Bill Text: MN HF492 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Property valuation freeze and purchased foreclosed property improvements exclusion provided.
Spectrum: Slight Partisan Bill (Democrat 7-3)
Status: (Introduced - Dead) 2011-02-17 - Author added Peterson, S. [HF492 Detail]
Download: Minnesota-2011-HF492-Introduced.html
1.2relating to taxation; property; providing property valuation freeze and an
1.3exclusion for improvements made to purchased foreclosed properties;amending
1.4Minnesota Statutes 2010, sections 273.11, subdivision 5, by adding a subdivision;
1.5273.121, subdivision 1; 276.04, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 273.11, subdivision 5, is amended to read:
1.8 Subd. 5. Boards of review and equalization. Notwithstanding any other provision
1.9of law to the contrary, the limitation contained in subdivisions 1and, 1a, and 24 shall
1.10also apply to the authority of the local board of review as provided in section274.01 ,
1.11the county board of equalization as provided in section274.13 , the State Board of
1.12Equalization and the commissioner of revenue as provided in sections270.11, subdivision
1.131 ,
270.12 ,
270C.92 , and
270C.94 .
1.14EFFECTIVE DATE.This section is effective for property taxes payable in 2012
1.15and thereafter.
1.16 Sec. 2. Minnesota Statutes 2010, section 273.11, is amended by adding a subdivision to
1.17read:
1.18 Subd. 24. Purchase of foreclosed property; valuation freeze and exclusion. (a)
1.19The taxable market value used for taxes levied in the current year on class 1 property as
1.20defined in section 273.13, subdivision 22, and that portion of class 2a property as defined
1.21in section 273.13, subdivision 23, consisting of the house, garage, and surrounding one
1.22acre of land, may not exceed the property's taxable market value used for taxes levied in
2.1the year the property was purchased, provided that all of the following conditions are
2.2met. The property must:
2.3(1) have been a foreclosed property at the time the property was purchased;
2.4(2) be homesteaded;
2.5(3) have an estimated market value at the time of the purchase that is equal to or
2.6less than $300,000; and
2.7(4) be in compliance with all local ordinances and codes within two years of the
2.8date of purchase.
2.9(b) The owner or owners must apply to the county assessor where the property is
2.10located by August 1 of the levy year for which the valuation freeze under paragraph (a) is
2.11first requested. The applicants must submit further information the county assessor deems
2.12necessary to determine continued homestead status and eligibility under this subdivision.
2.13(c) The valuation freeze allowed under this subdivision expires at the occurrence
2.14of one of the activities listed in clause (1) or as determined in clause (2), whichever one
2.15comes first:
2.16(1) when the property loses its homestead status, is sold or transferred, or is not
2.17in compliance with all local ordinances and codes within two years from the date of
2.18the purchase of the property; or
2.19(2) after ten assessment years from the date of the purchase of the property. Upon
2.20expiration of the valuation freeze, the property must be assessed for the current assessment
2.21year as otherwise provided by law.
2.22(d) Improvements made to property qualifying under paragraph (a) are fully
2.23excludable from the value of the property for assessment purposes.
2.24(1) If the property lies in a jurisdiction which is subject to a building permit process,
2.25a building permit must have been issued prior to commencement of the improvement. The
2.26improvements for a single project or in any one year must add at least $5,000 to the value
2.27of the property to be eligible for exclusion under this subdivision. Only improvements to
2.28the structure which is the residence of the qualifying homesteader or construction of or
2.29improvements to no more than one two-car garage per residence qualify for the provisions
2.30of this subdivision. The assessor shall require an application. The application may be filed
2.31subsequent to the date of the building permit provided that the application must be filed
2.32within three years of the date the building permit was issued for the improvement. If
2.33the property lies in a jurisdiction which is not subject to a building permit process, the
2.34application must be filed within three years of the date the improvement was made. The
2.35assessor may require proof from the taxpayer of the date the improvement was made.
3.1Applications must be received prior to July 1 of any year in order to be effective for
3.2taxes payable in the following year.
3.3(2) No exclusion for an improvement may be granted by a local board of review or
3.4county board of equalization, and no abatement of the taxes for qualifying improvements
3.5may be granted by the county board unless (i) a building permit was issued prior to the
3.6commencement of the improvement if the jurisdiction requires a building permit, and
3.7(ii) an application was completed.
3.8(3) The assessor shall note the qualifying value of each improvement on the
3.9property's record, and the sum of those amounts shall be subtracted from the value of the
3.10property in each year for ten years after the improvement has been made. After ten years,
3.11the amount of the qualifying value shall be added back as follows:
3.12(i) 50 percent in the two subsequent assessment years if the qualifying value is equal
3.13to or less than $10,000 market value; or
3.14(ii) 20 percent in the five subsequent assessment years if the qualifying value is
3.15greater than $10,000 market value.
3.16(4) If an application is filed after the first assessment date at which an improvement
3.17could have been subject to the valuation exclusion under this subdivision, the ten-year
3.18period during which the value is subject to exclusion is reduced by the number of years
3.19that have elapsed since the property would have qualified initially. The valuation exclusion
3.20shall terminate whenever the property loses its homestead status, is sold or transferred, or
3.21if the property is not in compliance with all local ordinances and codes within two years
3.22from the date of the purchase of the property.
3.23(5) The total qualifying value for a homestead may not exceed $50,000. The term
3.24"qualifying value" means the increase in estimated market value resulting from the
3.25improvement. The $50,000 maximum qualifying value under this subdivision may result
3.26from multiple improvements to the homestead.
3.27EFFECTIVE DATE.This section is effective for property taxes payable in 2012
3.28and thereafter.
3.29 Sec. 3. Minnesota Statutes 2010, section 273.121, subdivision 1, is amended to read:
3.30 Subdivision 1. Notice. Any county assessor or city assessor having the powers of
3.31a county assessor, valuing or classifying taxable real property shall in each year notify
3.32those persons whose property is to be included on the assessment roll that year if the
3.33person's address is known to the assessor, otherwise the occupant of the property. The
3.34notice shall be in writing and shall be sent by ordinary mail at least ten days before the
3.35meeting of the local board of appeal and equalization under section274.01 or the review
4.1process established under section274.13, subdivision 1c . Upon written request by the
4.2owner of the property, the assessor may send the notice in electronic form or by electronic
4.3mail instead of on paper or by ordinary mail. It shall contain: (1) the market value for
4.4the current and prior assessment, (2) the limited market value under section273.11,
4.5subdivision 1a , for the current and prior assessment, (3) the qualifying amount of any
4.6improvements under section273.11, subdivision 16 or 24, for the current assessment, (4)
4.7the amount of any market value increase prohibited under section 273.11, subdivision 24,
4.8(5) the market value subject to taxation after subtracting the amount of any qualifying
4.9improvements under clause (3) or any valuation freeze amount under clause (4) for the
4.10current assessment,(5) (6) the classification of the property for the current and prior
4.11assessment,(6) (7) a note that if the property is homestead and at least 45 years old,
4.12improvements made to the property may be eligible for a valuation exclusion under
4.13section273.11, subdivision 16 , (7) (8) the assessor's office address, and (8) (9) the dates,
4.14places, and times set for the meetings of the local board of appeal and equalization, the
4.15review process established under section274.13, subdivision 1c , and the county board
4.16of appeal and equalization. The commissioner of revenue shall specify the form of
4.17the notice. The assessor shall attach to the assessment roll a statement that the notices
4.18required by this section have been mailed. Any assessor who is not provided sufficient
4.19funds from the assessor's governing body to provide such notices, may make application
4.20to the commissioner of revenue to finance such notices. The commissioner of revenue
4.21shall conduct an investigation and, if satisfied that the assessor does not have the necessary
4.22funds, issue a certification to the commissioner of management and budget of the amount
4.23necessary to provide such notices. The commissioner of management and budget shall
4.24issue a warrant for such amount and shall deduct such amount from any state payment
4.25to such county or municipality. The necessary funds to make such payments are hereby
4.26appropriated. Failure to receive the notice shall in no way affect the validity of the
4.27assessment, the resulting tax, the procedures of any board of review or equalization, or
4.28the enforcement of delinquent taxes by statutory means.
4.29EFFECTIVE DATE.This section is effective for property taxes payable in 2012
4.30and thereafter.
4.31 Sec. 4. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:
4.32 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
4.33printing of the tax statements. The commissioner of revenue shall prescribe the form of
4.34the property tax statement and its contents. The tax statement must not state or imply
4.35that property tax credits are paid by the state of Minnesota. The statement must contain
5.1a tabulated statement of the dollar amount due to each taxing authority and the amount
5.2of the state tax from the parcel of real property for which a particular tax statement is
5.3prepared. The dollar amounts attributable to the county, the state tax, the voter approved
5.4school tax, the other local school tax, the township or municipality, and the total of
5.5the metropolitan special taxing districts as defined in section275.065, subdivision 3 ,
5.6paragraph (i), must be separately stated. The amounts due all other special taxing districts,
5.7if any, may be aggregated except that any levies made by the regional rail authorities in the
5.8county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
5.9398A shall be listed on a separate line directly under the appropriate county's levy. If the
5.10county levy under this paragraph includes an amount for a lake improvement district as
5.11defined under sections103B.501 to
103B.581 , the amount attributable for that purpose
5.12must be separately stated from the remaining county levy amount. In the case of Ramsey
5.13County, if the county levy under this paragraph includes an amount for public library
5.14service under section134.07 , the amount attributable for that purpose may be separated
5.15from the remaining county levy amount. The amount of the tax on homesteads qualifying
5.16under the senior citizens' property tax deferral program under chapter 290B is the total
5.17amount of property tax before subtraction of the deferred property tax amount. The
5.18amount of the tax on contamination value imposed under sections270.91 to
270.98 , if any,
5.19must also be separately stated. The dollar amounts, including the dollar amount of any
5.20special assessments, may be rounded to the nearest even whole dollar. For purposes of this
5.21section whole odd-numbered dollars may be adjusted to the next higher even-numbered
5.22dollar. The amount of market value excluded under section273.11, subdivision 16 , if any,
5.23must also be listed on the tax statement.
5.24 (b) The property tax statements for manufactured homes and sectional structures
5.25taxed as personal property shall contain the same information that is required on the
5.26tax statements for real property.
5.27 (c) Real and personal property tax statements must contain the following information
5.28in the order given in this paragraph. The information must contain the current year tax
5.29information in the right column with the corresponding information for the previous year
5.30in a column on the left:
5.31 (1) the property's estimated market value under section273.11, subdivision 1 ;
5.32 (2) the property's taxable market value after reductions under section273.11,
5.33subdivisions 1aand, 16
, and 24;
5.34 (3) the property's gross tax, before credits;
5.35 (4) for homestead residential and agricultural properties, the credits under section
5.36273.1384
;
6.1 (5) any credits received under sections273.119 ;
273.1234 or
273.1235 ;
273.135 ;
6.2273.1391
;
273.1398, subdivision 4 ;
469.171 ; and
473H.10 , except that the amount of
6.3credit received under section273.135 must be separately stated and identified as "taconite
6.4tax relief"; and
6.5 (6) the net tax payable in the manner required in paragraph (a).
6.6 (d) If the county uses envelopes for mailing property tax statements and if the county
6.7agrees, a taxing district may include a notice with the property tax statement notifying
6.8taxpayers when the taxing district will begin its budget deliberations for the current
6.9year, and encouraging taxpayers to attend the hearings. If the county allows notices to
6.10be included in the envelope containing the property tax statement, and if more than
6.11one taxing district relative to a given property decides to include a notice with the tax
6.12statement, the county treasurer or auditor must coordinate the process and may combine
6.13the information on a single announcement.
6.14EFFECTIVE DATE.This section is effective for property taxes payable in 2012
6.15and thereafter.
1.3exclusion for improvements made to purchased foreclosed properties;amending
1.4Minnesota Statutes 2010, sections 273.11, subdivision 5, by adding a subdivision;
1.5273.121, subdivision 1; 276.04, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 273.11, subdivision 5, is amended to read:
1.8 Subd. 5. Boards of review and equalization. Notwithstanding any other provision
1.9of law to the contrary, the limitation contained in subdivisions 1
1.10also apply to the authority of the local board of review as provided in section
1.11the county board of equalization as provided in section
1.12Equalization and the commissioner of revenue as provided in sections
1.131
1.14EFFECTIVE DATE.This section is effective for property taxes payable in 2012
1.15and thereafter.
1.16 Sec. 2. Minnesota Statutes 2010, section 273.11, is amended by adding a subdivision to
1.17read:
1.18 Subd. 24. Purchase of foreclosed property; valuation freeze and exclusion. (a)
1.19The taxable market value used for taxes levied in the current year on class 1 property as
1.20defined in section 273.13, subdivision 22, and that portion of class 2a property as defined
1.21in section 273.13, subdivision 23, consisting of the house, garage, and surrounding one
1.22acre of land, may not exceed the property's taxable market value used for taxes levied in
2.1the year the property was purchased, provided that all of the following conditions are
2.2met. The property must:
2.3(1) have been a foreclosed property at the time the property was purchased;
2.4(2) be homesteaded;
2.5(3) have an estimated market value at the time of the purchase that is equal to or
2.6less than $300,000; and
2.7(4) be in compliance with all local ordinances and codes within two years of the
2.8date of purchase.
2.9(b) The owner or owners must apply to the county assessor where the property is
2.10located by August 1 of the levy year for which the valuation freeze under paragraph (a) is
2.11first requested. The applicants must submit further information the county assessor deems
2.12necessary to determine continued homestead status and eligibility under this subdivision.
2.13(c) The valuation freeze allowed under this subdivision expires at the occurrence
2.14of one of the activities listed in clause (1) or as determined in clause (2), whichever one
2.15comes first:
2.16(1) when the property loses its homestead status, is sold or transferred, or is not
2.17in compliance with all local ordinances and codes within two years from the date of
2.18the purchase of the property; or
2.19(2) after ten assessment years from the date of the purchase of the property. Upon
2.20expiration of the valuation freeze, the property must be assessed for the current assessment
2.21year as otherwise provided by law.
2.22(d) Improvements made to property qualifying under paragraph (a) are fully
2.23excludable from the value of the property for assessment purposes.
2.24(1) If the property lies in a jurisdiction which is subject to a building permit process,
2.25a building permit must have been issued prior to commencement of the improvement. The
2.26improvements for a single project or in any one year must add at least $5,000 to the value
2.27of the property to be eligible for exclusion under this subdivision. Only improvements to
2.28the structure which is the residence of the qualifying homesteader or construction of or
2.29improvements to no more than one two-car garage per residence qualify for the provisions
2.30of this subdivision. The assessor shall require an application. The application may be filed
2.31subsequent to the date of the building permit provided that the application must be filed
2.32within three years of the date the building permit was issued for the improvement. If
2.33the property lies in a jurisdiction which is not subject to a building permit process, the
2.34application must be filed within three years of the date the improvement was made. The
2.35assessor may require proof from the taxpayer of the date the improvement was made.
3.1Applications must be received prior to July 1 of any year in order to be effective for
3.2taxes payable in the following year.
3.3(2) No exclusion for an improvement may be granted by a local board of review or
3.4county board of equalization, and no abatement of the taxes for qualifying improvements
3.5may be granted by the county board unless (i) a building permit was issued prior to the
3.6commencement of the improvement if the jurisdiction requires a building permit, and
3.7(ii) an application was completed.
3.8(3) The assessor shall note the qualifying value of each improvement on the
3.9property's record, and the sum of those amounts shall be subtracted from the value of the
3.10property in each year for ten years after the improvement has been made. After ten years,
3.11the amount of the qualifying value shall be added back as follows:
3.12(i) 50 percent in the two subsequent assessment years if the qualifying value is equal
3.13to or less than $10,000 market value; or
3.14(ii) 20 percent in the five subsequent assessment years if the qualifying value is
3.15greater than $10,000 market value.
3.16(4) If an application is filed after the first assessment date at which an improvement
3.17could have been subject to the valuation exclusion under this subdivision, the ten-year
3.18period during which the value is subject to exclusion is reduced by the number of years
3.19that have elapsed since the property would have qualified initially. The valuation exclusion
3.20shall terminate whenever the property loses its homestead status, is sold or transferred, or
3.21if the property is not in compliance with all local ordinances and codes within two years
3.22from the date of the purchase of the property.
3.23(5) The total qualifying value for a homestead may not exceed $50,000. The term
3.24"qualifying value" means the increase in estimated market value resulting from the
3.25improvement. The $50,000 maximum qualifying value under this subdivision may result
3.26from multiple improvements to the homestead.
3.27EFFECTIVE DATE.This section is effective for property taxes payable in 2012
3.28and thereafter.
3.29 Sec. 3. Minnesota Statutes 2010, section 273.121, subdivision 1, is amended to read:
3.30 Subdivision 1. Notice. Any county assessor or city assessor having the powers of
3.31a county assessor, valuing or classifying taxable real property shall in each year notify
3.32those persons whose property is to be included on the assessment roll that year if the
3.33person's address is known to the assessor, otherwise the occupant of the property. The
3.34notice shall be in writing and shall be sent by ordinary mail at least ten days before the
3.35meeting of the local board of appeal and equalization under section
4.1process established under section
4.2owner of the property, the assessor may send the notice in electronic form or by electronic
4.3mail instead of on paper or by ordinary mail. It shall contain: (1) the market value for
4.4the current and prior assessment, (2) the limited market value under section
4.5subdivision 1a
4.6improvements under section
4.7the amount of any market value increase prohibited under section 273.11, subdivision 24,
4.8(5) the market value subject to taxation after subtracting the amount of any qualifying
4.9improvements under clause (3) or any valuation freeze amount under clause (4) for the
4.10current assessment,
4.11assessment,
4.12improvements made to the property may be eligible for a valuation exclusion under
4.13section
4.14places, and times set for the meetings of the local board of appeal and equalization, the
4.15review process established under section
4.16of appeal and equalization. The commissioner of revenue shall specify the form of
4.17the notice. The assessor shall attach to the assessment roll a statement that the notices
4.18required by this section have been mailed. Any assessor who is not provided sufficient
4.19funds from the assessor's governing body to provide such notices, may make application
4.20to the commissioner of revenue to finance such notices. The commissioner of revenue
4.21shall conduct an investigation and, if satisfied that the assessor does not have the necessary
4.22funds, issue a certification to the commissioner of management and budget of the amount
4.23necessary to provide such notices. The commissioner of management and budget shall
4.24issue a warrant for such amount and shall deduct such amount from any state payment
4.25to such county or municipality. The necessary funds to make such payments are hereby
4.26appropriated. Failure to receive the notice shall in no way affect the validity of the
4.27assessment, the resulting tax, the procedures of any board of review or equalization, or
4.28the enforcement of delinquent taxes by statutory means.
4.29EFFECTIVE DATE.This section is effective for property taxes payable in 2012
4.30and thereafter.
4.31 Sec. 4. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:
4.32 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
4.33printing of the tax statements. The commissioner of revenue shall prescribe the form of
4.34the property tax statement and its contents. The tax statement must not state or imply
4.35that property tax credits are paid by the state of Minnesota. The statement must contain
5.1a tabulated statement of the dollar amount due to each taxing authority and the amount
5.2of the state tax from the parcel of real property for which a particular tax statement is
5.3prepared. The dollar amounts attributable to the county, the state tax, the voter approved
5.4school tax, the other local school tax, the township or municipality, and the total of
5.5the metropolitan special taxing districts as defined in section
5.6paragraph (i), must be separately stated. The amounts due all other special taxing districts,
5.7if any, may be aggregated except that any levies made by the regional rail authorities in the
5.8county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
5.9398A shall be listed on a separate line directly under the appropriate county's levy. If the
5.10county levy under this paragraph includes an amount for a lake improvement district as
5.11defined under sections
5.12must be separately stated from the remaining county levy amount. In the case of Ramsey
5.13County, if the county levy under this paragraph includes an amount for public library
5.14service under section
5.15from the remaining county levy amount. The amount of the tax on homesteads qualifying
5.16under the senior citizens' property tax deferral program under chapter 290B is the total
5.17amount of property tax before subtraction of the deferred property tax amount. The
5.18amount of the tax on contamination value imposed under sections
5.19must also be separately stated. The dollar amounts, including the dollar amount of any
5.20special assessments, may be rounded to the nearest even whole dollar. For purposes of this
5.21section whole odd-numbered dollars may be adjusted to the next higher even-numbered
5.22dollar. The amount of market value excluded under section
5.23must also be listed on the tax statement.
5.24 (b) The property tax statements for manufactured homes and sectional structures
5.25taxed as personal property shall contain the same information that is required on the
5.26tax statements for real property.
5.27 (c) Real and personal property tax statements must contain the following information
5.28in the order given in this paragraph. The information must contain the current year tax
5.29information in the right column with the corresponding information for the previous year
5.30in a column on the left:
5.31 (1) the property's estimated market value under section
5.32 (2) the property's taxable market value after reductions under section
5.33subdivisions 1a
5.34 (3) the property's gross tax, before credits;
5.35 (4) for homestead residential and agricultural properties, the credits under section
6.1 (5) any credits received under sections
6.3credit received under section
6.4tax relief"; and
6.5 (6) the net tax payable in the manner required in paragraph (a).
6.6 (d) If the county uses envelopes for mailing property tax statements and if the county
6.7agrees, a taxing district may include a notice with the property tax statement notifying
6.8taxpayers when the taxing district will begin its budget deliberations for the current
6.9year, and encouraging taxpayers to attend the hearings. If the county allows notices to
6.10be included in the envelope containing the property tax statement, and if more than
6.11one taxing district relative to a given property decides to include a notice with the tax
6.12statement, the county treasurer or auditor must coordinate the process and may combine
6.13the information on a single announcement.
6.14EFFECTIVE DATE.This section is effective for property taxes payable in 2012
6.15and thereafter.
