1.1 	A bill for an act
1.2 	relating to taxation; property; modifying the homestead local option disaster 
1.3 	abatement provisions;amending Minnesota Statutes 2006, section 273.123, 
1.4 	subdivision 7.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 273.123, subdivision 7, is amended to read:
1.7 		Subd. 7.Local option; other property. The owner of homestead property 
1.8 	not qualifying for an adjustment in valuation pursuant to subdivisions 1 to 5 or of 
1.9 	nonhomestead property may receive a reduction in the amount of taxes payable on the 
1.10 	property for the year in which the destruction occurs and in the following year if:
1.11 	(a) 50 percent or more of the homestead dwelling or other structure, as established 
1.12 	by the county assessor, is:
1.13 	(1) unintentionally or accidentally destroyed, or
1.14 	(2) destroyed by arson or vandalism, by someone other than the owner,
1.15 	and the homestead is uninhabitable or the other structure is not usable;
1.16 	(b) the owner of the property makes written application to the county assessor as 
1.17 	soon as practical after the damage has occurred; and
1.18 	(c) the owner of the property makes written application to the county board.
1.19 	The county board may grant a reduction in the amount of property tax which the 
1.20 	owner must pay on the qualifying property in the year of destruction and in the following 
1.21 	year. Any reduction in the amount of tax payable which is authorized by county board 
1.22 	action shall be calculated based upon the number of months that the home is uninhabitable 
1.23 	or the other structure is unusable. The amount of net tax due from the taxpayer shall be 
1.24 	multiplied by a fraction, the numerator of which is the number of months the dwelling 
2.1 	was occupied by that taxpayer, or the number of months the other structure was used by 
2.2 	the taxpayer, and the denominator of which is 12. For purposes of this subdivision, if a 
2.3 	structure is occupied or used for a fraction of a month, it is considered a month. "Net tax" 
2.4 	is defined as the amount of tax after the subtraction of all of the state paid property tax 
2.5 	credits. If application is made following payment of all property taxes due for the year of 
2.6 	destruction, the amount of the reduction granted by the county board shall be refunded to 
2.7 	the taxpayer by the county treasurer as soon as practical.
2.8 	Any reductions or refunds approved by the county board shall not be subject to 
2.9 	approval by the commissioner of revenue.
2.10 	The county board may levy in the following year the amount of tax dollars lost to the 
2.11 	county government as a result of the reductions granted pursuant to this subdivision.

2.12 	EFFECTIVE DATE. This section is effective for destruction that occurs in calendar 
2.13 	year 2006 and thereafter.