1.1 	A bill for an act
1.2 	relating to property tax refunds; modifying the
1.3 	schedule for homeowners and renters; reducing the
1.4 	percent of rent constituting property taxes; amending
1.5 	Minnesota Statutes 2004, sections 290A.03,
1.6 	subdivisions 11, 13; 290A.04, subdivisions 2, 2a;
1.7 	repealing Minnesota Statutes 2004, section 290A.04,
1.8 	subdivision 4.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 290A.03,
1.11 	subdivision 11, is amended to read:
1.12 		Subd. 11.Rent constituting property taxes.  "Rent
1.13 	constituting property taxes" means 19 13 percent of the gross
1.14 	rent actually paid in cash, or its equivalent, or the portion of
1.15 	rent paid in lieu of property taxes, in any calendar year by a
1.16 	claimant for the right of occupancy of the claimant's Minnesota
1.17 	homestead in the calendar year, and which rent constitutes the
1.18 	basis, in the succeeding calendar year of a claim for relief
1.19 	under this chapter by the claimant.
1.20 	
EFFECTIVE DATE. This section is effective for claims
1.21 	based on rent paid in 2005 and thereafter.

1.22 	Sec. 2. Minnesota Statutes 2004, section 290A.03,
1.23 	subdivision 13, is amended to read:
1.24 		Subd. 13.Property taxes payable.  "Property taxes
1.25 	payable" means the property tax exclusive of special
1.26 	assessments, penalties, and interest payable on a claimant's
1.27 	homestead after deductions made under sections 273.135,
2.1 	273.1384, 273.1391, 273.42, subdivision 2, and any other state
2.2 	paid property tax credits in any calendar year, and after any
2.3 	refund claimed and allowable under section 290A.04, subdivision
2.4 	2h, that is first payable in the year that the property tax is
2.5 	payable.  In the case of a claimant who makes ground lease
2.6 	payments, "property taxes payable" includes the amount of the
2.7 	payments directly attributable to the property taxes assessed
2.8 	against the parcel on which the house is located.  No
2.9 	apportionment or reduction of the "property taxes payable" shall
2.10 	be required for the use of a portion of the claimant's homestead
2.11 	for a business purpose if the claimant does not deduct any
2.12 	business depreciation expenses for the use of a portion of the
2.13 	homestead in the determination of federal adjusted gross
2.14 	income.  For homesteads which are manufactured homes as defined
2.15 	in section 273.125, subdivision 8, and for homesteads which are
2.16 	park trailers taxed as manufactured homes under section 168.012,
2.17 	subdivision 9, "property taxes payable" shall also include 19 13 
2.18 	percent of the gross rent paid in the preceding year for the
2.19 	site on which the homestead is located.  When a homestead is
2.20 	owned by two or more persons as joint tenants or tenants in
2.21 	common, such tenants shall determine between them which tenant
2.22 	may claim the property taxes payable on the homestead.  If they
2.23 	are unable to agree, the matter shall be referred to the
2.24 	commissioner of revenue whose decision shall be final.  Property
2.25 	taxes are considered payable in the year prescribed by law for
2.26 	payment of the taxes.
2.27 	In the case of a claim relating to "property taxes
2.28 	payable," the claimant must have owned and occupied the
2.29 	homestead on January 2 of the year in which the tax is payable
2.30 	and (i) the property must have been classified as homestead
2.31 	property pursuant to section 273.124, on or before December 15
2.32 	of the assessment year to which the "property taxes payable"
2.33 	relate; or (ii) the claimant must provide documentation from the
2.34 	local assessor that application for homestead classification has
2.35 	been made on or before December 15 of the year in which the
2.36 	"property taxes payable" were payable and that the assessor has
3.1 	approved the application.
3.2 	
EFFECTIVE DATE. This section is effective beginning with
3.3 	refunds based on property taxes payable in 2006 and thereafter,
3.4 	and for claims based on rent paid in 2005 and thereafter.

3.5 	Sec. 3. Minnesota Statutes 2004, section 290A.04,
3.6 	subdivision 2, is amended to read:
3.7 		Subd. 2.Homeowners.  A claimant whose property taxes
3.8 	payable are in excess of the percentage of the household income
3.9 	stated below shall pay an amount equal to the percent of income
3.10 	shown for the appropriate household income level along with the
3.11 	percent to be paid by the claimant of the remaining amount of
3.12 	property taxes payable.  The state refund equals the amount of
3.13 	property taxes payable that remain, up to the state refund
3.14 	amount shown below.
3.15 	Percent           Percent    Maximum
3.16 	Household Income     of Income          Paid by     State
3.17 	                                        Claimant    Refund
3.18 	$0 to 1,189 1.0 percent 15 percent $1,450
3.19 	 1,190 to 2,379 1.1 percent 15 percent $1,450
3.20 	 2,380 to 3,589 1.2 percent 15 percent $1,410
3.21 	 3,590 to 4,789 1.3 percent 20 percent $1,410
3.22 	 4,790 to 5,979 1.4 percent 20 percent $1,360
3.23 	 5,980 to 8,369 1.5 percent 20 percent $1,360
3.24 	 8,370 to 9,559 1.6 percent 25 percent $1,310
3.25 	 9,560 to 10,759 1.7 percent 25 percent $1,310
3.26 	10,760 to 11,949 1.8 percent 25 percent $1,260
3.27 	11,950 to 13,139 1.9 percent 30 percent $1,260
3.28 	13,140 to 14,349 2.0 percent 30 percent $1,210
3.29 	14,350 to 16,739 2.1 percent 30 percent $1,210
3.30 	16,740 to 17,929 2.2 percent 35 percent $1,160
3.31 	17,930 to 19,119 2.3 percent 35 percent $1,160
3.32 	19,120 to 20,319 2.4 percent 35 percent $1,110
3.33 	20,320 to 25,099 2.5 percent 40 percent $1,110
3.34 	25,100 to 28,679 2.6 percent 40 percent $1,070
3.35 	28,680 to 35,849 2.7 percent 40 percent $1,070
3.36 	35,850 to 41,819 2.8 percent 45 percent $970
3.37 	41,820 to 47,799 3.0 percent 45 percent $970
3.38 	47,800 to 53,779 3.2 percent 45 percent $870
3.39 	53,780 to 59,749 3.5 percent 50 percent $780
3.40 	59,750 to 65,729 4.0 percent 50 percent $680
3.41 	65,730 to 69,319 4.0 percent 50 percent $580
3.42 	69,320 to 71,719 4.0 percent 50 percent $480
3.43 	71,720 to 74,619 4.0 percent 50 percent $390
3.44 	74,620 to 77,519 4.0 percent 50 percent $290 
3.45 	$0 to  1,309 1.0 percent 15 percent $1,590
3.46 	 1,310 to  2,619 1.1 percent 15 percent $1,590
3.47 	 2,620 to  3,949 1.2 percent 15 percent $1,550
3.48 	 3,950 to  5,269 1.3 percent 20 percent $1,550
3.49 	 5,270 to  6,569 1.4 percent 20 percent $1,490
3.50 	 6,570 to  9,199 1.5 percent 20 percent $1,490
3.51 	 9,200 to 10,509 1.6 percent 25 percent $1,440
3.52 	10,510 to 11,829 1.7 percent 25 percent $1,440
3.53 	11,830 to 13,139 1.8 percent 25 percent $1,390
3.54 	13,140 to 14,439 1.9 percent 30 percent $1,390
3.55 	14,440 to 15,769 2.0 percent 30 percent $1,330
3.56 	15,770 to 18,399 2.1 percent 30 percent $1,330
3.57 	18,400 to 19,709 2.2 percent 35 percent $1,280
4.1 	19,710 to 21,019 2.3 percent 35 percent $1,280
4.2 	21,020 to 22,339 2.4 percent 40 percent $1,180
4.3 	22,340 to 27,589 2.5 percent 45 percent $ 960
4.4 	27,590 to 31,529 2.6 percent 45 percent $ 750
4.5 	31,530 to 39,409 2.7 percent 45 percent $ 640
4.6 	39,410 to 45,969 2.8 percent 50 percent $ 530
4.7 	45,970 to 52,539 3.0 percent 50 percent $ 320 
4.8 	The payment made to a claimant shall be the amount of the
4.9 	state refund calculated under this subdivision.  No payment is
4.10 	allowed if the claimant's household income is $77,520 $52,540 or
4.11 	more.
4.12 	
EFFECTIVE DATE. This section is effective beginning with
4.13 	refunds based on property taxes payable in 2006 and thereafter.

4.14 	Sec. 4. Minnesota Statutes 2004, section 290A.04,
4.15 	subdivision 2a, is amended to read:
4.16 		Subd. 2a.Renters.  A claimant whose rent constituting
4.17 	property taxes exceeds the percentage of the household income
4.18 	stated below must pay an amount equal to the percent of income
4.19 	shown for the appropriate household income level along with the
4.20 	percent to be paid by the claimant of the remaining amount of
4.21 	rent constituting property taxes.  The state refund equals the
4.22 	amount of rent constituting property taxes that remain, up to
4.23 	the maximum state refund amount shown below.
4.24 	Percent           Percent      Maximum
4.25 	Household Income     of Income          Paid by        State
4.26 	                                        Claimant      Refund
4.27 	$ 0 to 3,589 1.0 percent 5 percent $1,190
4.28 	  3,590 to 4,779 1.0 percent 10 percent $1,190
4.29 	  4,780 to 5,969 1.1 percent 10 percent $1,190
4.30 	  5,970 to 8,369 1.2 percent 10 percent $1,190
4.31 	  8,370 to 10,759 1.3 percent 15 percent $1,190
4.32 	 10,760 to 11,949 1.4 percent 15 percent $1,190
4.33 	 11,950 to 13,139 1.4 percent 20 percent $1,190
4.34 	 13,140 to 15,539 1.5 percent 20 percent $1,190
4.35 	 15,540 to 16,729 1.6 percent 20 percent $1,190
4.36 	 16,730 to 17,919 1.7 percent 25 percent $1,190
4.37 	 17,920 to 20,319 1.8 percent 25 percent $1,190
4.38 	 20,320 to 21,509 1.9 percent 30 percent $1,190
4.39 	 21,510 to 22,699 2.0 percent 30 percent $1,190
4.40 	 22,700 to 23,899 2.2 percent 30 percent $1,190
4.41 	 23,900 to 25,089 2.4 percent 30 percent $1,190
4.42 	 25,090 to 26,289 2.6 percent 35 percent $1,190
4.43 	 26,290 to 27,489 2.7 percent 35 percent $1,190
4.44 	 27,490 to 28,679 2.8 percent 35 percent $1,190
4.45 	 28,680 to 29,869 2.9 percent 40 percent $1,190
4.46 	 29,870 to 31,079 3.0 percent 40 percent $1,190
4.47 	 31,080 to 32,269 3.1 percent 40 percent $1,190
4.48 	 32,270 to 33,459 3.2 percent 40 percent $1,190
4.49 	 33,460 to 34,649 3.3 percent 45 percent $1,080
4.50 	 34,650 to 35,849 3.4 percent 45 percent $  960
4.51 	 35,850 to 37,049 3.5 percent 45 percent $  830
4.52 	 37,050 to 38,239 3.5 percent 50 percent $  720
4.53 	 38,240 to 39,439 3.5 percent 50 percent $  600
4.54 	 39,440 to 40,629 3.5 percent 50 percent $  360
5.1 	 40,630 to 41,819 3.5 percent 50 percent $  120 
5.2 	$0 to  3,949 1.0 percent 5 percent $1,310
5.3 	  3,950 to  5,249 1.0 percent 10 percent $1,310
5.4 	  5,250 to  6,559 1.1 percent 10 percent $1,310
5.5 	  6,560 to  9,199 1.2 percent 10 percent $1,310
5.6 	  9,200 to 11,829 1.3 percent 15 percent $1,310
5.7 	 11,830 to 13,139 1.4 percent 15 percent $1,310
5.8 	 13,140 to 14,439 1.4 percent 20 percent $1,310
5.9 	 14,440 to 17,079 1.5 percent 20 percent $1,310
5.10 	 17,080 to 18,389 1.6 percent 20 percent $1,310
5.11 	 18,390 to 19,699 1.7 percent 25 percent $1,310
5.12 	 19,700 to 22,339 1.8 percent 25 percent $1,310
5.13 	 22,340 to 23,639 1.9 percent 35 percent $1,310
5.14 	 23,640 to 24,949 2.0 percent 35 percent $1,310
5.15 	 24,950 to 26,269 2.2 percent 35 percent $1,310
5.16 	 26,270 to 27,579 2.4 percent 35 percent $1,310
5.17 	 27,580 to 28,899 2.6 percent 40 percent $1,310
5.18 	 28,900 to 30,219 2.7 percent 40 percent $1,310
5.19 	 30,220 to 31,529 2.8 percent 40 percent $1,310
5.20 	 31,530 to 32,829 2.9 percent 45 percent $1,190
5.21 	 32,830 to 34,159 3.0 percent 45 percent $1,060
5.22 	 34,160 to 35,469 3.1 percent 45 percent $ 910
5.23 	 35,470 to 36,779 3.2 percent 45 percent $ 790
5.24 	 36,780 to 38,089 3.3 percent 50 percent $ 660
5.25 	 38,090 to 39,409 3.4 percent 50 percent $ 400
5.26 	 39,410 to 40,729 3.5 percent 50 percent $ 130 
5.27 	The payment made to a claimant is the amount of the state
5.28 	refund calculated under this subdivision.  No payment is allowed
5.29 	if the claimant's household income is $41,820 $40,730 or more.
5.30 	
EFFECTIVE DATE. This section is effective for claims
5.31 	based on rent paid in 2005 and thereafter.

5.32 	Sec. 5. REPEALER.
 5.33 	Minnesota Statutes 2004, section 290A.04, subdivision 4, is
5.34 	repealed.

5.35 	EFFECTIVE DATE. This section is effective for refund
5.36 	claims based on property taxes payable in 2007 and thereafter,
5.37 	and rent paid in 2006 and thereafter.