1.1 	A bill for an act
1.2 	relating to property taxation; providing a property tax abatement for 
1.3 	newly-constructed residential structures in flood-damaged areas; appropriating 
1.4 	money.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. TAX ABATEMENT; NEWLY-CONSTRUCTED RESIDENTIAL 
1.7 	STRUCTURES IN FLOOD-DAMAGED AREAS.
 1.8 		Subdivision 1.Eligibility. (a) Property containing a residential structure qualifies 
1.9 	for a tax abatement under this section, if:
1.10 	(1) the property is located in a city that meets the qualifications for the credit under 
1.11 	Minnesota Statutes, section 273.1398, subdivision 4;
1.12 	(2) construction of the structure commenced after January 1, 2009, and is 
1.13 	substantially completed prior to December 31, 2010; and
1.14 	(3) the property is classified as class 1a, 1b, 2a, 4a, 4b, 4bb, or 4d under Minnesota 
1.15 	Statutes, section 273.13.
1.16 		Subd. 2.Application. Application for the abatement authorized under this section 
1.17 	must be filed by January 2 of the year following the year in which construction began. The 
1.18 	application must be filed with the assessor of the county in which the property is located 
1.19 	on a form prescribed by the commissioner of revenue.
1.20 		Subd. 3.Tax abated. (a) For a property qualifying under subdivision 1 and 
1.21 	classified as either 1a, 1b, 2a, 4b, or 4bb, the tax attributable to the market value of the 
1.22 	structure shall be abated. For a property qualifying under subdivision 1 and classified as 
1.23 	class 4a or 4d, the tax attributable to (i) $250,000 of market value, or (ii) the entire market 
1.24 	value of the structure, whichever is less, shall be abated.
2.1 	(b) The abatement under paragraph (a) shall be in effect for two taxes payable years, 
2.2 	corresponding to the two assessment years after construction has begun. The abatement 
2.3 	shall not apply to any special assessments that have been levied against the property.
2.4 		Subd. 4.Reimbursement. By May 1 of each taxes payable year in which an 
2.5 	abatement has been authorized under this section, the auditor shall report the amount of 
2.6 	taxes abated for each jurisdiction within the county to the commissioner of revenue, on a 
2.7 	form prescribed by the commissioner. On or before September 1 of each taxes payable 
2.8 	year in which an abatement has been authorized under this section, the commissioner of 
2.9 	revenue shall reimburse each local jurisdiction for the amount of taxes abated for the 
2.10 	year under this section. 
2.11 		Subd. 5. Appropriation. The amount necessary to make the reimbursements 
2.12 	required under this section is annually appropriated to the commissioner of revenue from 
2.13 	the general fund.

2.14 	EFFECTIVE DATE. This section is effective for assessment years 2010 to 2012, 
2.15 	for taxes payable in 2011 to 2013.