Bill Text: MN SF1596 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Homeowner property tax refunds increase; special property tax refund increase; commercial-industrial property tax provisions modifications; seasonal recreational property levy freeze; appropriating money
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2012-01-30 - Referred to Taxes [SF1596 Detail]
Download: Minnesota-2011-SF1596-Introduced.html
1.2relating to property taxes; exempting the first $100,000 in value of each
1.3commercial-industrial property from the state general levy; phasing-out the state
1.4general levy on commercial-industrial property over 20 years; freezing the state
1.5general levy on seasonal recreational property; increasing maximum homeowner
1.6property tax refunds; providing for a temporary increase in the special property
1.7tax refund; appropriating money;amending Minnesota Statutes 2010, section
1.8275.025, subdivisions 1, 2, 4; Minnesota Statutes 2011 Supplement, section
1.9290A.04, subdivision 2.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
1.12 Subdivision 1. Levy amount. (a) The state general levy is levied against
1.13commercial-industrial property and seasonal residential recreational property, as defined
1.14in this section.
1.15(b) The state general levy for seasonal residential recreational property is
1.16$40,871,000 for taxes payable in 2013 and thereafter.
1.17(c) The state general levy base amount for commercial-industrial property is
1.18$592,000,000 $719,252,000. For taxes payable in 2002 2013, the state general levy
1.19for commercial-industrial property is equal to the base amount. For taxes payable in
1.20subsequent years 2014 to taxes payable in 2032, the levy base amount is increased
1.21reduced each year from the previous year's amount bymultiplying the levy base amount
1.22for the prior year by the sum of one plus the rate of increase, if any, in the implicit price
1.23deflator for government consumption expenditures and gross investment for state and
1.24local governments prepared by the Bureau of Economic Analysts of the United States
1.25Department of Commerce for the 12-month period ending March 31 of the year prior to
2.1the year the taxes are payable five percent of the base amount. For taxes payable in 2033
2.2and thereafter, the state general levy for commercial-industrial property is $0.
2.3(d) The tax under this section is not treated as a local tax rate under section469.177
2.4and is not the levy of a governmental unit under chapters 276A and 473F.
2.5(e) The commissioner shall increase or decrease the preliminary or finalrate rates for
2.6a year as necessary to account for errors and tax base changes that affected a preliminary
2.7or final rate for either of the two preceding years. Adjustments are allowed to the extent
2.8that the necessary information is available to the commissioner at the time the rates for a
2.9year must be certified, and for the following reasons:
2.10(1) an erroneous report of taxable value by a local official;
2.11(2) an erroneous calculation by the commissioner; and
2.12(3) an increase or decrease in taxable value for commercial-industrial or seasonal
2.13residential recreational property reported on the abstracts of tax lists submitted under
2.14section275.29 that was not reported on the abstracts of assessment submitted under
2.15section270C.89 for the same year.
2.16 (f) The commissioner may, but need not, make adjustments if the total difference in
2.17the tax levied for the year would be less than $100,000.
2.18EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
2.19thereafter.
2.20 Sec. 2. Minnesota Statutes 2010, section 275.025, subdivision 2, is amended to read:
2.21 Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
2.22"commercial-industrial tax capacity" means the tax capacity of all taxable property
2.23classified as class 3 or class 5(1) under section273.13 , except for excluding: (1) the
2.24first $100,000 in value of each commercial-industrial property, (2) electric generation
2.25attached machinery under class 3, and (3) property described in section473.625 . County
2.26commercial-industrial tax capacity amounts are not adjusted for the captured net tax
2.27capacity of a tax increment financing district under section469.177, subdivision 2 , the
2.28net tax capacity of transmission lines deducted from a local government's total net tax
2.29capacity under section273.425 , or fiscal disparities contribution and distribution net
2.30tax capacities under chapter 276A or 473F.
2.31EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
2.32thereafter.
2.33 Sec. 3. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:
3.1 Subd. 4.Apportionment and Levy of state general tax. Ninety-five percent of The
3.2state general tax must be levied by applying a uniform rate to all commercial-industrial tax
3.3capacity andfive percent of the state general tax must be levied by applying a uniform
3.4rate to all seasonal residential recreational tax capacity. On or before October 1 each
3.5year, the commissioner of revenue shall certify the preliminary state general levy rates to
3.6each county auditor that must be used to prepare the notices of proposed property taxes
3.7for taxes payable in the following year. By January 1 of each year, the commissioner
3.8shall certify the final state general levyrate rates to each county auditor that shall be
3.9used in spreading taxes.
3.10EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
3.11thereafter.
3.12 Sec. 4. Minnesota Statutes 2011 Supplement, section 290A.04, subdivision 2, is
3.13amended to read:
3.14 Subd. 2. Homeowners. A claimant whose property taxes payable are in excess
3.15of the percentage of the household income stated below shall pay an amount equal to
3.16the percent of income shown for the appropriate household income level along with the
3.17percent to be paid by the claimant of the remaining amount of property taxes payable.
3.18The state refund equals the amount of property taxes payable that remain, up to the state
3.19refund amount shown below.
4.22 The payment made to a claimant shall be the amount of the state refund calculated
4.23under this subdivision. No payment is allowed if the claimant's household income is
4.24$100,780 or more.
4.25EFFECTIVE DATE.This section is effective for refund claims based on taxes
4.26payable in 2012 and thereafter.
4.27 Sec. 5. SUPPLEMENTAL TARGETING REFUND FOR TAXES PAYABLE IN
4.282012 ONLY.
4.29 Subdivision 1. Determination of supplemental refund. (a) For property tax refund
4.30claims under Minnesota Statutes, section 290A.04, subdivision 2h, based upon property
4.31taxes payable in 2012, the state must pay a supplemental refund such that the combined
4.32amount of the regular refund under Minnesota Statutes, section 290A.04, subdivision 2h,
4.33and the supplemental refund is equal to 90 percent of the increase over the greater of (1) 12
4.34percent of the payable 2011 property taxes, or (2) $100. The maximum combined refund
4.35under Minnesota Statutes, section 290A.04, subdivision 2h, and this section is $1,000.
4.36(b) The supplemental refund amount must be determined by the commissioner of
4.37revenue based upon the information submitted with the claim for the regular refund and
4.38must be combined with the regular refund for payment.
4.39(c) Any supplemental refund paid under this section must be subtracted from
4.40"property taxes payable" for the purposes of determining any refund amount under
5.1Minnesota Statutes, section 290A.04, subdivision 2, based upon property taxes payable
5.2in 2012.
5.3(d) Any supplemental refund paid under this section must be subtracted from
5.4"property taxes payable" for taxes payable in 2012 for the purposes of determining any
5.5refund amount under Minnesota Statutes, section 290A.04, subdivision 2h, based upon
5.6property taxes payable in 2013.
5.7 Subd. 2. Appropriation. The amount necessary to make the payments required
5.8under this section is appropriated to the commissioner of revenue from the general fund
5.9for fiscal years 2013 and 2014.
5.10EFFECTIVE DATE.This section is effective for refund claims based on taxes
5.11payable in 2012 only.
1.3commercial-industrial property from the state general levy; phasing-out the state
1.4general levy on commercial-industrial property over 20 years; freezing the state
1.5general levy on seasonal recreational property; increasing maximum homeowner
1.6property tax refunds; providing for a temporary increase in the special property
1.7tax refund; appropriating money;amending Minnesota Statutes 2010, section
1.8275.025, subdivisions 1, 2, 4; Minnesota Statutes 2011 Supplement, section
1.9290A.04, subdivision 2.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
1.12 Subdivision 1. Levy amount. (a) The state general levy is levied against
1.13commercial-industrial property and seasonal residential recreational property, as defined
1.14in this section.
1.15(b) The state general levy for seasonal residential recreational property is
1.16$40,871,000 for taxes payable in 2013 and thereafter.
1.17(c) The state general levy base amount for commercial-industrial property is
1.18
1.19for commercial-industrial property is equal to the base amount. For taxes payable in
1.20
1.21reduced each year from the previous year's amount by
1.22
1.23
1.24
1.25
2.1
2.2and thereafter, the state general levy for commercial-industrial property is $0.
2.3(d) The tax under this section is not treated as a local tax rate under section
2.4and is not the levy of a governmental unit under chapters 276A and 473F.
2.5(e) The commissioner shall increase or decrease the preliminary or final
2.6a year as necessary to account for errors and tax base changes that affected a preliminary
2.7or final rate for either of the two preceding years. Adjustments are allowed to the extent
2.8that the necessary information is available to the commissioner at the time the rates for a
2.9year must be certified, and for the following reasons:
2.10(1) an erroneous report of taxable value by a local official;
2.11(2) an erroneous calculation by the commissioner; and
2.12(3) an increase or decrease in taxable value for commercial-industrial or seasonal
2.13residential recreational property reported on the abstracts of tax lists submitted under
2.14section
2.15section
2.16 (f) The commissioner may, but need not, make adjustments if the total difference in
2.17the tax levied for the year would be less than $100,000.
2.18EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
2.19thereafter.
2.20 Sec. 2. Minnesota Statutes 2010, section 275.025, subdivision 2, is amended to read:
2.21 Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
2.22"commercial-industrial tax capacity" means the tax capacity of all taxable property
2.23classified as class 3 or class 5(1) under section
2.24first $100,000 in value of each commercial-industrial property, (2) electric generation
2.25attached machinery under class 3, and (3) property described in section
2.26commercial-industrial tax capacity amounts are not adjusted for the captured net tax
2.27capacity of a tax increment financing district under section
2.28net tax capacity of transmission lines deducted from a local government's total net tax
2.29capacity under section
2.30tax capacities under chapter 276A or 473F.
2.31EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
2.32thereafter.
2.33 Sec. 3. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:
3.1 Subd. 4.
3.2state general tax must be levied by applying a uniform rate to all commercial-industrial tax
3.3capacity and
3.4rate to all seasonal residential recreational tax capacity. On or before October 1 each
3.5year, the commissioner of revenue shall certify the preliminary state general levy rates to
3.6each county auditor that must be used to prepare the notices of proposed property taxes
3.7for taxes payable in the following year. By January 1 of each year, the commissioner
3.8shall certify the final state general levy
3.9used in spreading taxes.
3.10EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
3.11thereafter.
3.12 Sec. 4. Minnesota Statutes 2011 Supplement, section 290A.04, subdivision 2, is
3.13amended to read:
3.14 Subd. 2. Homeowners. A claimant whose property taxes payable are in excess
3.15of the percentage of the household income stated below shall pay an amount equal to
3.16the percent of income shown for the appropriate household income level along with the
3.17percent to be paid by the claimant of the remaining amount of property taxes payable.
3.18The state refund equals the amount of property taxes payable that remain, up to the state
3.19refund amount shown below.
4.22 The payment made to a claimant shall be the amount of the state refund calculated
4.23under this subdivision. No payment is allowed if the claimant's household income is
4.24$100,780 or more.
4.25EFFECTIVE DATE.This section is effective for refund claims based on taxes
4.26payable in 2012 and thereafter.
4.27 Sec. 5. SUPPLEMENTAL TARGETING REFUND FOR TAXES PAYABLE IN
4.282012 ONLY.
4.29 Subdivision 1. Determination of supplemental refund. (a) For property tax refund
4.30claims under Minnesota Statutes, section 290A.04, subdivision 2h, based upon property
4.31taxes payable in 2012, the state must pay a supplemental refund such that the combined
4.32amount of the regular refund under Minnesota Statutes, section 290A.04, subdivision 2h,
4.33and the supplemental refund is equal to 90 percent of the increase over the greater of (1) 12
4.34percent of the payable 2011 property taxes, or (2) $100. The maximum combined refund
4.35under Minnesota Statutes, section 290A.04, subdivision 2h, and this section is $1,000.
4.36(b) The supplemental refund amount must be determined by the commissioner of
4.37revenue based upon the information submitted with the claim for the regular refund and
4.38must be combined with the regular refund for payment.
4.39(c) Any supplemental refund paid under this section must be subtracted from
4.40"property taxes payable" for the purposes of determining any refund amount under
5.1Minnesota Statutes, section 290A.04, subdivision 2, based upon property taxes payable
5.2in 2012.
5.3(d) Any supplemental refund paid under this section must be subtracted from
5.4"property taxes payable" for taxes payable in 2012 for the purposes of determining any
5.5refund amount under Minnesota Statutes, section 290A.04, subdivision 2h, based upon
5.6property taxes payable in 2013.
5.7 Subd. 2. Appropriation. The amount necessary to make the payments required
5.8under this section is appropriated to the commissioner of revenue from the general fund
5.9for fiscal years 2013 and 2014.
5.10EFFECTIVE DATE.This section is effective for refund claims based on taxes
5.11payable in 2012 only.
