Bill Text: MN HF3041 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Property's value amount limited which can increase from the previous year, and small business targeted property tax refund provided.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-04-30 - Introduction and first reading, referred to Taxes [HF3041 Detail]
Download: Minnesota-2011-HF3041-Introduced.html
1.2relating to property taxation; limiting the amount that a property's value can
1.3increase from the previous year; providing a small business targeted property
1.4tax refund; amending Minnesota Statutes 2010, sections 273.11, subdivision 1a;
1.5290A.02; 290A.03, by adding a subdivision; 290A.04, by adding a subdivision;
1.6290A.23, subdivision 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 273.11, subdivision 1a, is amended to read:
1.9 Subd. 1a. Limited market value. (a) In the case of all property classified as
1.10agricultural homestead or nonhomestead, rural vacant land, residential homestead or
1.11nonhomestead,timber managed forest land, or noncommercial seasonal residential
1.12recreational, the assessor shall compare the value with the taxable portion of the value
1.13determined in the preceding assessment.
1.14(b)For assessment years 2004, 2005, and 2006, The amount of the increase shall not
1.15exceedthe greater of (1) 15 10 percent of the value in the preceding assessment, or (2) 25
1.16percent of the difference between the current assessment and the preceding assessment.
1.17For assessment year 2007, the amount of the increase shall not exceed the greater of
1.18(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference
1.19between the current assessment and the preceding assessment.
1.20For assessment year 2008, the amount of the increase shall not exceed the greater of
1.21(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference
1.22between the current assessment and the preceding assessment.
1.23(c) This limitation shall not apply to increases in value due to improvements. For
1.24purposes of this subdivision, the term "assessment" means the value prior to any exclusion
1.25under subdivision 16.
2.1The provisions of this subdivision shall be in effect through assessment year 2008
2.2as provided in this subdivision.
2.3For purposes of the assessment/sales ratio study conducted under section
127A.48,
2.4and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A,
2.5126C, 127A, and 477A, market values and net tax capacities determined under this
2.6subdivision and subdivision 16, shall be used.
2.7EFFECTIVE DATE.This section is effective for assessment year 2013 and
2.8thereafter.
2.9 Sec. 2. Minnesota Statutes 2010, section 290A.02, is amended to read:
2.10290A.02 PURPOSE.
2.11The purpose of this chapter is to provide property tax relief to certain persons who
2.12own or rent their homesteads or who are small business persons.
2.13 Sec. 3. Minnesota Statutes 2010, section 290A.03, is amended by adding a subdivision
2.14to read:
2.15 Subd. 16. Small business property. "Small business property" means (1) an
2.16agricultural homestead under section 273.13, subdivision 23, limited to the amount
2.17of market value in the first tier as certified under section 273.11, subdivision 23, and
2.18excluding the value of the house, garage, and surrounding one acre of land, or (2) a
2.19commercial-industrial property under section 273.13, subdivision 24, limited to the
2.20amount of market value in the first tier as defined under that subdivision.
2.21EFFECTIVE DATE.This section is effective for refunds based on property taxes
2.22payable in 2014 and thereafter.
2.23 Sec. 4. Minnesota Statutes 2010, section 290A.04, is amended by adding a subdivision
2.24to read:
2.25 Subd. 2k. Small business targeted refund. (a) If the gross property taxes payable
2.26on a small business property increase more than 12 percent over the property taxes payable
2.27in the prior year on the same property that is owned by the same owner on January 2 of
2.28both years, and the amount of that increase is $100 or more, a claimant shall be allowed a
2.29refund equal to 50 percent of the amount of the increase over the greater of 12 percent of
2.30the prior year's property taxes payable or $100. This subdivision shall not apply to any
2.31increase in the gross property taxes payable attributable to improvements made to the
2.32property after the assessment date for the prior year's taxes.
3.1(b) The maximum refund allowed under this subdivision is $1,000 for each small
3.2business property.
3.3(c) In addition to the other proofs required by this chapter, each claimant under
3.4this subdivision shall file with the property tax refund return a copy of the property tax
3.5statement for taxes payable in the preceding year or other documents required by the
3.6commissioner.
3.7(d) For the purposes of this subdivision, "claimant" means any person or entity that
3.8is the owner of a small business property located in Minnesota.
3.9(e) The limitation under section 290A.08 does not apply to refunds authorized under
3.10this subdivision.
3.11EFFECTIVE DATE.This section is effective for refunds based on property taxes
3.12payable in 2014 and thereafter.
3.13 Sec. 5. Minnesota Statutes 2010, section 290A.23, subdivision 3, is amended to read:
3.14 Subd. 3. Annual appropriation. For payments made after July 1, 1996, there is
3.15annually appropriated from the general fund to the commissioner of revenue the amount
3.16necessary to make the payments required under section290A.04, subdivisions 2, and
3.172h , and 2k.
3.18EFFECTIVE DATE.This section is effective for refunds based on property taxes
3.19payable in 2014 and thereafter.
1.3increase from the previous year; providing a small business targeted property
1.4tax refund; amending Minnesota Statutes 2010, sections 273.11, subdivision 1a;
1.5290A.02; 290A.03, by adding a subdivision; 290A.04, by adding a subdivision;
1.6290A.23, subdivision 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 273.11, subdivision 1a, is amended to read:
1.9 Subd. 1a. Limited market value. (a) In the case of all property classified as
1.10agricultural homestead or nonhomestead, rural vacant land, residential homestead or
1.11nonhomestead,
1.12recreational, the assessor shall compare the value with the taxable portion of the value
1.13determined in the preceding assessment.
1.14(b)
1.15exceed
1.16
1.17
1.18
1.19
1.20
1.21
1.22
1.23(c) This limitation shall not apply to increases in value due to improvements. For
1.24purposes of this subdivision, the term "assessment" means the value prior to any exclusion
1.25under subdivision 16.
2.1
2.2
2.3
2.4
2.5
2.6
2.7EFFECTIVE DATE.This section is effective for assessment year 2013 and
2.8thereafter.
2.9 Sec. 2. Minnesota Statutes 2010, section 290A.02, is amended to read:
2.10290A.02 PURPOSE.
2.11The purpose of this chapter is to provide property tax relief to certain persons who
2.12own or rent their homesteads or who are small business persons.
2.13 Sec. 3. Minnesota Statutes 2010, section 290A.03, is amended by adding a subdivision
2.14to read:
2.15 Subd. 16. Small business property. "Small business property" means (1) an
2.16agricultural homestead under section 273.13, subdivision 23, limited to the amount
2.17of market value in the first tier as certified under section 273.11, subdivision 23, and
2.18excluding the value of the house, garage, and surrounding one acre of land, or (2) a
2.19commercial-industrial property under section 273.13, subdivision 24, limited to the
2.20amount of market value in the first tier as defined under that subdivision.
2.21EFFECTIVE DATE.This section is effective for refunds based on property taxes
2.22payable in 2014 and thereafter.
2.23 Sec. 4. Minnesota Statutes 2010, section 290A.04, is amended by adding a subdivision
2.24to read:
2.25 Subd. 2k. Small business targeted refund. (a) If the gross property taxes payable
2.26on a small business property increase more than 12 percent over the property taxes payable
2.27in the prior year on the same property that is owned by the same owner on January 2 of
2.28both years, and the amount of that increase is $100 or more, a claimant shall be allowed a
2.29refund equal to 50 percent of the amount of the increase over the greater of 12 percent of
2.30the prior year's property taxes payable or $100. This subdivision shall not apply to any
2.31increase in the gross property taxes payable attributable to improvements made to the
2.32property after the assessment date for the prior year's taxes.
3.1(b) The maximum refund allowed under this subdivision is $1,000 for each small
3.2business property.
3.3(c) In addition to the other proofs required by this chapter, each claimant under
3.4this subdivision shall file with the property tax refund return a copy of the property tax
3.5statement for taxes payable in the preceding year or other documents required by the
3.6commissioner.
3.7(d) For the purposes of this subdivision, "claimant" means any person or entity that
3.8is the owner of a small business property located in Minnesota.
3.9(e) The limitation under section 290A.08 does not apply to refunds authorized under
3.10this subdivision.
3.11EFFECTIVE DATE.This section is effective for refunds based on property taxes
3.12payable in 2014 and thereafter.
3.13 Sec. 5. Minnesota Statutes 2010, section 290A.23, subdivision 3, is amended to read:
3.14 Subd. 3. Annual appropriation. For payments made after July 1, 1996, there is
3.15annually appropriated from the general fund to the commissioner of revenue the amount
3.16necessary to make the payments required under section
3.172h
3.18EFFECTIVE DATE.This section is effective for refunds based on property taxes
3.19payable in 2014 and thereafter.
