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290A.04 Refund allowable.

Subdivision 1. Refund. A refund shall be allowed each claimant in the amount that property taxes payable or rent constituting property taxes exceed the percentage of the household income of the claimant specified in subdivision 2 or 2a in the year for which the taxes were levied or in the year in which the rent was paid as specified in subdivision 2 or 2a. If the amount of property taxes payable or rent constituting property taxes is equal to or less than the percentage of the household income of the claimant specified in subdivision 2 or 2a in the year for which the taxes were levied or in the year in which the rent was paid, the claimant shall not be eligible for a state refund pursuant to this section.

Subd. 2. Homeowners. A claimant whose property taxes payable are in excess of the percentage of the household income stated below shall pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of property taxes payable. The state refund equals the amount of property taxes payable that remain, up to the state refund amount shown below.

Percent Percent Maximum Household Income of Income Paid by State Claimant Refund $0 to 1,029 1.2 percent 18 percent $440 1,030 to 2,059 1.3 percent 18 percent $440 2,060 to 3,099 1.4 percent 20 percent $440 3,100 to 4,129 1.6 percent 20 percent $440 4,130 to 5,159 1.7 percent 20 percent $440 5,160 to 7,229 1.9 percent 25 percent $440 7,230 to 8,259 2.1 percent 25 percent $440 8,260 to 9,289 2.2 percent 25 percent $440 9,290 to 10,319 2.3 percent 30 percent $440 10,320 to 11,349 2.4 percent 30 percent $440 11,350 to 12,389 2.5 percent 30 percent $440 12,390 to 14,449 2.6 percent 30 percent $440 14,450 to 15,479 2.8 percent 35 percent $440 15,480 to 16,509 3.0 percent 35 percent $440 16,510 to 17,549 3.2 percent 40 percent $440 17,550 to 21,669 3.3 percent 40 percent $440 21,670 to 24,769 3.4 percent 45 percent $440 24,770 to 30,959 3.5 percent 45 percent $440 30,960 to 36,119 3.5 percent 45 percent $440 36,120 to 41,279 3.7 percent 50 percent $440 41,280 to 58,829 4.0 percent 50 percent $440 58,830 to 59,859 4.0 percent 50 percent $310 59,860 to 60,889 4.0 percent 50 percent $210 60,890 to 61,929 4.0 percent 50 percent $100

The payment made to a claimant shall be the amount of the state refund calculated under this subdivision. No payment is allowed if the claimant's household income is $61,930 or more.

Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the percentage of the household income stated below must pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of rent constituting property taxes. The state refund equals the amount of rent constituting property taxes that remain, up to the maximum state refund amount shown below.

Percent Percent Maximum Household Income of Income Paid by State Claimant Refund $ 0 to 3,099 1.0 percent 5 percent $1,030 3,100 to 4,129 1.0 percent 10 percent $1,030 4,130 to 5,159 1.1 percent 10 percent $1,030 5,160 to 7,229 1.2 percent 10 percent $1,030 7,230 to 9,289 1.3 percent 15 percent $1,030 9,290 to 10,319 1.4 percent 15 percent $1,030 10,320 to 11,349 1.4 percent 20 percent $1,030 11,350 to 13,419 1.5 percent 20 percent $1,030 13,420 to 14,449 1.6 percent 20 percent $1,030 14,450 to 15,479 1.7 percent 25 percent $1,030 15,480 to 17,549 1.8 percent 25 percent $1,030 17,550 to 18,579 1.9 percent 30 percent $1,030 18,580 to 19,609 2.0 percent 30 percent $1,030 19,610 to 20,639 2.2 percent 30 percent $1,030 20,640 to 21,669 2.4 percent 30 percent $1,030 21,670 to 22,709 2.6 percent 35 percent $1,030 22,710 to 23,739 2.7 percent 35 percent $1,030 23,740 to 24,769 2.8 percent 35 percent $1,030 24,770 to 25,799 2.9 percent 40 percent $1,030 25,800 to 26,839 3.0 percent 40 percent $1,030 26,840 to 27,869 3.1 percent 40 percent $1,030 27,870 to 28,899 3.2 percent 40 percent $1,030 28,900 to 29,929 3.3 percent 45 percent $ 930 29,930 to 30,959 3.4 percent 45 percent $ 830 30,960 to 31,999 3.5 percent 45 percent $ 720 32,000 to 33,029 3.5 percent 50 percent $ 620 33,030 to 34,059 3.5 percent 50 percent $ 520 34,060 to 35,089 3.5 percent 50 percent $ 310 35,090 to 36,119 3.5 percent 50 percent $ 100

The payment made to a claimant is the amount of the state refund calculated under this subdivision. No payment is allowed if the claimant's household income is $36,120 or more.

Subd. 2b. MS 1984 Repealed, 1Sp1985 c 14 art 5 s 7

Subd. 2b. Tables may be reconstructed. The commissioner may reconstruct the tables in subdivision 2 for homeowners to reflect the elimination of the homestead credit beginning for claims based on taxes payable in 1990.

Subd. 2c. Repealed, 1983 c 15 s 33

Subd. 2d. Repealed, 1983 c 15 s 33

Subd. 2e. Repealed, 1987 c 268 art 3 s 13

Subd. 2f. Repealed, 1Sp1986 c 1 art 3 s 21

Subd. 2g. Repealed, 1987 c 268 art 3 s 13

Subd. 2h. Additional refund. (a) If the gross property taxes payable on a homestead increase more than 12 percent over the net 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 60 percent of the amount of the increase over the greater of 12 percent of the prior year's net 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, the following terms have the meanings given:

(1) "Net property taxes payable" means property taxes payable minus refund amounts for which the claimant qualifies pursuant to subdivision 2 and this subdivision.

(2) "Gross property taxes" means net 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.

Subd. 2i. Repealed, 1995 c 264 art 15 s 6

Subd. 2j. Seasonal residential recreational credit. If the net property taxes payable on a seasonal residential recreational property not used for commercial purposes, classified under section 273.13, subdivision 25, increase more than ten percent over its net property taxes payable in the previous year, and if the amount of the increase is $100 or more, a claimant who is an owner of the property in both years is allowed a credit under section 290.06, subdivision 25, equal to 75 percent of the first $300 of the excess of the increase over ten percent. This subdivision does not apply to the portion of an increase in taxes payable that are attributable to improvements to the property.

In addition to the other proofs required by this chapter, each claimant under this subdivision shall file with the application a copy of the property tax statement for property taxes payable in the current year and the previous year and any other documents required by the commissioner.

For purposes of this subdivision, "net property taxes payable" means property taxes payable minus credit amounts for which a claimant qualifies under this subdivision for the previous year.

The credit under this subdivision is effective for property taxes payable in 1998, for credits under section 290.06, subdivision 25, for tax year 1998, income tax returns filed in 1999; and for property taxes payable in 1999, for credits under section 290.06, subdivision 25, for tax year 1999, income tax returns filed in 2000.

Subd. 3. Table. The commissioner of revenue shall construct and make available to taxpayers a comprehensive table showing the property taxes to be paid and refund allowed at various levels of income and assessment. The table shall follow the schedule of income percentages, maximums and other provisions specified in subdivision 2, except that the commissioner may graduate the transition between income brackets. All refunds shall be computed in accordance with tables prepared and issued by the commissioner of revenue.

The commissioner shall include on the form an appropriate space or method for the claimant to identify if the property taxes paid are for a manufactured home, as defined in section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured home under section 168.012, subdivision 9.

Subd. 4. Inflation adjustment. Beginning for property tax refunds payable in calendar year 1996, the commissioner shall annually adjust the dollar amounts of the income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner shall make the inflation adjustments in accordance with section 290.06, subdivision 2d, except that for purposes of this subdivision the percentage increase shall be determined from the year ending on June 30, 1994, to the year ending on June 30 of the year preceding that in which the refund is payable. The commissioner shall use the appropriate percentage increase to annually adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation without regard to whether or not the income tax brackets are adjusted for inflation in that year. The commissioner shall round the thresholds and the maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to the next $10 amount.

The commissioner shall annually announce the adjusted refund schedule at the same time provided under section 290.06. The determination of the commissioner under this subdivision is not a rule under the Administrative Procedure Act.

Subd. 5. Combined renter and homeowner refund. In the case of a claimant who is entitled to a refund in a calendar year for claims based both on rent constituting property taxes and property taxes payable, the refund allowable equals the sum of the refunds allowable.

Subd. 6. Renumbered subd 4

HIST: 1975 c 437 art 1 s 4; 1976 c 245 s 3,4; 1977 c 423 art 2 s 9-11; 1978 c 766 s 9,10; 1979 c 303 art 2 s 31-34; 1980 c 607 art 3 s 2; 1981 c 178 s 114,115; 1Sp1981 c 1 art 2 s 19,20; 1983 c 15 s 29; 1983 c 342 art 4 s 6-12; 1984 c 502 art 3 s 21-23; 1984 c 514 art 4 s 12,13; 1Sp1985 c 14 art 4 s 89; art 5 s 2-4; 1986 c 444; 1987 c 268 art 3 s 4-6; art 6 s 48; 1988 c 719 art 4 s 5-7; 1989 c 356 s 37; 1Sp1989 c 1 art 7 s 1-5,9; 1990 c 480 art 5 s 11-13; 1990 c 604 art 5 s 3-5; 1991 c 199 art 2 s 21; 1991 c 291 art 1 s 34; 1992 c 511 art 2 s 30; 1993 c 375 art 2 s 32,33; art 3 s 48; art 6 s 4,5; 1994 c 383 s 1; 1994 c 587 art 4 s 1-4; 1995 c 264 art 3 s 24; art 4 s 11; art 15 s 3,4,6; 1996 c 471 art 3 s 33,52; 1997 c 31 art 1 s 18; 1997 c 84 art 1 s 4; 1997 c 231 art 2 s 70; art 5 s 14

Official Publication of the State of Minnesota
Revisor of Statutes