1.1 	A bill for an act
1.2 	relating to property taxation; modifying the homeowner property tax refund;
1.3 	amending Minnesota Statutes 2010, section 290A.04, subdivisions 2, 4.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to 
1.6 	read:
1.7 		Subd. 2.Homeowners. A claimant whose property taxes payable are in excess 
1.8 	of the percentage of the household income stated below shall pay an amount equal to 
1.9 	the percent of income shown for the appropriate household income level along with the 
1.10 	percent to be paid by the claimant of the remaining amount of property taxes payable. 
1.11 	The state refund equals the amount of property taxes payable that remain, up to the state 
1.12 	refund amount shown below.

1.13
1.14

1.15

~~Household Income~~

~~Percent of Income~~

~~Percent Paid by~~
~~Claimant~~

~~Maximum~~ 
~~State~~
~~Refund~~

1.16 | ~~$0 to 1,189~~ | ~~1.0 percent~~ | ~~15 percent~~ | ~~$~~ | ~~1,850~~
1.17 | ~~1,190 to 2,379~~ | ~~1.1 percent~~ | ~~15 percent~~ | ~~$~~ | ~~1,850~~
1.18 | ~~2,380 to 3,589~~ | ~~1.2 percent~~ | ~~15 percent~~ | ~~$~~ | ~~1,800~~
1.19 | ~~3,590 to 4,789~~ | ~~1.3 percent~~ | ~~20 percent~~ | ~~$~~ | ~~1,800~~
1.20 | ~~4,790 to 5,979~~ | ~~1.4 percent~~ | ~~20 percent~~ | ~~$~~ | ~~1,730~~
1.21 | ~~5,980 to 8,369~~ | ~~1.5 percent~~ | ~~20 percent~~ | ~~$~~ | ~~1,730~~
1.22 | ~~8,370 to 9,559~~ | ~~1.6 percent~~ | ~~25 percent~~ | ~~$~~ | ~~1,670~~
1.23 | ~~9,560 to 10,759~~ | ~~1.7 percent~~ | ~~25 percent~~ | ~~$~~ | ~~1,670~~
1.24 | ~~10,760 to 11,949~~ | ~~1.8 percent~~ | ~~25 percent~~ | ~~$~~ | ~~1,610~~
1.25 | ~~11,950 to 13,139~~ | ~~1.9 percent~~ | ~~30 percent~~ | ~~$~~ | ~~1,610~~
1.26 | ~~13,140 to 14,349~~ | ~~2.0 percent~~ | ~~30 percent~~ | ~~$~~ | ~~1,540~~
2.1 | ~~14,350 to 16,739~~ | ~~2.1 percent~~ | ~~30 percent~~ | ~~$~~ | ~~1,540~~
2.2 | ~~16,740 to 17,929~~ | ~~2.2 percent~~ | ~~35 percent~~ | ~~$~~ | ~~1,480~~
2.3 | ~~17,930 to 19,119~~ | ~~2.3 percent~~ | ~~35 percent~~ | ~~$~~ | ~~1,480~~
2.4 | ~~19,120 to 20,319~~ | ~~2.4 percent~~ | ~~35 percent~~ | ~~$~~ | ~~1,420~~
2.5 | ~~20,320 to 25,099~~ | ~~2.5 percent~~ | ~~40 percent~~ | ~~$~~ | ~~1,420~~
2.6 | ~~25,100 to 28,679~~ | ~~2.6 percent~~ | ~~40 percent~~ | ~~$~~ | ~~1,360~~
2.7 | ~~28,680 to 35,849~~ | ~~2.7 percent~~ | ~~40 percent~~ | ~~$~~ | ~~1,360~~
2.8 | ~~35,850 to 41,819~~ | ~~2.8 percent~~ | ~~45 percent~~ | ~~$~~ | ~~1,240~~
2.9 | ~~41,820 to 47,799~~ | ~~3.0 percent~~ | ~~45 percent~~ | ~~$~~ | ~~1,240~~
2.10 | ~~47,800 to 53,779~~ | ~~3.2 percent~~ | ~~45 percent~~ | ~~$~~ | ~~1,110~~
2.11 | ~~53,780 to 59,749~~ | ~~3.5 percent~~ | ~~50 percent~~ | ~~$~~ | ~~990~~
2.12 | ~~59,750 to 65,729~~ | ~~3.5 percent~~ | ~~50 percent~~ | ~~$~~ | ~~870~~
2.13 | ~~65,730 to 69,319~~ | ~~3.5 percent~~ | ~~50 percent~~ | ~~$~~ | ~~740~~
2.14 | ~~69,320 to 71,719~~ | ~~3.5 percent~~ | ~~50 percent~~ | ~~$~~ | ~~610~~
2.15 | ~~71,720 to 74,619~~ | ~~3.5 percent~~ | ~~50 percent~~ | ~~$~~ | ~~500~~
2.16 | ~~74,620 to 77,519~~ | ~~3.5 percent~~ | ~~50 percent~~ | ~~$~~ | ~~370~~

2.17
2.18

2.19

Household Income

Percent of Income

Percent Paid by
Claimant

Maximum 
State
Refund

2.20 | $0 to 1,549 | 1.0 percent | 15 percent | $ | 3,500
2.21 | 1,550 to 3,089 | 1.1 percent | 15 percent | $ | 3,500
2.22 | 3,090 to 4,669 | 1.2 percent | 15 percent | $ | 3,500
2.23 | 4,670 to 6,229 | 1.3 percent | 20 percent | $ | 3,500
2.24 | 6,230 to 7,769 | 1.4 percent | 20 percent | $ | 3,500
2.25 | 7,770 to 10,879 | 1.5 percent | 20 percent | $ | 3,500
2.26 | 10,880 to 12,429 | 1.6 percent | 25 percent | $ | 3,500
2.27 | 12,430 to 13,989 | 1.7 percent | 25 percent | $ | 3,500
2.28 | 13,990 to 15,539 | 1.8 percent | 25 percent | $ | 3,500
2.29 | 15,540 to 17,079 | 1.9 percent | 30 percent | $ | 3,000
2.30 | 17,080 to 18,659 | 2.0 percent | 30 percent | $ | 3,000
2.31 | 18,660 to 21,759 | 2.1 percent | 30 percent | $ | 3,000
2.32 | 21,760 to 23,309 | 2.2 percent | 35 percent | $ | 3,000
2.33 | 23,310 to 24,859 | 2.3 percent | 35 percent | $ | 3,000
2.34 | 24,860 to 26,419 | 2.4 percent | 35 percent | $ | 3,000
2.35 | 26,420 to 32,629 | 2.5 percent | 35 percent | $ | 3,000
2.36 | 32,630 to 37,279 | 2.6 percent | 35 percent | $ | 2,500
2.37 | 37,280 to 46,609 | 2.7 percent | 35 percent | $ | 2,500
2.38 | 46,610 to 49,999 | 2.8 percent | 40 percent | $ | 2,000
2.39 | 50,000 to 54,999 | 2.8 percent | 40 percent | $ | 1,500
2.40 | 55,000 to 59,999 | 3.0 percent | 40 percent | $ | 1,000
2.41 | 60,000 to 64,999 | 3.0 percent | 40 percent | $ | 750
2.42 | 65,000 to 69,999 | 3.0 percent | 40 percent | $ | 500
3.1 	The payment made to a claimant shall be the amount of the state refund calculated 
3.2 	under this subdivision. No payment is allowed if the claimant's household income is 
3.3 	~~$77,520~~ $70,000 or more.

3.4 	EFFECTIVE DATE. This section is effective beginning with refunds based on 
3.5 	taxes payable in 2012.

3.6 	Sec. 2. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:
3.7 		Subd. 4.Inflation adjustment. (a) Beginning for property tax refunds payable in 
3.8 	calendar year 2002, the commissioner shall annually adjust the dollar amounts of the 
3.9 	income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. 
3.10 	The commissioner shall make the inflation adjustments in accordance with section 1(f) of 
3.11 	the Internal Revenue Code, except that for purposes of this subdivision the percentage 
3.12 	increase shall be determined as provided in this subdivision.
3.13 	(b) In adjusting the dollar amounts of the income thresholds and the maximum 
3.14 	refunds under subdivision 2 for inflation, the percentage increase shall be determined from 
3.15 	the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that 
3.16 	in which the refund is payable.
3.17 	(c) In adjusting the dollar amounts of the income thresholds and the maximum 
3.18 	refunds under subdivision 2a for inflation, the percentage increase shall be determined 
3.19 	from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding 
3.20 	that in which the refund is payable. 
3.21 	(d) The commissioner shall use the appropriate percentage increase to annually 
3.22 	adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for 
3.23 	inflation without regard to whether or not the income tax brackets are adjusted for inflation 
3.24 	in that year. The commissioner shall round the thresholds and the maximum amounts, 
3.25 	as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall 
3.26 	round it up to the next $10 amount.
3.27 	(e) The commissioner shall annually announce the adjusted refund schedule at the 
3.28 	same time provided under section 290.06. The determination of the commissioner under 
3.29 	this subdivision is not a rule under the Administrative Procedure Act.

3.30 	EFFECTIVE DATE. This section is effective beginning for refunds based on 
3.31 	taxes payable in 2013.