1.1 	A bill for an act
1.2 	relating to taxation; providing a property tax
1.3 	reduction for certain homesteads contaminated by mold;
1.4 	amending Minnesota Statutes 2004, section 273.123, by
1.5 	adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 273.123, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 8.Homestead property damaged by mold. (a) The
1.10 	owner of homestead property not qualifying for an adjustment in
1.11 	valuation under subdivisions 1 to 5 must receive a reduction in
1.12 	the amount of taxes payable on the property if all of the
1.13 	following conditions are met:
1.14 	(1) the owner of the property makes written application to
1.15 	the county assessor for tax treatment under this subdivision;
1.16 	(2) the county assessor determines that the homestead
1.17 	dwelling is uninhabitable because all or part of it has been
1.18 	contaminated by mold; and 
1.19 	(3) the owner of the property makes written application to
1.20 	the county board.
1.21 	(b) If all of the conditions in paragraph (a) are met, the
1.22 	county board must grant a reduction in the amount of property
1.23 	tax payable on the homestead dwelling.  The reduction must be
1.24 	made for taxes payable in the year that the assessor determines
1.25 	that the requirements in paragraph (a), clause (2), have been
2.1 	met and in the following year.
2.2 	(c) The reduction in the amount of tax payable must be
2.3 	calculated based upon the number of months that the homestead is
2.4 	uninhabitable.  The amount of net tax due from the taxpayer
2.5 	shall be multiplied by a fraction, the numerator of which is the
2.6 	number of months the dwelling was occupied by that taxpayer, and
2.7 	the denominator of which is 12.  For purposes of this
2.8 	subdivision, if a homestead dwelling is occupied or used for a
2.9 	fraction of a month, it is considered a month.  "Net tax" is
2.10 	defined as the amount of tax after the subtraction of all of the
2.11 	state paid property tax credits.  If the reduction is granted
2.12 	after all property taxes due for the year have been paid, the
2.13 	amount of the reduction must be refunded to the taxpayer by the
2.14 	county treasurer as soon as practical.
2.15 	(d) Any reductions or refunds under this section are not
2.16 	subject to approval by the commissioner of revenue.
2.17 	(e) A denial of a reduction or refund under this section by
2.18 	the county board may be appealed to the tax court.  If the
2.19 	county board takes no action on the application within 60 days
2.20 	after its receipt, it is considered a denial.
2.21 	
EFFECTIVE DATE. This section is effective for property
2.22 	taxes payable in 2005 and thereafter.