Bill Text: MN HF398 | 2011-2012 | 87th Legislature | Introduced

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Bill Title: Property tax aid and credit programs eliminated except those paid directly to the taxpayer; homeowner property tax refund program enhanced; maintenance of effort requirements terminated; local sales tax prohibition eliminated; metro and iron range fiscal disparities programs eliminated; and levy limits, green acres, rural preserves, and metropolitan agricultural preserves repealed.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced - Dead) 2011-02-09 - Referred by Chair to Property and Local Tax Division [HF398 Detail]

Download: Minnesota-2011-HF398-Introduced.html

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A bill for an act

relating to property taxation; eliminating all property tax aid and credit programs
except those paid directly to the taxpayer; enhancing the homeowner property tax
refund program; terminating all maintenance of effort requirements; abolishing
prohibition against local sales taxes; eliminating metro and iron range fiscal
disparities programs; repealing levy limits; repealing green acres, rural preserves,
and metropolitan agricultural preserves;amending Minnesota Statutes 2010,
sections 275.77, by adding a subdivision; 290A.04, subdivisions 2, 4; repealing
Minnesota Statutes 2010, sections 6.91, subdivision 4; 40A.151, subdivision 2;
40A.152, subdivision 2; 69.021, subdivisions 4, 5, 6, 7, 7a, 8, 9, 10, 11; 270C.19,
subdivision 4; 273.111, subdivisions 1, 2, 3, 3a, 4, 5, 8, 9, 9a, 10, 11, 11a, 12,
13, 14, 15, 16; 273.113; 273.114; 273.119; 273.1233, subdivision 3; 273.1234;
273.135, subdivisions 1, 2, 3, 5; 273.1384; 273.1385; 273.1391, subdivisions
1, 2, 3, 4, 5; 273.1398, subdivisions 1, 2d, 3, 3a, 4, 4b, 6, 8; 275.295; 275.70;
275.71, subdivisions 1, 2, 4, 5, 6; 275.72; 275.73; 275.74; 275.75; 275.77,
subdivision 2; 276A.01; 276A.02; 276A.03; 276A.04; 276A.05; 276A.06;
276A.07; 276A.08; 276A.09; 290C.07; 290C.08; 298.018; 298.285; 423A.02;
473F.001; 473F.01; 473F.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 15,
21, 22, 23, 24; 473F.03; 473F.05; 473F.06; 473F.07; 473F.08, subdivisions 1, 2,
3, 3a, 3b, 4, 5, 5a, 6, 7a, 8a, 10; 473F.09; 473F.10; 473F.11; 473F.13, subdivision
1; 473H.01; 473H.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 473H.03; 473H.04;
473H.05, subdivisions 1, 2, 4; 473H.06; 473H.07; 473H.08; 473H.09; 473H.10;
473H.11; 473H.12; 473H.14; 473H.15; 473H.16; 473H.17; 473H.18; 477A.011,
subdivisions 1, 1a, 1b, 2a, 3, 19, 20, 21, 27, 29, 30, 31, 32, 33, 34, 35, 36, 38,
39, 40, 41, 42, 43; 477A.0124; 477A.013, subdivisions 1, 8, 9, 10; 477A.0133;
477A.014, subdivisions 1, 2, 3; 477A.015; 477A.016; 477A.03, subdivisions 2,
2a, 2b; 477A.11; 477A.12; 477A.13; 477A.14; 477A.145; 477A.15; 477A.16;
477A.17.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2010, section 275.77, is amended by adding a
subdivision to read:
    Subd. 3. Termination of maintenance of effort requirements. Notwithstanding
any other provision of law, all maintenance of effort or matching fund requirements shall
cease to be effective after December 31, 2011, except in those cases where the spending
is required by federal law and there would be a cost to the state budget without the
requirement.
EFFECTIVE DATE.This section is effective January 1, 2012.

    Sec. 2. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to read:
    Subd. 2. Homeowners. A claimant whose property taxes payable are in excess
of the percentage of the household income stated below shall pay an amount equal to
the percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of property taxes payable.
The state refund equals the amount of property taxes payable that remain, up to the state
refund amount shown below.

	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
	$0 to 1,189	1.0 percent	15 percent	$	1,850
	1,190 to 2,379	1.1 percent	15 percent	$	1,850
	2,380 to 3,589	1.2 percent	15 percent	$	1,800
	3,590 to 4,789	1.3 percent	20 percent	$	1,800
	4,790 to 5,979	1.4 percent	20 percent	$	1,730
	5,980 to 8,369	1.5 percent	20 percent	$	1,730
	8,370 to 9,559	1.6 percent	25 percent	$	1,670
	9,560 to 10,759	1.7 percent	25 percent	$	1,670
	10,760 to 11,949	1.8 percent	25 percent	$	1,610
	11,950 to 13,139	1.9 percent	30 percent	$	1,610
	13,140 to 14,349	2.0 percent	30 percent	$	1,540
	14,350 to 16,739	2.1 percent	30 percent	$	1,540
	16,740 to 17,929	2.2 percent	35 percent	$	1,480
	17,930 to 19,119	2.3 percent	35 percent	$	1,480
	19,120 to 20,319	2.4 percent	35 percent	$	1,420
	20,320 to 25,099	2.5 percent	40 percent	$	1,420
	25,100 to 28,679	2.6 percent	40 percent	$	1,360
	28,680 to 35,849	2.7 percent	40 percent	$	1,360
	35,850 to 41,819	2.8 percent	45 percent	$	1,240
	41,820 to 47,799	3.0 percent	45 percent	$	1,240
	47,800 to 53,779	3.2 percent	45 percent	$	1,110
	53,780 to 59,749	3.5 percent	50 percent	$	990
	59,750 to 65,729	3.5 percent	50 percent	$	870
	65,730 to 69,319	3.5 percent	50 percent	$	740
	69,320 to 71,719	3.5 percent	50 percent	$	610
	71,720 to 74,619	3.5 percent	50 percent	$	500
	74,620 to 77,519	3.5 percent	50 percent	$	370

	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
	$0 to 1,519	1.0 percent	15 percent	$	2,610
	1,520 to 3,049	1.1 percent	15 percent	$	2,610
	3,050 to 4,599	1.2 percent	15 percent	$	2,530
	4,600 to 6,129	1.3 percent	20 percent	$	2,530
	6,130 to 7,659	1.4 percent	20 percent	$	2,430
	7,660 to 10,719	1.5 percent	20 percent	$	2,430
	10,720 to 12,239	1.6 percent	25 percent	$	2,350
	12,240 to 13,779	1.7 percent	25 percent	$	2,350
	13,780 to 15,299	1.8 percent	25 percent	$	2,270
	15,300 to 16,819	1.9 percent	30 percent	$	2,270
	16,820 to 18,369	2.0 percent	30 percent	$	2,170
	18,370 to 21,429	2.1 percent	30 percent	$	2,170
	21,430 to 22,949	2.2 percent	35 percent	$	2,080
	22,950 to 24,479	2.3 percent	35 percent	$	2,080
	24,480 to 26,009	2.4 percent	35 percent	$	2,000
	26,010 to 32,129	2.5 percent	40 percent	$	2,000
	32,130 to 45,899	2.5 percent	40 percent	$	1,910
	45,900 to 61,199	2.5 percent	45 percent	$	1,750
	61,200 to 68,849	2.5 percent	45 percent	$	1,560
	68,850 to 76,489	2.5 percent	50 percent	$	1,400
	76,490 to 84,149	2.5 percent	50 percent	$	1,220
	84,150 to 88,749	2.5 percent	50 percent	$	1,050
	88,750 to 91,819	2.5 percent	50 percent	$	860
	91,820 to 95,529	2.5 percent	50 percent	$	700
	95,530 to 99,239	2.5 percent	50 percent	$	520

    The payment made to a claimant shall be the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
$77,520 $99,240 or more.
EFFECTIVE DATE.This section is effective beginning with refunds based on
taxes payable in 2012.

    Sec. 3. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:
    Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in
calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
The commissioner shall make the inflation adjustments in accordance with section 1(f) of
the Internal Revenue Code, except that for purposes of this subdivision the percentage
increase shall be determined as provided in this subdivision.
(b) In adjusting the dollar amounts of the income thresholds and the maximum
refunds under subdivision 2 for inflation, the percentage increase shall be determined from
the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that
in which the refund is payable.
(c) In adjusting the dollar amounts of the income thresholds and the maximum
refunds under subdivision 2a for inflation, the percentage increase shall be determined
from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding
that in which the refund is payable.
(d) The commissioner shall use the appropriate percentage increase to annually
adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
inflation without regard to whether or not the income tax brackets are adjusted for inflation
in that year. The commissioner shall round the thresholds and the maximum amounts,
as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
round it up to the next $10 amount.
(e) The commissioner shall annually announce the adjusted refund schedule at the
same time provided under section 290.06. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
EFFECTIVE DATE.This section is effective beginning for refunds based on
taxes payable in 2013.

    Sec. 4. REVISOR'S INSTRUCTION.
The revisor of statutes shall remove from Minnesota Statutes and Minnesota Rules
all references to the sections repealed in section 5. The revisor shall also remove text and
calculations relating to the repealed sections.
In sections affected by this instruction, the revisor may make changes necessary
to correct the punctuation, grammar, or structure of the remaining text and preserve its
meaning. If text in Minnesota Statutes or Minnesota Rules that is unrelated to the repealed
sections refers to a repealed definition, the revisor may substitute the text of the repealed
definition in the cross-reference.
If the revisor requests it, the commissioner of revenue shall assist the revisor in
making the changes to statutes and rules necessary to accomplish the purpose of section 5.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. REPEALER.
(a) Minnesota Statutes 2010, sections 6.91, subdivision 4; 40A.151, subdivision
2; 40A.152, subdivision 2; 69.021, subdivisions 4, 5, 6, 7, 7a, 8, 9, 10, and 11;
270C.19, subdivision 4; 273.113; 273.119; 273.1233, subdivision 3; 273.1234; 273.135,
subdivisions 1, 2, 3, and 5; 273.1384; 273.1385; 273.1391, subdivisions 1, 2, 3, 4, and
5; 273.1398, subdivisions 1, 2d, 3, 3a, 4, 4b, 6, and 8; 275.295; 275.77, subdivision 2;
276A.01; 276A.02; 276A.03; 276A.04; 276A.05; 276A.06; 276A.07; 276A.08; 276A.09;
290C.07; 290C.08; 298.018; 298.285; 423A.02; 477A.011, subdivisions 1, 1a, 1b, 2a, 3,
19, 20, 21, 27, 29, 30, 31, 32, 33, 34, 35, 36, 38, 39, 40, 41, 42, and 43; 477A.0124;
477A.013, subdivisions 1, 8, 9, and 10; 477A.0133; 477A.014, subdivisions 1, 2, and 3;
477A.015; 477A.016; 477A.03, subdivisions 2, 2a, and 2b; 477A.11; 477A.12; 477A.13;
477A.14; 477A.145; 477A.15; 477A.16; and 477A.17, are repealed.
(b) Minnesota Statutes 2010, sections 473F.001; 473F.01; 473F.02, subdivisions 1, 2,
3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 15, 21, 22, 23, and 24; 473F.03; 473F.05; 473F.06; 473F.07;
473F.08, subdivisions 1, 2, 3, 3a, 3b, 4, 5, 5a, 6, 7a, 8a, and 10; 473F.09; 473F.10; 473F.11;
and 473F.13, subdivision 1, are repealed.
(c) Minnesota Statutes 2010, sections 273.111, subdivisions 1, 2, 3, 3a, 4, 5, 8, 9,
9a, 10, 11, 11a, 12, 13, 14, 15, and 16; 273.114; 275.70; 275.71, subdivisions 1, 2, 4, 5,
and 6; 275.72; 275.73; 275.74; and 275.75, are repealed.
(d) Minnesota Statutes 2010, sections 473H.01; 473H.02, subdivisions 1, 2, 3, 4,
5, 6, 7, 8, 9, and 10; 473H.03; 473H.04; 473H.05, subdivisions 1, 2, and 4; 473H.06;
473H.07; 473H.08; 473H.09; 473H.10; 473H.11; 473H.12; 473H.14; 473H.15; 473H.16;
473H.17; and 473H.18, are repealed.
EFFECTIVE DATE.This section is effective for taxes, aids, and credits payable in
2012 and thereafter.