1.1                          A bill for an act
  1.2             relating to property tax refunds; establishing a 
  1.3             uniform income percentage threshold; eliminating 
  1.4             maximum refund amounts; repealing the special property 
  1.5             tax refund; amending Minnesota Statutes 1996, section 
  1.6             290A.04, subdivisions 2, 2a, 3, and 6; repealing 
  1.7             Minnesota Statutes 1996, section 290A.04, subdivision 
  1.8             2h. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 290A.04, 
  1.11  subdivision 2, is amended to read: 
  1.12     Subd. 2.  [HOMEOWNERS.] A claimant whose property taxes 
  1.13  payable are in excess of the percentage of the four percent of 
  1.14  household income stated below shall pay an amount equal to the 
  1.15  percent of income shown for the appropriate household income 
  1.16  level along with the percent to be paid by the claimant of the 
  1.17  remaining amount of property taxes payable.  The receive a state 
  1.18  refund equals equal to the amount of excess property taxes 
  1.19  payable that remain, up to the state refund amount shown below. 
  1.20                        Percent           Percent    Maximum
  1.21  Household Income     of Income          Paid by     State
  1.22                                          Claimant    Refund
  1.23      $0 to 1,029     1.2 percent        18 percent   $440
  1.24   1,030 to 2,059     1.3 percent        18 percent   $440
  1.25   2,060 to 3,099     1.4 percent        20 percent   $440
  1.26   3,100 to 4,129     1.6 percent        20 percent   $440
  1.27   4,130 to 5,159     1.7 percent        20 percent   $440
  1.28   5,160 to 7,229     1.9 percent        25 percent   $440
  1.29   7,230 to 8,259     2.1 percent        25 percent   $440
  1.30   8,260 to 9,289     2.2 percent        25 percent   $440
  1.31   9,290 to 10,319    2.3 percent        30 percent   $440
  1.32  10,320 to 11,349    2.4 percent        30 percent   $440
  1.33  11,350 to 12,389    2.5 percent        30 percent   $440
  1.34  12,390 to 14,449    2.6 percent        30 percent   $440
  2.1   14,450 to 15,479    2.8 percent        35 percent   $440
  2.2   15,480 to 16,509    3.0 percent        35 percent   $440
  2.3   16,510 to 17,549    3.2 percent        40 percent   $440
  2.4   17,550 to 21,669    3.3 percent        40 percent   $440
  2.5   21,670 to 24,769    3.4 percent        45 percent   $440
  2.6   24,770 to 30,959    3.5 percent        45 percent   $440
  2.7   30,960 to 36,119    3.5 percent        45 percent   $440
  2.8   36,120 to 41,279    3.7 percent        50 percent   $440
  2.9   41,280 to 58,829    4.0 percent        50 percent   $440
  2.10  58,830 to 59,859    4.0 percent        50 percent   $310
  2.11  59,860 to 60,889    4.0 percent        50 percent   $210
  2.12  60,890 to 61,929    4.0 percent        50 percent   $100 
  2.13     The payment made to a claimant shall be the amount of the 
  2.14  state refund calculated under this subdivision.  No payment is 
  2.15  allowed if the claimant's household income is $61,930 or more. 
  2.16     Sec. 2.  Minnesota Statutes 1996, section 290A.04, 
  2.17  subdivision 2a, is amended to read: 
  2.18     Subd. 2a.  [RENTERS.] A claimant whose rent constituting 
  2.19  property taxes exceeds the percentage of the four percent of 
  2.20  household income stated below must pay an amount equal to the 
  2.21  percent of income shown for the appropriate household income 
  2.22  level along with the percent to be paid by the claimant of the 
  2.23  remaining amount of rent constituting property taxes.  The shall 
  2.24  receive a state refund equals equal to the amount of excess rent 
  2.25  constituting property taxes that remain, up to the maximum state 
  2.26  refund amount shown below.  
  2.27                        Percent           Percent      Maximum
  2.28  Household Income     of Income          Paid by        State
  2.29                                          Claimant      Refund
  2.30  $     0 to 3,099     1.0 percent         5 percent    $1,030  
  2.31    3,100 to 4,129     1.0 percent        10 percent    $1,030  
  2.32    4,130 to 5,159     1.1 percent        10 percent    $1,030  
  2.33    5,160 to 7,229     1.2 percent        10 percent    $1,030
  2.34    7,230 to 9,289     1.3 percent        15 percent    $1,030    
  2.35    9,290 to 10,319    1.4 percent        15 percent    $1,030
  2.36   10,320 to 11,349    1.4 percent        20 percent    $1,030
  2.37   11,350 to 13,419    1.5 percent        20 percent    $1,030
  2.38   13,420 to 14,449    1.6 percent        20 percent    $1,030
  2.39   14,450 to 15,479    1.7 percent        25 percent    $1,030
  2.40   15,480 to 17,549    1.8 percent        25 percent    $1,030 
  2.41   17,550 to 18,579    1.9 percent        30 percent    $1,030 
  2.42   18,580 to 19,609    2.0 percent        30 percent    $1,030  
  2.43   19,610 to 20,639    2.2 percent        30 percent    $1,030
  2.44   20,640 to 21,669    2.4 percent        30 percent    $1,030
  2.45   21,670 to 22,709    2.6 percent        35 percent    $1,030
  2.46   22,710 to 23,739    2.7 percent        35 percent    $1,030
  2.47   23,740 to 24,769    2.8 percent        35 percent    $1,030
  2.48   24,770 to 25,799    2.9 percent        40 percent    $1,030 
  2.49   25,800 to 26,839    3.0 percent        40 percent    $1,030  
  2.50   26,840 to 27,869    3.1 percent        40 percent    $1,030  
  2.51   27,870 to 28,899    3.2 percent        40 percent    $1,030
  2.52   28,900 to 29,929    3.3 percent        45 percent    $  930
  2.53   29,930 to 30,959    3.4 percent        45 percent    $  830
  2.54   30,960 to 31,999    3.5 percent        45 percent    $  720
  2.55   32,000 to 33,029    3.5 percent        50 percent    $  620
  2.56   33,030 to 34,059    3.5 percent        50 percent    $  520  
  3.1    34,060 to 35,089    3.5 percent        50 percent    $  310  
  3.2    35,090 to 36,119    3.5 percent        50 percent    $  100
  3.3      The payment made to a claimant is the amount of the state 
  3.4   refund calculated under this subdivision.  No payment is allowed 
  3.5   if the claimant's household income is $36,120 or more. 
  3.6      Sec. 3.  Minnesota Statutes 1996, section 290A.04, 
  3.7   subdivision 3, is amended to read: 
  3.8      Subd. 3.  The commissioner of revenue shall construct and 
  3.9   make available to taxpayers a comprehensive table or form 
  3.10  showing how the property taxes to be paid and refund allowed at 
  3.11  various levels of income and assessment amount is determined.  
  3.12  The table shall follow the schedule of income percentages, 
  3.13  maximums and other provisions specified in subdivision 2, except 
  3.14  that the commissioner may graduate the transition between income 
  3.15  brackets.  All refunds shall be computed in accordance with 
  3.16  tables prepared and issued by the commissioner of revenue.  
  3.17     The commissioner shall include on the form an appropriate 
  3.18  space or method for the claimant to identify if the property 
  3.19  taxes paid are for a manufactured home, as defined in section 
  3.20  273.125, subdivision 8, paragraph (c), or a park trailer taxed 
  3.21  as a manufactured home under section 168.012, subdivision 9. 
  3.22     Sec. 4.  Minnesota Statutes 1996, section 290A.04, 
  3.23  subdivision 6, is amended to read: 
  3.24     Subd. 6.  [INFLATION ADJUSTMENT.] Beginning for property 
  3.25  tax refunds payable in calendar year 1996, the commissioner 
  3.26  shall annually adjust the dollar amounts of the 
  3.27  income thresholds and the maximum refunds limitations under 
  3.28  subdivisions 2 and 2a for inflation.  The commissioner shall 
  3.29  make the inflation adjustments in accordance with section 
  3.30  290.06, subdivision 2d, except that for purposes of this 
  3.31  subdivision the percentage increase shall be determined from the 
  3.32  year ending on August 31, 1994, to the year ending on August 31 
  3.33  of the year preceding that in which the refund is payable.  The 
  3.34  commissioner shall use the appropriate percentage increase to 
  3.35  annually adjust the income thresholds and maximum refunds 
  3.36  limitations under subdivisions 2 and 2a for inflation without 
  4.1   regard to whether or not the income tax brackets are adjusted 
  4.2   for inflation in that year.  The commissioner shall round 
  4.3   the thresholds and the maximum amounts income limitations, as 
  4.4   adjusted to the nearest $10 amount.  If the amount ends in $5, 
  4.5   the commissioner shall round it up to the next $10 amount.  
  4.6      The commissioner shall annually announce the adjusted 
  4.7   refund schedule income limitations at the same time provided 
  4.8   under section 290.06.  The determination of the commissioner 
  4.9   under this subdivision is not a rule under the administrative 
  4.10  procedure act. 
  4.11     Sec. 5.  [REPEALER.] 
  4.12     Minnesota Statutes 1996, section 290A.04, subdivision 2h, 
  4.13  is repealed. 
  4.14     Sec. 6.  [EFFECTIVE DATE.] 
  4.15     Sections 1 to 4 are effective for refunds payable in 1998 
  4.16  and following years.  Section 5 is effective after payment of 
  4.17  refunds payable in 1997.