Bill Text: MN HF3305 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Residential homestead market value credit reinstated and homestead market value exclusion repealed.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2014-03-27 - Introduction and first reading, referred to Taxes [HF3305 Detail]
Download: Minnesota-2013-HF3305-Introduced.html
1.2relating to taxation; property; reinstating the residential homestead market
1.3value credit and repealing the homestead market value exclusion;amending
1.4Minnesota Statutes 2012, sections 126C.01, subdivision 3; 273.13, subdivision
1.534; 273.1384, subdivisions 3, 4, by adding a subdivision; 273.1393; 469.174,
1.6subdivision 25; 469.177, subdivision 1; Minnesota Statutes 2013 Supplement,
1.7sections 273.032; 273.124, subdivisions 3a, 13b; 276.04, subdivision 2; repealing
1.8Minnesota Statutes 2012, section 273.13, subdivision 35; Minnesota Statutes
1.92013 Supplement, section 469.177, subdivision 1d.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 126C.01, subdivision 3, is amended to read:
1.12 Subd. 3. Referendum market value. "Referendum market value" means the
1.13market value of all taxable property, excluding property classified as class 2, 4c(4), or
1.144c(12) under section273.13 . The portion of class 2a property consisting of the house,
1.15garage, and surrounding one acre of land of an agricultural homestead is included in
1.16referendum market value.For the purposes of this subdivision, in the case of class 1a,
1.171b, or 2a property, "market value" means the value prior to the exclusion under section
1.18273.13, subdivision 35. Any class of property, or any portion of a class of property, that is
1.19included in the definition of referendum market value and that has a class rate of less than
1.20one percent under section273.13 shall have a referendum market value equal to its market
1.21value times its class rate, multiplied by 100.
1.22EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
1.23thereafter.
2.1 Sec. 2. Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:
2.2273.032 MARKET VALUE DEFINITION.
2.3 (a) Unless otherwise provided, for the purpose of determining any property tax
2.4levy limitation based on market value or any limit on net debt, the issuance of bonds,
2.5certificates of indebtedness, or capital notes based on market value, any qualification to
2.6receive state aid based on market value, or any state aid amount based on market value,
2.7the terms "market value," "estimated market value," and "market valuation," whether
2.8equalized or unequalized, mean the estimated market value of taxable property within the
2.9local unit of government before any of the following or similar adjustments for:
2.10 (1) the market value exclusions under:
2.11 (i) section273.11, subdivisions 14a and 14c (vacant platted land);
2.12 (ii) section273.11, subdivision 16 (certain improvements to homestead property);
2.13 (iii) section273.11, subdivisions 19 and 20 (certain improvements to business
2.14properties);
2.15 (iv) section273.11, subdivision 21 (homestead property damaged by mold);
2.16 (v) section273.11, subdivision 22 (qualifying lead hazardous reduction projects);
2.17 (vi) section273.13, subdivision 34 (homestead of a disabled veteran or family
2.18caregiver);
2.19(vii) section
273.13, subdivision 35 (homestead market value exclusion); or
2.20 (2) the deferment of value under:
2.21 (i) the Minnesota Agricultural Property Tax Law, section273.111 ;
2.22 (ii) the Aggregate Resource Preservation Law, section273.1115 ;
2.23 (iii) the Minnesota Open Space Property Tax Law, section273.112 ;
2.24 (iv) the rural preserves property tax program, section273.114 ; or
2.25 (v) the Metropolitan Agricultural Preserves Act, section473H.10 ; or
2.26 (3) the adjustments to tax capacity for:
2.27 (i) tax increment financing under sections469.174 to
469.1794 ;
2.28 (ii) fiscal disparities under chapter 276A or 473F; or
2.29 (iii) powerline credit under section273.425 .
2.30 (b) Estimated market value under paragraph (a) also includes the market value
2.31of tax-exempt property if the applicable law specifically provides that the limitation,
2.32qualification, or aid calculation includes tax-exempt property.
2.33 (c) Unless otherwise provided, "market value," "estimated market value," and
2.34"market valuation" for purposes of property tax levy limitations and calculation of state
2.35aid, refer to the estimated market value for the previous assessment year and for purposes
3.1of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
3.2refer to the estimated market value as last finally equalized.
3.3 (d) For purposes of a provision of a home rule charter or of any special law that is not
3.4codified in the statutes and that imposes a levy limitation based on market value or any limit
3.5on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
3.6value, the terms "market value," "taxable market value," and "market valuation," whether
3.7equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
3.8EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
3.9thereafter.
3.10 Sec. 3. Minnesota Statutes 2013 Supplement, section 273.124, subdivision 3a, is
3.11amended to read:
3.12 Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home
3.13park is owned by a corporation or association organized under chapter 308A or 308B,
3.14and each person who owns a share or shares in the corporation or association is entitled
3.15to occupy a lot within the park, the corporation or association may claim homestead
3.16treatment for the park. Each lot must be designated by legal description or number, and
3.17each lot is limited to not more than one-half acre of land.
3.18 (b) The manufactured home park shall be entitled to homestead treatment if all
3.19of the following criteria are met:
3.20 (1) the occupant or the cooperative corporation or association is paying the ad
3.21valorem property taxes and any special assessments levied against the land and structure
3.22either directly, or indirectly through dues to the corporation or association; and
3.23 (2) the corporation or association organized under chapter 308A or 308B is wholly
3.24owned by persons having a right to occupy a lot owned by the corporation or association.
3.25 (c) A charitable corporation, organized under the laws of Minnesota with no
3.26outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
3.27tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
3.28park if its members hold residential participation warrants entitling them to occupy a lot
3.29in the manufactured home park.
3.30 (d) "Homestead treatment" under this subdivision means the class rate provided for
3.31class 4c property classified under section273.13, subdivision 25 , paragraph (d), clause (5),
3.32item (ii). The homestead market valueexclusion credit under section
273.13, subdivision
3.3335 273.1384, does not apply and the property taxes assessed against the park shall not be
3.34included in the determination of taxes payable for rent paid under section290A.03 .
4.1EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
4.2thereafter.
4.3 Sec. 4. Minnesota Statutes 2013 Supplement, section 273.124, subdivision 13b,
4.4is amended to read:
4.5 Subd. 13b. Improper homestead. (a) If the commissioner finds that a property
4.6owner may be claiming a fraudulent homestead, the commissioner shall notify the
4.7appropriate counties. Within 90 days of the notification, the county assessor shall
4.8investigate to determine if the homestead classification was properly claimed. If the
4.9property owner does not qualify, the county assessor shall notify the county auditor who
4.10will determine the amount of homestead benefits that had been improperly allowed. For
4.11the purpose of this subdivision, "homestead benefits" meansthe tax reduction resulting
4.12from the classification as a homestead and the homestead market value exclusion under
4.13section
273.13, the taconite homestead credit under section
273.135 , the residential and
4.14agricultural homesteadcredit credits under section
273.1384 , and the supplemental
4.15homestead credit under section273.1391 .
4.16 The county auditor shall send a notice to the person who owned the affected property
4.17at the time the homestead application related to the improper homestead was filed,
4.18demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
4.19of the homestead benefits. The person notified may appeal the county's determination
4.20by serving copies of a petition for review with county officials as provided in section
4.21278.01
and filing proof of service as provided in section
278.01 with the Minnesota Tax
4.22Court within 60 days of the date of the notice from the county. Procedurally, the appeal
4.23is governed by the provisions in chapter 271 which apply to the appeal of a property tax
4.24assessment or levy, but without requiring any prepayment of the amount in controversy. If
4.25the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
4.26has been filed, the county auditor shall certify the amount of taxes and penalty to the county
4.27treasurer. The county treasurer will add interest to the unpaid homestead benefits and
4.28penalty amounts at the rate provided in section279.03 for real property taxes becoming
4.29delinquent in the calendar year during which the amount remains unpaid. Interest may be
4.30assessed for the period beginning 60 days after demand for payment was made.
4.31 If the person notified is the current owner of the property, the treasurer may add the
4.32total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
4.33otherwise payable on the property by including the amounts on the property tax statements
4.34under section276.04, subdivision 3 . The amounts added under this paragraph to the ad
4.35valorem taxes shall include interest accrued through December 31 of the year preceding
5.1the taxes payable year for which the amounts are first added. These amounts, when added
5.2to the property tax statement, become subject to all the laws for the enforcement of real or
5.3personal property taxes for that year, and for any subsequent year.
5.4 If the person notified is not the current owner of the property, the treasurer may
5.5collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
5.6the powers granted in sections277.20 and
277.21 without exclusion, to enforce payment
5.7of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
5.8tax obligations of the person who owned the property at the time the application related to
5.9the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
5.10personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
5.11those amounts on the tax lists against the property as provided in this paragraph to the extent
5.12that the current owner agrees in writing. On all demands, billings, property tax statements,
5.13and related correspondence, the county must list and state separately the amounts of
5.14homestead benefits, penalty, interest and costs being demanded, billed or assessed.
5.15 (b) Any amount of homestead benefits recovered by the county from the property
5.16owner shall be distributed to the county, city or town, and school district where the
5.17property is located in the same proportion that each taxing district's levy was to the total
5.18of the three taxing districts' levy for the current year. Any amount recovered attributable
5.19to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
5.20deposited in the taconite property tax relief account. Any amount recovered that is
5.21attributable to supplemental homestead credit is to be transmitted to the commissioner of
5.22revenue for deposit in the general fund of the state treasury. The total amount of penalty
5.23collected must be deposited in the county general fund.
5.24 (c) If a property owner has applied for more than one homestead and the county
5.25assessors cannot determine which property should be classified as homestead, the county
5.26assessors will refer the information to the commissioner. The commissioner shall make
5.27the determination and notify the counties within 60 days.
5.28EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
5.29thereafter.
5.30 Sec. 5. Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:
5.31 Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a
5.32portion of the market value of property owned by a veteran and serving as the veteran's
5.33homestead under this section is excluded in determining the property's taxable market
5.34value if the veteran has a service-connected disability of 70 percent or more as certified
5.35by the United States Department of Veterans Affairs. To qualify for exclusion under this
6.1subdivision, the veteran must have been honorably discharged from the United States
6.2armed forces, as indicated by United States Government Form DD214 or other official
6.3military discharge papers.
6.4 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
6.5excluded, except as provided in clause (2); and
6.6 (2) for a total (100 percent) and permanent disability, $300,000 of market value is
6.7excluded.
6.8 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
6.9clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
6.10spouse holds the legal or beneficial title to the homestead and permanently resides there,
6.11the exclusion shall carry over to the benefit of the veteran's spouse for the current taxes
6.12payable year and for five additional taxes payable years or until such time as the spouse
6.13remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
6.14Qualification under this paragraph requires an annual application under paragraph (h).
6.15(d) If the spouse of a member of any branch or unit of the United States armed
6.16forces who dies due to a service-connected cause while serving honorably in active
6.17service, as indicated on United States Government Form DD1300 or DD2064, holds
6.18the legal or beneficial title to a homestead and permanently resides there, the spouse is
6.19entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years,
6.20or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
6.21property, whichever comes first.
6.22(e) If a veteran meets the disability criteria of paragraph (a) but does not own
6.23property classified as homestead in the state of Minnesota, then the homestead of the
6.24veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
6.25would otherwise qualify for under paragraph (b).
6.26 (f) In the case of an agricultural homestead, only the portion of the property
6.27consisting of the house and garage and immediately surrounding one acre of land qualifies
6.28for the valuation exclusion under this subdivision.
6.29 (g) A property qualifying for a valuation exclusion under this subdivision is not
6.30eligible for themarket value exclusion under subdivision 35 residential homestead market
6.31value credit under section 273.1384, or classification under subdivision 22, paragraph (b).
6.32 (h) To qualify for a valuation exclusion under this subdivision a property owner
6.33must apply to the assessor by July 1 of each assessment year, except that an annual
6.34reapplication is not required once a property has been accepted for a valuation exclusion
6.35under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
6.36the property continues to qualify until there is a change in ownership. For an application
7.1received after July 1 of any calendar year, the exclusion shall become effective for the
7.2following assessment year.
7.3(i) A first-time application by a qualifying spouse for the market value exclusion under
7.4paragraph (d) must be made any time within two years of the death of the service member.
7.5(j) For purposes of this subdivision:
7.6(1) "active service" has the meaning given in section190.05 ;
7.7(2) "own" means that the person's name is present as an owner on the property deed;
7.8(3) "primary family caregiver" means a person who is approved by the secretary of
7.9the United States Department of Veterans Affairs for assistance as the primary provider
7.10of personal care services for an eligible veteran under the Program of Comprehensive
7.11Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
7.12and
7.13(4) "veteran" has the meaning given the term in section197.447 .
7.14(k) The purpose of this provision of law providing a level of homestead property tax
7.15relief for gravely disabled veterans, their primary family caregivers, and their surviving
7.16spouses is to help ease the burdens of war for those among our state's citizens who bear
7.17those burdens most heavily.
7.18EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
7.19thereafter.
7.20 Sec. 6. Minnesota Statutes 2012, section 273.1384, is amended by adding a subdivision
7.21to read:
7.22 Subd. 1a. Residential homestead market value credit. Each county auditor shall
7.23determine a homestead credit for each class 1a, 1b, and 2a homestead property within the
7.24county equal to 0.4 percent of the first $76,000 of market value of the property minus .09
7.25percent of the market value in excess of $76,000. The credit amount may not be less than
7.26zero. In the case of an agricultural or resort homestead, only the market value of the
7.27house, garage, and immediately surrounding one acre of land is eligible in determining the
7.28property's homestead credit. In the case of a property that is classified as part homestead
7.29and part nonhomestead, (i) the credit shall apply only to the homestead portion of the
7.30property, but (ii) if a portion of a property is classified as nonhomestead solely because not
7.31all the owners occupy the property, not all the owners have qualifying relatives occupying
7.32the property, or solely because not all the spouses of owners occupy the property, the
7.33credit amount shall be initially computed as if that nonhomestead portion were also in
7.34the homestead class and then prorated to the owner-occupant's percentage of ownership.
7.35For the purpose of this section, when an owner-occupant's spouse does not occupy the
8.1property, the percentage of ownership for the owner-occupant spouse is one-half of the
8.2couple's ownership percentage.
8.3EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
8.4thereafter.
8.5 Sec. 7. Minnesota Statutes 2012, section 273.1384, subdivision 3, is amended to read:
8.6 Subd. 3. Credit reimbursements. The county auditor shall determine the tax
8.7reductions allowed undersubdivision 2 this section within the county for each taxes
8.8payable year and shall certify that amount to the commissioner of revenue as a part of the
8.9abstracts of tax lists submitted by the county auditors under section275.29 . Any prior
8.10year adjustments shall also be certified on the abstracts of tax lists. The commissioner
8.11shall review the certifications for accuracy, and may make such changes as are deemed
8.12necessary, or return the certification to the county auditor for correction. The credit under
8.13this section must be used to proportionately reduce the net tax capacity-based property tax
8.14payable to each local taxing jurisdiction as provided in section273.1393 .
8.15EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
8.16thereafter.
8.17 Sec. 8. Minnesota Statutes 2012, section 273.1384, subdivision 4, is amended to read:
8.18 Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local
8.19taxing jurisdiction, other than school districts, for the tax reductions granted under
8.20subdivision 2 this section in two equal installments on October 31 and December 26 of the
8.21taxes payable year for which the reductions are granted, including in each payment the prior
8.22year adjustments certified on the abstracts for that taxes payable year. The reimbursements
8.23related to tax increments shall be issued in one installment each year on December 26.
8.24(b) The commissioner of revenue shall certify the total of the tax reductions granted
8.25undersubdivision 2 this section for each taxes payable year within each school district to
8.26the commissioner of the Department of Education and the commissioner of education shall
8.27pay the reimbursement amounts to each school district as provided in section273.1392 .
8.28EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
8.29thereafter.
8.30 Sec. 9. Minnesota Statutes 2012, section 273.1393, is amended to read:
8.31273.1393 COMPUTATION OF NET PROPERTY TAXES.
9.1 Notwithstanding any other provisions to the contrary, "net" property taxes are
9.2determined by subtracting the credits in the order listed from the gross tax:
9.3 (1) disaster credit as provided in sections273.1231 to
273.1235 ;
9.4 (2) powerline credit as provided in section273.42 ;
9.5 (3) agricultural preserves credit as provided in section473H.10 ;
9.6 (4) enterprise zone credit as provided in section469.171 ;
9.7 (5) disparity reduction credit;
9.8 (6) conservation tax credit as provided in section273.119 ;
9.9 (7) homestead and agriculturalcredit credits as provided in section
273.1384 ;
9.10 (8) taconite homestead credit as provided in section273.135 ;
9.11 (9) supplemental homestead credit as provided in section273.1391 ; and
9.12 (10) the bovine tuberculosis zone credit, as provided in section273.113 .
9.13 The combination of all property tax credits must not exceed the gross tax amount.
9.14EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
9.15thereafter.
9.16 Sec. 10. Minnesota Statutes 2013 Supplement, section 276.04, subdivision 2, is
9.17amended to read:
9.18 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing
9.19of the tax statements. The commissioner of revenue shall prescribe the form of the property
9.20tax statement and its contents. The tax statement must not state or imply that property tax
9.21credits are paid by the state of Minnesota. The statement must contain a tabulated statement
9.22of the dollar amount due to each taxing authority and the amount of the state tax from the
9.23parcel of real property for which a particular tax statement is prepared. The dollar amounts
9.24attributable to the county, the state tax, the voter approved school tax, the other local school
9.25tax, the township or municipality, and the total of the metropolitan special taxing districts
9.26as defined in section275.065, subdivision 3 , paragraph (i), must be separately stated.
9.27The amounts due all other special taxing districts, if any, may be aggregated except that
9.28any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
9.29Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
9.30line directly under the appropriate county's levy. If the county levy under this paragraph
9.31includes an amount for a lake improvement district as defined under sections103B.501
9.32to
103B.581 , the amount attributable for that purpose must be separately stated from the
9.33remaining county levy amount. In the case of Ramsey County, if the county levy under this
9.34paragraph includes an amount for public library service under section134.07 , the amount
9.35attributable for that purpose may be separated from the remaining county levy amount.
10.1The amount of the tax on homesteads qualifying under the senior citizens' property tax
10.2deferral program under chapter 290B is the total amount of property tax before subtraction
10.3of the deferred property tax amount. The amount of the tax on contamination value
10.4imposed under sections270.91 to
270.98 , if any, must also be separately stated. The dollar
10.5amounts, including the dollar amount of any special assessments, may be rounded to the
10.6nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
10.7be adjusted to the next higher even-numbered dollar. The amount of market value excluded
10.8under section273.11, subdivision 16 , if any, must also be listed on the tax statement.
10.9 (b) The property tax statements for manufactured homes and sectional structures
10.10taxed as personal property shall contain the same information that is required on the
10.11tax statements for real property.
10.12 (c) Real and personal property tax statements must contain the following information
10.13in the order given in this paragraph. The information must contain the current year tax
10.14information in the right column with the corresponding information for the previous year
10.15in a column on the left:
10.16 (1) the property's estimated market value under section273.11, subdivision 1 ;
10.17(2) the property's homestead market value exclusion under section
273.13,
10.18subdivision 35;
10.19(3) (2) the property's taxable market value under section
272.03, subdivision 15 ;
10.20(4) (3) the property's gross tax, before credits;
10.21(5) (4) for homestead residential and agricultural properties, the credit credits under
10.22section273.1384 ;
10.23(6) (5) any credits received under sections
273.119 ;
273.1234 or
273.1235 ;
273.135 ;
10.24273.1391
;
273.1398, subdivision 4 ;
469.171 ; and
473H.10 , except that the amount of
10.25credit received under section273.135 must be separately stated and identified as "taconite
10.26tax relief"; and
10.27(7) (6) the net tax payable in the manner required in paragraph (a).
10.28 (d) If the county uses envelopes for mailing property tax statements and if the county
10.29agrees, a taxing district may include a notice with the property tax statement notifying
10.30taxpayers when the taxing district will begin its budget deliberations for the current
10.31year, and encouraging taxpayers to attend the hearings. If the county allows notices to
10.32be included in the envelope containing the property tax statement, and if more than
10.33one taxing district relative to a given property decides to include a notice with the tax
10.34statement, the county treasurer or auditor must coordinate the process and may combine
10.35the information on a single announcement.
11.1EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
11.2thereafter.
11.3 Sec. 11. Minnesota Statutes 2012, section 469.174, subdivision 25, is amended to read:
11.4 Subd. 25. Increment. "Increment," "tax increment," "tax increment revenues,"
11.5"revenues derived from tax increment," and other similar terms for a district include:
11.6(1) taxes paid by the captured net tax capacity, but excluding any excess taxes, as
11.7computed under section469.177 ;
11.8(2) the proceeds from the sale or lease of property, tangible or intangible, to the
11.9extent the property was purchased by the authority with tax increments;
11.10(3) principal and interest received on loans or other advances made by the authority
11.11with tax increments;
11.12(4) interest or other investment earnings on or from tax increments;and
11.13(5) repayments or return of tax increments made to the authority under agreements
11.14for districts for which the request for certification was made after August 1, 1993.; and
11.15(6) the market value homestead credit paid to the authority under section 273.1384.
11.16EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
11.17thereafter.
11.18 Sec. 12. Minnesota Statutes 2012, section 469.177, subdivision 1, is amended to read:
11.19 Subdivision 1. Original net tax capacity. (a) Upon or after adoption of a tax
11.20increment financing plan, the auditor of any county in which the district is situated shall,
11.21upon request of the authority, certify the original net tax capacity of the tax increment
11.22financing district and that portion of the district overlying any subdistrict as described in the
11.23tax increment financing plan and shall certify in each year thereafter the amount by which
11.24the original net tax capacity has increased or decreased as a result of a change in tax exempt
11.25status of property within the district and any subdistrict, reduction or enlargement of the
11.26district or changes pursuant to subdivision 4. The auditor shall certify the amount within 30
11.27days after receipt of the request and sufficient information to identify the parcels included in
11.28the district. The certification relates to the taxes payable year as provided in subdivision 6.
11.29 (b) If the classification under section273.13 of property located in a district changes
11.30to a classification that has a different assessment ratio, the original net tax capacity of that
11.31property must be redetermined at the time when its use is changed as if the property had
11.32originally been classified in the same class in which it is classified after its use is changed.
11.33 (c) The amount to be added to the original net tax capacity of the district as a result
11.34of previously tax exempt real property within the district becoming taxable equals the net
12.1tax capacity of the real property as most recently assessed pursuant to section273.18 or, if
12.2that assessment was made more than one year prior to the date of title transfer rendering
12.3the property taxable, the net tax capacity assessed by the assessor at the time of the
12.4transfer. If improvements are made to tax exempt property after the municipality approves
12.5the district and before the parcel becomes taxable, the assessor shall, at the request of
12.6the authority, separately assess the estimated market value of the improvements. If the
12.7property becomes taxable, the county auditor shall add to original net tax capacity, the net
12.8tax capacity of the parcel, excluding the separately assessed improvements. If substantial
12.9taxable improvements were made to a parcel after certification of the district and if the
12.10property later becomes tax exempt, in whole or part, as a result of the authority acquiring
12.11the property through foreclosure or exercise of remedies under a lease or other revenue
12.12agreement or as a result of tax forfeiture, the amount to be added to the original net tax
12.13capacity of the district as a result of the property again becoming taxable is the amount
12.14of the parcel's value that was included in original net tax capacity when the parcel was
12.15first certified. The amount to be added to the original net tax capacity of the district as a
12.16result of enlargements equals the net tax capacity of the added real property as most
12.17recently certified by the commissioner of revenue as of the date of modification of the tax
12.18increment financing plan pursuant to section469.175, subdivision 4 .
12.19 (d) If the net tax capacity of a property increases because the property no longer
12.20qualifies under the Minnesota Agricultural Property Tax Law, section273.111 ; the
12.21Minnesota Open Space Property Tax Law, section273.112 ; or the Metropolitan
12.22Agricultural Preserves Act, chapter 473H, the Rural Preserve Property Tax Program
12.23under section273.114 , or because platted, unimproved property is improved or market
12.24value is increased after approval of the plat under section273.11, subdivision 14a or 14b,
12.25the increase in net tax capacity must be added to the original net tax capacity.If the
12.26net tax capacity of a property increases because the property no longer qualifies for the
12.27homestead market value exclusion under section
273.13, subdivision 35, the increase in
12.28net tax capacity must be added to original net tax capacity if the original construction of
12.29the affected home was completed before the date the assessor certified the original net
12.30tax capacity of the district.
12.31 (e) The amount to be subtracted from the original net tax capacity of the district as a
12.32result of previously taxable real property within the district becoming tax exempt or
12.33qualifying in whole or part for an exclusion from taxable market value, or a reduction in
12.34the geographic area of the district, shall be the amount of original net tax capacity initially
12.35attributed to the property becoming tax exempt, being excluded from taxable market
12.36value, or being removed from the district. If the net tax capacity of property located within
13.1the tax increment financing district is reduced by reason of a court-ordered abatement,
13.2stipulation agreement, voluntary abatement made by the assessor or auditor or by order
13.3of the commissioner of revenue, the reduction shall be applied to the original net tax
13.4capacity of the district when the property upon which the abatement is made has not been
13.5improved since the date of certification of the district and to the captured net tax capacity
13.6of the district in each year thereafter when the abatement relates to improvements made
13.7after the date of certification. The county auditor may specify reasonable form and content
13.8of the request for certification of the authority and any modification thereof pursuant to
13.9section469.175, subdivision 4 .
13.10 (f) If a parcel of property contained a substandard building or improvements described
13.11in section469.174, subdivision 10 , paragraph (e), that were demolished or removed and if
13.12the authority elects to treat the parcel as occupied by a substandard building under section
13.13469.174, subdivision 10
, paragraph (b), or by improvements under section
469.174,
13.14subdivision 10 , paragraph (e), the auditor shall certify the original net tax capacity of the
13.15parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated
13.16market value of the parcel for the year in which the building or other improvements were
13.17demolished or removed, but applying the class rates for the current year.
13.18 (g) For a redevelopment district qualifying under section469.174, subdivision 10 ,
13.19paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
13.20the land as the original tax capacity for any parcel in the district that contains a building
13.21that suffered substantial damage as a result of the disaster or emergency.
13.22EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
13.23thereafter.
13.24 Sec. 13. REPEALER.
13.25(a) Minnesota Statutes 2012, section 273.13, subdivision 35, is repealed.
13.26(b) Minnesota Statutes 2013 Supplement, section 469.177, subdivision 1d, is
13.27repealed.
13.28EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
13.29thereafter.
1.3value credit and repealing the homestead market value exclusion;amending
1.4Minnesota Statutes 2012, sections 126C.01, subdivision 3; 273.13, subdivision
1.534; 273.1384, subdivisions 3, 4, by adding a subdivision; 273.1393; 469.174,
1.6subdivision 25; 469.177, subdivision 1; Minnesota Statutes 2013 Supplement,
1.7sections 273.032; 273.124, subdivisions 3a, 13b; 276.04, subdivision 2; repealing
1.8Minnesota Statutes 2012, section 273.13, subdivision 35; Minnesota Statutes
1.92013 Supplement, section 469.177, subdivision 1d.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 126C.01, subdivision 3, is amended to read:
1.12 Subd. 3. Referendum market value. "Referendum market value" means the
1.13market value of all taxable property, excluding property classified as class 2, 4c(4), or
1.144c(12) under section
1.15garage, and surrounding one acre of land of an agricultural homestead is included in
1.16referendum market value.
1.17
1.18
1.19included in the definition of referendum market value and that has a class rate of less than
1.20one percent under section
1.21value times its class rate, multiplied by 100.
1.22EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
1.23thereafter.
2.1 Sec. 2. Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:
2.2273.032 MARKET VALUE DEFINITION.
2.3 (a) Unless otherwise provided, for the purpose of determining any property tax
2.4levy limitation based on market value or any limit on net debt, the issuance of bonds,
2.5certificates of indebtedness, or capital notes based on market value, any qualification to
2.6receive state aid based on market value, or any state aid amount based on market value,
2.7the terms "market value," "estimated market value," and "market valuation," whether
2.8equalized or unequalized, mean the estimated market value of taxable property within the
2.9local unit of government before any of the following or similar adjustments for:
2.10 (1) the market value exclusions under:
2.11 (i) section
2.12 (ii) section
2.13 (iii) section
2.14properties);
2.15 (iv) section
2.16 (v) section
2.17 (vi) section
2.18caregiver);
2.19
2.20 (2) the deferment of value under:
2.21 (i) the Minnesota Agricultural Property Tax Law, section
2.22 (ii) the Aggregate Resource Preservation Law, section
2.23 (iii) the Minnesota Open Space Property Tax Law, section
2.24 (iv) the rural preserves property tax program, section
2.25 (v) the Metropolitan Agricultural Preserves Act, section
2.26 (3) the adjustments to tax capacity for:
2.27 (i) tax increment financing under sections
2.28 (ii) fiscal disparities under chapter 276A or 473F; or
2.29 (iii) powerline credit under section
2.30 (b) Estimated market value under paragraph (a) also includes the market value
2.31of tax-exempt property if the applicable law specifically provides that the limitation,
2.32qualification, or aid calculation includes tax-exempt property.
2.33 (c) Unless otherwise provided, "market value," "estimated market value," and
2.34"market valuation" for purposes of property tax levy limitations and calculation of state
2.35aid, refer to the estimated market value for the previous assessment year and for purposes
3.1of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
3.2refer to the estimated market value as last finally equalized.
3.3 (d) For purposes of a provision of a home rule charter or of any special law that is not
3.4codified in the statutes and that imposes a levy limitation based on market value or any limit
3.5on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
3.6value, the terms "market value," "taxable market value," and "market valuation," whether
3.7equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
3.8EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
3.9thereafter.
3.10 Sec. 3. Minnesota Statutes 2013 Supplement, section 273.124, subdivision 3a, is
3.11amended to read:
3.12 Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home
3.13park is owned by a corporation or association organized under chapter 308A or 308B,
3.14and each person who owns a share or shares in the corporation or association is entitled
3.15to occupy a lot within the park, the corporation or association may claim homestead
3.16treatment for the park. Each lot must be designated by legal description or number, and
3.17each lot is limited to not more than one-half acre of land.
3.18 (b) The manufactured home park shall be entitled to homestead treatment if all
3.19of the following criteria are met:
3.20 (1) the occupant or the cooperative corporation or association is paying the ad
3.21valorem property taxes and any special assessments levied against the land and structure
3.22either directly, or indirectly through dues to the corporation or association; and
3.23 (2) the corporation or association organized under chapter 308A or 308B is wholly
3.24owned by persons having a right to occupy a lot owned by the corporation or association.
3.25 (c) A charitable corporation, organized under the laws of Minnesota with no
3.26outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
3.27tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
3.28park if its members hold residential participation warrants entitling them to occupy a lot
3.29in the manufactured home park.
3.30 (d) "Homestead treatment" under this subdivision means the class rate provided for
3.31class 4c property classified under section
3.32item (ii). The homestead market value
3.33
3.34included in the determination of taxes payable for rent paid under section
4.1EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
4.2thereafter.
4.3 Sec. 4. Minnesota Statutes 2013 Supplement, section 273.124, subdivision 13b,
4.4is amended to read:
4.5 Subd. 13b. Improper homestead. (a) If the commissioner finds that a property
4.6owner may be claiming a fraudulent homestead, the commissioner shall notify the
4.7appropriate counties. Within 90 days of the notification, the county assessor shall
4.8investigate to determine if the homestead classification was properly claimed. If the
4.9property owner does not qualify, the county assessor shall notify the county auditor who
4.10will determine the amount of homestead benefits that had been improperly allowed. For
4.11the purpose of this subdivision, "homestead benefits" means
4.12
4.13
4.14agricultural homestead
4.15homestead credit under section
4.16 The county auditor shall send a notice to the person who owned the affected property
4.17at the time the homestead application related to the improper homestead was filed,
4.18demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
4.19of the homestead benefits. The person notified may appeal the county's determination
4.20by serving copies of a petition for review with county officials as provided in section
4.22Court within 60 days of the date of the notice from the county. Procedurally, the appeal
4.23is governed by the provisions in chapter 271 which apply to the appeal of a property tax
4.24assessment or levy, but without requiring any prepayment of the amount in controversy. If
4.25the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
4.26has been filed, the county auditor shall certify the amount of taxes and penalty to the county
4.27treasurer. The county treasurer will add interest to the unpaid homestead benefits and
4.28penalty amounts at the rate provided in section
4.29delinquent in the calendar year during which the amount remains unpaid. Interest may be
4.30assessed for the period beginning 60 days after demand for payment was made.
4.31 If the person notified is the current owner of the property, the treasurer may add the
4.32total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
4.33otherwise payable on the property by including the amounts on the property tax statements
4.34under section
4.35valorem taxes shall include interest accrued through December 31 of the year preceding
5.1the taxes payable year for which the amounts are first added. These amounts, when added
5.2to the property tax statement, become subject to all the laws for the enforcement of real or
5.3personal property taxes for that year, and for any subsequent year.
5.4 If the person notified is not the current owner of the property, the treasurer may
5.5collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
5.6the powers granted in sections
5.7of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
5.8tax obligations of the person who owned the property at the time the application related to
5.9the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
5.10personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
5.11those amounts on the tax lists against the property as provided in this paragraph to the extent
5.12that the current owner agrees in writing. On all demands, billings, property tax statements,
5.13and related correspondence, the county must list and state separately the amounts of
5.14homestead benefits, penalty, interest and costs being demanded, billed or assessed.
5.15 (b) Any amount of homestead benefits recovered by the county from the property
5.16owner shall be distributed to the county, city or town, and school district where the
5.17property is located in the same proportion that each taxing district's levy was to the total
5.18of the three taxing districts' levy for the current year. Any amount recovered attributable
5.19to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
5.20deposited in the taconite property tax relief account. Any amount recovered that is
5.21attributable to supplemental homestead credit is to be transmitted to the commissioner of
5.22revenue for deposit in the general fund of the state treasury. The total amount of penalty
5.23collected must be deposited in the county general fund.
5.24 (c) If a property owner has applied for more than one homestead and the county
5.25assessors cannot determine which property should be classified as homestead, the county
5.26assessors will refer the information to the commissioner. The commissioner shall make
5.27the determination and notify the counties within 60 days.
5.28EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
5.29thereafter.
5.30 Sec. 5. Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:
5.31 Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a
5.32portion of the market value of property owned by a veteran and serving as the veteran's
5.33homestead under this section is excluded in determining the property's taxable market
5.34value if the veteran has a service-connected disability of 70 percent or more as certified
5.35by the United States Department of Veterans Affairs. To qualify for exclusion under this
6.1subdivision, the veteran must have been honorably discharged from the United States
6.2armed forces, as indicated by United States Government Form DD214 or other official
6.3military discharge papers.
6.4 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
6.5excluded, except as provided in clause (2); and
6.6 (2) for a total (100 percent) and permanent disability, $300,000 of market value is
6.7excluded.
6.8 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
6.9clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
6.10spouse holds the legal or beneficial title to the homestead and permanently resides there,
6.11the exclusion shall carry over to the benefit of the veteran's spouse for the current taxes
6.12payable year and for five additional taxes payable years or until such time as the spouse
6.13remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
6.14Qualification under this paragraph requires an annual application under paragraph (h).
6.15(d) If the spouse of a member of any branch or unit of the United States armed
6.16forces who dies due to a service-connected cause while serving honorably in active
6.17service, as indicated on United States Government Form DD1300 or DD2064, holds
6.18the legal or beneficial title to a homestead and permanently resides there, the spouse is
6.19entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years,
6.20or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
6.21property, whichever comes first.
6.22(e) If a veteran meets the disability criteria of paragraph (a) but does not own
6.23property classified as homestead in the state of Minnesota, then the homestead of the
6.24veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
6.25would otherwise qualify for under paragraph (b).
6.26 (f) In the case of an agricultural homestead, only the portion of the property
6.27consisting of the house and garage and immediately surrounding one acre of land qualifies
6.28for the valuation exclusion under this subdivision.
6.29 (g) A property qualifying for a valuation exclusion under this subdivision is not
6.30eligible for the
6.31value credit under section 273.1384, or classification under subdivision 22, paragraph (b).
6.32 (h) To qualify for a valuation exclusion under this subdivision a property owner
6.33must apply to the assessor by July 1 of each assessment year, except that an annual
6.34reapplication is not required once a property has been accepted for a valuation exclusion
6.35under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
6.36the property continues to qualify until there is a change in ownership. For an application
7.1received after July 1 of any calendar year, the exclusion shall become effective for the
7.2following assessment year.
7.3(i) A first-time application by a qualifying spouse for the market value exclusion under
7.4paragraph (d) must be made any time within two years of the death of the service member.
7.5(j) For purposes of this subdivision:
7.6(1) "active service" has the meaning given in section
7.7(2) "own" means that the person's name is present as an owner on the property deed;
7.8(3) "primary family caregiver" means a person who is approved by the secretary of
7.9the United States Department of Veterans Affairs for assistance as the primary provider
7.10of personal care services for an eligible veteran under the Program of Comprehensive
7.11Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
7.12and
7.13(4) "veteran" has the meaning given the term in section
7.14(k) The purpose of this provision of law providing a level of homestead property tax
7.15relief for gravely disabled veterans, their primary family caregivers, and their surviving
7.16spouses is to help ease the burdens of war for those among our state's citizens who bear
7.17those burdens most heavily.
7.18EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
7.19thereafter.
7.20 Sec. 6. Minnesota Statutes 2012, section 273.1384, is amended by adding a subdivision
7.21to read:
7.22 Subd. 1a. Residential homestead market value credit. Each county auditor shall
7.23determine a homestead credit for each class 1a, 1b, and 2a homestead property within the
7.24county equal to 0.4 percent of the first $76,000 of market value of the property minus .09
7.25percent of the market value in excess of $76,000. The credit amount may not be less than
7.26zero. In the case of an agricultural or resort homestead, only the market value of the
7.27house, garage, and immediately surrounding one acre of land is eligible in determining the
7.28property's homestead credit. In the case of a property that is classified as part homestead
7.29and part nonhomestead, (i) the credit shall apply only to the homestead portion of the
7.30property, but (ii) if a portion of a property is classified as nonhomestead solely because not
7.31all the owners occupy the property, not all the owners have qualifying relatives occupying
7.32the property, or solely because not all the spouses of owners occupy the property, the
7.33credit amount shall be initially computed as if that nonhomestead portion were also in
7.34the homestead class and then prorated to the owner-occupant's percentage of ownership.
7.35For the purpose of this section, when an owner-occupant's spouse does not occupy the
8.1property, the percentage of ownership for the owner-occupant spouse is one-half of the
8.2couple's ownership percentage.
8.3EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
8.4thereafter.
8.5 Sec. 7. Minnesota Statutes 2012, section 273.1384, subdivision 3, is amended to read:
8.6 Subd. 3. Credit reimbursements. The county auditor shall determine the tax
8.7reductions allowed under
8.8payable year and shall certify that amount to the commissioner of revenue as a part of the
8.9abstracts of tax lists submitted by the county auditors under section
8.10year adjustments shall also be certified on the abstracts of tax lists. The commissioner
8.11shall review the certifications for accuracy, and may make such changes as are deemed
8.12necessary, or return the certification to the county auditor for correction. The credit under
8.13this section must be used to proportionately reduce the net tax capacity-based property tax
8.14payable to each local taxing jurisdiction as provided in section
8.15EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
8.16thereafter.
8.17 Sec. 8. Minnesota Statutes 2012, section 273.1384, subdivision 4, is amended to read:
8.18 Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local
8.19taxing jurisdiction, other than school districts, for the tax reductions granted under
8.20
8.21taxes payable year for which the reductions are granted, including in each payment the prior
8.22year adjustments certified on the abstracts for that taxes payable year. The reimbursements
8.23related to tax increments shall be issued in one installment each year on December 26.
8.24(b) The commissioner of revenue shall certify the total of the tax reductions granted
8.25under
8.26the commissioner of the Department of Education and the commissioner of education shall
8.27pay the reimbursement amounts to each school district as provided in section
8.28EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
8.29thereafter.
8.30 Sec. 9. Minnesota Statutes 2012, section 273.1393, is amended to read:
8.31273.1393 COMPUTATION OF NET PROPERTY TAXES.
9.1 Notwithstanding any other provisions to the contrary, "net" property taxes are
9.2determined by subtracting the credits in the order listed from the gross tax:
9.3 (1) disaster credit as provided in sections
9.4 (2) powerline credit as provided in section
9.5 (3) agricultural preserves credit as provided in section
9.6 (4) enterprise zone credit as provided in section
9.7 (5) disparity reduction credit;
9.8 (6) conservation tax credit as provided in section
9.9 (7) homestead and agricultural
9.10 (8) taconite homestead credit as provided in section
9.11 (9) supplemental homestead credit as provided in section
9.12 (10) the bovine tuberculosis zone credit, as provided in section
9.13 The combination of all property tax credits must not exceed the gross tax amount.
9.14EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
9.15thereafter.
9.16 Sec. 10. Minnesota Statutes 2013 Supplement, section 276.04, subdivision 2, is
9.17amended to read:
9.18 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing
9.19of the tax statements. The commissioner of revenue shall prescribe the form of the property
9.20tax statement and its contents. The tax statement must not state or imply that property tax
9.21credits are paid by the state of Minnesota. The statement must contain a tabulated statement
9.22of the dollar amount due to each taxing authority and the amount of the state tax from the
9.23parcel of real property for which a particular tax statement is prepared. The dollar amounts
9.24attributable to the county, the state tax, the voter approved school tax, the other local school
9.25tax, the township or municipality, and the total of the metropolitan special taxing districts
9.26as defined in section
9.27The amounts due all other special taxing districts, if any, may be aggregated except that
9.28any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
9.29Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
9.30line directly under the appropriate county's levy. If the county levy under this paragraph
9.31includes an amount for a lake improvement district as defined under sections
9.33remaining county levy amount. In the case of Ramsey County, if the county levy under this
9.34paragraph includes an amount for public library service under section
9.35attributable for that purpose may be separated from the remaining county levy amount.
10.1The amount of the tax on homesteads qualifying under the senior citizens' property tax
10.2deferral program under chapter 290B is the total amount of property tax before subtraction
10.3of the deferred property tax amount. The amount of the tax on contamination value
10.4imposed under sections
10.5amounts, including the dollar amount of any special assessments, may be rounded to the
10.6nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
10.7be adjusted to the next higher even-numbered dollar. The amount of market value excluded
10.8under section
10.9 (b) The property tax statements for manufactured homes and sectional structures
10.10taxed as personal property shall contain the same information that is required on the
10.11tax statements for real property.
10.12 (c) Real and personal property tax statements must contain the following information
10.13in the order given in this paragraph. The information must contain the current year tax
10.14information in the right column with the corresponding information for the previous year
10.15in a column on the left:
10.16 (1) the property's estimated market value under section
10.17
10.18
10.19
10.20
10.21
10.22section
10.23
10.25credit received under section
10.26tax relief"; and
10.27
10.28 (d) If the county uses envelopes for mailing property tax statements and if the county
10.29agrees, a taxing district may include a notice with the property tax statement notifying
10.30taxpayers when the taxing district will begin its budget deliberations for the current
10.31year, and encouraging taxpayers to attend the hearings. If the county allows notices to
10.32be included in the envelope containing the property tax statement, and if more than
10.33one taxing district relative to a given property decides to include a notice with the tax
10.34statement, the county treasurer or auditor must coordinate the process and may combine
10.35the information on a single announcement.
11.1EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
11.2thereafter.
11.3 Sec. 11. Minnesota Statutes 2012, section 469.174, subdivision 25, is amended to read:
11.4 Subd. 25. Increment. "Increment," "tax increment," "tax increment revenues,"
11.5"revenues derived from tax increment," and other similar terms for a district include:
11.6(1) taxes paid by the captured net tax capacity, but excluding any excess taxes, as
11.7computed under section
11.8(2) the proceeds from the sale or lease of property, tangible or intangible, to the
11.9extent the property was purchased by the authority with tax increments;
11.10(3) principal and interest received on loans or other advances made by the authority
11.11with tax increments;
11.12(4) interest or other investment earnings on or from tax increments;
11.13(5) repayments or return of tax increments made to the authority under agreements
11.14for districts for which the request for certification was made after August 1, 1993
11.15(6) the market value homestead credit paid to the authority under section 273.1384.
11.16EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
11.17thereafter.
11.18 Sec. 12. Minnesota Statutes 2012, section 469.177, subdivision 1, is amended to read:
11.19 Subdivision 1. Original net tax capacity. (a) Upon or after adoption of a tax
11.20increment financing plan, the auditor of any county in which the district is situated shall,
11.21upon request of the authority, certify the original net tax capacity of the tax increment
11.22financing district and that portion of the district overlying any subdistrict as described in the
11.23tax increment financing plan and shall certify in each year thereafter the amount by which
11.24the original net tax capacity has increased or decreased as a result of a change in tax exempt
11.25status of property within the district and any subdistrict, reduction or enlargement of the
11.26district or changes pursuant to subdivision 4. The auditor shall certify the amount within 30
11.27days after receipt of the request and sufficient information to identify the parcels included in
11.28the district. The certification relates to the taxes payable year as provided in subdivision 6.
11.29 (b) If the classification under section
11.30to a classification that has a different assessment ratio, the original net tax capacity of that
11.31property must be redetermined at the time when its use is changed as if the property had
11.32originally been classified in the same class in which it is classified after its use is changed.
11.33 (c) The amount to be added to the original net tax capacity of the district as a result
11.34of previously tax exempt real property within the district becoming taxable equals the net
12.1tax capacity of the real property as most recently assessed pursuant to section
12.2that assessment was made more than one year prior to the date of title transfer rendering
12.3the property taxable, the net tax capacity assessed by the assessor at the time of the
12.4transfer. If improvements are made to tax exempt property after the municipality approves
12.5the district and before the parcel becomes taxable, the assessor shall, at the request of
12.6the authority, separately assess the estimated market value of the improvements. If the
12.7property becomes taxable, the county auditor shall add to original net tax capacity, the net
12.8tax capacity of the parcel, excluding the separately assessed improvements. If substantial
12.9taxable improvements were made to a parcel after certification of the district and if the
12.10property later becomes tax exempt, in whole or part, as a result of the authority acquiring
12.11the property through foreclosure or exercise of remedies under a lease or other revenue
12.12agreement or as a result of tax forfeiture, the amount to be added to the original net tax
12.13capacity of the district as a result of the property again becoming taxable is the amount
12.14of the parcel's value that was included in original net tax capacity when the parcel was
12.15first certified. The amount to be added to the original net tax capacity of the district as a
12.16result of enlargements equals the net tax capacity of the added real property as most
12.17recently certified by the commissioner of revenue as of the date of modification of the tax
12.18increment financing plan pursuant to section
12.19 (d) If the net tax capacity of a property increases because the property no longer
12.20qualifies under the Minnesota Agricultural Property Tax Law, section
12.21Minnesota Open Space Property Tax Law, section
12.22Agricultural Preserves Act, chapter 473H, the Rural Preserve Property Tax Program
12.23under section
12.24value is increased after approval of the plat under section
12.25the increase in net tax capacity must be added to the original net tax capacity.
12.26
12.27
12.28
12.29
12.30
12.31 (e) The amount to be subtracted from the original net tax capacity of the district as a
12.32result of previously taxable real property within the district becoming tax exempt or
12.33qualifying in whole or part for an exclusion from taxable market value, or a reduction in
12.34the geographic area of the district, shall be the amount of original net tax capacity initially
12.35attributed to the property becoming tax exempt, being excluded from taxable market
12.36value, or being removed from the district. If the net tax capacity of property located within
13.1the tax increment financing district is reduced by reason of a court-ordered abatement,
13.2stipulation agreement, voluntary abatement made by the assessor or auditor or by order
13.3of the commissioner of revenue, the reduction shall be applied to the original net tax
13.4capacity of the district when the property upon which the abatement is made has not been
13.5improved since the date of certification of the district and to the captured net tax capacity
13.6of the district in each year thereafter when the abatement relates to improvements made
13.7after the date of certification. The county auditor may specify reasonable form and content
13.8of the request for certification of the authority and any modification thereof pursuant to
13.9section
13.10 (f) If a parcel of property contained a substandard building or improvements described
13.11in section
13.12the authority elects to treat the parcel as occupied by a substandard building under section
13.14subdivision 10
13.15parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated
13.16market value of the parcel for the year in which the building or other improvements were
13.17demolished or removed, but applying the class rates for the current year.
13.18 (g) For a redevelopment district qualifying under section
13.19paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
13.20the land as the original tax capacity for any parcel in the district that contains a building
13.21that suffered substantial damage as a result of the disaster or emergency.
13.22EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
13.23thereafter.
13.24 Sec. 13. REPEALER.
13.25(a) Minnesota Statutes 2012, section 273.13, subdivision 35, is repealed.
13.26(b) Minnesota Statutes 2013 Supplement, section 469.177, subdivision 1d, is
13.27repealed.
13.28EFFECTIVE DATE.This section is effective for taxes payable in 2015 and
13.29thereafter.
