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Minnesota Legislature

Office of the Revisor of Statutes

273.1384 MARKET VALUE HOMESTEAD CREDITS.
    Subdivision 1. Residential homestead market value credit. Each county auditor shall
determine a homestead credit for each class 1a, 1b, and 2a homestead property within the county
equal to 0.4 percent of the first $76,000 of market value of the property minus .09 percent
of the market value in excess of $76,000. The credit amount may not be less than zero. In the
case of an agricultural or resort homestead, only the market value of the house, garage, and
immediately surrounding one acre of land is eligible in determining the property's homestead
credit. In the case of a property that is classified as part homestead and part nonhomestead, (i)
the credit shall apply only to the homestead portion of the property, but (ii) if a portion of a
property is classified as nonhomestead solely because not all the owners occupy the property,
not all the owners have qualifying relatives occupying the property, or solely because not all the
spouses of owners occupy the property, the credit amount shall be initially computed as if that
nonhomestead portion were also in the homestead class and then prorated to the owner-occupant's
percentage of ownership. For the purpose of this section, when an owner-occupant's spouse does
not occupy the property, the percentage of ownership for the owner-occupant spouse is one-half
of the couple's ownership percentage.
    Subd. 2. Agricultural homestead market value credit. Property classified as class 2a
agricultural homestead is eligible for an agricultural credit. The credit is computed using the
property's agricultural credit market value, defined for this purpose as the property's class 2a
market value excluding the market value of the house, garage, and immediately surrounding one
acre of land. The credit is equal to 0.3 percent of the first $115,000 of the property's agricultural
credit market value minus .05 percent of the property's agricultural credit market value in
excess of $115,000, subject to a maximum reduction of $115. In the case of property that is
classified in part as class 2a agricultural homestead and in part as class 2b nonhomestead farm
land solely because not all the owners occupy or farm the property, not all the owners have
qualifying relatives occupying or farming the property, or solely because not all the spouses
of owners occupy the property, the credit must be initially computed as if that nonhomestead
agricultural land was also classified as class 2a agricultural homestead and then prorated to the
owner-occupant's percentage of ownership.
    Subd. 3. Credit reimbursements. The county auditor shall determine the tax reductions
allowed under this section within the county for each taxes payable year and shall certify that
amount to the commissioner of revenue as a part of the abstracts of tax lists submitted by the
county auditors under section 275.29. Any prior year adjustments shall also be certified on the
abstracts of tax lists. The commissioner shall review the certifications for accuracy, and may
make such changes as are deemed necessary, or return the certification to the county auditor
for correction. The credits under this section must be used to proportionately reduce the net
tax capacity-based property tax payable to each local taxing jurisdiction as provided in section
273.1393.
    Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local taxing
jurisdiction, other than school districts, for the tax reductions granted under this section in two
equal installments on October 31 and December 26 of the taxes payable year for which the
reductions are granted, including in each payment the prior year adjustments certified on the
abstracts for that taxes payable year. The reimbursements related to tax increments shall be issued
in one installment each year on December 26.
(b) The commissioner of revenue shall certify the total of the tax reductions granted under
this section for each taxes payable year within each school district to the commissioner of the
Department of Education and the commissioner of education shall pay the reimbursement
amounts to each school district as provided in section 273.1392.
    Subd. 5. Appropriation. An amount sufficient to make the payments required by this section
to taxing jurisdictions other than school districts is annually appropriated from the general fund
to the commissioner of revenue. An amount sufficient to make the payments required by this
section for school districts is annually appropriated from the general fund to the commissioner of
education.
History: 1Sp2001 c 5 art 3 s 37; 2002 c 377 art 4 s 18,19; 2003 c 130 s 12; 2005 c 151 art 4
s 2; 2006 c 259 art 5 s 3,4