273.123 Reassessment of homestead property damaged by a disaster.
Subdivision 1. Definitions. For purposes of this section (a) "disaster or emergency" means
(1) a major disaster as determined by the president of the United States;
(2) a natural disaster as determined by the secretary of agriculture;
(3) a disaster as determined by the administrator of the small business administration; or
(4) a tornado, storm, flood, earthquake, landslide, explosion, fire or similar catastrophe, as a result of which a local emergency is declared pursuant to section 12.29.
(b) "disaster or emergency area" means an area
(1) in which the president of the United States, the secretary of agriculture, or the administrator of the small business administration has determined that a disaster exists pursuant to federal law or in which a local emergency has been declared pursuant to section 12.29; and
(2) for which an application by the local unit of government requesting property tax relief under this section has been received by the governor and approved by the Executive Council.
(c) "homestead property" means homestead dwelling that is classified as class 1, or 2a property or a manufactured home or sectional home used as a homestead and taxed pursuant to section 273.125, subdivision 8, paragraph (b), (c), or (d).
Subd. 2. Reassessment of homestead property. The county assessor shall reassess all homestead property located within a disaster or emergency area which is physically damaged by the disaster or emergency and shall adjust the valuation for taxes payable the following year to reflect the loss in market value caused by the damage as follows: Subtract the market value of the property as reassessed from the market value of the property as assessed for January 1 of the year in which the disaster or emergency occurred; multiply the remainder by a fraction, the numerator of which is the number of full months remaining in the year on the date the disaster or emergency occurred, and the denominator of which is 12; subtract the product of the calculation from the market value of the property as assessed for January 1 of the year in which the disaster or emergency occurred; the remainder is the estimated market value to be used for taxes payable the following year. The assessor shall report to the county auditor the net tax capacity based on the assessment of January 1 of the year in which the disaster or emergency occurred and the net tax capacity based on the reassessment made pursuant to this subdivision.
Subd. 2a. Application requirements. A request for property tax relief shall be considered by the Executive Council only if the following requirements are met by the local unit of government submitting the request:
(1) a completed disaster survey shall be included with the request;
(2) the average dollar amount of damage for the homes which are damaged and located within the geographic boundaries of the applicant shall be $5,000 or more; and
(3) either (a) at least 25 homes located within the geographic boundaries of the applicant must have been damaged or destroyed; or (b) the total dollar amount of damage to all of the damaged homes located within the geographic boundaries of the applicant shall be equal to at least one percent of the total market value of all homestead property located within the geographic boundaries of the applicant.
Subd. 3. Computation of local tax rates. When computing local tax rates, the county auditor shall use the valuation reported by the assessor for the assessment made on January 1 of the year in which the disaster or emergency occurred.
Subd. 4. State reimbursement. The county auditor shall calculate the tax on the property described in subdivision 2 based on the assessment made on January 2 of the year in which the disaster or emergency occurred. The difference between the tax determined on the January 2 gross tax capacity and the tax actually payable based on the reassessed gross tax capacity determined under subdivision 2 shall be reimbursed to each taxing jurisdiction in which the damaged property is located. The amount shall be certified by the county auditor and reported to the commissioner of revenue. The commissioner shall make the payments to the taxing jurisdictions, other than school districts, containing the property at the time distributions are made under section 473H.10, subdivision 3, in the same proportion that the ad valorem tax is distributed.
Subd. 5. Computation of credits. The amounts of any credits or tax relief which reduce the gross tax shall be computed upon the reassessed gross tax capacity determined under subdivision 2. For purposes of the property tax refund, property taxes payable, as defined in section 290A.03, subdivision 13, and net property taxes payable, as defined in section 290A.04, subdivision 2d, shall be computed upon the reassessed gross tax capacity determined under subdivision 2.
Subd. 6. Appropriation. There is annually appropriated from the general fund to the commissioner of revenue an amount necessary to make the payments required by this section.
Subd. 7. Local option; other property. The owner of homestead property not qualifying for an adjustment in valuation pursuant to subdivisions 1 to 5 or of nonhomestead property may receive a reduction in the amount of taxes payable on the property for the year in which the destruction occurs and in the following year if:
(a) 50 percent or more of the homestead dwelling or other structure, as established by the county assessor, is unintentionally or accidentally destroyed and the homestead is uninhabitable or the other structure is not usable;
(b) the owner of the property makes written application to the county assessor as soon as practical after the damage has occurred; and
(c) the owner of the property makes written application to the county board.
The county board may grant a reduction in the amount of property tax which the owner must pay on the qualifying property in the year of destruction and in the following year. Any reduction in the amount of tax payable which is authorized by county board action shall be calculated based upon the number of months that the home is uninhabitable or the other structure is unusable. The amount of net tax due from the taxpayer shall be multiplied by a fraction, the numerator of which is the number of months the dwelling was occupied by that taxpayer, or the number of months the other structure was used by the taxpayer, and the denominator of which is 12. For purposes of this subdivision, if a structure is occupied or used for a fraction of a month, it is considered a month. "Net tax" is defined as the amount of tax after the subtraction of all of the state paid property tax credits. If application is made following payment of all property taxes due for the year of destruction, the amount of the reduction granted by the county board shall be refunded to the taxpayer by the county treasurer as soon as practical.
Any reductions or refunds approved by the county board shall not be subject to approval by the commissioner of revenue.
The county board may levy in the following year the amount of tax dollars lost to the county government as a result of the reductions granted pursuant to this subdivision.
HIST: 1981 c 365 s 9; 1982 c 523 art 33 s 1; 1984 c 502 art 3 s 7,8; 1985 c 300 s 5; 1Sp1985 c 14 art 4 s 42,43; 1987 c 268 art 6 s 11-14; 1988 c 719 art 5 s 8,9,84; 1989 c 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; art 3 s 8; art 5 s 8; art 9 s 23,24; 1990 c 604 art 3 s 12; 1993 c 375 art 3 s 48
Official Publication of the State of Minnesota
Revisor of Statutes