1.1 	A bill for an act
1.2 	relating to taxation; property; modifying refunds of mistakenly billed taxes;
1.3 	amending Minnesota Statutes 2014, section 278.14, subdivision 1.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read:
1.6 		Subdivision 1.Applicability. A county must pay a refund of a mistakenly billed 
1.7 	tax as provided in this section. As used in this section, "mistakenly billed tax" means an 
1.8 	amount of property tax that was billed, to the extent the amount billed exceeds the accurate 
1.9 	tax amount due to a misclassification of the owner's property under section 273.13 or a
1.10 	mathematical error in the calculation of the tax on the owner's property, together with 
1.11 	any penalty or interest paid on that amount. This section applies only to taxes payable 
1.12 	in the current year and the two prior years. As used in this section, "mathematical error" 
1.13 	is limited to an error in:
1.14 	(1) converting the market value of a property to tax capacity or to a referendum 
1.15 	market value;
1.16 	(2) application of the tax rate as computed by the auditor under sections 275.08, 
1.17 	subdivisions 1b, 1c, and 1d; 276A.06, subdivisions 4 and 5; and 473F.07, subdivisions 4 
1.18 	and 5, to the property's tax capacity or referendum market value; or
1.19 	(3) calculation of or eligibility for a credit.
1.20 	The remedy provided under this section does not apply to a misclassification under 
1.21 	section 273.13 that is due to the failure of the property owner to apply for the correct 
1.22 	classification as required by law.

2.1 	EFFECTIVE DATE. This section is effective based on property taxes payable in 
2.2 	2017 and thereafter.