H.F. No. 4142, as introduced - 84th Legislative Session (2005-2006)
Posted on Apr 11, 2006
1.1 A bill for an act
1.2 relating to taxation; providing a property tax rebate.
1.3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.4 Section 1. PROPERTY TAX REBATE.
1.5 Subdivision 1. Eligibility; amount. (a) An individual or a trust that is the record
1.6 owner of a homestead when the property tax statement is prepared for taxes payable in
1.7 2006 is eligible for a property tax rebate under this section, unless the property taxes on
1.8 the homestead are delinquent within the meaning of Minnesota Statutes, section 290A.10.
1.9 (b) On or before October 1, 2006, the commissioner of revenue shall pay the eligible
1.10 owner a property tax rebate equal to ten percent of the property taxes payable in 2006
1.11 on the homestead.
1.12 Subd. 2. Definitions. (a) For purposes of this section, the following terms have
1.13 the meanings given.
1.14 (b) "Commissioner" means the commissioner of revenue.
1.15 (c) "Homestead" means property qualifying as a homestead under Minnesota
1.16 Statutes, section 290A.03, subdivision 6, for property taxes payable in 2006.
1.17 (d) "Property taxes payable" has the meaning given in Minnesota Statutes, section
1.18 290A.03, subdivision 13, except that any adjustments provided under Minnesota Statutes,
1.19 section 29A.03, subdivision 13, to line 1 of the property tax statement do not apply.
1.20 Subd. 3. County to provide data. (a) The county auditor shall provide the
1.21 following data to the commissioner of revenue for each homestead in the county:
1.22 (1) the name or names of the property owner or owners;
1.23 (2) the mailing address of the property owner;
1.24 (3) the Social Security number of each property owner;
2.1 (4) the amount of property taxes payable in 2006 for the property; and
2.2 (5) whether property taxes are delinquent on the homestead within the meaning
2.3 of Minnesota Statutes, section 290A.10.
2.4 (b) The county auditor shall provide the data to the commissioner electronically in
2.5 the format and manner and at the time or times specified by the commissioner.
2.6 Subd. 4. Joint rebate rules. If a homestead is owned by two or more persons as
2.7 joint tenants or tenants in common, the commissioner shall pay the rebate to all of the
2.8 tenants jointly.
2.9 Subd. 5. Deceased individuals. If a rebate is received by the estate of a deceased
2.10 individual after the probate estate has been closed, and if the original rebate check is
2.11 returned to the commissioner with a copy of the decree of descent or final account of the
2.12 estate, Social Security numbers, and addresses of the beneficiaries, the commissioner may
2.13 issue separate checks in proportion to their share in the residuary estate in the names of
2.14 the residuary beneficiaries of the estate.
2.15 Subd. 6. Application of other law. (a) The property tax rebate is a "Minnesota tax
2.16 law" for purposes of Minnesota Statutes, section 270B.01, subdivision 8.
2.17 (b) The property tax rebate is "an overpayment of any tax collected by the
2.18 commissioner" for purposes of Minnesota Statutes, section 270C.64.
2.19 (c) The property tax rebate is a refund subject to revenue recapture under Minnesota
2.20 Statutes, chapter 270A. The commissioner of revenue shall remit the entire refund to the
2.21 claimant agency, which shall, upon the request of a joint owner who does not owe the debt,
2.22 refund a share of the joint property tax rebate to the joint owner who does not owe the debt
2.23 equal to the requesting owner's proportionate ownership of the property. The requesting
2.24 owner must certify this share to the agency, along with appropriate documentation.
2.25 Subd. 7. Lapse of entitlement. If the commissioner of revenue cannot locate an
2.26 individual entitled to a rebate by July 1, 2008, or if an individual to whom a rebate was
2.27 issued has not cashed the check by July 1, 2008, the right to the rebate lapses and the
2.28 check must be deposited in the general fund.
2.29 Subd. 8. Claims for unpaid rebates. Individuals entitled to a tax rebate under
2.30 subdivision 1 but who did not receive one, and individuals who receive a rebate that was
2.31 incorrectly computed, must file a claim with the commissioner before July 1, 2008, in a
2.32 form prescribed by the commissioner. These claims must be treated as if they are a claim
2.33 for refund under Minnesota Statutes, section 289A.50, subdivisions 4 and 7.
2.34 Subd. 9. Appropriation. The amount necessary to make the property tax rebates
2.35 and interest provided in this section is appropriated from the general fund to the
2.36 commissioner of revenue in fiscal year 2006 and is available until June 30, 2008.
3.1 Subd. 10. Illegally cashed checks. If a rebate check is cashed by someone other
3.2 than the payee or payees of the check, and the commissioner of revenue determines that
3.3 the check has been forged or improperly endorsed or the commissioner determines that
3.4 a rebate was overstated or erroneously issued, the commissioner may issue an order of
3.5 assessment for the amount of the check or the amount the check is overstated against
3.6 the person or persons cashing it. The assessment must be made within two years after
3.7 the check is cashed, but if cashing the check constitutes theft under Minnesota Statutes,
3.8 section 609.52, or forgery under Minnesota Statutes, section 609.631, the assessment can
3.9 be made at any time. The assessment may be appealed administratively and judicially. The
3.10 commissioner may take action to collect the assessment in the same manner as provided by
3.11 Minnesota Statutes, chapter 270C, for any other order of the commissioner assessing tax.
3.12 Subd. 11. Authority to contract with vendor. Notwithstanding Minnesota Statutes,
3.13 sections 9.031, 16A.40, 16B.49, and any other law to the contrary, the commissioner
3.14 of revenue may take whatever actions the commissioner deems necessary to pay the
3.15 rebates required by this section, and may, in consultation with the commissioner of
3.16 finance, contract with a private vendor or vendors to process, print, and mail the rebate
3.17 checks or warrants required under this section and receive and disburse state funds to pay
3.18 those checks or warrants.
3.19 Subd. 12. Electronic payment. The commissioner may pay rebates required by this
3.20 section by electronic funds transfer to individuals who requested that their 2005 individual
3.21 income tax refund be paid through electronic funds transfer. The commissioner may make
3.22 the electronic funds transfer payments to the same financial institution and into the same
3.23 account as the 2005 individual income tax refund.
3.24 Subd. 13. Adjustments. A property tax rebate of $307,300,000 is authorized
3.25 for fiscal year 2006. The commissioner of finance shall certify by July 15, 2006,
3.26 the preliminary fiscal 2006 general fund net nondedicated revenues. If certified
3.27 net nondedicated revenues are less than the amount forecast in February 2006, the
3.28 commissioner shall proportionally decrease all rebates under this section to rebate the
3.29 entire amount of the certified net nondedicated revenues. The adjustments under this
3.30 subdivision are not a rule subject to Minnesota Statutes, chapter 14.
3.31 Subd. 14. Contingent upon resolution of lawsuit. No property tax rebates must
3.32 be paid under this section, unless the Minnesota Supreme Court reverses the district
3.33 court's order, dated December 20, 2005, finding the health impact fee under Minnesota
3.34 Statutes, section 256.9658, unconstitutional and in violation of the settlement agreement
3.35 in State v. Philip Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second Judicial
3.36 District), and allows the state to continue imposing and collecting the health impact fee.
4.1 If this contingency is not satisfied by August 1, 2006, no rebates must be paid and the
4.2 appropriations in this section and section 2, subdivision 1, are canceled.
4.3 EFFECTIVE DATE.This section is effective the day after final enactment.
4.4 Sec. 2. APPROPRIATIONS; TRANSFER.
4.5 Subdivision 1. Appropriation; administration.
4.6 (a) $....... is appropriated in fiscal year 2006 from the general fund to the
4.7 commissioner of revenue to administer the property tax rebates in section 1. Any
4.8 unencumbered balance remaining on June 30, 2006, does not cancel but is available
4.9 for expenditure by the commissioner of revenue until June 30, 2007. Notwithstanding
4.10 Minnesota Statutes, section 16A.285, the commissioner of revenue may not use this
4.11 appropriation for any purpose other than administering the property tax rebates. This is a
4.12 onetime appropriation and may not be added to the agency's budget base.
4.13 (b) $....... is appropriated in fiscal year 2006 from the general fund to the
4.14 commissioner of finance to pay the cost of clearing property tax rebate checks through
4.15 commercial banks. Any unencumbered balance remaining on June 30, 2006, does
4.16 not cancel but is available for expenditure by the commissioner until June 30, 2007.
4.17 Notwithstanding Minnesota Statutes, section 16A.285, the commissioner may not use this
4.18 appropriation for any purpose other than paying the cost of clearing rebate checks.
4.19 Subd. 2. Transfer; tax relief account. The balance in the tax relief account under
4.20 Minnesota Statutes, section 16A.152, subdivision 4, is transferred to the general fund.
4.21 EFFECTIVE DATE.This section is effective the day after final enactment.
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