1.1 	A bill for an act
1.2 	relating to taxation; property; enhancing the property tax refund and reducing 
1.3 	the market value homestead credit;amending Minnesota Statutes 2008, sections 273.1384, subdivision 1; 290A.04, subdivision 2.1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 273.1384, subdivision 1, is amended to 
1.7 	read:
1.8 		Subdivision 1.Residential homestead market value credit. Each county auditor 
1.9 	shall determine a homestead credit for each class 1a, 1b, and 2a homestead property 
1.10 	within the county equal to 0.4 percent of the first ~~$76,000~~ $75,000 of market value of 
1.11 	the property minus ~~.09~~ 0.1 percent of the market value in excess of ~~$76,000~~ $75,000. 
1.12 	The credit amount may not be less than zero. In the case of an agricultural or resort 
1.13 	homestead, only the market value of the house, garage, and immediately surrounding one 
1.14 	acre of land is eligible in determining the property's homestead credit. In the case of a 
1.15 	property that is classified as part homestead and part nonhomestead, (i) the credit shall 
1.16 	apply only to the homestead portion of the property, but (ii) if a portion of a property is 
1.17 	classified as nonhomestead solely because not all the owners occupy the property, not all 
1.18 	the owners have qualifying relatives occupying the property, or solely because not all the 
1.19 	spouses of owners occupy the property, the credit amount shall be initially computed as 
1.20 	if that nonhomestead portion were also in the homestead class and then prorated to the 
1.21 	owner-occupant's percentage of ownership. For the purpose of this section, when an 
1.22 	owner-occupant's spouse does not occupy the property, the percentage of ownership for 
1.23 	the owner-occupant spouse is one-half of the couple's ownership percentage.

2.1 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
2.2 	thereafter.

2.3 	Sec. 2. Minnesota Statutes 2008, section 290A.04, subdivision 2, is amended to read:
2.4 		Subd. 2.Homeowners. A claimant whose property taxes payable are in excess 
2.5 	of the percentage of the household income stated below shall pay an amount equal to 
2.6 	the percent of income shown for the appropriate household income level along with the 
2.7 	percent to be paid by the claimant of the remaining amount of property taxes payable. 
2.8 	The state refund equals the amount of property taxes payable that remain, up to the state 
2.9 	refund amount shown below.

2.10

2.11

Household Income

Percent of Income

Percent Paid by 
Claimant

Maximum State
Refund

2.12

2.13

$0 to 1,189

1.0 percent

15 percent

$

~~1,850~~
2,040

2.14

2.15

1,190 to 2,379

1.1 percent

15 percent

$

~~1,850~~
2,040

2.16

2.17

2,380 to 3,589

1.2 percent

15 percent

$

~~1,800~~
1,980

2.18

2.19

3,590 to 4,789

1.3 percent

20 percent

$

~~1,800~~
1,980

2.20

2.21

4,790 to 5,979

1.4 percent

20 percent

$

~~1,730~~
1,900

2.22

2.23

5,980 to 8,369

1.5 percent

20 percent

$

~~1,730~~
1,900

2.24

2.25

8,370 to 9,559

1.6 percent

25 percent

$

~~1,670~~
1,840

2.26

2.27

9,560 to 10,759

1.7 percent

25 percent

$

~~1,670~~
1,840

2.28

2.29

10,760 to 11,949

1.8 percent

25 percent

$

~~1,610~~
1,770

2.30

2.31

11,950 to 13,139

1.9 percent

30 percent

$

~~1,610~~
1,770

2.32

2.33

13,140 to 14,349

2.0 percent

30 percent

$

~~1,540~~
1,690

2.34

2.35

14,350 to 16,739

~~2.1~~2.0 percent

30 percent

$

~~1,540~~
1,690

2.36

2.37

16,740 to 17,929

~~2.2~~2.0 percent

35 percent

$

~~1,480~~
1,630

2.38

2.39

17,930 to 19,119

~~2.3~~2.0 percent

35 percent

$

~~1,480~~
1,630

2.40

2.41

19,120 to 20,319

~~2.4~~2.1 percent

35 percent

$

~~1,420~~
1,560

2.42

2.43

20,320 to 25,099

~~2.5~~2.2 percent

40 percent

$

~~1,420~~
1,560

3.1

3.2

25,100 to 28,679

~~2.6~~2.3 percent

40 percent

$

~~1,360~~
1,500

3.3

3.4

28,680 to 35,849

~~2.7~~2.5 percent

40 percent

$

~~1,360~~
1,500

3.5

3.6

35,850 to 41,819

~~2.8~~2.6 percent

45 percent

$

~~1,240~~
1,360

3.7

3.8

41,820 to 47,799

~~3.0~~2.8 percent

45 percent

$

~~1,240~~
1,360

3.93.10

47,800 to 53,779

~~3.2~~3.0 percent

45 percent

$

~~1,110~~
1,220

3.11

3.12

53,780 to 59,749

3.5 percent

50 percent

$

~~990~~
1,090

3.13

3.14

59,750 to 65,729

3.5 percent

50 percent

$

~~870~~
960

3.15

3.16

65,730 to 69,319

3.5 percent

50 percent

$

~~740~~
810

3.17

3.18

69,320 to 71,719

3.5 percent

50 percent

$

~~610~~
670

3.19

3.20

71,720 to 74,619

3.5 percent

50 percent

$

~~500~~
550

3.21

3.22

74,620 to 77,519

3.5 percent

50 percent

$

~~370~~
410

3.23 	The payment made to a claimant shall be the amount of the state refund calculated 
3.24 	under this subdivision. No payment is allowed if the claimant's household income is 
3.25 	$77,520 or more.

3.26 	EFFECTIVE DATE. This section is effective beginning with refunds based on 
3.27 	property taxes payable in 2010.