1.1 	A bill for an act
1.2 	relating to property tax refunds; modifying the schedules for the homestead credit 
1.3 	state refund and the property tax refund for renters;amending Minnesota Statutes 
1.4 	2016, section 290A.04, subdivisions 2, 2a, 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 290A.04, subdivision 2, is amended to read:
1.7 		Subd. 2.Homeowners; homestead credit refund. A claimant whose property taxes 
1.8 	payable are in excess of the percentage of the household income stated below shall pay an 
1.9 	amount equal to the percent of income shown for the appropriate household income level 
1.10 	along with the percent to be paid by the claimant of the remaining amount of property taxes 
1.11 	payable. The state refund equals the amount of property taxes payable that remain, up to 
1.12 	the state refund amount shown below.

1.151.14
1.13
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
1.16	$0 to 1,619
	1.0 percent
	15 percent
	$
	2,580
	
1.17	1,620 to 3,229
	1.1 percent
	15 percent
	$
	2,580
	
1.18	3,230 to 4,889
	1.2 percent
	15 percent
	$
	2,580
	
1.19	4,890 to 6,519
	1.3 percent
	20 percent
	$
	2,580
	
1.20	6,520 to 8,129
	1.4 percent
	20 percent
	$
	2,580
	
1.21	8,130 to 11,389
	1.5 percent
	20 percent
	$
	2,580
	
1.22	11,390 to 13,009
	1.6 percent
	20 percent
	$
	2,580
	
1.23	13,010 to 14,649
	1.7 percent
	20 percent
	$
	2,580
	
1.24	14,650 to 16,269
	1.8 percent
	20 percent
	$
	2,580
	
1.25	16,270 to 17,879
	1.9 percent
	25 percent
	$
	2,580
	
2.1	17,880 to 22,779
	2.0 percent
	25 percent
	$
	2,580
	
2.2	22,780 to 24,399
	2.0 percent
	30 percent
	$
	2,580
	
2.3	24,400 to 27,659
	2.0 percent
	30 percent
	$
	2,580
	
2.4	27,660 to 39,029
	2.0 percent
	35 percent
	$
	2,580
	
2.5	39,030 to 56,919
	2.0 percent
	35 percent
	$
	2,090
	
2.6	56,920 to 65,049
	2.0 percent
	40 percent
	$
	1,830
	
2.7	65,050 to 73,189
	2.1 percent
	40 percent
	$
	1,510
	
2.8	73,190 to 81,319
	2.2 percent
	40 percent
	$
	1,350
	
2.9	81,320 to 89,449
	2.3 percent
	40 percent
	$
	1,180
	
2.10	89,450 to 94,339
	2.4 percent
	45 percent
	$
	1,000
	
2.11	94,340 to 97,609
	2.5 percent
	45 percent
	$
	830
	
2.12	97,610 to 101,559
	2.5 percent
	50 percent
	$
	680
	
2.13	101,560 to 105,499
	2.5 percent
	50 percent
	$
	500

2.162.15
2.14
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
2.17	$0 to 1,699
	1.0 percent
	15 percent
	$
	3,000
	
2.18	1,700 to 3,389
	1.1 percent
	15 percent
	$
	3,000
	
2.19	3,390 to 5,129
	1.2 percent
	15 percent
	$
	3,000
	
2.20	5,130 to 6,839
	1.3 percent
	20 percent
	$
	3,000
	
2.21	6,840 to 8,529
	1.4 percent
	20 percent
	$
	3,000
	
2.22	8,530 to 11,959
	1.5 percent
	20 percent
	$
	3,000
	
2.23	11,960 to 13,659
	1.6 percent
	20 percent
	$
	3,000
	
2.24	13,660 to 15,379
	1.7 percent
	20 percent
	$
	3,000
	
2.25	15,380 to 17,079
	1.8 percent
	20 percent
	$
	3,000
	
2.26	17,080 to 18,769
	1.9 percent
	25 percent
	$
	3,000
	
2.27	18,770 to 23,909
	2.0 percent
	25 percent
	$
	3,000
	
2.28	23,910 to 25,609
	2.0 percent
	30 percent
	$
	3,000
	
2.29	25,610 to 29,029
	2.0 percent
	30 percent
	$
	3,000
	
2.30	29,030 to 40,969
	2.0 percent
	35 percent
	$
	3,000
	
2.31	40,970 to 49,999
	2.0 percent
	35 percent
	$
	3,000
	
2.32	50,000 to 54,869
	2.0 percent
	35 percent
	$
	2,800
	
2.33	54,870 to 59,749
	2.0 percent
	35 percent
	$
	2,600
	
2.34	59,750 to 64,009
	2.0 percent
	40 percent
	$
	2,400
	
2.35	64,010 to 68,279
	2.0 percent
	40 percent
	$
	2,400
	
2.36	68,280 to 76,819
	2.0 percent
	40 percent
	$
	2,000
	
2.37	76,820 to 80,819
	2.0 percent
	40 percent
	$
	1,800
	
2.38	80,820 to 85,359
	2.0 percent
	40 percent
	$
	1,600
	
3.1	85,360 to 89,999
	2.1 percent
	40 percent
	$
	1,400
	
3.2	90,000 to 92,499
	2.2 percent
	40 percent
	$
	1,240
	
3.3	92,500 to 93,889
	2.3 percent
	40 percent
	$
	1,240
	
3.4	93,890 to 94,999
	2.3 percent
	45 percent
	$
	1,050
	
3.5	95,000 to 97,499
	2.4 percent
	45 percent
	$
	1,050
	
3.6	97,500 to 99,999
	2.4 percent
	45 percent
	$
	1,050
	
3.7	100,000 to 102,459
	2.5 percent
	45 percent
	$
	870
	
3.8	102,460 to 106,599
	2.5 percent
	50 percent
	$
	710
	
3.9	106,600 to 110,739
	2.5 percent
	50 percent
	$
	520
	
3.10 	The payment made to a claimant shall be the amount of the state refund calculated under 
3.11 	this subdivision. No payment is allowed if the claimant's household income is $105,500
3.12 	$110,740 or more.

3.13 	EFFECTIVE DATE. This section is effective for refunds based on property taxes 
3.14 	payable in 2018 and thereafter.

3.15 	Sec. 2. Minnesota Statutes 2016, section 290A.04, subdivision 2a, is amended to read:
3.16 		Subd. 2a.Renters. A claimant whose rent constituting property taxes exceeds the 
3.17 	percentage of the household income stated below must pay an amount equal to the percent 
3.18 	of income shown for the appropriate household income level along with the percent to be 
3.19 	paid by the claimant of the remaining amount of rent constituting property taxes. The state 
3.20 	refund equals the amount of rent constituting property taxes that remain, up to the maximum 
3.21 	state refund amount shown below.

3.243.23
3.22
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
3.25	$0 to 4,909
	1.0 percent
	5 percent
	$
	2,000
	
3.26	4,910 to 6,529
	1.0 percent
	10 percent
	$
	2,000
	
3.27	6,530 to 8,159
	1.1 percent
	10 percent
	$
	1,950
	
3.28	8,160 to 11,439
	1.2 percent
	10 percent
	$
	1,900
	
3.29	11,440 to 14,709
	1.3 percent
	15 percent
	$
	1,850
	
3.30	14,710 to 16,339
	1.4 percent
	15 percent
	$
	1,800
	
3.31	16,340 to 17,959
	1.4 percent
	20 percent
	$
	1,750
	
3.32	17,960 to 21,239
	1.5 percent
	20 percent
	$
	1,700
	
3.33	21,240 to 22,869
	1.6 percent
	20 percent
	$
	1,650
	
3.34	22,870 to 24,499
	1.7 percent
	25 percent
	$
	1,650
	
3.35	24,500 to 27,779
	1.8 percent
	25 percent
	$
	1,650
	
3.36	27,780 to 29,399
	1.9 percent
	30 percent
	$
	1,650
	
4.1	29,400 to 34,299
	2.0 percent
	30 percent
	$
	1,650
	
4.2	34,300 to 39,199
	2.0 percent
	35 percent
	$
	1,650
	
4.3	39,200 to 45,739
	2.0 percent
	40 percent
	$
	1,650
	
4.4	45,740 to 47,369
	2.0 percent
	45 percent
	$
	1,500
	
4.5	47,370 to 49,009
	2.0 percent
	45 percent
	$
	1,350
	
4.6	49,010 to 50,649
	2.0 percent
	45 percent
	$
	1,150
	
4.7	50,650 to 52,269
	2.0 percent
	50 percent
	$
	1,000
	
4.8	52,270 to 53,909
	2.0 percent
	50 percent
	$
	900
	
4.9	53,910 to 55,539
	2.0 percent
	50 percent
	$
	500
	
4.10	55,540 to 57,169
	2.0 percent
	50 percent
	$
	200

4.134.12
4.11
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
4.14	$0 to 5,149
	1.0 percent
	5 percent
	$
	3,000
	
4.15	5,150 to 6,849
	1.0 percent
	10 percent
	$
	3,000
	
4.16	6,850 to 8,569
	1.1 percent
	10 percent
	$
	3,000
	
4.17	8,570 to 12,009
	1.2 percent
	10 percent
	$
	3,000
	
4.18	12,010 to 15,439
	1.3 percent
	15 percent
	$
	3,000
	
4.19	15,440 to 17,149
	1.4 percent
	15 percent
	$
	3,000
	
4.20	17,150 to 18,849
	1.4 percent
	20 percent
	$
	3,000
	
4.21	18,850 to 22,289
	1.5 percent
	20 percent
	$
	2,800
	
4.22	22,290 to 24,009
	1.6 percent
	20 percent
	$
	2,600
	
4.23	24,010 to 25,719
	1.7 percent
	25 percent
	$
	2,400
	
4.24	25,720 to 29,159
	1.8 percent
	25 percent
	$
	2,200
	
4.25	29,160 to 30,859
	1.9 percent
	30 percent
	$
	2,000
	
4.26	30,860 to 32,999
	2.0 percent
	30 percent
	$
	2,000
	
4.27	33,000 to 35,999
	2.0 percent
	30 percent
	$
	1,800
	
4.28	36,000 to 41,149
	2.0 percent
	35 percent
	$
	1,800
	
4.29	41,150 to 48,009
	2.0 percent
	35 percent
	$
	1,800
	
4.30	48,010 to 49,719
	2.0 percent
	35 percent
	$
	1,600
	
4.31	49,720 to 51,439
	2.0 percent
	35 percent
	$
	1,600
	
4.32	51,440 to 53,159
	2.0 percent
	35 percent
	$
	1,400
	
4.33	53,160 to 54,859
	2.0 percent
	35 percent
	$
	1,200
	
4.34	54,860 to 56,589
	2.0 percent
	35 percent
	$
	1,000
	
4.35	56,590 to 58,299
	2.0 percent
	35 percent
	$
	520
	
4.36	58,300 to 60,009
	2.0 percent
	35 percent
	$
	210
	
5.1 	The payment made to a claimant is the amount of the state refund calculated under this 
5.2 	subdivision. No payment is allowed if the claimant's household income is $57,170 $60,010
5.3 	or more.

5.4 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2017 
5.5 	and thereafter.

5.6 	Sec. 3. Minnesota Statutes 2016, section 290A.04, subdivision 4, is amended to read:
5.7 		Subd. 4.Inflation adjustment. (a) Beginning for property tax refunds payable in calendar 
5.8 	year 2002, the commissioner shall annually adjust the dollar amounts of the income thresholds 
5.9 	and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner 
5.10 	shall make the inflation adjustments in accordance with section 1(f) of the Internal Revenue 
5.11 	Code, except that for purposes of this subdivision the percentage increase shall be determined 
5.12 	as provided in this subdivision.
5.13 	(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds 
5.14 	under subdivision 2 for inflation, the percentage increase shall be determined from the year 
5.15 	ending on June 30, 2013 2017, to the year ending on June 30 of the year preceding that in 
5.16 	which the refund is payable.
5.17 	(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds 
5.18 	under subdivision 2a for inflation, the percentage increase shall be determined from the 
5.19 	year ending on June 30, 2013 2017, to the year ending on June 30 of the year preceding that 
5.20 	in which the refund is payable.
5.21 	(d) The commissioner shall use the appropriate percentage increase to annually adjust 
5.22 	the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation 
5.23 	without regard to whether or not the income tax brackets are adjusted for inflation in that 
5.24 	year. The commissioner shall round the thresholds and the maximum amounts, as adjusted 
5.25 	to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to 
5.26 	the next $10 amount.
5.27 	(e) The commissioner shall annually announce the adjusted refund schedule at the same 
5.28 	time provided under section 290.06. The determination of the commissioner under this 
5.29 	subdivision is not a rule under the Administrative Procedure Act.

5.30 	EFFECTIVE DATE. This section is effective for claims based on property taxes payable 
5.31 	in 2018 and rent paid in 2017 and thereafter.