1.1                          A bill for an act
  1.2             relating to taxation; property tax refund; providing a 
  1.3             property tax refund as a credit against income tax for 
  1.4             certain owners of seasonal recreational property; 
  1.5             amending Minnesota Statutes 1994, sections 290.06, by 
  1.6             adding a subdivision; 290A.02; 290A.03, by adding a 
  1.7             subdivision; 290A.04, by adding subdivisions; 290A.09; 
  1.8             290A.10; and 290A.23, subdivision 3. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 290.06, is 
  1.11  amended by adding a subdivision to read: 
  1.12     Subd. 25.  [CREDIT FOR PROPERTY TAXES PAID ON SEASONAL 
  1.13  RECREATIONAL PROPERTY.] A taxpayer may take as a credit against 
  1.14  the tax due from the taxpayer and a spouse, if any, under this 
  1.15  chapter the credit allowed under section 290A.04, subdivision 
  1.16  7.  The credit allowed may not exceed the tax due under this 
  1.17  chapter.  In the case of a nonresident, or a part-year resident, 
  1.18  the credit must be allocated based on the ratio in subdivision 
  1.19  2c. 
  1.20     Sec. 2.  Minnesota Statutes 1994, section 290A.02, is 
  1.21  amended to read: 
  1.22     290A.02 [PURPOSE.] 
  1.23     The purpose of this chapter is to provide property tax 
  1.24  relief to certain persons who own or rent their homesteads, and 
  1.25  to Minnesota residents who own seasonal recreational property. 
  1.26     Sec. 3.  Minnesota Statutes 1994, section 290A.03, is 
  1.27  amended by adding a subdivision to read: 
  2.1      Subd. 16.  [SEASONAL RECREATIONAL PROPERTY.] "Seasonal 
  2.2   recreational property" means that portion of section 273.13, 
  2.3   subdivision 25, paragraph (c), clause (5), relating to real 
  2.4   property devoted to noncommercial temporary and seasonal 
  2.5   residential occupancy for recreational purposes. 
  2.6      Sec. 4.  Minnesota Statutes 1994, section 290A.04, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 5a.  [COMBINED SEASONAL RECREATIONAL AND EITHER 
  2.9   RENTER OR HOMEOWNER REFUND.] A claimant who is entitled to a 
  2.10  refund as a homeowner under subdivision 2 or as a renter under 
  2.11  subdivision 2a may also receive a refund as an owner of seasonal 
  2.12  recreational property under subdivision 7.  
  2.13     Sec. 5.  Minnesota Statutes 1994, section 290A.04, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 7.  [OWNERS OF SEASONAL RECREATIONAL PROPERTY.] A 
  2.16  claimant who is a Minnesota resident and an owner of seasonal 
  2.17  recreational property whose property taxes on the seasonal 
  2.18  recreational property for taxes payable in 1997 and subsequent 
  2.19  years are in excess of the percentage of household income stated 
  2.20  in subdivision 2 shall pay an amount equal to the percentage of 
  2.21  income shown for the appropriate household income level in 
  2.22  subdivision 2 along with the percentage to be paid by the 
  2.23  claimant of the remaining amount of property taxes payable.  The 
  2.24  state refund equals the amount of property taxes payable that 
  2.25  remain, up to the maximum refund amount shown in subdivision 2.  
  2.26  Any refund amount under this subdivision shall be in addition to 
  2.27  any refunds allowed under subdivision 2 or 2a.  No payment is 
  2.28  allowed if the claimant's household income exceeds the maximum 
  2.29  income shown in subdivision 2.  The claimant shall receive the 
  2.30  refund as a credit against individual income tax liability for 
  2.31  the tax year in which the property taxes are payable.  In 
  2.32  calculating the refund amount for seasonal recreational 
  2.33  property, the claimant shall use the current year's schedule in 
  2.34  subdivision 2 as adjusted for inflation and the immediate prior 
  2.35  year's property taxes payable amount on the seasonal 
  2.36  recreational property. 
  3.1      Sec. 6.  Minnesota Statutes 1994, section 290A.09, is 
  3.2   amended to read: 
  3.3      290A.09 [PROOF OF CLAIM.] 
  3.4      Every claimant shall supply to the department of revenue, 
  3.5   in support of the claim, proof of eligibility under this 
  3.6   chapter, including but not limited to amount of rent paid or 
  3.7   property taxes accrued, name and address of owner or managing 
  3.8   agent of property rented, changes in homestead, household 
  3.9   membership, household income, size and nature of property 
  3.10  claimed as a homestead or as seasonal recreational property. 
  3.11     Disabled persons filing claims shall submit proof of 
  3.12  disability in the form and manner as the department may 
  3.13  prescribe.  The department may require examination and 
  3.14  certification by the claimant's physician or by a physician 
  3.15  designated by the department.  The cost of any examination shall 
  3.16  be borne by the claimant, unless the examination proves the 
  3.17  disability, in which case the cost of the examination shall be 
  3.18  borne by the department. 
  3.19     A determination of disability of a claimant by the social 
  3.20  security administration under Title II or Title XVI of the 
  3.21  Social Security Act shall constitute presumptive proof of 
  3.22  disability. 
  3.23     Sec. 7.  Minnesota Statutes 1994, section 290A.10, is 
  3.24  amended to read: 
  3.25     290A.10 [PROOF OF TAXES PAID.] 
  3.26     Every claimant who files a claim for relief for property 
  3.27  taxes payable shall include with the claim a property tax 
  3.28  statement or a reproduction thereof in a form deemed 
  3.29  satisfactory by the commissioner of revenue indicating that 
  3.30  there are no delinquent property taxes on the homestead or 
  3.31  seasonal recreational property.  Indication on the property tax 
  3.32  statement from the county treasurer that there are no delinquent 
  3.33  taxes on the homestead or seasonal recreational property shall 
  3.34  be sufficient proof.  Taxes included in a confession of judgment 
  3.35  under section 279.37 shall not constitute delinquent taxes as 
  3.36  long as the claimant is current on the payments required to be 
  4.1   made under section 279.37. 
  4.2      Sec. 8.  Minnesota Statutes 1994, section 290A.23, 
  4.3   subdivision 3, is amended to read: 
  4.4      Subd. 3.  [ANNUAL APPROPRIATION.] For payments made after 
  4.5   July 1, 1996, there is annually appropriated from the general 
  4.6   fund to the commissioner of revenue the amount necessary to make 
  4.7   the payments required under section 290A.04, subdivisions 2 and, 
  4.8   2h, and 7. 
  4.9      Sec. 9.  [EFFECTIVE DATE.] 
  4.10     Section 1 is effective for tax year 1997 and following 
  4.11  years.  Sections 2 to 8 are effective for refunds based on 
  4.12  property taxes payable in 1997 and thereafter.