read: 
  2.21     Subd. 3.  [TABLE.] The commissioner of revenue shall 
  2.22  construct and make available to taxpayers a comprehensive table 
  2.23  showing the property taxes to be paid and refund allowed at 
  2.24  various levels of income and assessment.  The table shall follow 
  2.25  the schedule of income percentages, maximums and other 
  2.26  provisions specified in subdivision 2 subdivisions 2, 2a, and 
  2.27  2k, except that the commissioner may graduate the transition 
  2.28  between income brackets in subdivisions 2 and 2a.  All refunds 
  2.29  shall be computed in accordance with tables prepared and issued 
  2.30  by the commissioner of revenue.  
  2.31     The commissioner shall include on the form an appropriate 
  2.32  space or method for the claimant to identify if the property 
  2.33  taxes paid are for a manufactured home, as defined in section 
  2.34  273.125, subdivision 8, paragraph (c), or a park trailer taxed 
  2.35  as a manufactured home under section 168.012, subdivision 9. 
  2.36     Sec. 4.  Minnesota Statutes 1998, section 290A.04, 
  3.1   subdivision 4, is amended to read: 
  3.2      Subd. 4.  [INFLATION ADJUSTMENT.] Beginning for property 
  3.3   tax refunds payable in calendar year 1996, the commissioner 
  3.4   shall annually adjust the dollar amounts of the income 
  3.5   thresholds and the maximum refunds under subdivisions 2 and 2a 
  3.6   for inflation.  The commissioner shall make the inflation 
  3.7   adjustments in accordance with section 290.06, subdivision 2d, 
  3.8   except that for purposes of this subdivision the percentage 
  3.9   increase shall be determined from the year ending on June 30, 
  3.10  1994, to the year ending on June 30 of the year preceding that 
  3.11  in which the refund is payable.  Beginning for property tax 
  3.12  refunds payable in calendar year 2001, the commissioner shall 
  3.13  annually adjust the income thresholds in subdivision 2k in a 
  3.14  similar manner, except that the percentage increase shall be 
  3.15  determined from the year ending on August 31, 1999, to the year 
  3.16  ending on August 31 of the year preceding that in which the 
  3.17  refund is payable.  The commissioner shall use the appropriate 
  3.18  percentage increase to annually adjust the income thresholds and 
  3.19  maximum refunds under subdivisions 2 and, 2a, and 2k for 
  3.20  inflation without regard to whether or not the income tax 
  3.21  brackets are adjusted for inflation in that year.  The 
  3.22  commissioner shall round the thresholds and the maximum amounts, 
  3.23  as adjusted to the nearest $10 amount.  If the amount ends in 
  3.24  $5, the commissioner shall round it up to the next $10 amount.  
  3.25     The commissioner shall annually announce the adjusted 
  3.26  refund schedule at the same time provided under section 290.06.  
  3.27  The determination of the commissioner under this subdivision is 
  3.28  not a rule under the Administrative Procedure Act. 
  3.29     Sec. 5.  [EFFECTIVE DATE.] 
  3.30     This act is effective for claims based on property taxes 
  3.31  payable in 2000 and rent paid in 1999, and thereafter.