Bill Text: MN HF3046 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Property tax mandate relief credit established, homestead market value exclusion repealed, and local government state mandate opt-out procedure provided.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-05-03 - Introduction and first reading, referred to Taxes [HF3046 Detail]
Download: Minnesota-2011-HF3046-Introduced.html
1.2relating to property taxation; establishing a mandate relief credit; repealing the
1.3homestead market value exclusion; providing a procedure for local governments
1.4to opt out of state mandates;amending Minnesota Statutes 2011 Supplement,
1.5sections 126C.01, subdivision 3; 273.13, subdivision 34; 273.1393; 276.04,
1.6subdivision 2; 477A.011, subdivision 20; proposing coding for new law in
1.7Minnesota Statutes, chapter 273; proposing coding for new law as Minnesota
1.8Statutes, chapter 471B; repealing Minnesota Statutes 2011 Supplement, section
1.9273.13, subdivision 35.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2011 Supplement, section 126C.01, subdivision 3, is
1.12amended to read:
1.13 Subd. 3. Referendum market value. "Referendum market value" means the
1.14market value of all taxable property, excluding property classified as class 2, 4c(4), or
1.154c(12) under section273.13 . The portion of class 2a property consisting of the house,
1.16garage, and surrounding one acre of land of an agricultural homestead is included in
1.17referendum market value.For the purposes of this subdivision, in the case of class 1a,
1.181b, or 2a property, "market value" means the value prior to the exclusion under section
1.19273.13, subdivision 35. Any class of property, or any portion of a class of property, that is
1.20included in the definition of referendum market value and that has a class rate of less than
1.21one percent under section273.13 shall have a referendum market value equal to its market
1.22value times its class rate, multiplied by 100.
1.23EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
1.24thereafter.
2.1 Sec. 2. Minnesota Statutes 2011 Supplement, section 273.13, subdivision 34, is
2.2amended to read:
2.3 Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a
2.4portion of the market value of property owned by a veteran and serving as the veteran's
2.5homestead under this section is excluded in determining the property's taxable market
2.6value if the veteran has a service-connected disability of 70 percent or more as certified
2.7by the United States Department of Veterans Affairs. To qualify for exclusion under this
2.8subdivision, the veteran must have been honorably discharged from the United States
2.9armed forces, as indicated by United States Government Form DD214 or other official
2.10military discharge papers.
2.11 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
2.12excluded, except as provided in clause (2); and
2.13 (2) for a total (100 percent) and permanent disability, $300,000 of market value is
2.14excluded.
2.15 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
2.16clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
2.17spouse holds the legal or beneficial title to the homestead and permanently resides there,
2.18the exclusion shall carry over to the benefit of the veteran's spouse for the current taxes
2.19payable year and for five additional taxes payable years or until such time as the spouse
2.20remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
2.21Qualification under this paragraph requires an annual application under paragraph (h).
2.22(d) If the spouse of a member of any branch or unit of the United States armed
2.23forces who dies due to a service-connected cause while serving honorably in active
2.24service, as indicated on United States Government Form DD1300 or DD2064, holds
2.25the legal or beneficial title to a homestead and permanently resides there, the spouse is
2.26entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years,
2.27or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
2.28property, whichever comes first.
2.29(e) If a veteran meets the disability criteria of paragraph (a) but does not own
2.30property classified as homestead in the state of Minnesota, then the homestead of the
2.31veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
2.32would otherwise qualify for under paragraph (b).
2.33 (f) In the case of an agricultural homestead, only the portion of the property
2.34consisting of the house and garage and immediately surrounding one acre of land qualifies
2.35for the valuation exclusion under this subdivision.
3.1 (g) A property qualifying for a valuation exclusion under this subdivision is not
3.2eligible for themarket value exclusion under subdivision 35 mandate relief credit under
3.3section 273.1387, or classification under subdivision 22, paragraph (b).
3.4 (h) To qualify for a valuation exclusion under this subdivision a property owner
3.5must apply to the assessor by July 1 of each assessment year, except that an annual
3.6reapplication is not required once a property has been accepted for a valuation exclusion
3.7under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
3.8the property continues to qualify until there is a change in ownership. For an application
3.9received after July 1 of any calendar year, the exclusion shall become effective for the
3.10following assessment year.
3.11(i) A first-time application by a qualifying spouse for the market value exclusion
3.12under paragraph (d) must be made any time within two years of the death of the service
3.13member.
3.14(j) For purposes of this subdivision:
3.15(1) "active service" has the meaning given in section190.05 ;
3.16(2) "own" means that the person's name is present as an owner on the property deed;
3.17(3) "primary family caregiver" means a person who is approved by the secretary of
3.18the United States Department of Veterans Affairs for assistance as the primary provider
3.19of personal care services for an eligible veteran under the Program of Comprehensive
3.20Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
3.21and
3.22(4) "veteran" has the meaning given the term in section197.447 .
3.23(k) The purpose of this provision of law providing a level of homestead property tax
3.24relief for gravely disabled veterans, their primary family caregivers, and their surviving
3.25spouses is to help ease the burdens of war for those among our state's citizens who bear
3.26those burdens most heavily.
3.27EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
3.28thereafter.
3.29 Sec. 3. [273.1387] MANDATE RELIEF CREDIT.
3.30 Subdivision 1. Eligibility; credit amount. Each county auditor shall determine a
3.31mandate relief credit for each class 1a, 1b, and 2a homestead property within the county
3.32equal to 0.4 percent of the first $75,000 of market value of the property minus 0.15 percent
3.33of the market value in excess of $75,000. The credit amount may not be less than zero. In
3.34the case of an agricultural or resort homestead, only the market value of the house, garage,
3.35and immediately surrounding one acre of land is eligible in determining the property's
4.1mandate relief credit. In the case of a property that is classified as part homestead and
4.2part nonhomestead, the credit shall apply only to the homestead portion of the property;
4.3however, if a portion of a property is classified as nonhomestead solely because not all
4.4the owners occupy the property, not all the owners have qualifying relatives occupying
4.5the property, or not all the spouses of owners occupy the property, then the credit amount
4.6shall be initially computed as if that nonhomestead portion were also in the homestead
4.7class, and then prorated to the owner-occupant's percentage of ownership. For the
4.8purpose of this section, when an owner-occupant's spouse does not occupy the property,
4.9the percentage of ownership for the owner-occupant's spouse is one-half of the couple's
4.10ownership percentage.
4.11 Subd. 2. Credit reimbursement. The county auditor shall determine the tax
4.12reduction allowed under this section within the county for each taxes payable year and
4.13shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
4.14lists submitted by the county auditors under section275.29 . Any prior year adjustments
4.15shall also be certified on the abstracts of tax lists. The commissioner shall review the
4.16certifications for accuracy, and may make such changes as are deemed necessary, or return
4.17the certification to the county auditor for correction. The credit under this section must be
4.18used to proportionately reduce the net tax capacity-based property tax payable to each
4.19local taxing jurisdiction as provided in section273.1393 .
4.20 Subd. 3. Payment. (a) The commissioner of revenue shall reimburse each local
4.21taxing jurisdiction, other than school districts, for the tax reductions granted under this
4.22section in two equal installments on October 31 and December 26 of the taxes payable
4.23year for which the reductions are granted, including in each payment the prior year
4.24adjustments certified on the abstracts for that taxes payable year. The reimbursements
4.25related to tax increments shall be issued in one installment each year on December 26.
4.26(b) The commissioner of revenue shall certify the total of the tax reductions
4.27granted under this section for each taxes payable year within each school district
4.28to the commissioner of education, and the commissioner of education shall pay the
4.29reimbursement amounts to each school district as provided in section273.1392 .
4.30 Subd. 4. Appropriation. An amount sufficient to make the payments required by
4.31this section to taxing jurisdictions other than school districts is annually appropriated
4.32from the general fund to the commissioner of revenue. An amount sufficient to make the
4.33payments required by this section for school districts is annually appropriated from the
4.34general fund to the commissioner of education.
4.35EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
4.36thereafter.
5.1 Sec. 4. Minnesota Statutes 2011 Supplement, section 273.1393, is amended to read:
5.2273.1393 COMPUTATION OF NET PROPERTY TAXES.
5.3 Notwithstanding any other provisions to the contrary, "net" property taxes are
5.4determined by subtracting the credits in the order listed from the gross tax:
5.5 (1) disaster credit as provided in sections273.1231 to
273.1235 ;
5.6 (2) powerline credit as provided in section273.42 ;
5.7 (3) agricultural preserves credit as provided in section473H.10 ;
5.8 (4) enterprise zone credit as provided in section469.171 ;
5.9 (5) disparity reduction credit;
5.10 (6) conservation tax credit as provided in section273.119 ;
5.11 (7) agricultural credit as provided in section273.1384 ;
5.12(8) mandate relief credit as provided in section 273.1387;
5.13(8) (9) taconite homestead credit as provided in section
273.135 ;
5.14(9) (10) supplemental homestead credit as provided in section
273.1391; and
5.15 (10) (11) the bovine tuberculosis zone credit, as provided in section
273.113 .
5.16 The combination of all property tax credits must not exceed the gross tax amount.
5.17EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
5.18thereafter.
5.19 Sec. 5. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is
5.20amended to read:
5.21 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
5.22printing of the tax statements. The commissioner of revenue shall prescribe the form of
5.23the property tax statement and its contents. The tax statement must not state or imply
5.24that property tax credits are paid by the state of Minnesota. The statement must contain
5.25a tabulated statement of the dollar amount due to each taxing authority and the amount
5.26of the state tax from the parcel of real property for which a particular tax statement is
5.27prepared. The dollar amounts attributable to the county, the state tax, the voter approved
5.28school tax, the other local school tax, the township or municipality, and the total of
5.29the metropolitan special taxing districts as defined in section275.065, subdivision 3 ,
5.30paragraph (i), must be separately stated. The amounts due all other special taxing districts,
5.31if any, may be aggregated except that any levies made by the regional rail authorities in the
5.32county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
5.33398A shall be listed on a separate line directly under the appropriate county's levy. If the
5.34county levy under this paragraph includes an amount for a lake improvement district as
6.1defined under sections103B.501 to
103B.581 , the amount attributable for that purpose
6.2must be separately stated from the remaining county levy amount. In the case of Ramsey
6.3County, if the county levy under this paragraph includes an amount for public library
6.4service under section134.07 , the amount attributable for that purpose may be separated
6.5from the remaining county levy amount. The amount of the tax on homesteads qualifying
6.6under the senior citizens' property tax deferral program under chapter 290B is the total
6.7amount of property tax before subtraction of the deferred property tax amount. The
6.8amount of the tax on contamination value imposed under sections270.91 to
270.98 , if any,
6.9must also be separately stated. The dollar amounts, including the dollar amount of any
6.10special assessments, may be rounded to the nearest even whole dollar. For purposes of this
6.11section whole odd-numbered dollars may be adjusted to the next higher even-numbered
6.12dollar. The amount of market value excluded under section273.11, subdivision 16 , if any,
6.13must also be listed on the tax statement.
6.14 (b) The property tax statements for manufactured homes and sectional structures
6.15taxed as personal property shall contain the same information that is required on the
6.16tax statements for real property.
6.17 (c) Real and personal property tax statements must contain the following information
6.18in the order given in this paragraph. The information must contain the current year tax
6.19information in the right column with the corresponding information for the previous year
6.20in a column on the left:
6.21 (1) the property's estimated market value under section273.11, subdivision 1 ;
6.22(2) the property's homestead market value exclusion under section
273.13,
6.23subdivision 35;
6.24(3) (2) the property's taxable market value after reductions under sections section
6.25273.11
, subdivisions 1a and 16, and
273.13, subdivision 35
6.26(4) (3) the property's gross tax, before credits;
6.27(4) the mandate relief credit under section 273.1387;
6.28 (5) for homestead agricultural properties, the credit under section273.1384 ;
6.29 (6) any credits received under sections273.119 ;
273.1234 or
273.1235 ;
273.135 ;
6.30273.1391
;
273.1398, subdivision 4 ;
469.171 ; and
473H.10 , except that the amount of
6.31credit received under section273.135 must be separately stated and identified as "taconite
6.32tax relief"; and
6.33 (7) the net tax payable in the manner required in paragraph (a).
6.34 (d) If the county uses envelopes for mailing property tax statements and if the county
6.35agrees, a taxing district may include a notice with the property tax statement notifying
6.36taxpayers when the taxing district will begin its budget deliberations for the current
7.1year, and encouraging taxpayers to attend the hearings. If the county allows notices to
7.2be included in the envelope containing the property tax statement, and if more than
7.3one taxing district relative to a given property decides to include a notice with the tax
7.4statement, the county treasurer or auditor must coordinate the process and may combine
7.5the information on a single announcement.
7.6EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
7.7thereafter.
7.8 Sec. 6. [471B.01] DEFINITIONS.
7.9 Subdivision 1. Scope. For the purposes of this chapter, the terms defined in this
7.10section have the meanings given them.
7.11 Subd. 2. Local government. "Local government" means a county, town, school
7.12district, or statutory or home rule charter city.
7.13 Subd. 3. Local government of the same kind. "Local government of the same
7.14kind" means any category of the following: cities, counties, school districts, or towns.
7.15 Subd. 4. Same class. "Same class" means cities of the same class.
7.16 Subd. 5. School district. "School district" means a common, independent, or
7.17special school district and excludes charter schools.
7.18 Subd. 6. State mandate. "State mandate" means a state law or rule specifically
7.19directed at or related to local government structure, operation, services, programs, or
7.20financing that:
7.21(1) imposes a cost on a local government, whether or not the state appropriates
7.22money for the local government to cover the total costs of the mandate, or specifically
7.23authorizes the local government to impose a tax or fee to cover the costs;
7.24(2) decreases revenue available to a local government without a commensurate
7.25decrease in services and programs required by the law or rule;
7.26(3) makes a local government, or its officers or employees, civilly or criminally
7.27liable for failure to follow or enforce the law or rule;
7.28(4) restricts the ability of a local government to establish services, programs,
7.29policies, plans, or goals, or restricts its ability to raise revenue or finance its services,
7.30programs, policies, plans, or goals; or
7.31(5) implements or interprets federal law and, by its implementation or interpretation,
7.32increases or decreases programs, services, or funding levels.
7.33 Sec. 7. [471B.02] REFORM OR OPT OUT RESOLUTION AND PROCEDURES.
8.1 Subdivision 1. Local procedure. (a) A local government may, by written resolution
8.2of the governing body after public notice and hearing, propose that a state mandate
8.3imposed on all local governments of the same kind or class, except a state mandate under
8.4section 471B.03, should not apply to the local government. A local government also may
8.5include in a resolution recommendations for reforming a mandate. A local government
8.6must adopt a separate resolution for each mandate that the local government proposes
8.7should not apply to the local government. The resolution must:
8.8(1) specifically cite the state law or rule that imposes the mandate on the local
8.9government;
8.10(2) identify any costs of complying with the mandate and the total amount of federal
8.11and state funds available for complying with the mandate;
8.12(3) state the reasons the local government needs to opt out of the state mandate and
8.13may recommend mandate reforms to achieve greater efficiencies; and
8.14(4) indicate how the local government will otherwise meet the objectives of the
8.15mandate or why the objectives do not apply to the local government.
8.16(b) Before voting on the resolution, the governing body must give adequate public
8.17notice of the proposed resolution, including information on whether state or federal
8.18funding for the local government might be adversely affected. The governing body must
8.19hold at least one public hearing on the proposed resolution and provide opportunity for
8.20public comment. The governing body must encourage public participation in the hearing
8.21to determine the extent of public support for the proposed resolution.
8.22(c) The proponent of the proposed resolution must identify at the hearing:
8.23(1) the costs of complying with the mandate that exceed the state and federal funds
8.24allocated to the district for purposes of the mandate and recommend reforms for achieving
8.25greater efficiencies;
8.26(2) any potential loss of state or federal revenue that might result from opting out of
8.27the state mandate;
8.28(3) other policy issues or effects that might result;
8.29(4) the purposes for which the mandate was imposed;
8.30(5) any persons or categories of persons who will be adversely affected if the local
8.31government does not comply with the mandate; and
8.32(6) the costs and benefits of the mandate compared to the costs and benefits of
8.33inaction.
8.34(d) A local government that adopts a resolution must file the resolution with the
8.35state auditor.
8.36 Subd. 2. State procedure. The state auditor must:
9.1(1) list on the state auditor's Web site all state mandates cited in a resolution filed
9.2with the state auditor, identifying for each mandate the local governments that adopted
9.3and filed a resolution to opt out of a mandate, and whether the threshold under subdivision
9.43 for opting out is met;
9.5(2) keep a running total of the number and percent of local governments of the same
9.6kind and, if applicable, same class, that have filed a resolution to opt out; and
9.7(3) notify the legislature when the threshold under subdivision 3 for opting out is met.
9.8 Subd. 3. Threshold and certification; legislative oversight. (a) The state auditor
9.9must notify the legislature when the auditor certifies that the minimum number of local
9.10governments of the same kind and, if applicable, same class file resolutions under the
9.11requirements of this chapter. The minimum number is set in paragraph (b).
9.12(b) The minimum number of local governments of the same kind or class are:
9.13(1) six counties;
9.14(2) 25 home rule charter cities;
9.15(3) 50 statutory cities;
9.16(4) two cities of the first class;
9.17(5) 14 cities of the second class;
9.18(6) 11 cities of the third class;
9.19(7) 50 cities of the fourth class;
9.20(8) 75 towns; and
9.21(9) 24 school districts.
9.22 Subd. 4. Opt out of reform implementation and later opting out of reforms.
9.23After initial opt-out resolutions are approved by the legislature and take effect, other local
9.24governments of the same kind and, if applicable, same class may file resolutions to opt
9.25out of the same mandate. The later-filed resolutions must be consistent with the law
9.26enacted in response to the initial opt-out resolutions and later-filed resolutions are only
9.27effective to the extent authorized by that law. Each of these takes effect 30 days after the
9.28auditor accepts the filing.
9.29 Sec. 8. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20,
9.30is amended to read:
9.31 Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax
9.32capacity computed using the net tax capacity rates in section273.13 for taxes payable
9.33in the year of the aid distribution, and the market values, after the exclusion in section
9.34273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2)
9.35a city's fiscal disparities distribution tax capacity under section276A.06, subdivision 2 ,
10.1paragraph (b), or473F.08, subdivision 2 , paragraph (b), for taxes payable in the year prior
10.2to that for which aids are being calculated. The market value utilized in computing city
10.3net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
10.4industrial property as defined in section276A.01, subdivision 3 , or
473F.02, subdivision 3 ,
10.5multiplied by the ratio determined pursuant to section276A.06, subdivision 2 , paragraph
10.6(a), or473F.08, subdivision 2 , paragraph (a), (2) the market value of the captured value
10.7of tax increment financing districts as defined in section469.177, subdivision 2 , and (3)
10.8the market value of transmission lines deducted from a city's total net tax capacity under
10.9section273.425 . The city net tax capacity will be computed using equalized market values.
10.10 Sec. 9. REPEALER.
10.11Minnesota Statutes 2011 Supplement, section 273.13, subdivision 35, is repealed.
10.12EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
10.13thereafter.
1.3homestead market value exclusion; providing a procedure for local governments
1.4to opt out of state mandates;amending Minnesota Statutes 2011 Supplement,
1.5sections 126C.01, subdivision 3; 273.13, subdivision 34; 273.1393; 276.04,
1.6subdivision 2; 477A.011, subdivision 20; proposing coding for new law in
1.7Minnesota Statutes, chapter 273; proposing coding for new law as Minnesota
1.8Statutes, chapter 471B; repealing Minnesota Statutes 2011 Supplement, section
1.9273.13, subdivision 35.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2011 Supplement, section 126C.01, subdivision 3, is
1.12amended to read:
1.13 Subd. 3. Referendum market value. "Referendum market value" means the
1.14market value of all taxable property, excluding property classified as class 2, 4c(4), or
1.154c(12) under section
1.16garage, and surrounding one acre of land of an agricultural homestead is included in
1.17referendum market value.
1.18
1.19
1.20included in the definition of referendum market value and that has a class rate of less than
1.21one percent under section
1.22value times its class rate, multiplied by 100.
1.23EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
1.24thereafter.
2.1 Sec. 2. Minnesota Statutes 2011 Supplement, section 273.13, subdivision 34, is
2.2amended to read:
2.3 Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a
2.4portion of the market value of property owned by a veteran and serving as the veteran's
2.5homestead under this section is excluded in determining the property's taxable market
2.6value if the veteran has a service-connected disability of 70 percent or more as certified
2.7by the United States Department of Veterans Affairs. To qualify for exclusion under this
2.8subdivision, the veteran must have been honorably discharged from the United States
2.9armed forces, as indicated by United States Government Form DD214 or other official
2.10military discharge papers.
2.11 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
2.12excluded, except as provided in clause (2); and
2.13 (2) for a total (100 percent) and permanent disability, $300,000 of market value is
2.14excluded.
2.15 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
2.16clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
2.17spouse holds the legal or beneficial title to the homestead and permanently resides there,
2.18the exclusion shall carry over to the benefit of the veteran's spouse for the current taxes
2.19payable year and for five additional taxes payable years or until such time as the spouse
2.20remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
2.21Qualification under this paragraph requires an annual application under paragraph (h).
2.22(d) If the spouse of a member of any branch or unit of the United States armed
2.23forces who dies due to a service-connected cause while serving honorably in active
2.24service, as indicated on United States Government Form DD1300 or DD2064, holds
2.25the legal or beneficial title to a homestead and permanently resides there, the spouse is
2.26entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years,
2.27or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
2.28property, whichever comes first.
2.29(e) If a veteran meets the disability criteria of paragraph (a) but does not own
2.30property classified as homestead in the state of Minnesota, then the homestead of the
2.31veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
2.32would otherwise qualify for under paragraph (b).
2.33 (f) In the case of an agricultural homestead, only the portion of the property
2.34consisting of the house and garage and immediately surrounding one acre of land qualifies
2.35for the valuation exclusion under this subdivision.
3.1 (g) A property qualifying for a valuation exclusion under this subdivision is not
3.2eligible for the
3.3section 273.1387, or classification under subdivision 22, paragraph (b).
3.4 (h) To qualify for a valuation exclusion under this subdivision a property owner
3.5must apply to the assessor by July 1 of each assessment year, except that an annual
3.6reapplication is not required once a property has been accepted for a valuation exclusion
3.7under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
3.8the property continues to qualify until there is a change in ownership. For an application
3.9received after July 1 of any calendar year, the exclusion shall become effective for the
3.10following assessment year.
3.11(i) A first-time application by a qualifying spouse for the market value exclusion
3.12under paragraph (d) must be made any time within two years of the death of the service
3.13member.
3.14(j) For purposes of this subdivision:
3.15(1) "active service" has the meaning given in section
3.16(2) "own" means that the person's name is present as an owner on the property deed;
3.17(3) "primary family caregiver" means a person who is approved by the secretary of
3.18the United States Department of Veterans Affairs for assistance as the primary provider
3.19of personal care services for an eligible veteran under the Program of Comprehensive
3.20Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
3.21and
3.22(4) "veteran" has the meaning given the term in section
3.23(k) The purpose of this provision of law providing a level of homestead property tax
3.24relief for gravely disabled veterans, their primary family caregivers, and their surviving
3.25spouses is to help ease the burdens of war for those among our state's citizens who bear
3.26those burdens most heavily.
3.27EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
3.28thereafter.
3.29 Sec. 3. [273.1387] MANDATE RELIEF CREDIT.
3.30 Subdivision 1. Eligibility; credit amount. Each county auditor shall determine a
3.31mandate relief credit for each class 1a, 1b, and 2a homestead property within the county
3.32equal to 0.4 percent of the first $75,000 of market value of the property minus 0.15 percent
3.33of the market value in excess of $75,000. The credit amount may not be less than zero. In
3.34the case of an agricultural or resort homestead, only the market value of the house, garage,
3.35and immediately surrounding one acre of land is eligible in determining the property's
4.1mandate relief credit. In the case of a property that is classified as part homestead and
4.2part nonhomestead, the credit shall apply only to the homestead portion of the property;
4.3however, if a portion of a property is classified as nonhomestead solely because not all
4.4the owners occupy the property, not all the owners have qualifying relatives occupying
4.5the property, or not all the spouses of owners occupy the property, then the credit amount
4.6shall be initially computed as if that nonhomestead portion were also in the homestead
4.7class, and then prorated to the owner-occupant's percentage of ownership. For the
4.8purpose of this section, when an owner-occupant's spouse does not occupy the property,
4.9the percentage of ownership for the owner-occupant's spouse is one-half of the couple's
4.10ownership percentage.
4.11 Subd. 2. Credit reimbursement. The county auditor shall determine the tax
4.12reduction allowed under this section within the county for each taxes payable year and
4.13shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
4.14lists submitted by the county auditors under section
4.15shall also be certified on the abstracts of tax lists. The commissioner shall review the
4.16certifications for accuracy, and may make such changes as are deemed necessary, or return
4.17the certification to the county auditor for correction. The credit under this section must be
4.18used to proportionately reduce the net tax capacity-based property tax payable to each
4.19local taxing jurisdiction as provided in section
4.20 Subd. 3. Payment. (a) The commissioner of revenue shall reimburse each local
4.21taxing jurisdiction, other than school districts, for the tax reductions granted under this
4.22section in two equal installments on October 31 and December 26 of the taxes payable
4.23year for which the reductions are granted, including in each payment the prior year
4.24adjustments certified on the abstracts for that taxes payable year. The reimbursements
4.25related to tax increments shall be issued in one installment each year on December 26.
4.26(b) The commissioner of revenue shall certify the total of the tax reductions
4.27granted under this section for each taxes payable year within each school district
4.28to the commissioner of education, and the commissioner of education shall pay the
4.29reimbursement amounts to each school district as provided in section
4.30 Subd. 4. Appropriation. An amount sufficient to make the payments required by
4.31this section to taxing jurisdictions other than school districts is annually appropriated
4.32from the general fund to the commissioner of revenue. An amount sufficient to make the
4.33payments required by this section for school districts is annually appropriated from the
4.34general fund to the commissioner of education.
4.35EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
4.36thereafter.
5.1 Sec. 4. Minnesota Statutes 2011 Supplement, section 273.1393, is amended to read:
5.2273.1393 COMPUTATION OF NET PROPERTY TAXES.
5.3 Notwithstanding any other provisions to the contrary, "net" property taxes are
5.4determined by subtracting the credits in the order listed from the gross tax:
5.5 (1) disaster credit as provided in sections
5.6 (2) powerline credit as provided in section
5.7 (3) agricultural preserves credit as provided in section
5.8 (4) enterprise zone credit as provided in section
5.9 (5) disparity reduction credit;
5.10 (6) conservation tax credit as provided in section
5.11 (7) agricultural credit as provided in section
5.12(8) mandate relief credit as provided in section 273.1387;
5.13
5.14
5.16 The combination of all property tax credits must not exceed the gross tax amount.
5.17EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
5.18thereafter.
5.19 Sec. 5. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is
5.20amended to read:
5.21 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
5.22printing of the tax statements. The commissioner of revenue shall prescribe the form of
5.23the property tax statement and its contents. The tax statement must not state or imply
5.24that property tax credits are paid by the state of Minnesota. The statement must contain
5.25a tabulated statement of the dollar amount due to each taxing authority and the amount
5.26of the state tax from the parcel of real property for which a particular tax statement is
5.27prepared. The dollar amounts attributable to the county, the state tax, the voter approved
5.28school tax, the other local school tax, the township or municipality, and the total of
5.29the metropolitan special taxing districts as defined in section
5.30paragraph (i), must be separately stated. The amounts due all other special taxing districts,
5.31if any, may be aggregated except that any levies made by the regional rail authorities in the
5.32county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
5.33398A shall be listed on a separate line directly under the appropriate county's levy. If the
5.34county levy under this paragraph includes an amount for a lake improvement district as
6.1defined under sections
6.2must be separately stated from the remaining county levy amount. In the case of Ramsey
6.3County, if the county levy under this paragraph includes an amount for public library
6.4service under section
6.5from the remaining county levy amount. The amount of the tax on homesteads qualifying
6.6under the senior citizens' property tax deferral program under chapter 290B is the total
6.7amount of property tax before subtraction of the deferred property tax amount. The
6.8amount of the tax on contamination value imposed under sections
6.9must also be separately stated. The dollar amounts, including the dollar amount of any
6.10special assessments, may be rounded to the nearest even whole dollar. For purposes of this
6.11section whole odd-numbered dollars may be adjusted to the next higher even-numbered
6.12dollar. The amount of market value excluded under section
6.13must also be listed on the tax statement.
6.14 (b) The property tax statements for manufactured homes and sectional structures
6.15taxed as personal property shall contain the same information that is required on the
6.16tax statements for real property.
6.17 (c) Real and personal property tax statements must contain the following information
6.18in the order given in this paragraph. The information must contain the current year tax
6.19information in the right column with the corresponding information for the previous year
6.20in a column on the left:
6.21 (1) the property's estimated market value under section
6.22
6.23
6.24
6.26
6.27(4) the mandate relief credit under section 273.1387;
6.28 (5) for homestead agricultural properties, the credit under section
6.29 (6) any credits received under sections
6.31credit received under section
6.32tax relief"; and
6.33 (7) the net tax payable in the manner required in paragraph (a).
6.34 (d) If the county uses envelopes for mailing property tax statements and if the county
6.35agrees, a taxing district may include a notice with the property tax statement notifying
6.36taxpayers when the taxing district will begin its budget deliberations for the current
7.1year, and encouraging taxpayers to attend the hearings. If the county allows notices to
7.2be included in the envelope containing the property tax statement, and if more than
7.3one taxing district relative to a given property decides to include a notice with the tax
7.4statement, the county treasurer or auditor must coordinate the process and may combine
7.5the information on a single announcement.
7.6EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
7.7thereafter.
7.8 Sec. 6. [471B.01] DEFINITIONS.
7.9 Subdivision 1. Scope. For the purposes of this chapter, the terms defined in this
7.10section have the meanings given them.
7.11 Subd. 2. Local government. "Local government" means a county, town, school
7.12district, or statutory or home rule charter city.
7.13 Subd. 3. Local government of the same kind. "Local government of the same
7.14kind" means any category of the following: cities, counties, school districts, or towns.
7.15 Subd. 4. Same class. "Same class" means cities of the same class.
7.16 Subd. 5. School district. "School district" means a common, independent, or
7.17special school district and excludes charter schools.
7.18 Subd. 6. State mandate. "State mandate" means a state law or rule specifically
7.19directed at or related to local government structure, operation, services, programs, or
7.20financing that:
7.21(1) imposes a cost on a local government, whether or not the state appropriates
7.22money for the local government to cover the total costs of the mandate, or specifically
7.23authorizes the local government to impose a tax or fee to cover the costs;
7.24(2) decreases revenue available to a local government without a commensurate
7.25decrease in services and programs required by the law or rule;
7.26(3) makes a local government, or its officers or employees, civilly or criminally
7.27liable for failure to follow or enforce the law or rule;
7.28(4) restricts the ability of a local government to establish services, programs,
7.29policies, plans, or goals, or restricts its ability to raise revenue or finance its services,
7.30programs, policies, plans, or goals; or
7.31(5) implements or interprets federal law and, by its implementation or interpretation,
7.32increases or decreases programs, services, or funding levels.
7.33 Sec. 7. [471B.02] REFORM OR OPT OUT RESOLUTION AND PROCEDURES.
8.1 Subdivision 1. Local procedure. (a) A local government may, by written resolution
8.2of the governing body after public notice and hearing, propose that a state mandate
8.3imposed on all local governments of the same kind or class, except a state mandate under
8.4section 471B.03, should not apply to the local government. A local government also may
8.5include in a resolution recommendations for reforming a mandate. A local government
8.6must adopt a separate resolution for each mandate that the local government proposes
8.7should not apply to the local government. The resolution must:
8.8(1) specifically cite the state law or rule that imposes the mandate on the local
8.9government;
8.10(2) identify any costs of complying with the mandate and the total amount of federal
8.11and state funds available for complying with the mandate;
8.12(3) state the reasons the local government needs to opt out of the state mandate and
8.13may recommend mandate reforms to achieve greater efficiencies; and
8.14(4) indicate how the local government will otherwise meet the objectives of the
8.15mandate or why the objectives do not apply to the local government.
8.16(b) Before voting on the resolution, the governing body must give adequate public
8.17notice of the proposed resolution, including information on whether state or federal
8.18funding for the local government might be adversely affected. The governing body must
8.19hold at least one public hearing on the proposed resolution and provide opportunity for
8.20public comment. The governing body must encourage public participation in the hearing
8.21to determine the extent of public support for the proposed resolution.
8.22(c) The proponent of the proposed resolution must identify at the hearing:
8.23(1) the costs of complying with the mandate that exceed the state and federal funds
8.24allocated to the district for purposes of the mandate and recommend reforms for achieving
8.25greater efficiencies;
8.26(2) any potential loss of state or federal revenue that might result from opting out of
8.27the state mandate;
8.28(3) other policy issues or effects that might result;
8.29(4) the purposes for which the mandate was imposed;
8.30(5) any persons or categories of persons who will be adversely affected if the local
8.31government does not comply with the mandate; and
8.32(6) the costs and benefits of the mandate compared to the costs and benefits of
8.33inaction.
8.34(d) A local government that adopts a resolution must file the resolution with the
8.35state auditor.
8.36 Subd. 2. State procedure. The state auditor must:
9.1(1) list on the state auditor's Web site all state mandates cited in a resolution filed
9.2with the state auditor, identifying for each mandate the local governments that adopted
9.3and filed a resolution to opt out of a mandate, and whether the threshold under subdivision
9.43 for opting out is met;
9.5(2) keep a running total of the number and percent of local governments of the same
9.6kind and, if applicable, same class, that have filed a resolution to opt out; and
9.7(3) notify the legislature when the threshold under subdivision 3 for opting out is met.
9.8 Subd. 3. Threshold and certification; legislative oversight. (a) The state auditor
9.9must notify the legislature when the auditor certifies that the minimum number of local
9.10governments of the same kind and, if applicable, same class file resolutions under the
9.11requirements of this chapter. The minimum number is set in paragraph (b).
9.12(b) The minimum number of local governments of the same kind or class are:
9.13(1) six counties;
9.14(2) 25 home rule charter cities;
9.15(3) 50 statutory cities;
9.16(4) two cities of the first class;
9.17(5) 14 cities of the second class;
9.18(6) 11 cities of the third class;
9.19(7) 50 cities of the fourth class;
9.20(8) 75 towns; and
9.21(9) 24 school districts.
9.22 Subd. 4. Opt out of reform implementation and later opting out of reforms.
9.23After initial opt-out resolutions are approved by the legislature and take effect, other local
9.24governments of the same kind and, if applicable, same class may file resolutions to opt
9.25out of the same mandate. The later-filed resolutions must be consistent with the law
9.26enacted in response to the initial opt-out resolutions and later-filed resolutions are only
9.27effective to the extent authorized by that law. Each of these takes effect 30 days after the
9.28auditor accepts the filing.
9.29 Sec. 8. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20,
9.30is amended to read:
9.31 Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax
9.32capacity computed using the net tax capacity rates in section
9.33in the year of the aid distribution, and the market values
9.34
9.35a city's fiscal disparities distribution tax capacity under section
10.1paragraph (b), or
10.2to that for which aids are being calculated. The market value utilized in computing city
10.3net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
10.4industrial property as defined in section
10.5multiplied by the ratio determined pursuant to section
10.6(a), or
10.7of tax increment financing districts as defined in section
10.8the market value of transmission lines deducted from a city's total net tax capacity under
10.9section
10.10 Sec. 9. REPEALER.
10.11Minnesota Statutes 2011 Supplement, section 273.13, subdivision 35, is repealed.
10.12EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
10.13thereafter.
