1.1 	A bill for an act
1.2 	relating to taxation; property tax refunds for homeowners; modifying the 
1.3 	schedule; ending inflation adjustment of brackets and maximum refund amounts;
1.4 	amending Minnesota Statutes 2008, section 290A.04, subdivisions 2, 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 290A.04, subdivision 2, is amended to 
1.7 	read:
1.8 		Subd. 2.Homeowners. A claimant whose property taxes payable are in excess 
1.9 	of the percentage of the household income stated below shall pay an amount equal to 
1.10 	the percent of income shown for the appropriate household income level along with the 
1.11 	percent to be paid by the claimant of the remaining amount of property taxes payable. 
1.12 	The state refund equals the amount of property taxes payable that remain, up to the state 
1.13 	refund amount shown below.

1.14
1.15	Household Income
	Percent of Income
	Percent Paid by 
Claimant
	Maximum State
Refund

1.16
1.17	$0 to 1,1891,519
		1.0 percent
	15 percent
	$
	1,850
2,000
		
1.18
1.19	1,190 to 2,379
1,520 to 3,049
		1.1 percent
	15 percent
	$
	1,850
2,000
		
1.20
1.21	2,380 to 3,589
3,050 to 4,599
		1.2 percent
	15 percent
	$
	1,800
2,000
		
1.22
1.23	3,590 to 4,789
4,600 to 6,129
		1.3 percent
	20 percent
	$
	1,800
2,000
		
1.24
1.25	4,790 to 5,979
6,130 to 7,659
		1.4 percent
	20 percent
	$
	1,730
2,000
		
1.26
1.27	5,980 to 8,369
7,660 to 10,719
		1.5 percent
	20 percent
	$
	1,730
2,000
		
2.1
2.2	8,370 to 9,559
10,720 to 12,239
		1.6 percent
	25 percent
	$
	1,670
2,000
		
2.3
2.4	9,560 to 10,759
12,240 to 13,779
		1.7 percent
	25 percent
	$
	1,670
2,000
		
2.5
2.6	10,760 to 11,949
13,780 to 15,299
		1.8 percent
	25 percent
	$
	1,610
1,970
		
2.7
2.8	11,950 to 13,139
15,300 to 16,829
		1.9 percent
	30 percent
	$
	1,610
1,900
		
2.92.10
	13,140 to 14,349
16,830 to 18,379
		2.0 percent
	30 percent
	$
	1,540
1,820
		
2.11
2.12	14,350 to 16,739
18,380 to 21,439
		2.1 percent
	30 percent
	$
	1,540
1,740
		
2.13
2.14	16,740 to 17,929
21,440 to 22,959
		2.2 percent
	35 percent
	$
	1,480
1,590
		
2.15
2.16	17,930 to 19,119
22,960 to 24,479
		2.3 percent
	35 percent
	$
	1,480
1,420
		
2.17
2.18	19,120 to 20,319
24,480 to 26,019
		2.4 percent
	3540 percent
	$
	1,420
1,270
		
2.19
2.20	20,320 to 25,099
26,020 to 32,139
		2.5 percent
	40 percent
	$
	1,420
1,110
		
2.21
2.22	25,100 to 28,679
32,140 to 36,729
		2.6 percent
	4045 percent
	$
	1,360
950
		
2.23
2.24	28,680 to 35,849
36,730 to 45,909
		2.7 percent
	4045 percent
	$
	1,360
780
		
2.25
2.26	35,850 to 41,819
45,910 to 53,549
		2.8 percent
	4550 percent
	$
	1,240
640
		
2.27
2.28	41,820 to 47,799
53,550 to 58,499
		3.0 percent
	4550 percent
	$
	1,240
470
		
2.29	47,800 to 53,779
		3.2 percent
	45 percent
	$
	1,110
		
2.30	53,780 to 59,749
		3.5 percent
	50 percent
	$
	990
		
2.31	59,750 to 65,729
		3.5 percent
	50 percent
	$
	870
		
2.32	65,730 to 69,319
		3.5 percent
	50 percent
	$
	740
		
2.33	69,320 to 71,719
		3.5 percent
	50 percent
	$
	610
		
2.34	71,720 to 74,619
		3.5 percent
	50 percent
	$
	500
		
2.35	74,620 to 77,519
		3.5 percent
	50 percent
	$
	370
		
2.36 	The payment made to a claimant shall be the amount of the state refund calculated 
2.37 	under this subdivision. No payment is allowed if the claimant's household income is 
2.38 	$77,520 $58,500 or more.

2.39 	EFFECTIVE DATE. This section is effective for refunds based on property taxes 
2.40 	payable in 2011 and thereafter.

2.41 	Sec. 2. Minnesota Statutes 2008, section 290A.04, subdivision 4, is amended to read:
2.42 		Subd. 4.Inflation adjustment. Beginning for property tax refunds payable in 
2.43 	calendar year 2002, the commissioner shall annually adjust the dollar amounts of the 
3.1 	income thresholds and the maximum refunds under subdivisions 2 and subdivision 2a for 
3.2 	inflation. The commissioner shall make the inflation adjustments in accordance with 
3.3 	section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the 
3.4 	percentage increase shall be determined from the year ending on June 30, 2000, to the 
3.5 	year ending on June 30 of the year preceding that in which the refund is payable. The 
3.6 	commissioner shall use the appropriate percentage increase to annually adjust the income 
3.7 	thresholds and maximum refunds under subdivisions 2 and subdivision 2a for inflation 
3.8 	without regard to whether or not the income tax brackets are adjusted for inflation in that 
3.9 	year. The commissioner shall round the thresholds and the maximum amounts, as adjusted 
3.10 	to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up 
3.11 	to the next $10 amount.
3.12 	The commissioner shall annually announce the adjusted refund schedule at the same 
3.13 	time provided under section 290.06. The determination of the commissioner under this 
3.14 	subdivision is not a rule under the Administrative Procedure Act. 

3.15 	EFFECTIVE DATE. This section is effective the day following final enactment.