1.1 	A bill for an act
1.2 	relating to property taxation; limiting homestead property taxes for persons at 
1.3 	least age 65 to a percentage of income under certain conditions;amending 
1.4 	Minnesota Statutes 2006, section 290A.04, subdivisions 1, 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 290A.04, subdivision 1, is amended to 
1.7 	read:
1.8 		Subdivision 1.Refund. A refund shall be allowed each claimant ~~in the amount that~~
1.9 	based on the relationship between property taxes payable or rent constituting property 
1.10 	taxes ~~exceed the percentage of~~and the household income of the claimant ~~specified in~~ 
1.11 	~~subdivision 2 or 2a~~ in the year for which the taxes were levied or in the year in which the 
1.12 	rent was paid as specified in subdivision 2 or 2a. ~~If the amount of property taxes payable~~ 
1.13 	~~or rent constituting property taxes is equal to or less than the percentage of the household~~ 
1.14 	~~income of the claimant specified in subdivision 2 or 2a in the year for which the taxes~~ 
1.15 	~~were levied or in the year in which the rent was paid, the claimant shall not be eligible~~ 
1.16 	~~for a state refund pursuant to this section.~~

1.17 	EFFECTIVE DATE. This section is effective for claims filed in 2008 and thereafter 
1.18 	based on property taxes payable in 2008 and thereafter.

1.19 	Sec. 2. Minnesota Statutes 2006, section 290A.04, subdivision 2, is amended to read:
1.20 		Subd. 2.Homeowners. (a) A claimant whose property taxes payable are in excess 
1.21 	of the percentage of the household income stated below ~~shall pay an amount~~is eligible for 
1.22 	a refund equal to the excess property taxes payable times the percent ~~of income~~paid by 
1.23 	the state shown for the appropriate household income level ~~along with the percent to be~~ 
2.1 	~~paid by the claimant of the remaining amount of property taxes payable~~. The state refund 
2.2 	~~equals the amount of property taxes payable that remain, up to the~~under this paragraph 
2.3 	must not exceed the maximum state refund amount shown below.

2.4

2.5

Household Income

Percent of Income

Percent Paid by 
~~Claimant~~ State

Maximum State 
Refund

2.6 | $0 to 1,189 | 1.0 percent | ~~15~~ 85 percent | | $1,450
2.7 | 1,190 to 2,379 | 1.1 percent | ~~15~~ 85 percent | | $1,450
2.8 | 2,380 to 3,589 | 1.2 percent | ~~15~~ 85 percent | | $1,410
2.9 | 3,590 to 4,789 | 1.3 percent | ~~20~~ 80 percent | | $1,410
2.10 | 4,790 to 5,979 | 1.4 percent | ~~20~~ 80 percent | | $1,360
2.11 | 5,980 to 8,369 | 1.5 percent | ~~20~~ 80 percent | | $1,360
2.12 | 8,370 to 9,559 | 1.6 percent | ~~25~~ 75 percent | | $1,310
2.13 | 9,560 to 10,759 | 1.7 percent | ~~25~~ 75 percent | | $1,310
2.14 | 10,760 to 11,949 | 1.8 percent | ~~25~~ 75 percent | | $1,260
2.15 | 11,950 to 13,139 | 1.9 percent | ~~30~~ 70 percent | | $1,260
2.16 | 13,140 to 14,349 | 2.0 percent | ~~30~~ 70 percent | | $1,210
2.17 | 14,350 to 16,739 | 2.1 percent | ~~30~~ 70 percent | | $1,210
2.18 | 16,740 to 17,929 | 2.2 percent | ~~35~~ 65 percent | | $1,160
2.19 | 17,930 to 19,119 | 2.3 percent | ~~35~~ 65 percent | | $1,160
2.20 | 19,120 to 20,319 | 2.4 percent | ~~35~~ 65 percent | | $1,110
2.21 | 20,320 to 25,099 | 2.5 percent | ~~40~~ 60 percent | | $1,110
2.22 | 25,100 to 28,679 | 2.6 percent | ~~40~~ 60 percent | | $1,070
2.23 | 28,680 to 35,849 | 2.7 percent | ~~40~~ 60 percent | | $1,070
2.24 | 35,850 to 41,819 | 2.8 percent | ~~45~~ 55 percent | | $ ........970
2.25 | 41,820 to 47,799 | 3.0 percent | ~~45~~ 55 percent | | $ ........970
2.26 | 47,800 to 53,779 | 3.2 percent | ~~45~~ 55 percent | | $ ........870
2.27 | 53,780 to 59,749 | 3.5 percent | 50 percent | | $ ........780
2.28 | 59,750 to 65,729 | 4.0 percent | 50 percent | | $ ........680
2.29 | 65,730 to 69,319 | 4.0 percent | 50 percent | | $ ........580
2.30 | 69,320 to 71,719 | 4.0 percent | 50 percent | | $ ........480
2.31 | 71,720 to 74,619 | 4.0 percent | 50 percent | | $ ........390
2.32 | 74,620 to 77,519 | 4.0 percent | 50 percent | | $ ........290
2.33 	(b) A claimant is eligible for a refund equal to the amount that the claimant's property 
2.34 	taxes payable, net of any refund determined under paragraph (a), exceed five percent of 
2.35 	household income, provided that: (i) the claimant or the claimant's spouse is at least 65 
2.36 	years of age as of December 31 of the year the taxes were levied, and (ii) the claimant or 
2.37 	the claimant's spouse has owned and occupied the property for which the claim is being 
2.38 	filed for at least 15 years as of December 31 of the year the taxes were levied.
2.39 	(c) A claimant's property tax refund is the sum of the refund amount determined 
2.40 	under paragraph (a) and the refund amount determined under paragraph (b).
3.1 	~~The payment made to a claimant shall be the amount of the state refund calculated~~ 
3.2 	~~under this subdivision.~~(d) No payment is allowed if the claimant's household income 
3.3 	is $77,520 or more.

3.4 	EFFECTIVE DATE. This section is effective for claims filed in 2008 and thereafter 
3.5 	based on property taxes payable in 2008 and thereafter.