1997 Minnesota Statutes

     273.135 Homestead property tax relief. 

    Subdivision 1.  The property tax to be paid in respect to 
 property taxable within a tax relief area on homestead property, 
 as otherwise determined by law and regardless of the market 
 value of the property, for all purposes shall be reduced in the 
 amount prescribed by subdivision 2, subject to the limitations 
 contained therein. 

    Subd. 2.  The amount of the reduction authorized by 
 subdivision 1 shall be: 

    (a) In the case of property located within the boundaries 
 of a municipality which meets the qualifications prescribed in 
 section 273.134, 66 percent of the tax, provided that the 
 reduction shall not exceed the maximum amounts specified in 
 clause (c), and shall not exceed an amount sufficient to reduce 
 the effective tax rate on each parcel of property to 95 percent 
 of the base year effective tax rate.  In no case will the 
 reduction for each homestead resulting from this credit be less 
 than $10.  

    (b) In the case of property located within the boundaries 
 of a school district which qualifies as a tax relief area but 
 which is outside the boundaries of a municipality which meets 
 the qualifications prescribed in section 273.134, 57 percent of 
 the tax, provided that the reduction shall not exceed the 
 maximum amounts specified in clause (c), and shall not exceed an 
 amount sufficient to reduce the effective tax rate on each 
 parcel of property to 95 percent of the base year effective tax 
 rate.  In no case will the reduction for each homestead 
 resulting from this credit be less than $10.  

    (c) The maximum reduction of the tax is $225.40 on property 
 described in clause (a) and $200.10 on property described in 
 clause (b), for taxes payable in 1985.  These maximum amounts 
 shall increase by $15 times the quantity one minus the homestead 
 credit equivalency percentage per year for taxes payable in 1986 
 and subsequent years.  

    For the purposes of this subdivision, "homestead credit 
 equivalency percentage" means one minus the ratio of the net 
 class rate to the gross class rate applicable to the first 
 $72,000 of the market value of residential homesteads, 
 "effective tax rate" means tax divided by the market value of a 
 property, and the "base year effective tax rate" means the 
 payable 1988 tax on a property with an identical market value to 
 that of the property receiving the credit in the current year 
 after the application of the credits payable under Minnesota 
 Statutes 1988, section 273.13, subdivisions 22 and 23, and this 
 section, divided by the market value of the property.  

    Subd. 2a. Repealed, 1Sp1989 c 1 art 3 s 34 

    Subd. 3.  Not later than December 1 of each year, each 
 county auditor having jurisdiction over one or more tax relief 
 areas shall certify to the commissioner of revenue an estimate 
 of the total amount of the reduction, determined under 
 subdivision 2, in taxes payable the next succeeding year with 
 respect to all tax relief areas in the county. 

    Subd. 4. Repealed, 1Sp1981 c 1 art 10 s 30 

    Subd. 5.  For the purposes of this section, the amount of 
 property tax to be paid shall be determined after the allowance 
 of any reduction prescribed by section 273.13, and the reduction 
 prescribed by this section shall be in addition to that 
 prescribed by section 273.13. 

    HIST: 1969 c 1156 s 5; 1971 c 427 s 13; 1971 c 742 s 1; Ex1971 
 c 31 art 30 s 9; 1973 c 582 s 3; 1973 c 775 s 1,2; 1975 c 437 
 art 11 s 3,4; 1977 c 423 art 10 s 3,4; 1980 c 437 s 6; 1980 c 
 607 art 7 s 1; 1983 c 342 art 2 s 21; 1984 c 502 art 7 s 3-4; 
 1984 c 593 s 29; 1Sp1985 c 14 art 4 s 62,63; 1986 c 444; 1987 c 
 268 art 6 s 25; 1988 c 719 art 5 s 22,82,83; 1989 c 277 art 2 s 
 30; 1Sp1989 c 1 art 2 s 11; art 3 s 11; 1992 c 511 art 4 s 6; 
 1993 c 375 art 5 s 28