1.1 	A bill for an act
1.2 	relating to taxation; property; modifying local option disaster relief abatements;
1.3 	amending Minnesota Statutes 2004, section 273.123, subdivision 7.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2004, section 273.123, subdivision 7, is amended to read:
1.6 		Subd. 7.Local option; other property. (a) The owner of homestead property 
1.7 	not qualifying for an adjustment in valuation pursuant to subdivisions 1 to 5 or of 
1.8 	nonhomestead property may receive a reduction in the amount of taxes payable on the 
1.9 	property for the year in which the destruction occurs and in the following year if:
1.10 	(a) (1) 50 percent or more of the homestead dwelling or other structure, as 
1.11 	established by the county assessor, is unintentionally or accidentally destroyed and the 
1.12 	homestead is uninhabitable or the other structure is not usable;
1.13 	(b) (2) the owner of the property makes written application to the county assessor as 
1.14 	soon as practical after the damage has occurred; and
1.15 	(c) (3) the owner of the property makes written application to the county board
1.16 	auditor.
1.17 	(b) The county board may auditor shall give written notification to the county board 
1.18 	and to each of the other taxing districts in which the property is located. The notice must 
1.19 	state that the owner of the property has made application for a property tax reduction due 
1.20 	to the disaster, and must include the amount of tax reduction as calculated under paragraph 
1.21 	(c) for each of the taxing districts. The taxing districts have 30 days from the date of the 
1.22 	auditor's notice to certify to the county in writing of a decision to decline to abate the tax 
1.23 	on each of the affected properties. If no notice is given to the county within the 30 days, 
1.24 	a tax reduction by that taxing district shall be granted by the county board. The county 
2.1 	board shall grant a reduction in the amount of property tax which the owner must pay on 
2.2 	the qualifying property in the year of destruction and in the following year for each taxing 
2.3 	district including the county that has not declined the reduction under this paragraph. 
2.4 	(c) Any reduction in the amount of tax payable which is authorized granted by 
2.5 	county board action under paragraph (b) shall be calculated based upon the number of 
2.6 	months that the home is uninhabitable or the other structure is unusable. The amount of 
2.7 	net tax due from the taxpayer shall be multiplied by a fraction, the numerator of which 
2.8 	is the number of months the dwelling was occupied by that taxpayer, or the number of 
2.9 	months the other structure was used by the taxpayer, and the denominator of which is 
2.10 	12. For purposes of this subdivision, if a structure is occupied or used for a fraction of 
2.11 	a month, it is considered a month. "Net tax" is defined as the amount of tax after the 
2.12 	subtraction of all of the state paid property tax credits. 
2.13 	(d) If application is made following payment of all property taxes due for the year 
2.14 	of destruction, the amount of the reduction from all of the taxing districts granted by the 
2.15 	county board shall be refunded to the taxpayer by the county treasurer as soon as practical.
2.16 	(e) Any reductions or refunds approved by the county board made under this 
2.17 	subdivision shall not be subject to approval by the commissioner of revenue.
2.18 	(f) The county board Each of the taxing districts may levy in the following year the 
2.19 	amount of tax dollars lost to the county government its taxing district as a result of the 
2.20 	reductions granted pursuant to under this subdivision.

2.21 	EFFECTIVE DATE. This section is effective for reductions made in 2006 and 
2.22 	thereafter.