1. Property Tax Freeze for Senior Citizens & General Update.CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A.
Attorneys at Law
Thomas J. Campbell
Roger N. Knutson
Thomas M. Scott
Gary G. Fuchs
James R. Walston
Elliott B. Knetsch
Suesan Lea Pace
(612) 452 -5000
Fax (612) 452 -5550
6 A : f
January 22, 1997
CHANHASSEN MAYOR & CITY COUNCIL
Nancy K. Mancino, Mayor
Mike Mason, Councilmember
Steven Berquist, Councilmember
Mark Engel, Councilmember
Mark Senn, Councilmember
RE: Partial Rebate of City Portion of
Property Tax Increase
Dear Mayor and Councilmembers:
(:l�tidrea McDowell Poehler
Matthew K. Brokl*
John F. Kelly
Marguerite M. McCarron
George T. Stephenson
*Also licensed in Wisconsin
�la a' sJ,
At the last Council meeting I was asked to give you a brief analysis of the legal
ramifications of the City granting a partial rebate of the City's portion of property tax increases
due to increased valuations to taxpayers below a certain income level. The short answer is the
proposal exceeds the City's authority and is therefore unlawful.
The field of real property taxation has been preempted by the legislature and the City
lacks authority to change the allocation of burdens created by the legislature. To quote from the
League of Cities Handbook:
All real property in the state is taxable as property under the laws
of Minnesota, with certain exceptions. The city has no authority to
determine what property is taxable, nor in what proportions or
amounts. The Legislature alone prescribes the procedures to follow
and sets all rates and exemptions. (p. 322)
Enclosed are copies of Minn. Stat. §§ 271.11 and 273.13. The first statute gives a limited
break on valuation increases. The second statute gives breaks on the tax classification rates to
various groups including the disabled.
The question was asked, how much trouble could we get into? The City's auditor could
make a note of the practice in your annual audit. The state auditor could write letters to you and
the press and potentially start a suit to enjoin the City. Since the effect of the proposal is to shift
Suite 317 • Eagandale Office Center • 1380 Corporate Center Curve • Eagan, MN 55121
Chanhassen Mayor & City Council
January 22, 1997
Page 2
the tax burden, however slightly, to other taxpayers, a disgruntled taxpayer could bring suit.
Your speculation is as good as mine as to whether we would actually be sued. The Minnesota
Supreme Court has ruled:
"[tjhe right of a taxpayer to maintain an action in the courts to
restrain the unlawful use of public funds cannot be denied. "
McKee v. Linkins 261 N.W.2d 566 (Minn. 1977).
You could ask a local legislator to introduce a bill only applicable to Chanhassen. A
state -wide bill is also possible, but much more difficult to enact.
yours,
, P.A.
, SCOTT
ger N. Knutson
RNK: sm
Enclosures
cc: Don Ashworth
135 TOM; LISTNG, ASSESSMENT 273.11
termining such value, the assessor shall not adopt a lower or different standard of value be-
cause the same is to serve as a basis of taxation, nor shall the assessor adopt as a criterion of
value the price for which such property would sell at a forced sale, or in the aggregate with all
the property in the town or district; but the assessor shall value each article or description of
property by itself, and at such sum or price as the assessor believes the same to be fairly worth
in money. The assessor shall take into account the effect on the market value of property of
environmental factors in the vicinity of the property. In assessing any tract or lot of real prop-
erty, the value of the land, exclusive of structures and improvements, shall be determined,
and also the value of all structures and improvements thereon, and the aggregate value of the
property, including all structures and improvements, excluding the value of crops growing
upon cultivated land. In valuing real property upon which there is a mine or quarry, it shall be
valued at such price as such property, including the mine or quany, would sell for a fair, vol-
untary sale, for cash. In valuing real property which is vacant, platted property shall be as-
sessed asprovided in subdivision 14: All property, or the use thereof, which is taxable under
section 272.01, subdivision 2, or 273.19, shall be valued at the market value of such property
and not at the value of a leasehold estate in such property, or at some lesser value than its
market value.
Subd. la. Limited market value. In the case of all property classified as agricultural
homestead or nonhomestead, residential homestead or nonhomestead, or noncommercial
seasonal recreational residential, the assessor shall c ompare the value wit that determined
in the preceding assessment. The amount of the increase entered in t e current assessment
shall not excel the greater of (1) ten percent of the value in the preceding assessment, or (2)
one —third of the difference between t e current assessment and the preceding assessment.
This limitation shall not apply to increases in value due to improvements. For purposes of
this subdivision, the term "assessment" means the value prior to any exclusion under subdi-
vision 16.
The provisions of this subdivision shall be in effect only for assessment years 1993
through 1997.
For purposes of the assessment/ sales ratio study conducted under section 124.213 1,
and the computation of state aids paid under chapters 124, 124A, and 477A, market values
and net tax capacities determined under this subdivision and subdivision 16, shall be used.
Subd. 2. [Repealed, 1979 c 303 art 2 s 38]
Subd. 3. [Repealed, 1975 c 437 art 8 s 10]
Subd. 4. [Repealed, 1976 c 345 s 3]
Subd. 5. Notwithstanding any other provision of law to the contrary, the limitation con-
tained in subdivisions 1 and la shall also apply to the authority of the local board of review as
provided in section 274.01, the county board of equalization as provided in section 274.13,
the state board of equalization and the commissioner of revenue as provided in sections
270.11, 270.12 and 270.16.
Subd. 6. For purposes of property taxation, the market value of real and personal proper-
ty installed prior to January 1, 1984, which is a solar, wind, or agriculturally derived methane
gas system used as a heating, cooling, or electric power source of a building or structure shall
be excluded from the market value of that building or structure if the property is not used to
provide energy for sale.
Subd. 6a. Fire — safety sprinkler systems. For purposes of property taxation, the market
value of automatic fire— safety sprinkler systems installed in existing buildings after January
1, 1992, meeting the standards of the Minnesota fire code shall be excluded from the market
value of (1) existing multifamily residential real estate containing four or more units and
used or held for use by the owner or t,y the tenants or lessees of the owner as a residence and
(2) existing real estate containing four or more contiguous residential units for use by cus-
tomers of the owner, such as hotels, motels, and lodging houses and (3) existing office build-
ings or mixed use commercial — residential buildings, in which at least one story capable of
occupancy is at least 75 feet above the ground. The market value exclusion under this section
shall expire if the property is sold.
Subd. 7. [Repealed, 1984 c 502 art 3 s 36]
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273.13 TAXES; Lm iNG, AssEssN ENrr 166
(b) Net tax capacity means the product of the appropriate net class rates in this section
and in t values.
SW. 21 Class 1. (a) Except as provided in subdivision 23, real estate which is residen-
tial and u3Wor homestead purposes is class 1. The market value of class 1 a property must be
determined based upon the value of the house, garage, and land.
The first $72,000 of market value of class 1 a property has a net class rate of one percent
of its market value and a gross class rate of 2.17 percent of its market value. For taxes payable
in 1992, the market value of class la property that exceeds $72,000 but does not exceed
$115,000 has a class rate of two percent of its market value; and the market value of class la
property that exceeds $115,000 has a class rate of 2.5 percent of its market value. For taxes
payable in 1993 and thereafter, the market value of class la property that exceeds $72,000
has a class ra two perce t.
(b) Cl s lb pr erty includes homestead real estate or homestead manufactured homes
used for the of a homestead by
(1) any blind person, or the blind person and the blind person's spouse; or
(2) any person, hereinafter referred to as "veteran," who:
(i) served in the active military or naval service of the United States; and
(ii) is entitled to compensation under the laws and regulations of the United States for
permanent and total service —connected disability due to the loss, or loss of use, by reason of
amputation, ankylosis, progressive muscular dystrophies, or paralysis, of both lower ex-
tremities, such as to preclude motion without the aid of braces, crutches, canes, or a wheel-
chair; and
(iii) has acquired a special housing unit with special fixtures or movable facilities made
necessary by the nature of the veteran's disability, or the surviving spouse of the deceased
veteran for as long as the surviving spouse retains the special housins unit as a homestead; or
(3) any person who:
(i) is permanently and totally disabled and
(ii) receives 90 percent or more of total income from
(A) aid from any state as a result of that disability; or
(B) supplemental security income for the disabled; or
(C) workers' compensation based on a finding of total and permanent disability; or
(D) social security disability, including the amount of a disability insurance benefit
w ich is converted to an old age insurance benefit and any subsequent cost of living in-
creases; or
(E) aid under the federal Railroad Retirement Act of 1937, United States Code Anno-
tated, title 45, section 228b(a)5; or
(F) a pension from any local government retirement fund located in the state of Minne-
sota as a result of that disability; or
(G) pension, annuity, or other income paid as a result of that disability from a private
pension or disability plan, including employer, employee, union, and insurance plans and
(iii) has household income as defined in section 290A.03, subdivision 5, of $50,000 or
less; or
(4) any person who is permanently and totally disabled and whose household income as
defined in section 290A.03, subdivision 5, is 150 percent or less of the federal poverty level.
Property is classified and assessed under clause (4) only if the government agency or
income — providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph.
Property is classified and assessed pursuant to clause (1) only if the commissioner of
economic security certifies to the assessor that the homestead occupant satisfies the require-
ments of this paragraph.
Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an occupa-
tion which brings the person an income. The first $32,000 market value of class lb property
has a net class rate of .45 percent of its market value and a Bross class rare nf R7 .,Pr,.e _e:.,
167 TAXES; LI.STM, ASSESSMENT 273.13
market value. The remaining market value of class lb property has a gross or net class rate
using the rates for class 1 or class 2a property, whichever is appropriate, of similar market
value.
(c) Class lc property is commercial use real property that abuts a lakeshore line and is
devoted to temporary and seasonal residential occupancy for recreational purposes but not
devoted to commercial purposes for more than 250 days in the year preceding the year of
assessment, and that includes a portion used as a homestead by the owner, which includes a
dwelling occupied as a homestead by a shareholder of a corporation that owns the resort or a
partner in a partnership that owns the resort, even if the title to the homestead is held by the
corporation or partnership. For purposes of this clause, property is devoted to a commercial
purpose on a specific day if any portion of the property, excluding the portion used exclusive-
ly as a homestead, is used for residential occupancy and a fee is charged for residential occu-
pancy. Class lc property has a class rate of one percent of total market value for taxes payable
in 1993 and thereafter with the following limitation: the area of the property must not exceed
100 feet of lakeshore footage for each cabin or campsite located on the property up to a total
of 800 feet and 500 feet in depth, measured away from the lakeshore.
Subd. 23. Class 2. (a) Class 2a property is agricultural land including any improve-
ments that is homesteaded. The market value of the house and garage and immediately sur-
rounding one acre of land has the same class rates as class 1 a property under subdivision 22.
The value of the remaining land including improvements up to $115,000 has a net class rate
of .45 percent of market value and a gross class rate of 1.75 percent of market value. The
remaining value of class 2a property over $115,000 of market value that does not exceed 320
acres has a net class rate of one percent of market value, and a gross class rate of 2.25 percent
of market value. The remaining property over the $115,000 market value in excess of 320
acres has a class rate of 1.5 percent of market value, and a gross class rate of 2.25 percent of
market
(b) Class 2b property is (1) real estate, rural in character and used exclusively for grow-
ing trees for timber, lumber, and wood and wood products; (2) real estate that is not improved
with a structure and is used exclusively for growing trees for timber, lumber, and wood and
wood products, if the owner has participated or is participating in a cost — sharing program for
afforestation, reforestation, or timber stand improvement on that particular property,
administered or coordinated by the commissioner of natural resources; (3) real estate that is
nonhomestead agricultural land; or (4) a landing area or public access area of a privately
owned public use airport. Class 2b property has a net class rate of 1.5 percent of market value,
and a gross class rate of 2.25 percent of market value.
(c) Agricultural land as used in this section means contiguous acreage of ten acres or
more, primarily used during the preceding year for agricultural purposes. Agricultural use
may include pasture, timber, waste, unusable wild land, and land included in state or federal
farm or conservation programs. "Agricultural purposes" as used in this section means the
raising or cultivation of agricultural products. Land enrolled in the Reinvest in Minnesota
program under sections 1038505 to 103F.531 or the federal Conservation Reserve Program
as contained in Public Law Number 99 -198, and consisting of a minimum of ten contiguous
acres, shall be classified as agricultural. Agricultural classification for property shall be de-
termined with respect to the use of the whole parcel, and not based upon the market value of
any residential structures on the parcel or contiguous parcels under the same ownership.
(d) Real estate of less than ten acres used principally for raising or cultivating agricul-
tural products, shall be considered as agricultural land, if it is not used primarily for residen-
tial purposes.
(e) The term "agricultural products" as used in this subdivision includes:
(1) livestock, dairy animals, dairy products, poultry and poultry products, fur — bearing
animals, horticultural and nursery stock described in sections 18.44 to 18.61, fruit of all
kinds, vegetables, forage, grains, bees, and apiary products by the owner;
(2) fish bred for sale and consumption if the fish breeding occurs on land zoned for agri-
cultural use;
(3) the commercial boarding of horses if the boarding is done in conjunction with rais-
ing or cultivating agricultural products as defined in clause (1);
i
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Ashworth's Calculations
Total Population
% Seniors
Est. Seniors/Household
Total Households
Rental Units
Single Family Seniors
Average tax bill
% City (18 %)
Estimated Increase Value
20,000
8%
1,600
1.5
1,000
80/20
800
3,000
600
5 %
$30
Max. Probable Liability
800 x 30 = 24,000 /yr.
*Note if increase is more than 10 %, state relief kicks in.
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[REVISOR ) EB /JC 97 - 0118 �
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/A
1 A bill for an act
2 relating to property taxes; providing for a property
3 tax freeze for homeowners aged 65 or older; amending
4 Minnesota Statutes 1996, sections 124.214, subdivision
5 2; 275.065, subdivision 3; 275.08, subdivision lb; and
6 276.04, subdivision 2, and by adding a subdivision.
7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8 Section 1. Minnesota Statutes 1996, section 124.214,
9 subdivision 2, is amended to read:
10 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278,
11 sections 270.07, 375.192, or otherwise, the net tax capacity of
12 any school district for any taxable year is changed after the
13 taxes for that year have been spread by the county auditor and
14 the local tax rate as determined by the county auditor based
15 upon the original net tax capacity is applied upon the changed
16 net tax capacities, the county auditor shall, prior to February
17 1 of each year, certify to the commissioner of children,
18 families, and learning the amount of any resulting net revenue
19 loss that accrued to the school district during the preceding
20 year. Each year, the commissioner shall pay an abatement
21 adjustment to the district in an amount calculated according to
22 the provisions of this subdivision. This amount shall be
23 deducted from the amount of the levy authorized by section
24 124.912, subdivision 9. The amount of the abatement adjustment
25 shall be the product of:
26 (1) the net revenue loss from abatements and from tax
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1 reductions under section 276.04, subdivision 2a, as certified by
2 the county auditor, times
3 (2) the ratio of:
4 (a) the sum of the amounts of the district's certified levy
5 in the preceding year according to the following:
6 (i) section 124A.23 if the district received general
7 education aid according to that section for the second preceding
8 year;
9 (ii) section 124.226, subdivisions 1 and 4, if the district
10 received transportation aid according to section 124.225 for the
11 second preceding year;
12 (iii) section 124.243, if the district received capital
13 expenditure facilities aid according to that section for the
14 second preceding year;
15 (iv) section 124.244, if the district received capital
16 expenditure equipment aid according to that section for the
17 second preceding year;
18 (v) section 124.83, if the district received health and
19 safety aid according to that section for the second preceding
20 year;
21 (vi) sections 124.2713, 124.2714, and 124.2715, if the
22 district received aid for community education programs according
23 to any of those sections for the second preceding year;
24 (vii) section 124.2711, subdivision 2a, if the district
25 received early childhood family education aid according to
26 section 124.2711 for the second preceding year;
27 (viii) section 124.321, subdivision 3, if the district
28 received special education levy equalization aid according to
29 that section for the second preceding year;
30 (ix) section 124A.03, subdivision lg, if the district
31 received referendum equalization aid according to that section
32 for the second preceding year; and
33 (x) section 124A.22, subdivision 4a, if the district
34 received training and experience aid according to that section
35 for the second preceding year;
36 (b) to the total amount of the district's certified levy in
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the preceding October, plus or minus auditor's adjustments.
Sec. 2. Minnesota Statutes 1996, section 275.065,
subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The
county auditor shall prepare and the county treasurer shall
deliver after November 10 and on or before November.24 each
year, by first class mail to each taxpayer at the address listed
on the county's current year's assessment roll, a notice of
proposed property taxes and, in the case of a town, final
property taxes.
(b) The commissioner of revenue shall prescribe the form of
the notice.
(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority other than a town
proposes to collect for taxes payable the following year and,
for a town, the amount of its final levy. It must clearly state
that each taxing authority, including regional library districts
established under section 134.201, and including the
metropolitan taxing districts as defined in paragraph (i), but
excluding all other special taxing districts and towns, will
hold a public meeting to receive public testimony on the
proposed budget and proposed or final property tax levy, or, in
case of a school district, on the current budget and proposed
property tax levy. It must clearly state the time and place of
each taxing authority's meeting and an address where comments
will be received by mail.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under
section 273.11, and used for computing property taxes payable in
the following year and for taxes payable in the current year;
and, in the case of residential property, whether the property
is classified as homestead or nonhomestead. The notice must
clearly inform taxpayers of the years to which the market values
apply and that the values are final values;
(2) by county, city or town, school district excess
referenda levy, remaining school district levy, regional library
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district, if in existence, the total of the metropolitan special
taxing districts as defined in paragraph (i) and the sum of the
remaining special taxing districts, and as a total of the taxing
authorities, including all special taxing districts, the
proposed or, for a town, final net tax on the property for taxes
payable the following year and the actual tax for taxes payable
the current year. The notice shall state the amount of any tax
reduction accruing to the property under section 276.04,
subdivision 2a, and shall reflect the net tax after the
application of that subdivision. If a school district has
certified under section 124A.03, subdivision 2, that a
referendum will be held in the school district at the November
general election, the county auditor must note next to the
school district's proposed amount that a referendum is pending
and that, if approved by the voters, the tax amount may be
higher than shown on the notice. For the purposes of this
subdivision, "school district excess referenda levy" means
school district taxes for operating purposes approved at
referendums, including those taxes based on net tax capacity as
well as those based on market value. "School district excess
referenda levy" does not include school district taxes for
capital expenditures approved at referendums or school district
taxes to pay for the debt service on bonds approved at
referenda. In the case of the city of Minneapolis, the levy for
the Minneapolis library board and the levy for Minneapolis park
and recreation shall be listed separately from the remaining
amount of the city's levy. In the case of a parcel where tax
increment or the fiscal disparities areawide tax under chapter
276A or 473F applies, the proposed tax levy on the captured
value or the proposed tax levy on the tax capacity subject to
the areawide tax must each be stated separately and not included
in the sum of the special taxing districts; and
(3) the increase or decrease in the amounts in clause (2)
from taxes payable in the current year to proposed or, for a
town, final taxes payable the following year, expressed as a
dollar amount and as a percentage.
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(e) The notice must clearly state that the proposed or
final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the
proposed taxes are certified, including bond referenda, school
district levy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to
a natural disaster occurring after the date the proposed taxes
are certified;
(4) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and
(5) the contamination tax imposed on properties which
received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the
notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the
tax levy.
(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead and the homeowner provides
satisfactory documentation to the county assessor that the
property is owned and used as the owner's homestead, the
assessor shall reclassify the property to homestead for taxes
payable in the following year.
(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the
taxpayer must either:
(1) mail or deliver a copy of the notice of proposed
property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the
premises of the property.
The notice must be mailed or posted by the taxpayer by
November 27 or within three days of receipt of the notice,
whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of
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1 the premises to which the notice must be mailed in order to
2 fulfill the requirements of this paragraph.
3 (i) For purposes of this subdivision, subdivisions 5a and
4 6, "metropolitan special taxing districts" means the following
5 taxing districts in the seven - county metropolitan area that levy
6 a property tax for any of the specified purposes listed below:
7 (1) metropolitan council under section 473.132, 473.167,
8 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
9 (2) metropolitan airports commission under section 473.667,
10 473.671, or 473.672; and
11 (3) metropolitan mosquito control commission under section
12 473.711.
13 For purposes of this section, any levies made by the
14 regional rail authorities in the county of Anoka, Carver,
15 Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
16 398A shall be included with the appropriate county's levy and
17 shall be discussed at that county's public hearing.
18 (j) For taxes levied in 1996, payable in 1997 only, in the
19 case of a statutory or home rule charter city or town that
20 exercises the local levy option provided in section 473.388,
21 subdivision 7, the notice of its proposed taxes may include a
22 statement of the amount by which its proposed tax increase for
23 taxes payable in 1997 is attributable to its exercise of that
24 option, together with a statement that the levy of the
25 metropolitan council was decreased by a similar amount because
26 of the exercise of that option.
27 Sec. 3. Minnesota Statutes 1996, section 275.08,
28 subdivision lb, is amended to read:
29 Subd. lb. [COMPUTATION OF TAX RATES:] The amounts
30 certified to be levied against net tax capacity under section
31 275.07 by an individual local government unit shall be divided
32 by the total net tax capacity of all taxable properties within
33 the local government unit's taxing jurisdiction. The resulting
34 ratio, the local government's local tax rate, multiplied by each
35 property's net tax capacity shall be each property's net tax
36 capacity tax for that local government unit before reduction by
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1 any credits or by the application of section 276.04, subdivision
2 2a.
3 Any amount certified to the county auditor to be levied
4 against market value shall be divided by the total referendum
5 market value of all taxable properties within the taxing
6 district. The resulting ratio, the taxing district's new
7 referendum tax rate, multiplied by each property's referendum
8 market value shall be each property's new referendum tax before
9 reduction by any credits. For the purposes of this subdivision,
10 "referendum market value" means the market value as defined in
11 section 124A.02, subdivision 3b.
12 . Sec. 4. Minnesota Statutes 1996, section 276.04,
13 subdivision 2, is amended to read:
14 Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer
15 shall provide for the printing of the tax statements. The
16 commissioner of revenue shall prescribe the form of the property
17 tax statement and its contents. The statement must contain a
18 tabulated statement of the dollar amount due to each taxing
19 authority from the parcel of real property for which a
20 particular tax statement is prepared. The dollar amounts due
21 the county, township or municipality, the total of the
22 metropolitan special taxing districts as defined in section
23 275.065, subdivision 3, paragraph (i), school district excess
24 referenda levy, remaining school district levy, and the total of
25 other voter approved referenda levies based on market value
26 under section 275.61 must be separately stated. The amounts due
27 all other special taxing districts, if any, may be aggregated.
28 For the purposes of this subdivision, "school district excess
29 referenda levy" means school district taxes for operating
30 purposes approved at referenda, including those taxes based on
31 net tax capacity as well as those based on market value.
32 "School district excess referenda levy" does not include school
33 district taxes for capital expenditures approved at referendums
34 or school district taxes to pay for the debt service on bonds
35 approved at referenda. The amount of the tax on contamination
36 value imposed under sections 270.91 to 270.98, if any, must also
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1 be separately stated. The dollar amounts, including the dollar
2 amount of any special assessments, may be rounded to the nearest
3 even whole dollar. For purposes of this section whole
4 odd - numbered dollars may be adjusted to the next higher
5 even - numbered dollar. The amount of market value excluded under
6 section 273.11, subdivision 16, if any, must also be listed on
7 the tax statement. The statement shall include the following
8 sentence, printed in upper case letters in boldface print: "THE
9 STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.
10 THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING
11 CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."
12 (b) The property tax statements for manufactured homes and
13 sectional structures taxed as personal property shall contain
14 the same information that is required on the tax statements for
15 real property.
16 (c) Real and personal property tax statements must contain
17 the following information in the order given in this paragraph.
18 The information must contain the current year tax information in
19 the right column with the corresponding information for the
20 previous year in a column on the left:
21 (1) the property's estimated market value under section
22 273.11, subdivision 1;
23 (2) the property's taxable market value after reductions
24 under section 273.11, subdivisions la and 16;
25 (3) the property's gross tax, calculated by multiplying the
26 property's gross tax capacity times the total local tax rate and
27 adding to the result the sum of the aids enumerated in clause
28 (4);
29 (4) a total of the following aids:
30 (i) education aids payable under chapters 124 and 124A;
31 (ii) local government aids for cities, towns, and counties
32 under chapter 477A; and
33 (iii) disparity reduction aid under section 273.1398;
34 (5) for homestead residential and agricultural properties,
35 the homestead and agricultural credit aid apportioned to the
36 property. This amount is obtained by multiplying the total
8
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25
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local tax rate by the difference between the property's gross
and net tax capacities under section 273.13. This amount must
be separately stated and identified as "homestead and
agricultural credit." For purposes of comparison with the
previous year's amount for the statement for taxes payable in
1990, the statement must show the homestead credit for taxes
payable in 1989 under section 273.13, and the agricultural
credit under section 273.132 for taxes payable in 1989;
(6) any credits received under sections 273.119; 273.123;
273.135; 273.1391; 273.1398, subdivision 4; 469.171; and
473H.10, except that the amount of credit received under section
273.135 must be separately stated and identified as "taconite
tax relief "; and
(7) the amount of any tax reduction resulting from the
property qualifying for treatment under subdivision 2a; and
the net tax payable in the manner required in paragraph
(a).
(d) If the county uses envelopes for mailing property tax
statements and if the county agrees, a taxing district may
include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget
deliberations for the current year, and encouraging taxpayers to
attend the hearings. If the county allows notices to be
included in the envelope containing the property tax statement,
and if more than one taxing district relative to a given
property decides to include a notice with the tax statement, the
county treasurer or auditor must coordinate the process and may
combine the information on a single announcement.
The commissioner of revenue shall certify to the county
auditor the actual or estimated aids enumerated in clauses (3)
and (4) that local governments will receive in the following
year. In the case of a county containing a city of the first
class, for taxes levied in 1991, and for all counties for taxes
levied in 1992 and thereafter, the commissioner must certify
this amount by September 1.
Sec. 5. Minnesota Statutes 1996, section 276.04, is
9
09/09/96
[REVISOR
)
1 amended by adding a subdivision to read:
[HOMESTEADS OF PERSONS AT LEAST AGE 65; TAX
2 Subd. 2a.
EB /JC 97 -0118
3 INCREASE PROHIBITED.) ( a) The net tax payable on class 1
4 ro ert as defined in section 273.13, subdivision 22, and that
5 part of class 2a pro ertv as defined in section 273.13,
6 subdivision 23, consistina of the house, garaqer and surroundin
7 one acre of land, ma r not exceed its net tax payable for the
8 recedin ear, if all of the following conditions are met:
(1) the owners or, in the case of pr operty owned by a
g
10 married cou le in 'oint tenancy or tenancy in common, at least
11 one of the owners, are at least 65 years of a e on January 1 of
12 the current tax year;
13 2 the total household income as defined in section
290A.03, subdivision 3 for the Dreceding calendar year does not
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15
16
17
18
19
20
21
22
23
24
25
26
27
28
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exceed § .
3 the ert ualifies for full homestead
classification for both the previous and current tax ears;
4 the owner or owners have owned the property both
years; and
5 the owner or owners have applied for taxation under
this se ction as required in paragraph (b)•
b An owner or owners must apply to the county auditor for
taxation under this subdivision b Jul 1 of the ear before the
year for which treatment under paragraph (a)
is firs
re uested. The a licant or a licants must submit roof of
age, household income, and an p other information re uired b the
auditor to d etermine eligibility for taxat under Para r9_�
( a). In succeedin ears, a licants must submit whatever
information the assessor deems necessar to determine continued
30 eligibility under this section.
31 c This subdivision does not a 1 to any increase in net
32 prop ert taxes attributable to im rovements made to the
33 homestead_
34 d The count auditor shall annuall inform the ublic of
35 the availability of treatment under this subdivision.
36 a Pro ert that no lon er qualifies for treatment under
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1 this section shall be taxed as otherwise provided by law.
2 (f) The amount of any tax reduction resulting from the
3 application of this subdivision shall be allocated among the
4 taxing districts in proportion to each taxing district's tax
5 rate relative to the total tax rate being levied against the
6 property.
7 Sec. 6. [EFFECTIVE DATE.]
8 Sections 1 to 5 are effective for taxes levied in 1997,
9 payable in 1998 and subsequent years.
11