Bill Text: MN HF1046 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Homestead credit market value converted to a tax capacity reduction.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-10 - Referred by Chair to Property and Local Tax Division [HF1046 Detail]
Download: Minnesota-2011-HF1046-Introduced.html
1.2relating to property taxation; converting the market value homestead credit to
1.3a tax capacity reduction;amending Minnesota Statutes 2010, sections 273.13,
1.4subdivision 21b; 273.1384, subdivisions 1, 3, 4; 273.1393; 275.08, subdivision
1.51a; 276.04, subdivision 2; repealing Minnesota Statutes 2010, section 273.1384,
1.6subdivision 6.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to
1.9read:
1.10 Subd. 21b. Tax capacity.(a) Gross tax capacity means the product of the
1.11appropriate gross class rates in this section and market values.
1.12(b) Net tax capacity means the product of the appropriate net class rates in this
1.13section and market values, minus the property's tax capacity reduction determined under
1.14section 273.1384, subdivision 1, if applicable.
1.15EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
1.16thereafter.
1.17 Sec. 2. Minnesota Statutes 2010, section 273.1384, subdivision 1, is amended to read:
1.18 Subdivision 1. Residential homestead market valuecredit tax capacity
1.19reduction. Each county auditor shall determine a homesteadcredit tax capacity reduction
1.20for each class 1a, 1b, and 2a homestead property within the county equal to 0.4 percent of
1.21the first $76,000 of market value of the property minus .09 percent of the market value
1.22in excess of $76,000. Thecredit tax capacity reduction amount may not be less than
1.23zero. In the case of an agricultural or resort homestead, only the market value of the
1.24house, garage, and immediately surrounding one acre of land is eligible in determining
2.1the property's homesteadcredit tax capacity reduction. In the case of a property that is
2.2classified as part homestead and part nonhomestead, (i) thecredit tax capacity reduction
2.3shall apply only to the homestead portion of the property, but (ii) if a portion of a property
2.4is classified as nonhomestead solely because not all the owners occupy the property, not
2.5all the owners have qualifying relatives occupying the property, or solely because not all
2.6the spouses of owners occupy the property, thecredit tax capacity reduction amount shall
2.7be initially computed as if that nonhomestead portion were also in the homestead class and
2.8then prorated to the owner-occupant's percentage of ownership. For the purpose of this
2.9section, when an owner-occupant's spouse does not occupy the property, the percentage of
2.10ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.
2.11EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
2.12thereafter.
2.13 Sec. 3. Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:
2.14 Subd. 3. Credit reimbursements. The county auditor shall determine the tax
2.15reductions allowed underthis section subdivision 2 within the county for each taxes
2.16payable year and shall certify that amount to the commissioner of revenue as a part of the
2.17abstracts of tax lists submitted by the county auditors under section275.29 . Any prior
2.18year adjustments shall also be certified on the abstracts of tax lists. The commissioner
2.19shall review the certifications for accuracy, and may make such changes as are deemed
2.20necessary, or return the certification to the county auditor for correction. Thecredits
2.21credit under this section must be used to proportionately reduce the net tax capacity-based
2.22property tax payable to each local taxing jurisdiction as provided in section273.1393 .
2.23EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
2.24thereafter.
2.25 Sec. 4. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:
2.26 Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local
2.27taxing jurisdiction, other than school districts, for the tax reductions granted underthis
2.28section subdivision 2 in two equal installments on October 31 and December 26 of the
2.29taxes payable year for which the reductions are granted, including in each payment
2.30the prior year adjustments certified on the abstracts for that taxes payable year. The
2.31reimbursements related to tax increments shall be issued in one installment each year on
2.32December 26.
3.1(b) The commissioner of revenue shall certify the total of the tax reductions granted
3.2underthis section subdivision 2 for each taxes payable year within each school district to
3.3the commissioner of the Department of Education and the commissioner of education shall
3.4pay the reimbursement amounts to each school district as provided in section273.1392 .
3.5EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
3.6thereafter.
3.7 Sec. 5. Minnesota Statutes 2010, section 273.1393, is amended to read:
3.8273.1393 COMPUTATION OF NET PROPERTY TAXES.
3.9 Notwithstanding any other provisions to the contrary, "net" property taxes are
3.10determined by subtracting the credits in the order listed from the gross tax:
3.11 (1) disaster credit as provided in sections273.1231 to
273.1235 ;
3.12 (2) powerline credit as provided in section273.42 ;
3.13 (3) agricultural preserves credit as provided in section473H.10 ;
3.14 (4) enterprise zone credit as provided in section469.171 ;
3.15 (5) disparity reduction credit;
3.16 (6) conservation tax credit as provided in section273.119 ;
3.17 (7)homestead and agricultural credits credit as provided in section
273.1384 ;
3.18 (8) taconite homestead credit as provided in section273.135 ;
3.19 (9) supplemental homestead credit as provided in section273.1391; and
3.20 (10) the bovine tuberculosis zone credit, as provided in section
273.113 .
3.21 The combination of all property tax credits must not exceed the gross tax amount.
3.22EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
3.23thereafter.
3.24 Sec. 6. Minnesota Statutes 2010, section 275.08, subdivision 1a, is amended to read:
3.25 Subd. 1a. Computation of tax capacity.For taxes payable in 1989, the county
3.26auditor shall compute the gross tax capacity for each parcel according to the class rates
3.27specified in section
273.13. The gross tax capacity will be the appropriate class rate
3.28multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
3.29The county auditor shall compute the net tax capacity for each parcelaccording to the
3.30class rates specified in as defined under section
273.13 , subdivision 21b. The net tax
3.31capacity will be the appropriate class rate multiplied by the parcel's market value.
4.1EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
4.2thereafter.
4.3 Sec. 7. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:
4.4 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
4.5printing of the tax statements. The commissioner of revenue shall prescribe the form of
4.6the property tax statement and its contents. The tax statement must not state or imply
4.7that property tax credits are paid by the state of Minnesota. The statement must contain
4.8a tabulated statement of the dollar amount due to each taxing authority and the amount
4.9of the state tax from the parcel of real property for which a particular tax statement is
4.10prepared. The dollar amounts attributable to the county, the state tax, the voter approved
4.11school tax, the other local school tax, the township or municipality, and the total of
4.12the metropolitan special taxing districts as defined in section275.065, subdivision 3 ,
4.13paragraph (i), must be separately stated. The amounts due all other special taxing districts,
4.14if any, may be aggregated except that any levies made by the regional rail authorities in the
4.15county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
4.16398A shall be listed on a separate line directly under the appropriate county's levy. If the
4.17county levy under this paragraph includes an amount for a lake improvement district as
4.18defined under sections103B.501 to
103B.581 , the amount attributable for that purpose
4.19must be separately stated from the remaining county levy amount. In the case of Ramsey
4.20County, if the county levy under this paragraph includes an amount for public library
4.21service under section134.07 , the amount attributable for that purpose may be separated
4.22from the remaining county levy amount. The amount of the tax on homesteads qualifying
4.23under the senior citizens' property tax deferral program under chapter 290B is the total
4.24amount of property tax before subtraction of the deferred property tax amount. The
4.25amount of the tax on contamination value imposed under sections270.91 to
270.98 , if any,
4.26must also be separately stated. The dollar amounts, including the dollar amount of any
4.27special assessments, may be rounded to the nearest even whole dollar. For purposes of this
4.28section whole odd-numbered dollars may be adjusted to the next higher even-numbered
4.29dollar. The amount of market value excluded under section273.11, subdivision 16 , if any,
4.30must also be listed on the tax statement.
4.31 (b) The property tax statements for manufactured homes and sectional structures
4.32taxed as personal property shall contain the same information that is required on the
4.33tax statements for real property.
4.34 (c) Real and personal property tax statements must contain the following information
4.35in the order given in this paragraph. The information must contain the current year tax
5.1information in the right column with the corresponding information for the previous year
5.2in a column on the left:
5.3 (1) the property's estimated market value under section273.11, subdivision 1 ;
5.4 (2) the property's taxable market value after reductions under section273.11,
5.5subdivisions 1a and 16 ;
5.6 (3) the property's gross tax, before credits;
5.7 (4) for homesteadresidential and agricultural properties, the credits credit under
5.8section273.1384 ;
5.9 (5) any credits received under sections273.119 ;
273.1234 or
273.1235 ;
273.135 ;
5.10273.1391
;
273.1398, subdivision 4 ;
469.171 ; and
473H.10 , except that the amount of
5.11credit received under section273.135 must be separately stated and identified as "taconite
5.12tax relief"; and
5.13 (6) the net tax payable in the manner required in paragraph (a).
5.14 (d) If the county uses envelopes for mailing property tax statements and if the county
5.15agrees, a taxing district may include a notice with the property tax statement notifying
5.16taxpayers when the taxing district will begin its budget deliberations for the current
5.17year, and encouraging taxpayers to attend the hearings. If the county allows notices to
5.18be included in the envelope containing the property tax statement, and if more than
5.19one taxing district relative to a given property decides to include a notice with the tax
5.20statement, the county treasurer or auditor must coordinate the process and may combine
5.21the information on a single announcement.
5.22EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
5.23thereafter.
5.24 Sec. 8. PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.
5.25For the purposes of the property tax statements required under Minnesota Statutes,
5.26section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown
5.27for the previous year is the gross tax minus the residential homestead market value credit.
5.28EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
5.29thereafter.
5.30 Sec. 9. REPEALER.
5.31Minnesota Statutes 2010, section 273.1384, subdivision 6, is repealed.
5.32EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
5.33thereafter.
1.3a tax capacity reduction;amending Minnesota Statutes 2010, sections 273.13,
1.4subdivision 21b; 273.1384, subdivisions 1, 3, 4; 273.1393; 275.08, subdivision
1.51a; 276.04, subdivision 2; repealing Minnesota Statutes 2010, section 273.1384,
1.6subdivision 6.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to
1.9read:
1.10 Subd. 21b. Tax capacity.
1.11
1.12
1.13section and market values, minus the property's tax capacity reduction determined under
1.14section 273.1384, subdivision 1, if applicable.
1.15EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
1.16thereafter.
1.17 Sec. 2. Minnesota Statutes 2010, section 273.1384, subdivision 1, is amended to read:
1.18 Subdivision 1. Residential homestead market value
1.19reduction. Each county auditor shall determine a homestead
1.20for each class 1a, 1b, and 2a homestead property within the county equal to 0.4 percent of
1.21the first $76,000 of market value of the property minus .09 percent of the market value
1.22in excess of $76,000. The
1.23zero. In the case of an agricultural or resort homestead, only the market value of the
1.24house, garage, and immediately surrounding one acre of land is eligible in determining
2.1the property's homestead
2.2classified as part homestead and part nonhomestead, (i) the
2.3shall apply only to the homestead portion of the property, but (ii) if a portion of a property
2.4is classified as nonhomestead solely because not all the owners occupy the property, not
2.5all the owners have qualifying relatives occupying the property, or solely because not all
2.6the spouses of owners occupy the property, the
2.7be initially computed as if that nonhomestead portion were also in the homestead class and
2.8then prorated to the owner-occupant's percentage of ownership. For the purpose of this
2.9section, when an owner-occupant's spouse does not occupy the property, the percentage of
2.10ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.
2.11EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
2.12thereafter.
2.13 Sec. 3. Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:
2.14 Subd. 3. Credit reimbursements. The county auditor shall determine the tax
2.15reductions allowed under
2.16payable year and shall certify that amount to the commissioner of revenue as a part of the
2.17abstracts of tax lists submitted by the county auditors under section
2.18year adjustments shall also be certified on the abstracts of tax lists. The commissioner
2.19shall review the certifications for accuracy, and may make such changes as are deemed
2.20necessary, or return the certification to the county auditor for correction. The
2.21credit under this section must be used to proportionately reduce the net tax capacity-based
2.22property tax payable to each local taxing jurisdiction as provided in section
2.23EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
2.24thereafter.
2.25 Sec. 4. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:
2.26 Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local
2.27taxing jurisdiction, other than school districts, for the tax reductions granted under
2.28
2.29taxes payable year for which the reductions are granted, including in each payment
2.30the prior year adjustments certified on the abstracts for that taxes payable year. The
2.31reimbursements related to tax increments shall be issued in one installment each year on
2.32December 26.
3.1(b) The commissioner of revenue shall certify the total of the tax reductions granted
3.2under
3.3the commissioner of the Department of Education and the commissioner of education shall
3.4pay the reimbursement amounts to each school district as provided in section
3.5EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
3.6thereafter.
3.7 Sec. 5. Minnesota Statutes 2010, section 273.1393, is amended to read:
3.8273.1393 COMPUTATION OF NET PROPERTY TAXES.
3.9 Notwithstanding any other provisions to the contrary, "net" property taxes are
3.10determined by subtracting the credits in the order listed from the gross tax:
3.11 (1) disaster credit as provided in sections
3.12 (2) powerline credit as provided in section
3.13 (3) agricultural preserves credit as provided in section
3.14 (4) enterprise zone credit as provided in section
3.15 (5) disparity reduction credit;
3.16 (6) conservation tax credit as provided in section
3.17 (7)
3.18 (8) taconite homestead credit as provided in section
3.19 (9) supplemental homestead credit as provided in section
3.21 The combination of all property tax credits must not exceed the gross tax amount.
3.22EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
3.23thereafter.
3.24 Sec. 6. Minnesota Statutes 2010, section 275.08, subdivision 1a, is amended to read:
3.25 Subd. 1a. Computation of tax capacity.
3.26
3.27
3.28
3.29The county auditor shall compute the net tax capacity for each parcel
3.30
3.31
4.1EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
4.2thereafter.
4.3 Sec. 7. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:
4.4 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
4.5printing of the tax statements. The commissioner of revenue shall prescribe the form of
4.6the property tax statement and its contents. The tax statement must not state or imply
4.7that property tax credits are paid by the state of Minnesota. The statement must contain
4.8a tabulated statement of the dollar amount due to each taxing authority and the amount
4.9of the state tax from the parcel of real property for which a particular tax statement is
4.10prepared. The dollar amounts attributable to the county, the state tax, the voter approved
4.11school tax, the other local school tax, the township or municipality, and the total of
4.12the metropolitan special taxing districts as defined in section
4.13paragraph (i), must be separately stated. The amounts due all other special taxing districts,
4.14if any, may be aggregated except that any levies made by the regional rail authorities in the
4.15county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
4.16398A shall be listed on a separate line directly under the appropriate county's levy. If the
4.17county levy under this paragraph includes an amount for a lake improvement district as
4.18defined under sections
4.19must be separately stated from the remaining county levy amount. In the case of Ramsey
4.20County, if the county levy under this paragraph includes an amount for public library
4.21service under section
4.22from the remaining county levy amount. The amount of the tax on homesteads qualifying
4.23under the senior citizens' property tax deferral program under chapter 290B is the total
4.24amount of property tax before subtraction of the deferred property tax amount. The
4.25amount of the tax on contamination value imposed under sections
4.26must also be separately stated. The dollar amounts, including the dollar amount of any
4.27special assessments, may be rounded to the nearest even whole dollar. For purposes of this
4.28section whole odd-numbered dollars may be adjusted to the next higher even-numbered
4.29dollar. The amount of market value excluded under section
4.30must also be listed on the tax statement.
4.31 (b) The property tax statements for manufactured homes and sectional structures
4.32taxed as personal property shall contain the same information that is required on the
4.33tax statements for real property.
4.34 (c) Real and personal property tax statements must contain the following information
4.35in the order given in this paragraph. The information must contain the current year tax
5.1information in the right column with the corresponding information for the previous year
5.2in a column on the left:
5.3 (1) the property's estimated market value under section
5.4 (2) the property's taxable market value after reductions under section
5.5subdivisions 1a and 16
5.6 (3) the property's gross tax, before credits;
5.7 (4) for homestead
5.8section
5.9 (5) any credits received under sections
5.11credit received under section
5.12tax relief"; and
5.13 (6) the net tax payable in the manner required in paragraph (a).
5.14 (d) If the county uses envelopes for mailing property tax statements and if the county
5.15agrees, a taxing district may include a notice with the property tax statement notifying
5.16taxpayers when the taxing district will begin its budget deliberations for the current
5.17year, and encouraging taxpayers to attend the hearings. If the county allows notices to
5.18be included in the envelope containing the property tax statement, and if more than
5.19one taxing district relative to a given property decides to include a notice with the tax
5.20statement, the county treasurer or auditor must coordinate the process and may combine
5.21the information on a single announcement.
5.22EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
5.23thereafter.
5.24 Sec. 8. PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.
5.25For the purposes of the property tax statements required under Minnesota Statutes,
5.26section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown
5.27for the previous year is the gross tax minus the residential homestead market value credit.
5.28EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
5.29thereafter.
5.30 Sec. 9. REPEALER.
5.31Minnesota Statutes 2010, section 273.1384, subdivision 6, is repealed.
5.32EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
5.33thereafter.
