1.2relating to taxation; property; requiring a truth in taxation budget hearing;
1.3repealing requirement for notice of proposed property taxes; amending Minnesota
1.4Statutes 2012, sections 273.124, subdivision 13; 275.065, subdivisions 6, 7;
1.5275.07, subdivision 1; 276.04, subdivision 2; 383E.21, subdivision 2; 469.1815,
1.6subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 275;
1.7repealing Minnesota Statutes 2012, section 275.065, subdivision 3.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Subd. 13. Homestead application. (a) A person who meets the homestead
1.11requirements under subdivision 1 must file a homestead application with the county
1.12assessor to initially obtain homestead classification.
1.13 (b) The format and contents of a uniform homestead application shall be prescribed
1.14by the commissioner of revenue. The application must clearly inform the taxpayer that
1.15this application must be signed by all owners who occupy the property or by the qualifying
1.16relative and returned to the county assessor in order for the property to receive homestead
1.18 (c) Every property owner applying for homestead classification must furnish to the
1.19county assessor the Social Security number of each occupant who is listed as an owner
1.20of the property on the deed of record, the name and address of each owner who does not
1.21occupy the property, and the name and Social Security number of each owner’s spouse who
1.22occupies the property. The application must be signed by each owner who occupies the
1.23property and by each owner’s spouse who occupies the property, or, in the case of property
1.24that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
2.1 If a property owner occupies a homestead, the property owner’s spouse may not
2.2claim another property as a homestead unless the property owner and the property owner’s
2.3spouse file with the assessor an affidavit or other proof required by the assessor stating that
2.4the property qualifies as a homestead under subdivision 1, paragraph (e).
2.5 Owners or spouses occupying residences owned by their spouses and previously
2.6occupied with the other spouse, either of whom fail to include the other spouse’s name
2.7and Social Security number on the homestead application or provide the affidavits or
2.8other proof requested, will be deemed to have elected to receive only partial homestead
2.9treatment of their residence. The remainder of the residence will be classified as
2.10nonhomestead residential. When an owner or spouse’s name and Social Security number
2.11appear on homestead applications for two separate residences and only one application is
2.12signed, the owner or spouse will be deemed to have elected to homestead the residence for
2.13which the application was signed.
2.14 The Social Security numbers, state or federal tax returns or tax return information,
2.15including the federal income tax schedule F required by this section, or affidavits or other
2.16proofs of the property owners and spouses submitted under this or another section to
2.17support a claim for a property tax homestead classification are private data on individuals as
2.18defined by section 13.02, subdivision 12, but, notwithstanding that section, the private data
2.19may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the
2.20Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
2.21 (d) If residential real estate is occupied and used for purposes of a homestead by a
2.22relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
2.23order for the property to receive homestead status, a homestead application must be filed
2.24with the assessor. The Social Security number of each relative and spouse of a relative
2.25occupying the property shall be required on the homestead application filed under this
2.26subdivision. If a different relative of the owner subsequently occupies the property, the
2.27owner of the property must notify the assessor within 30 days of the change in occupancy.
2.28The Social Security number of a relative or relative’s spouse occupying the property
2.29is private data on individuals as defined by section 13.02, subdivision 12, but may be
2.30disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
2.31Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
2.32 (e) The homestead application shall also notify the property owners that the
2.33application filed under this section will not be mailed annually and that if the property
2.34is granted homestead status for any assessment year, that same property shall remain
2.35classified as homestead until the property is sold or transferred to another person, or
2.36the owners, the spouse of the owner, or the relatives no longer use the property as their
3.1homestead. Upon the sale or transfer of the homestead property, a certificate of value must
3.2be timely filed with the county auditor as provided under section 272.115. Failure to
3.3notify the assessor within 30 days that the property has been sold, transferred, or that the
3.4owner, the spouse of the owner, or the relative is no longer occupying the property as a
3.5homestead, shall result in the penalty provided under this subdivision and the property
3.6will lose its current homestead status.
3.7 (f) If the homestead application is not returned within 30 days, the county will send a
3.8second application to the present owners of record.
3.10a homestead application has not been filed with the county by December 15, the assessor
3.11shall classify the property as nonhomestead for the current assessment year for taxes
3.12payable in the following year, provided that the owner may be entitled to receive the
3.13homestead classification by proper application under section 375.192.
3.14 (g) At the request of the commissioner, each county must give the commissioner a
3.15list that includes the name and Social Security number of each occupant of homestead
3.16property who is the property owner, property owner’s spouse, qualifying relative of a
3.17property owner, or a spouse of a qualifying relative. The commissioner shall use the
3.18information provided on the lists as appropriate under the law, including for the detection
3.19of improper claims by owners, or relatives of owners, under chapter 290A.
3.20 (h) If the commissioner finds that a property owner may be claiming a fraudulent
3.21homestead, the commissioner shall notify the appropriate counties. Within 90 days of
3.22the notification, the county assessor shall investigate to determine if the homestead
3.23classification was properly claimed. If the property owner does not qualify, the county
3.24assessor shall notify the county auditor who will determine the amount of homestead
3.25benefits that had been improperly allowed. For the purpose of this section, “homestead
3.26benefits” means the tax reduction resulting from the classification as a homestead under
3.27section 273.13, the taconite homestead credit under section 273.135, the residential
3.28homestead and agricultural homestead credits under section 273.1384, and the
3.29supplemental homestead credit under section 273.1391.
3.30 The county auditor shall send a notice to the person who owned the affected property
3.31at the time the homestead application related to the improper homestead was filed,
3.32demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
3.33of the homestead benefits. The person notified may appeal the county’s determination
3.34by serving copies of a petition for review with county officials as provided in section
3.35278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax
3.36Court within 60 days of the date of the notice from the county. Procedurally, the appeal
4.1is governed by the provisions in chapter 271 which apply to the appeal of a property tax
4.2assessment or levy, but without requiring any prepayment of the amount in controversy. If
4.3the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
4.4has been filed, the county auditor shall certify the amount of taxes and penalty to the county
4.5treasurer. The county treasurer will add interest to the unpaid homestead benefits and
4.6penalty amounts at the rate provided in section 279.03 for real property taxes becoming
4.7delinquent in the calendar year during which the amount remains unpaid. Interest may be
4.8assessed for the period beginning 60 days after demand for payment was made.
4.9 If the person notified is the current owner of the property, the treasurer may add the
4.10total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
4.11otherwise payable on the property by including the amounts on the property tax statements
4.12under section 276.04, subdivision 3. The amounts added under this paragraph to the ad
4.13valorem taxes shall include interest accrued through December 31 of the year preceding
4.14the taxes payable year for which the amounts are first added. These amounts, when added
4.15to the property tax statement, become subject to all the laws for the enforcement of real or
4.16personal property taxes for that year, and for any subsequent year.
4.17 If the person notified is not the current owner of the property, the treasurer may
4.18collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
4.19the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment
4.20of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
4.21tax obligations of the person who owned the property at the time the application related to
4.22the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
4.23personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
4.24those amounts on the tax lists against the property as provided in this paragraph to the extent
4.25that the current owner agrees in writing. On all demands, billings, property tax statements,
4.26and related correspondence, the county must list and state separately the amounts of
4.27homestead benefits, penalty, interest and costs being demanded, billed or assessed.
4.28 (i) Any amount of homestead benefits recovered by the county from the property
4.29owner shall be distributed to the county, city or town, and school district where the
4.30property is located in the same proportion that each taxing district’s levy was to the total
4.31of the three taxing districts’ levy for the current year. Any amount recovered attributable
4.32to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
4.33deposited in the taconite property tax relief account. Any amount recovered that is
4.34attributable to supplemental homestead credit is to be transmitted to the commissioner of
4.35revenue for deposit in the general fund of the state treasury. The total amount of penalty
4.36collected must be deposited in the county general fund.
5.1 (j) If a property owner has applied for more than one homestead and the county
5.2assessors cannot determine which property should be classified as homestead, the county
5.3assessors will refer the information to the commissioner. The commissioner shall make
5.4the determination and notify the counties within 60 days.
5.5 (k) In addition to lists of homestead properties, the commissioner may ask the
5.6counties to furnish lists of all properties and the record owners. The Social Security
5.7numbers and federal identification numbers that are maintained by a county or city
5.8assessor for property tax administration purposes, and that may appear on the lists retain
5.9their classification as private or nonpublic data; but may be viewed, accessed, and used by
5.10the county auditor or treasurer of the same county for the limited purpose of assisting the
5.11commissioner in the preparation of microdata samples under section 270C.12.
5.12 (l) On or before April 30 each year beginning in 2007, each county must provide the
5.13commissioner with the following data for each parcel of homestead property by electronic
5.14means as defined in section 289A.02, subdivision 8:
5.15 (i) the property identification number assigned to the parcel for purposes of taxes
5.16payable in the current year;
5.17 (ii) the name and Social Security number of each occupant of homestead property
5.18who is the property owner, property owner’s spouse, qualifying relative of a property
5.19owner, or spouse of a qualifying relative;
5.20 (iii) the classification of the property under section 273.13 for taxes payable in the
5.21current year and in the prior year;
5.22 (iv) an indication of whether the property was classified as a homestead for taxes
5.23payable in the current year because of occupancy by a relative of the owner or by a
5.24spouse of a relative;
5.25 (v) the property taxes payable as defined in section 290A.03, subdivision 13, for the
5.26current year and the prior year;
5.27 (vi) the market value of improvements to the property first assessed for tax purposes
5.28for taxes payable in the current year;
5.29 (vii) the assessor’s estimated market value assigned to the property for taxes payable
5.30in the current year and the prior year;
5.31 (viii) the taxable market value assigned to the property for taxes payable in the
5.32current year and the prior year;
5.33 (ix) whether there are delinquent property taxes owing on the homestead;
5.34 (x) the unique taxing district in which the property is located; and
5.35 (xi) such other information as the commissioner decides is necessary.
6.1 The commissioner shall use the information provided on the lists as appropriate
6.2under the law, including for the detection of improper claims by owners, or relatives
6.3of owners, under chapter 290A.6.4 Sec. 2. [275.0645] TRUTH IN TAXATION.
6.5 Subdivision 1. Truth in taxation; budget meeting. (a) Notwithstanding any law
6.6or charter to the contrary, on or before September 1, each city with a population over
6.72,500, counties, school districts, and metropolitan special taxing districts as defined in
6.8section 275.065, subdivision 3, paragraph (i), shall hold a public meeting in which the
6.9budget and levy will be discussed and public input allowed, prior to the final adoption
6.10and levy determination.
6.11(b) At the meeting, which must not be scheduled before 6:00 p.m., the public must
6.12be allowed to speak. Each taxing jurisdiction must provide, to those in attendance,
6.13information including, but not limited to: (1) the jurisdiction’s estimated proposed levy,
6.14prior final levy, and the percent change; (2) the tax rate for the jurisdiction’s estimated
6.15proposed levy, current tax rate, and the percent change; and (3) a statement of reason for
6.16the increase or decrease from the prior year’s levy, including the four most significant
6.17factors resulting in the change, and an accounting of the distribution of levy proceeds
6.18from the prior year. The county must provide a property percentile summary statement,
6.19consolidated for all applicable taxing jurisdictions, that identifies the proposed tax and
6.20current tax. The form of the percentile summary statement will be prescribed by the
6.21commissioner of the Department of Revenue. For purposes of this section, “estimated
6.22proposed levy” means the taxing jurisdiction’s anticipated levy after consideration of
6.23significant factors impacting budget decisions.
6.24(c) Notice of the budget meeting and the same budget and levy information required
6.25under paragraph (b) must also be published on the taxing jurisdiction’s Web site within
6.26five days prior to the hearing and the same information must be published in a newspaper
6.27with county-wide circulation within ten days prior to the hearing. Each taxing jurisdiction
6.28may also utilize any available social media to provide notice of its budget meeting.
6.29EFFECTIVE DATE.This section is effective for taxes payable in 2014.6.30 Sec. 3. Minnesota Statutes 2012, section 275.065, subdivision 6, is amended to read:
6.31 Subd. 6. Adoption of budget and levy. (a) The property tax levy certified under
6.32section 275.07 by a city of any population, county, metropolitan special taxing district,
6.33regional library district, or school district must not exceed the proposed levy determined
6.34under subdivision 1, except by an amount up to the sum of the following amounts:
7.1(1) the amount of a school district levy whose voters approved a referendum to
7.2increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
7.3the proposed levy was certified;
7.4(2) the amount of a city or county levy approved by the voters after the proposed
7.5levy was certified;
7.6(3) the amount of a levy to pay principal and interest on bonds approved by the
7.7voters under section 475.58 after the proposed levy was certified;
7.8(4) the amount of a levy to pay costs due to a natural disaster occurring after the
7.9proposed levy was certified, if that amount is approved by the commissioner of revenue
7.10under subdivision 6a;
7.11(5) the amount of a levy to pay tort judgments against a taxing authority that become
7.12final after the proposed levy was certified, if the amount is approved by the commissioner
7.13of revenue under subdivision 6a;
7.14(6) the amount of an increase in levy limits certified to the taxing authority by the
7.15commissioner of education or the commissioner of revenue after the proposed levy was
7.17(7) the amount required under section 126C.55;
7.18(8) the levy to pay emergency debt certificates under section 475.755 authorized and
7.19issued after the proposed levy was certified; and
7.20(9) the amount of unallotment under section 16A.152 that was recertified under
7.21section 275.07, subdivision 6.
7.22(b) This subdivision does not apply to towns and special taxing districts other than
7.23regional library districts and metropolitan special taxing districts.
7.24(c) Notwithstanding the requirements of this section, the employer is required to
7.25meet and negotiate over employee compensation as provided for in chapter 179A.
7.26 (d) For purposes of this subdivision, “metropolitan special taxing districts” means
7.27the following taxing districts in the seven-county metropolitan area that levy a property
7.28tax for any of the specified purposes listed below:
7.29 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
7.30473.446, 473.521, 473.547, or 473.834;
7.31 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
7.33 (3) Metropolitan Mosquito Control Commission under section 473.711.
7.34 For purposes of this section, any levies made by the regional rail authorities in the
7.35county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
7.36398A shall be included with the appropriate county’s levy.
8.1EFFECTIVE DATE.This section is effective for taxes payable in 2014.
8.2 Sec. 4. Minnesota Statutes 2012, section 275.065, subdivision 7, is amended to read:
8.3 Subd. 7. Certification of compliance. At the time the taxing authority certifies its
8.4tax levy under section 275.07, it shall certify to the commissioner of revenue its compliance
8.5with this section. The certification must contain the information required by the
8.6commissioner of revenue to determine compliance with this section and section 275.0645.
8.7If the commissioner determines that the taxing authority has failed to substantially comply
8.8with the requirements of this section, the commissioner of revenue shall notify the county
8.9auditor. The decision of the commissioner is final. When fixing rates under section 275.08
8.10for a taxing authority that has not complied with this section, the county auditor must use
8.11the taxing authority’s previous year’s levy, plus any additional amounts necessary to pay
8.12principal and interest on general obligation bonds of the taxing authority for which its
8.13taxing powers have been pledged if the bonds were issued before 1989.
8.14EFFECTIVE DATE.This section is effective for taxes payable in 2014.
8.15 Sec. 5. Minnesota Statutes 2012, section 275.07, subdivision 1, is amended to read:
8.16 Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b),
8.17the taxes voted by cities, counties, school districts, and special districts shall be certified
8.18by the proper authorities to the county auditor on or before five working days after
8.19December 20 in each year. A town must certify the levy adopted by the town board to
8.20the county auditor by September 15 each year. If the town board modifies the levy at a
8.21special town meeting after September 15, the town board must recertify its levy to the
8.22county auditor on or before five working days after December 20. If a city, town, county,
8.23school district, or special district fails to certify its levy by that date, its levy shall be the
8.24amount levied by it for the preceding year.
8.25(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251
8.26shall be separately certified by the county to the county auditor on or before five working
8.27days after December 20 in each year. The taxes certified shall not be reduced by the county
8.28auditor by the aid received under section 273.1398, subdivision 3. If a county fails to
8.29certify its levy by that date, its levy shall be the amount levied by it for the preceding year.
8.30(ii) For purposes of
the proposed property tax notice under section 275.065 and
8.31 the property tax statement under section 276.04, for the first year in which the county
8.32implements the provisions of this paragraph, the county auditor shall reduce the county’s
8.33levy for the preceding year to reflect any amount levied for water management purposes
8.34under clause (i) included in the county’s levy.
9.1EFFECTIVE DATE.This section is effective for taxes payable in 2014.
9.2 Sec. 6. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:
9.3 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
9.4printing of the tax statements. The commissioner of revenue shall prescribe the form of
9.5the property tax statement and its contents. The tax statement must not state or imply that
9.6property tax credits are paid by the state of Minnesota. The statement must contain a
9.7tabulated statement of the dollar amount due to each taxing authority and the amount of the
9.8state tax from the parcel of real property for which a particular tax statement is prepared.
9.9The dollar amounts attributable to the county, the state tax, the voter approved school tax,
9.10the other local school tax, the township or municipality, and the total of the metropolitan
9.11special taxing districts as defined in section
275.065, subdivision 3 , paragraph (i) 275.065,
9.12subdivision 6, paragraph (d), must be separately stated. The amounts due all other special
9.13taxing districts, if any, may be aggregated except that any levies made by the regional
9.14rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or
9.15Washington under chapter 398A shall be listed on a separate line directly under the
9.16appropriate county’s levy. If the county levy under this paragraph includes an amount for a
9.17lake improvement district as defined under sections 103B.501 to 103B.581, the amount
9.18attributable for that purpose must be separately stated from the remaining county levy
9.19amount. In the case of Ramsey County, if the county levy under this paragraph includes an
9.20amount for public library service under section 134.07, the amount attributable for that
9.21purpose may be separated from the remaining county levy amount. The amount of the
9.22tax on homesteads qualifying under the senior citizens’ property tax deferral program
9.23under chapter 290B is the total amount of property tax before subtraction of the deferred
9.24property tax amount. The amount of the tax on contamination value imposed under
9.25sections 270.91 to 270.98, if any, must also be separately stated. The dollar amounts,
9.26including the dollar amount of any special assessments, may be rounded to the nearest
9.27even whole dollar. For purposes of this section whole odd-numbered dollars may be
9.28adjusted to the next higher even-numbered dollar. The amount of market value excluded
9.29under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
9.30 (b) The property tax statements for manufactured homes and sectional structures
9.31taxed as personal property shall contain the same information that is required on the
9.32tax statements for real property.
9.33 (c) Real and personal property tax statements must contain the following information
9.34in the order given in this paragraph. The information must contain the current year tax
10.1information in the right column with the corresponding information for the previous year
10.2in a column on the left:
10.3 (1) the property’s estimated market value under section 273.11, subdivision 1;
10.4(2) the property’s homestead market value exclusion under section 273.13,
10.6 (3) the property’s taxable market value after reductions under sections 273.11,
10.7subdivisions 1a and 16, and 273.13, subdivision 35;
10.8 (4) the property’s gross tax, before credits;
10.9 (5) for homestead agricultural properties, the credit under section 273.1384;
10.10 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
10.11273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
10.12credit received under section 273.135 must be separately stated and identified as “taconite
10.13tax relief”; and
10.14 (7) the net tax payable in the manner required in paragraph (a).
10.15 (d) If the county uses envelopes for mailing property tax statements and if the county
10.16agrees, a taxing district may include a notice with the property tax statement notifying
10.17taxpayers when the taxing district will begin its budget deliberations for the current
10.18year, and encouraging taxpayers to attend the hearings. If the county allows notices to
10.19be included in the envelope containing the property tax statement, and if more than
10.20one taxing district relative to a given property decides to include a notice with the tax
10.21statement, the county treasurer or auditor must coordinate the process and may combine
10.22the information on a single announcement.
10.23 Sec. 7. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:
10.24 Subd. 2. Treatment of levy. Notwithstanding
sections 275.065, subdivision 3, and
10.25 section 276.04, the county may report the tax attributable to any levy to pay principal and
10.26interest on bonds or notes issued under this section as a separate line item on the proposed
10.27property tax notice and the property tax statement. Notwithstanding any provision in
10.28chapter 275 or 373 to the contrary, bonds or notes issued by Anoka County under this
10.29section must not be included in the computation of the net debt of Anoka County.
10.30 Sec. 8. Minnesota Statutes 2012, section 469.1815, subdivision 1, is amended to read:
10.31 Subdivision 1. Inclusion in proposed and final levies. The political subdivision
10.32must add to its levy amount for the current year under sections 275.065 and 275.07 the
10.33total estimated amount of all current year abatements granted. If all or a portion of an
10.34abatement levy for a prior year was uncollected, the political subdivision may add the
11.1uncollected amount to its abatement levy for the current year. The tax amounts shown
on the proposed notice under section 275.065, subdivision 3 , and on the property tax
11.3statement under section 276.04, subdivision 2, are the total amounts before the reduction
11.4of any abatements that will be granted on the property.