Bill Text: MN HF350 | 2011-2012 | 87th Legislature | Introduced

Bill Title: Tax exemption duration limit removed for surviving spouses of disabled veterans' homesteads.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-02-17 - Author added Dettmer [HF350 Detail]

Download: Minnesota-2011-HF350-Introduced.html

1.1A bill for an act
1.2relating to taxation; removing a limitation on the duration of a tax exemption for
1.3homesteads of surviving spouses of disabled veterans;amending Minnesota
1.4Statutes 2010, section 273.13, subdivision 34.

1.6    Section 1. Minnesota Statutes 2010, section 273.13, subdivision 34, is amended to read:
1.7    Subd. 34. Homestead of disabled veteran. (a) All or a portion of the market value
1.8of property owned by a veteran or by the veteran and the veteran's spouse qualifying
1.9for homestead classification under subdivision 22 or 23 is excluded in determining the
1.10property's taxable market value if it serves as the homestead of a military veteran, as
1.11defined in section 197.447, who has a service-connected disability of 70 percent or more.
1.12To qualify for exclusion under this subdivision, the veteran must have been honorably
1.13discharged from the United States armed forces, as indicated by United States Government
1.14Form DD214 or other official military discharge papers, and must be certified by the
1.15United States Veterans Administration as having a service-connected disability.
1.16    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
1.17excluded, except as provided in clause (2); and
1.18    (2) for a total (100 percent) and permanent disability, $300,000 of market value is
1.20    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
1.21clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
1.22spouse holds the legal or beneficial title to the homestead and permanently resides there,
1.23the exclusion shall carry over to the benefit of the veteran's spouse for one additional
2.1assessment year or until such time as the spouse sells, transfers, or otherwise disposes of
2.2the property, whichever comes first.
2.3    (d) In the case of an agricultural homestead, only the portion of the property
2.4consisting of the house and garage and immediately surrounding one acre of land qualifies
2.5for the valuation exclusion under this subdivision.
2.6    (e) A property qualifying for a valuation exclusion under this subdivision is not
2.7eligible for the credit under section 273.1384, subdivision 1, or classification under
2.8subdivision 22, paragraph (b).
2.9    (f) To qualify for a valuation exclusion under this subdivision a property owner must
2.10apply to the assessor by July 1 of each assessment year, except that an annual reapplication
2.11is not required once a property has been accepted for a valuation exclusion under paragraph
2.12(b), clause (2), and the property continues to qualify until there is a change in ownership.
2.13EFFECTIVE DATE.This section is effective for taxes levied in 2010, payable in
2.142011, and thereafter, and applies to homesteads that initially qualified for the exclusion
2.15for taxes payable in 2009 and thereafter.