1.1 	A bill for an act
1.2 	relating to taxation; converting the property tax refund program to a refundable 
1.3 	income tax credit;amending Minnesota Statutes 2022, sections 270B.12, 
1.4 	subdivision 8; 289A.38, subdivision 4; 289A.56, subdivision 6; 289A.60, 
1.5 	subdivision 12; 290A.02; 290A.03, subdivisions 3, 6, 8, 12; 290A.04, subdivision 
1.6 	1; 290A.05; 290A.07, subdivision 2a; 290A.08; 290A.09; 290A.091; 290A.13; 
1.7 	290A.19; 290A.25; 462A.05, subdivision 24; proposing coding for new law in 
1.8 	Minnesota Statutes, chapter 290; repealing Minnesota Statutes 2022, sections 
1.9 	290A.03, subdivisions 9, 11; 290A.04, subdivisions 2a, 5; 290A.23, subdivision 
1.10 	1.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2022, section 270B.12, subdivision 8, is amended to read:
1.13 		Subd. 8.County assessors; homestead classification and renter renter's credit. The 
1.14 	commissioner may disclose names and Social Security numbers of individuals who have 
1.15 	applied for both homestead classification under section 273.13 and a property tax refund 
1.16 	as a renter under chapter 290A renter's credit under section 290.0693 for the purpose of and 
1.17 	to the extent necessary to administer section 290A.25.

1.18 	EFFECTIVE DATE. This section is effective for credits based on rent paid after 
1.19 	December 31, 2022.

1.20 	Sec. 2. Minnesota Statutes 2022, section 289A.38, subdivision 4, is amended to read:
1.21 		Subd. 4.Property tax refund. For purposes of computing the limitation under this 
1.22 	section, the due date of the property tax refund return as provided for in chapter 290A is 
1.23 	the due date for an income tax return covering the year in which the rent was paid or the 
1.24 	year preceding the year in which the property taxes are payable.

2.1 	EFFECTIVE DATE. This section is effective for credits based on rent paid after 
2.2 	December 31, 2022.

2.3 	Sec. 3. Minnesota Statutes 2022, section 289A.56, subdivision 6, is amended to read:
2.4 		Subd. 6.Property tax refunds under chapter 290A. (a) When a renter is owed a 
2.5 	property tax refund, an unpaid refund bears interest after August 14, or 60 days after the 
2.6 	refund claim was made, whichever is later, until the date the refund is paid.
2.7 	(b) When any other a claimant is owed a property tax refund under chapter 290A, the 
2.8 	unpaid refund bears interest after September 29, or 60 days after the refund claim was made, 
2.9 	whichever is later, until the date the refund is paid.

2.10 	EFFECTIVE DATE. This section is effective for credits based on rent paid after 
2.11 	December 31, 2022.

2.12 	Sec. 4. Minnesota Statutes 2022, section 289A.60, subdivision 12, is amended to read:
2.13 		Subd. 12.Penalties relating to property tax refunds. (a) If it is determined that a 
2.14 	property tax refund claim is excessive and was negligently prepared, a claimant is liable 
2.15 	for a penalty of ten percent of the disallowed claim. If the claim has been paid, the amount 
2.16 	disallowed must be recovered by assessment and collection.
2.17 	(b) An owner who without reasonable cause fails to give a certificate of rent constituting 
2.18 	property tax to a renter, as required by section sections 290.0693, subdivision 4, and290A.19, 
2.19 	paragraph (a), is liable to the commissioner for a penalty of $100 for each failure.
2.20 	(c) If the owner or managing agent knowingly gives rent certificates that report total 
2.21 	rent constituting property taxes in excess of the amount of actual rent constituting property 
2.22 	taxes paid on the rented part of a property, the owner or managing agent is liable for a 
2.23 	penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An 
2.24 	overstatement of rent constituting property taxes is presumed to be knowingly made if it 
2.25 	exceeds by ten percent or more the actual rent constituting property taxes.

2.26 	EFFECTIVE DATE. This section is effective for credits based on rent paid after 
2.27 	December 31, 2022.

2.28 	Sec. 5. [290.0693] RENTER'S CREDIT.
2.29 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
2.30 	the meanings given.
3.1 	(b) "Dependent" means any individual who is considered a dependent under sections 
3.2 	151 and 152 of the Internal Revenue Code.
3.3 	(c) "Disability" has the meaning given in section 290A.03, subdivision 10.
3.4 	(d) "Exemption amount" means the exemption amount under section 290.0121, 
3.5 	subdivision 1, paragraph (b).
3.6 	(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a 
3.7 	homestead, exclusive of charges for any medical services furnished by the landlord as a 
3.8 	part of the rental agreement, whether expressly set out in the rental agreement or not. The 
3.9 	gross rent of a resident of a nursing home or intermediate care facility is $530 per month. 
3.10 	The gross rent of a resident of an adult foster care home is $830 per month. The commissioner 
3.11 	shall annually adjust the amounts in this paragraph as provided in section 270C.22. The 
3.12 	statutory year is 2022. If the landlord and tenant have not dealt with each other at arm's 
3.13 	length and the commissioner determines that the gross rent charged was excessive, the 
3.14 	commissioner may adjust the gross rent to a reasonable amount for purposes of this chapter.
3.15 	(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
3.16 	(g) "Household" has the meaning given in section 290A.03, subdivision 4.
3.17 	(h) "Household income" means all income received by all persons of a household in a 
3.18 	taxable year while members of the household, other than income of a dependent.
3.19 	(i) "Income" means adjusted gross income, minus:
3.20 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
3.21 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
3.22 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
3.23 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
3.24 	(5) for the taxpayer's fifth dependent, the exemption amount; and
3.25 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
3.26 	before the close of the taxable year, the exemption amount.
3.27 	(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid 
3.28 	in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable 
3.29 	year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the 
3.30 	taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim 
3.31 	for a credit under this section by the claimant. If an individual occupies a homestead with 
4.1 	another person or persons not related to the individual as the individual's spouse or as 
4.2 	dependents, and the other person or persons are residing at the homestead under a rental or 
4.3 	lease agreement with the individual, the amount of rent constituting property tax for the 
4.4 	individual equals that portion not covered by the rental agreement.
4.5 		Subd. 2.Credit allowed; refundable. (a) An individual is allowed a credit against the 
4.6 	tax due under this chapter equal to the amount that rent constituting property taxes exceeds 
4.7 	the percentage of the household income of the claimant specified in subdivision 3 in the 
4.8 	taxable year in which the rent was paid as specified in that subdivision.
4.9 	(b) If the amount of credit which a taxpayer is eligible to receive under this section 
4.10 	exceeds the taxpayer's liability for tax under this chapter, the commissioner shall refund the 
4.11 	excess to the taxpayer.
4.12 		Subd. 3.Renters.  (a) A taxpayer whose rent constituting property taxes exceeds the 
4.13 	percentage of the household income stated below must pay an amount equal to the percent 
4.14 	of income shown for the appropriate household income level along with the co-payment  of 
4.15 	the remaining amount of rent constituting property taxes. The credit under subdivision 2 
4.16 	equals the amount of rent constituting property taxes that remain, up to the maximum credit 
4.17 	amount shown below.

4.18	Household Income
	Percent of Income
	Co-payment
	Maximum Credit
	
4.19	$0 to 5,879
	1.0 percent
	5 percent
	$
	2,400
	
4.20	5,880 to 7,809
	1.0 percent
	10 percent
	$
	2,400
	
4.21	7,810 to 9,769
	1.1 percent
	10 percent
	$
	2,330
	
4.22	9,770 to 13,699
	1.2 percent
	10 percent
	$
	2,280
	
4.23	13,700 to 17,609
	1.3 percent
	15 percent
	$
	2,210
	
4.24	17,610 to 19,559
	1.4 percent
	15 percent
	$
	2,150
	
4.25	19,560 to 21,499
	1.4 percent
	20 percent
	$
	2,100
	
4.26	21,500 to 25,429
	1.5 percent
	20 percent
	$
	2,030
	
4.27	25,430 to 27,379
	1.6 percent
	20 percent
	$
	1,980
	
4.28	27,380 to 29,329
	1.7 percent
	25 percent
	$
	1,980
	
4.29	29,330 to 33,249
	1.8 percent
	25 percent
	$
	1,980
	
4.30	33,250 to 35,189
	1.9 percent
	30 percent
	$
	1,980
	
4.31	35,190 to 41,059
	2.0 percent
	30 percent
	$
	1,980
	
4.32	41,060 to 46,919
	2.0 percent
	35 percent
	$
	1,980
	
4.33	46,920 to 54,759
	2.0 percent
	40 percent
	$
	1,980
	
4.34	54,760 to 56,699
	2.0 percent
	45 percent
	$
	1,800
	
4.35	56,700 to 58,669
	2.0 percent
	45 percent
	$
	1,620
	
4.36	58,670 to 60,629
	2.0 percent
	45 percent
	$
	1,370
	
5.1	60,630 to 62,569
	2.0 percent
	50 percent
	$
	1,190
	
5.2	62,570 to 64,539
	2.0 percent
	50 percent
	$
	1,080
	
5.3	64,540 to 66,489
	2.0 percent
	50 percent
	$
	600
	
5.4	66,490 to 68,439
	2.0 percent
	50 percent
	$
	230
	
5.5 	The credit is the amount calculated under this subdivision. No credit is allowed if the 
5.6 	taxpayer's household income is $68,440 or more.
5.7 	(b) The commissioner must annually adjust the dollar amounts of the income thresholds 
5.8 	and the maximum refunds in paragraph (a), as provided in section 270C.22. The statutory 
5.9 	year is 2022.
5.10 	(c) The commissioner shall construct and make available to taxpayers a comprehensive 
5.11 	table showing the rent constituting property taxes to be paid and refund allowed at various 
5.12 	levels of income and assessment. The table shall follow the schedule of income percentages, 
5.13 	maximums, and other provisions specified in paragraph (a), except that the commissioner 
5.14 	may graduate the transition between income brackets. All refunds shall be computed in 
5.15 	accordance with tables prepared and issued by the commissioner.
5.16 		Subd. 4.Owner or managing agent to furnish rent certificate. (a) The owner or 
5.17 	managing agent of any property for which rent is paid for occupancy as a homestead must 
5.18 	furnish a certificate of rent paid to a person who is a renter on December 31, in the form 
5.19 	prescribed by the commissioner. If the renter moves before December 31, the owner or 
5.20 	managing agent may give the certificate to the renter at the time of moving, or mail the 
5.21 	certificate to the forwarding address if an address has been provided by the renter. The 
5.22 	certificate must be made available to the renter before February 1 of the year following the 
5.23 	year in which the rent was paid. The owner or managing agent must retain a duplicate of 
5.24 	each certificate or an equivalent record showing the same information for a period of three 
5.25 	years. The duplicate or other record must be made available to the commissioner upon 
5.26 	request.
5.27 	(b) The commissioner may require the owner or managing agent, through a simple 
5.28 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
5.29 	rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe 
5.30 	the content, format, and manner of the form pursuant to section 270C.30. The commissioner 
5.31 	may require the Social Security number, individual taxpayer identification number, federal 
5.32 	employer identification number, or Minnesota taxpayer identification number of the owner 
5.33 	or managing agent who is required to furnish a certificate of rent paid under this paragraph. 
5.34 	Before implementation, the commissioner, after consulting with representatives of owners 
5.35 	or managing agents, shall develop an implementation and administration plan for the 
6.1 	requirements of this paragraph that attempts to minimize financial burdens, administration 
6.2 	and compliance costs, and takes into consideration existing systems of owners and managing 
6.3 	agents.
6.4 		Subd. 5.Eligibility; residency. (a) A taxpayer is eligible for the credit under this section 
6.5 	if the taxpayer is an individual, other than a dependent, as defined under sections 151 and 
6.6 	152 of the Internal Revenue Code, disregarding section 152(b)(3) of the Internal Revenue 
6.7 	Code, who filed for a credit and who was a resident of this state during the taxable year for 
6.8 	which the credit was claimed.
6.9 	(b) In the case of a credit for rent constituting property taxes of a part-year Minnesota 
6.10 	resident, the household income and rent constituting property taxes reflected in this 
6.11 	computation shall be for the period of Minnesota residency only. Any rental expenses paid 
6.12 	that may be reflected in arriving at federal adjusted gross income cannot be utilized for this 
6.13 	computation.
6.14 	(c) When two individuals of a household are able to meet the qualifications to claim a 
6.15 	credit under this section, the individuals may determine among them as to which individual 
6.16 	may claim the credit. If the individuals are unable to agree, the matter shall be referred to 
6.17 	the commissioner of revenue whose decision shall be final.
6.18 	(d) To claim a credit under this section, the taxpayer must have resided in a rented or 
6.19 	leased unit on which ad valorem taxes or payments made in lieu of ad valorem taxes, 
6.20 	including payments of special assessments imposed in lieu of ad valorem taxes, are payable 
6.21 	at some time during the taxable year for which the taxpayer claimed the credit.
6.22 		Subd. 6.Residents of nursing homes, intermediate care facilities, long-term care 
6.23 	facilities, or facilities accepting housing support payments. (a) A taxpayer must not claim 
6.24 	a credit under this section if the taxpayer is a resident of a nursing home, intermediate care 
6.25 	facility, long-term residential facility, or a facility that accepts housing support payments 
6.26 	whose rent constituting property taxes is paid pursuant to the Supplemental Security Income 
6.27 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
6.28 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
6.29 	of the Social Security Act, or the housing support program under chapter 256I.
6.30 	(b) If only a portion of the rent constituting property taxes is paid by these programs, 
6.31 	the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction, 
6.32 	the numerator of which is adjusted gross income, reduced by the total amount of income 
6.33 	from the above sources other than vendor payments under the medical assistance program 
7.1 	and the denominator of which is adjusted gross income, plus vendor payments under the 
7.2 	medical assistance program, to determine the allowable credit.
7.3 	(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing 
7.4 	home, intermediate care facility, long-term residential facility, or facility for which the rent 
7.5 	was paid for the claimant by the housing support program for only a portion of the taxable 
7.6 	year covered by the claim, the taxpayer may compute rent constituting property taxes by 
7.7 	disregarding the rent constituting property taxes from the nursing home or facility and may 
7.8 	use only that amount of rent constituting property taxes or property taxes payable relating 
7.9 	to that portion of the year when the taxpayer was not in the facility. The taxpayer's household 
7.10 	income is the income for the entire taxable year covered by the claim.
7.11 		Subd. 7.Credit for unmarried taxpayers residing in the same household. If a 
7.12 	homestead is occupied by two or more renters who are not married to each other, the rent 
7.13 	shall be deemed to be paid equally by each renter, and separate claims shall be filed by each 
7.14 	renter. The income of each renter shall be each renter's household income for purposes of 
7.15 	computing the amount of credit to be allowed.
7.16 		Subd. 8.One claimant per household. Only one taxpayer per household per year is 
7.17 	entitled to claim a credit under this section. In the case of a married taxpayer filing a separate 
7.18 	return, only one spouse may claim the credit under this section. The credit amount for the 
7.19 	spouse that claims the credit must be calculated based on household income and not solely 
7.20 	on the income of the spouse.
7.21 		Subd. 9.Proof of claim. (a) Every taxpayer claiming a credit under this section shall 
7.22 	supply to the commissioner of revenue, in support of the claim, proof of eligibility under 
7.23 	this section, including but not limited to amount of rent paid, name and address of owner 
7.24 	or managing agent of property rented, changes in household membership, and household 
7.25 	income.
7.26 	(b) Taxpayers with a disability shall submit proof of disability in the form and manner 
7.27 	as the commissioner prescribes. The department may require examination and certification 
7.28 	by the taxpayer's physician or by a physician designated by the commissioner. The cost of 
7.29 	any examination shall be borne by the taxpayer, unless the examination proves the disability, 
7.30 	in which case the cost of the examination shall be borne by the commissioner.
7.31 	(c) A determination of disability of a taxpayer by the Social Security Administration 
7.32 	under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of 
7.33 	disability.
8.1 		Subd. 10.No relief allowed in certain cases. No claim for a credit under this section 
8.2 	shall be allowed if the commissioner determines that the claimant received tenancy to the 
8.3 	homestead primarily for the purpose of receiving a credit under this section and not for bona 
8.4 	fide residence purposes.
8.5 		Subd. 11.Appropriation. The amount necessary to pay the refunds under this section 
8.6 	is appropriated from the general fund to the commissioner.
8.7 		Subd. 12.Simplified filing for individuals without an income tax liability. The 
8.8 	commissioner of revenue must establish a simplified filing process through which a taxpayer 
8.9 	who did not file an individual income tax return due to a lack of tax liability may file a 
8.10 	return to claim the credit under this section. The filing process and forms may be in the 
8.11 	form or manner determined by the commissioner, but must be designed to reduce the 
8.12 	complexity of the filing process and the time needed to file for individuals without an income 
8.13 	tax liability.

8.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.15 	31, 2022.

8.16 	Sec. 6. Minnesota Statutes 2022, section 290A.02, is amended to read:
8.17 	290A.02 PURPOSE.
8.18 	The purpose of this chapter is to provide property tax relief to certain persons who own 
8.19 	or rent their homesteads.

8.20 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
8.21 	and following years.

8.22 	Sec. 7. Minnesota Statutes 2022, section 290A.03, subdivision 3, is amended to read:
8.23 		Subd. 3.Income. (a) "Income" means the sum of the following:
8.24 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
8.25 	(2) the sum of the following amounts to the extent not included in clause (1):
8.26 	(i) all nontaxable income;
8.27 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
8.28 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
8.29 	carryover allowed under section 469(b) of the Internal Revenue Code;
9.1 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
9.2 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
9.3 	Code;
9.4 	(iv) cash public assistance and relief;
9.5 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
9.6 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
9.7 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
9.8 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
9.9 	gross income in the years when the payments were made;
9.10 	(vi) interest received from the federal or a state government or any instrumentality or 
9.11 	political subdivision thereof;
9.12 	(vii) workers' compensation;
9.13 	(viii) nontaxable strike benefits;
9.14 	(ix) the gross amounts of payments received in the nature of disability income or sick 
9.15 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
9.16 	or otherwise;
9.17 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
9.18 	1986, as amended through December 31, 1995;
9.19 	(xi) contributions made by the claimant to an individual retirement account, including 
9.20 	a qualified voluntary employee contribution; simplified employee pension plan; 
9.21 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
9.22 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
9.23 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
9.24 	the claimant and spouse;
9.25 	(xii) to the extent not included in federal adjusted gross income, distributions received 
9.26 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
9.27 	(xiii) nontaxable scholarship or fellowship grants;
9.28 	(xiv) alimony received to the extent not included in the recipient's income;
9.29 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
9.30 	Code;
9.31 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
9.32 	Code; and
10.1 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
10.2 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
10.3 	In the case of an individual who files an income tax return on a fiscal year basis, the 
10.4 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
10.5 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
10.6 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
10.7 	or carryforward allowed for the year.
10.8 	(b) "Income" does not include:
10.9 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
10.10 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
10.11 	or spouse and which funding payments were not excluded from federal adjusted gross 
10.12 	income in the years when the payments were made;
10.13 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
10.14 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
10.15 	the retirement base amount reduced by the amount of contributions excluded from federal 
10.16 	adjusted gross income, but not less than zero;
10.17 	(4) surplus food or other relief in kind supplied by a governmental agency;
10.18 	(5) relief granted under this chapter;
10.19 	(6) child support payments received under a temporary or final decree of dissolution or 
10.20 	legal separation;
10.21 	(7) restitution payments received by eligible individuals and excludable interest as 
10.22 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
10.23 	Public Law 107-16;
10.24 	(8) alimony paid; or
10.25 	(9) veterans disability compensation paid under title 38 of the United States Code.
10.26 	(c) The sum of the following amounts may be subtracted from income:
10.27 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
10.28 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
10.29 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
10.30 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
11.1 	(5) for the claimant's fifth dependent, the exemption amount; and
11.2 	(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or 
11.3 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
11.4 	amount.
11.5 	(d) For purposes of this subdivision, the following terms have the meanings given:
11.6 	(1) "exemption amount" means the exemption amount under section 290.0121, 
11.7 	subdivision 1, paragraph (b), for the taxable year for which the income is reported;
11.8 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
11.9 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
11.10 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
11.11 	to whether the claimant or spouse claimed a deduction; and
11.12 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
11.13 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

11.14 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
11.15 	and following years.

11.16 	Sec. 8. Minnesota Statutes 2022, section 290A.03, subdivision 6, is amended to read:
11.17 		Subd. 6.Homestead. "Homestead" means the dwelling occupied as the claimant's 
11.18 	principal residence and so much of the land surrounding it, not exceeding ten acres, as is 
11.19 	reasonably necessary for use of the dwelling as a home and any other property used for 
11.20 	purposes of a homestead as defined in section 273.13, subdivision 22, except for agricultural 
11.21 	land assessed as part of a homestead pursuant to section 273.13, subdivision 23, "homestead" 
11.22 	is limited to the house and garage and immediately surrounding one acre of land. The 
11.23 	homestead may be owned or rented and may be as a part of a multidwelling or multipurpose 
11.24 	building and the land on which it is built. A manufactured home, as defined in section 
11.25 	273.125, subdivision 8, or a park trailer taxed as a manufactured home under section 168.012, 
11.26 	subdivision 9, assessed as personal property may be a dwelling for purposes of this 
11.27 	subdivision.

11.28 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
11.29 	and following years.

12.1 	Sec. 9. Minnesota Statutes 2022, section 290A.03, subdivision 8, is amended to read:
12.2 		Subd. 8.Claimant. (a) "Claimant" means a person, other than a dependent, as defined 
12.3 	under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3) 
12.4 	of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a 
12.5 	resident of this state as provided in chapter 290 during the calendar year for which the claim 
12.6 	for relief was filed.
12.7 	(b) In the case of a claim relating to rent constituting property taxes, the claimant shall 
12.8 	have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu 
12.9 	of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem 
12.10 	taxes, are payable at some time during the calendar year covered by the claim.
12.11 	(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility, 
12.12 	long-term residential facility, or a facility that accepts housing support payments whose 
12.13 	rent constituting property taxes is paid pursuant to the Supplemental Security Income 
12.14 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
12.15 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
12.16 	of the Social Security Act, or the housing support program under chapter 256I.
12.17 	If only a portion of the rent constituting property taxes is paid by these programs, the 
12.18 	resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant 
12.19 	to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as 
12.20 	defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income 
12.21 	from the above sources other than vendor payments under the medical assistance program 
12.22 	and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b), 
12.23 	plus vendor payments under the medical assistance program, to determine the allowable 
12.24 	refund pursuant to this chapter.
12.25 	(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home, 
12.26 	intermediate care facility, long-term residential facility, or facility for which the rent was 
12.27 	paid for the claimant by the housing support program for only a portion of the calendar year 
12.28 	covered by the claim, the claimant may compute rent constituting property taxes by 
12.29 	disregarding the rent constituting property taxes from the nursing home or facility and use 
12.30 	only that amount of rent constituting property taxes or property taxes payable relating to 
12.31 	that portion of the year when the claimant was not in the facility. The claimant's household 
12.32 	income is the income for the entire calendar year covered by the claim.
12.33 	(e) In the case of a claim for rent constituting property taxes of a part-year Minnesota 
12.34 	resident, the income and rent reflected in this computation shall be for the period of 
13.1 	Minnesota residency only. Any rental expenses paid which may be reflected in arriving at 
13.2 	federal adjusted gross income cannot be utilized for this computation. When two individuals 
13.3 	of a household are able to meet the qualifications for a claimant, they may determine among 
13.4 	them as to who the claimant shall be. If they are unable to agree, the matter shall be referred 
13.5 	to the commissioner of revenue whose decision shall be final. If a homestead property owner 
13.6 	was a part-year Minnesota resident, the income reflected in the computation made pursuant 
13.7 	to section 290A.04 shall be for the entire calendar year, including income not assignable to 
13.8 	Minnesota.
13.9 	(f) If a homestead is occupied by two or more renters, who are not married to each other, 
13.10 	the rent shall be deemed to be paid equally by each, and separate claims shall be filed by 
13.11 	each. The income of each shall be each renter's household income for purposes of computing 
13.12 	the amount of credit to be allowed.

13.13 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
13.14 	and following years.

13.15 	Sec. 10. Minnesota Statutes 2022, section 290A.03, subdivision 12, is amended to read:
13.16 		Subd. 12.Gross rent. (a) "Gross rent" means rent paid for the right of occupancy, at 
13.17 	arm's length, of a site on which a homestead, exclusive of charges for any medical services 
13.18 	furnished by the landlord as a part of the rental agreement, whether expressly set out in the 
13.19 	rental agreement or not which is a manufactured home as defined in section 273.125, 
13.20 	subdivision 8, including a manufactured home located in a manufactured home community 
13.21 	owned by a cooperative organized under chapter 308A or 308B, and park trailers taxed as 
13.22 	manufactured homes under section 168.012, subdivision 9, is located.
13.23 	(b) The gross rent of a resident of a nursing home or intermediate care facility is $500 
13.24 	per month. The gross rent of a resident of an adult foster care home is $780 per month. The 
13.25 	commissioner shall annually adjust the amounts in this paragraph as provided in section 
13.26 	270C.22. The statutory year is 2018.
13.27 	(c) (b) If the landlord and tenant have not dealt with each other at arm's length and the 
13.28 	commissioner determines that the gross rent charged was excessive, the commissioner may 
13.29 	adjust the gross rent to a reasonable amount for purposes of this chapter.
13.30 	(d) (c) Any amount paid by a claimant residing in property assessed pursuant to section 
13.31 	273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be excluded from 
13.32 	gross rent for purposes of this chapter. However, property taxes imputed to the homestead 
13.33 	of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead 
14.1 	treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6 shall be included within the 
14.2 	term "property taxes payable" as defined in subdivision 13, to the extent allowed, 
14.3 	notwithstanding the fact that ownership is not in the name of the claimant.

14.4 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
14.5 	and following years.

14.6 	Sec. 11. Minnesota Statutes 2022, section 290A.04, subdivision 1, is amended to read:
14.7 		Subdivision 1.Refund. A refund shall be allowed each claimant in the amount that 
14.8 	property taxes payable or rent constituting property taxes exceed the percentage of the 
14.9 	household income of the claimant specified in subdivision 2 or 2a in the year for which the 
14.10 	taxes were levied or in the year in which the rent was paid as specified in subdivision 2 or 
14.11 	2a. If the amount of property taxes payable or rent constituting property taxes is equal to 
14.12 	or less than the percentage of the household income of the claimant specified in subdivision 
14.13 	2 or 2a in the year for which the taxes were levied or in the year in which the rent was paid, 
14.14 	the claimant shall not be eligible for a state refund pursuant to this section.

14.15 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
14.16 	and following years.

14.17 	Sec. 12. Minnesota Statutes 2022, section 290A.05, is amended to read:
14.18 	290A.05 COMBINED HOUSEHOLD INCOME; RENTAL AGREEMENTS AND 
14.19 	REDUCTION OF PROPERTY TAXES PAYABLE.
14.20 	(a) If a person occupies a homestead with another person not related to the person as 
14.21 	the person's spouse, excluding dependents, roomers or boarders on contract, and has property 
14.22 	tax payable with respect to the homestead, the household income of the claimant or claimants 
14.23 	for the purpose of computing the refund allowed by section 290A.04 shall include the total 
14.24 	income received by the other persons residing in the homestead. For purposes of this section, 
14.25 	"dependent" includes a parent of the claimant or spouse who lives in the claimant's homestead 
14.26 	and does not have an ownership interest in the homestead.
14.27 	(b) If a person occupies a homestead with another person or persons not related to the 
14.28 	person as the person's spouse or as dependents, the property tax payable or rent constituting 
14.29 	property tax shall be reduced as follows.
14.30 	If and the other person or persons are residing at the homestead under a rental or lease 
14.31 	agreement with the homeowner, the amount of property tax payable or rent constituting 
14.32 	property tax shall be equals that portion not covered by the rental agreement.

15.1 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
15.2 	and property taxes payable in 2024, and following years.

15.3 	Sec. 13. Minnesota Statutes 2022, section 290A.07, subdivision 2a, is amended to read:
15.4 		Subd. 2a.Time of payment to renter or manufactured home homeowner. A claimant 
15.5 	who is a renter or a homeowner who occupies a manufactured home, as defined in section 
15.6 	273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured home under 
15.7 	section 168.012, subdivision 9, shall receive full payment after August 1 and before August 
15.8 	15 or 60 days after receipt of the application, whichever is later.

15.9 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
15.10 	and following years.

15.11 	Sec. 14. Minnesota Statutes 2022, section 290A.08, is amended to read:
15.12 	290A.08 ONE CLAIMANT PER HOUSEHOLD.
15.13 	Only one claimant per household per year is entitled to relief under this chapter. Payment 
15.14 	of the claim for relief may be made payable to the spouses as one claimant. The 
15.15 	commissioner, upon written request, may issue separate checks, to the spouses for one-half 
15.16 	of the relief provided the original check has not been issued or has been returned. Individuals 
15.17 	related as spouses who were married during the year may elect to file a joint claim which 
15.18 	shall include each spouse's income, rent constituting property taxes, and property taxes 
15.19 	payable. Spouses who were married for the entire year and were domiciled in the same 
15.20 	household for the entire year must file a joint claim. The maximum dollar amount allowable 
15.21 	for a joint claim shall not exceed the amount that one person could receive.

15.22 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
15.23 	and following years.

15.24 	Sec. 15. Minnesota Statutes 2022, section 290A.09, is amended to read:
15.25 	290A.09 PROOF OF CLAIM.
15.26 	Every claimant shall supply to the commissioner of revenue, in support of the claim, 
15.27 	proof of eligibility under this chapter, including but not limited to amount of rent paid or
15.28 	property taxes accrued, name and address of owner or managing agent of property rented,
15.29 	changes in homestead, household membership, household income, size and nature of property 
15.30 	claimed as a homestead.
16.1 	Persons with a disability filing claims shall submit proof of disability in the form and 
16.2 	manner as the commissioner may prescribe. The department may require examination and 
16.3 	certification by the claimant's physician or by a physician designated by the commissioner. 
16.4 	The cost of any examination shall be borne by the claimant, unless the examination proves 
16.5 	the disability, in which case the cost of the examination shall be borne by the commissioner.
16.6 	A determination of disability of a claimant by the Social Security Administration under 
16.7 	Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.

16.8 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
16.9 	and following years.

16.10 	Sec. 16. Minnesota Statutes 2022, section 290A.091, is amended to read:
16.11 	290A.091 CLAIMS OF TENANTS IN LEASEHOLD COOPERATIVES.
16.12 	The cooperative manager of a leasehold cooperative shall furnish a statement to each 
16.13 	tenant by March 31 of the year in which the property tax is payable showing each unit's 
16.14 	share of the gross property tax and each unit's share of any property tax credits. Each tenant 
16.15 	may apply for a property tax refund under this chapter as a homeowner based on each 
16.16 	tenant's share of property taxes. The tenant may not include any rent constituting property 
16.17 	taxes paid on that unit claim the renter's credit under section 290.0693. For the purposes of 
16.18 	this section, a leasehold cooperative is formed on the day that leasehold cooperative status 
16.19 	is granted by the appropriate county official.

16.20 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
16.21 	and following years.

16.22 	Sec. 17. Minnesota Statutes 2022, section 290A.13, is amended to read:
16.23 	290A.13 NO RELIEF ALLOWED IN CERTAIN CASES.
16.24 	No claim for relief under this chapter shall be allowed if the commissioner determines 
16.25 	that the claimant received title or tenancy to the homestead primarily for the purpose of 
16.26 	receiving benefits under this chapter and not for bona fide residence purposes.

16.27 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
16.28 	and following years.

17.1 	Sec. 18. Minnesota Statutes 2022, section 290A.19, is amended to read:
17.2 	290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
17.3 	(a) The park owner or managing agent of any of a property for which rent is paid for 
17.4 	occupancy as a homestead must furnish a certificate of rent paid to a person who is a renter 
17.5 	on December 31, in the form prescribed by the commissioner. If the renter moves before 
17.6 	December 31, the park owner or managing agent may give the certificate to the renter at 
17.7 	the time of moving, or mail the certificate to the forwarding address if an address has been 
17.8 	provided by the renter. The certificate must be made available to the renter before February 
17.9 	1 of the year following the year in which the rent was paid. The park owner or managing 
17.10 	agent must retain a duplicate of each certificate or an equivalent record showing the same 
17.11 	information for a period of three years. The duplicate or other record must be made available 
17.12 	to the commissioner upon request.
17.13 	(b) The commissioner may require the park owner or managing agent, through a simple 
17.14 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
17.15 	rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe 
17.16 	the content, format, and manner of the form pursuant to section 270C.30. Prior to 
17.17 	implementation, the commissioner, after consulting with representatives of park owners or 
17.18 	managing agents, shall develop an implementation and administration plan for the 
17.19 	requirements of this paragraph that attempts to minimize financial burdens, administration 
17.20 	and compliance costs, and takes into consideration existing systems of park owners and 
17.21 	managing agents.
17.22 	(c) For the purposes of this section, "owner" includes "park owner" means a park owner 
17.23 	as defined under section 327C.015, subdivision 9, and "property" includes a lot as defined 
17.24 	under section 327C.015, subdivision 6.

17.25 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
17.26 	and following years.

17.27 	Sec. 19. Minnesota Statutes 2022, section 290A.25, is amended to read:
17.28 	290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.
17.29 	Annually, the commissioner of revenue shall furnish a list to the county assessor 
17.30 	containing the names and Social Security numbers of persons who have applied for both 
17.31 	homestead classification under section 273.13 and a property tax refund as a renter under 
17.32 	this chapter renter's credit under section 290.0693.
18.1 	Within 90 days of the notification, the county assessor shall investigate to determine if 
18.2 	the homestead classification was improperly claimed. If the property owner does not qualify, 
18.3 	the county assessor shall notify the county auditor who will determine the amount of 
18.4 	homestead benefits that has been improperly allowed. For the purpose of this section, 
18.5 	"homestead benefits" has the meaning given in section 273.124, subdivision 13b. The county 
18.6 	auditor shall send a notice to persons who owned the affected property at the time the 
18.7 	homestead application related to the improper homestead was filed, demanding 
18.8 	reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead 
18.9 	benefits. The person notified may appeal the county's determination with the Minnesota 
18.10 	Tax Court within 60 days of the date of the notice from the county as provided in section 
18.11 	273.124, subdivision 13b.
18.12 	If the amount of homestead benefits and penalty is not paid within 60 days, and if no 
18.13 	appeal has been filed, the county auditor shall certify the amount of taxes and penalty to 
18.14 	the county treasurer. The county treasurer will add interest to the unpaid homestead benefits 
18.15 	and penalty amounts at the rate provided for delinquent personal property taxes for the 
18.16 	period beginning 60 days after demand for payment was made until payment. If the person 
18.17 	notified is the current owner of the property, the treasurer may add the total amount of 
18.18 	benefits, penalty, interest, and costs to the real estate taxes otherwise payable on the property 
18.19 	in the following year. If the person notified is not the current owner of the property, the 
18.20 	treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A, 
18.21 	or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce 
18.22 	payment of the benefits, penalty, interest, and costs, as if those amounts were delinquent 
18.23 	tax obligations of the person who owned the property at the time the application related to 
18.24 	the improperly allowed homestead was filed. The treasurer may relieve a prior owner of 
18.25 	personal liability for the benefits, penalty, interest, and costs, and instead extend those 
18.26 	amounts on the tax lists against the property for taxes payable in the following year to the 
18.27 	extent that the current owner agrees in writing.
18.28 	Any amount of homestead benefits recovered by the county from the property owner 
18.29 	shall be distributed to the county, city or town, and school district where the property is 
18.30 	located in the same proportion that each taxing district's levy was to the total of the three 
18.31 	taxing districts' levy for the current year. Any amount recovered attributable to taconite 
18.32 	homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the 
18.33 	taconite property tax relief account. Any amount recovered that is attributable to supplemental 
18.34 	homestead credit is to be transmitted to the commissioner of revenue for deposit in the 
19.1 	general fund of the state treasury. The total amount of penalty collected must be deposited 
19.2 	in the county general fund.

19.3 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
19.4 	and following years.

19.5 	Sec. 20. Minnesota Statutes 2022, section 462A.05, subdivision 24, is amended to read:
19.6 		Subd. 24.Housing for elderly, persons with physical or developmental disabilities, 
19.7 	and single parent families. (a) It may engage in housing programs for low- and 
19.8 	moderate-income elderly, persons with physical or developmental disabilities, or single 
19.9 	parent families in the case of home sharing programs, as defined by the agency, to provide 
19.10 	grants or loans, with or without interest, for:
19.11 	(1) accessibility improvements to residences occupied by elderly persons;
19.12 	(2) housing sponsors, as defined by the agency, of home sharing programs to match 
19.13 	existing homeowners with prospective tenants who will contribute either rent or services 
19.14 	to the homeowner, where either the homeowner or the prospective tenant is elderly, a person 
19.15 	with physical or developmental disabilities, or the head of a single parent family;
19.16 	(3) the construction of or conversion of existing buildings into structures for occupancy 
19.17 	by the elderly that contain from three to 12 private sleeping rooms with shared cooking 
19.18 	facilities and common space; and
19.19 	(4) housing sponsors, as defined by the agency, to demonstrate the potential for home 
19.20 	equity conversion in Minnesota for the elderly, in both rural and urban areas, and to determine 
19.21 	the need in those equity conversions for consumer safeguards.
19.22 	(b) In making the grants or loans, the agency shall determine the terms and conditions 
19.23 	of repayment and the appropriate security, if any, should repayment be required. The agency 
19.24 	may provide technical assistance to sponsors of home sharing programs or may contract or 
19.25 	delegate the provision of the technical assistance in accordance with section 462A.07, 
19.26 	subdivision 12.
19.27 	(c) Housing sponsors who receive funding through these programs shall provide 
19.28 	homeowners and tenants participating in a home sharing program with information regarding 
19.29 	their rights and obligations as they relate to federal and state tax law including, but not 
19.30 	limited to, taxable rental income, homestead classification under chapter 273, the renter's 
19.31 	credit under section 290.0693, and the property tax refund act under chapter 290A.

20.1 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
20.2 	and following years.

20.3 	Sec. 21. REPEALER.
 20.4 	Minnesota Statutes 2022, sections 290A.03, subdivisions 9 and 11; 290A.04, subdivisions 
20.5 	2a and 5; and 290A.23, subdivision 1, are repealed.

20.6 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2023 
20.7 	and following years.

APPENDIX 

Repealed Minnesota Statutes: 23-00701 

290A.03 DEFINITIONS.Subd. 9.Disabled claimant. 
"Disabled claimant" means any claimant who has a disability. 

Subd. 11.Rent constituting property taxes. 
"Rent constituting property taxes" means 17 percent of the gross rent actually paid in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any calendar year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the calendar year, and which rent constitutes the basis, in the succeeding calendar year of a claim for relief under this chapter by the claimant. 

290A.04 REFUND ALLOWABLE.Subd. 2a.Renters. 
A claimant whose rent constituting property taxes exceeds the percentage of the household income stated below must pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of rent constituting property taxes. The state refund equals the amount of rent constituting property taxes that remain, up to the maximum state refund amount shown below. 

	Household Income	Percent of Income	Percent Paid byClaimant	Maximum StateRefund	
	$0 to 5,269	1.0 percent	5 percent	$	2,150	
	5,270 to 6,999	1.0 percent	10 percent	$	2,150	
	7,000 to 8,749	1.1 percent	10 percent	$	2,090	
	8,750 to 12,269	1.2 percent	10 percent	$	2,040	
	12,270 to 15,779	1.3 percent	15 percent	$	1,980	
	15,780 to 17,519	1.4 percent	15 percent	$	1,930	
	17,520 to 19,259	1.4 percent	20 percent	$	1,880	
	19,260 to 22,779	1.5 percent	20 percent	$	1,820	
	22,780 to 24,529	1.6 percent	20 percent	$	1,770	
	24,530 to 26,279	1.7 percent	25 percent	$	1,770	
	26,280 to 29,789	1.8 percent	25 percent	$	1,770	
	29,790 to 31,529	1.9 percent	30 percent	$	1,770	
	31,530 to 36,789	2.0 percent	30 percent	$	1,770	
	36,790 to 42,039	2.0 percent	35 percent	$	1,770	
	42,040 to 49,059	2.0 percent	40 percent	$	1,770	
	49,060 to 50,799	2.0 percent	45 percent	$	1,610	
	50,800 to 52,559	2.0 percent	45 percent	$	1,450	
	52,560 to 54,319	2.0 percent	45 percent	$	1,230	
	54,320 to 56,059	2.0 percent	50 percent	$	1,070	
	56,060 to 57,819	2.0 percent	50 percent	$	970	
	57,820 to 59,569	2.0 percent	50 percent	$	540	
	59,570 to 61,319	2.0 percent	50 percent	$	210	

The payment made to a claimant is the amount of the state refund calculated under this subdivision. No payment is allowed if the claimant's household income is $61,320 or more. 

Subd. 5.Combined renter and homeowner refund. 
In the case of a claimant who is entitled to a refund in a calendar year for claims based both on rent constituting property taxes and property taxes payable, the refund allowable equals the sum of the refunds allowable. 

290A.23 APPROPRIATION.Subdivision 1.Renters credit. 
There is appropriated from the general fund in the state treasury to the commissioner of revenue the amount necessary to make the payments required under section 290A.04, subdivision 2a.