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SF 1972

as introduced - 87th Legislature (2011 - 2012) Posted on 03/23/2012 05:34pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to property taxes; reducing and eliminating the state general levy;
modifying the additional property tax refund; appropriating money; amending
Minnesota Statutes 2010, sections 275.025, subdivision 1, by adding a
subdivision; 290A.04, subdivision 2h; repealing Minnesota Statutes 2010,
section 275.025, subdivisions 1, 2, 4; Minnesota Statutes 2011 Supplement,
section 275.025, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined in
this section. The state general levy base amount is deleted text begin $592,000,000deleted text end new text begin $763,200,000new text end for taxes
payable in deleted text begin 2002deleted text end new text begin 2013new text end . deleted text begin For taxes payable in subsequent years, the levy base amount is
increased each year by multiplying the levy base amount for the prior year by the sum
of one plus the rate of increase, if any, in the implicit price deflator for government
consumption expenditures and gross investment for state and local governments prepared
by the Bureau of Economic Analysts of the United States Department of Commerce for
the 12-month period ending March 31 of the year prior to the year the taxes are payable.
deleted text end

new text begin The state general levy base amount is $699,500,000 for taxes payable in 2014;
$627,000,000 for taxes payable in 2015; $501,600,000 for taxes payable in 2016;
$376,200,000 for taxes payable in 2017; $250,800,000 for taxes payable in 2018; and
$125,400,000 for taxes payable in 2019.
new text end

The tax under this section is not treated as a local tax rate under section 469.177 and
is not the levy of a governmental unit under chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2012, payable
in 2013, and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2010, section 275.025, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Payable 2012 refund for commercial-industrial property. new text end

new text begin (a) For taxes
payable in 2012, the county auditor shall calculate a reduction in the state general tax
payable on each parcel of commercial-industrial property. The reduction is equal to the
commercial-industrial net tax capacity multiplied by 2.621 percent. The county treasurer
shall issue a refund for the amount of the state general tax reduction to the owner of each
parcel of commercial-industrial property by August 31, 2012, provided that no refund
shall be paid under this subdivision on any parcel on which taxes are delinquent.
new text end

new text begin (b) The county auditor shall certify the total amount of the state general tax refunds
calculated for that county to the commissioner of revenue by July 1, 2012, along with the
administrative costs incurred to calculate and pay the refunds required under paragraph
(a). The commissioner shall pay the amount certified by each county to the county
treasurer of that county by August 15, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2011, and payable
in 2012 only.
new text end

Sec. 3.

Minnesota Statutes 2010, section 290A.04, subdivision 2h, is amended to read:


Subd. 2h.

Additional refund.

(a) If the gross property taxes payable on a homestead
increase more than 12 percent over the property taxes payable in the prior year on the same
property that is owned and occupied by the same owner on January 2 of both years, and the
amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed
an additional refund equal to deleted text begin 60deleted text end new text begin 75new text end percent of the amount of the increase over the greater
of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not
apply to any increase in the gross property taxes payable attributable to improvements
made to the homestead after the assessment date for the prior year's taxes. This subdivision
shall not apply to any increase in the gross property taxes payable attributable to the
termination of valuation exclusions under section 273.11, subdivision 16.

The maximum refund allowed under this subdivision is $1,000.

(b) For purposes of this subdivision "gross property taxes payable" means property
taxes payable determined without regard to the refund allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each claimant under
this subdivision shall file with the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other documents required by the
commissioner.

(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
refund under this section. The information shall be provided on a magnetic computer
disk. The county may recover its costs by charging the person requesting the information
the reasonable cost for preparing the data. The information may not be used for any
purpose other than for notifying the homeowner of potential eligibility and assisting the
homeowner, without charge, in preparing a refund claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with refunds based on
taxes payable in 2012.
new text end

Sec. 4. new text begin ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.
new text end

new text begin In administering Minnesota Statutes, section 290A.04, subdivision 2h, for claims for
additional refunds submitted using 60 percent of the gross homestead property tax increase
exceeding 12 percent of income under prior law, the commissioner shall recalculate and
pay the refund amounts using 75 percent of the tax increase exceeding 12 percent of
income. The commissioner shall notify the claimant that the recalculation was mandated
by action of the 2012 legislature.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the commissioner of revenue for fiscal
year 2013 to pay the cost of the refunds required under section 2. Of this amount, $....... is
to reimburse counties for the administrative cost of calculating and paying the refunds.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, section 275.025, subdivisions 1, 2, and 4, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2011 Supplement, section 275.025, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2019, payable
in 2020, and thereafter.
new text end