Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF45 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; converting the property tax refund program to a refundable
3	3	1.3 income tax credit; amending Minnesota Statutes 2022, sections 270B.12,
4	4	1.4 subdivision 8; 289A.38, subdivision 4; 289A.56, subdivision 6; 289A.60,
5	5	1.5 subdivision 12; 290A.02; 290A.03, subdivisions 3, 6, 8, 12; 290A.04, subdivision
6	6	1.6 1; 290A.05; 290A.07, subdivision 2a; 290A.08; 290A.09; 290A.091; 290A.13;
7	7	1.7 290A.19; 290A.25; 462A.05, subdivision 24; proposing coding for new law in
8	8	1.8 Minnesota Statutes, chapter 290; repealing Minnesota Statutes 2022, sections
9	9	1.9 290A.03, subdivisions 9, 11; 290A.04, subdivisions 2a, 5; 290A.23, subdivision
10	10	1.10 1.
11	11	1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
12	12	1.12 Section 1. Minnesota Statutes 2022, section 270B.12, subdivision 8, is amended to read:
13	13	1.13 Subd. 8.County assessors; homestead classification and renter renter's credit.The
14	14	1.14commissioner may disclose names and Social Security numbers of individuals who have
15	15	1.15applied for both homestead classification under section 273.13 and a property tax refund
16	16	1.16as a renter under chapter 290A renter's credit under section 290.0693 for the purpose of and
17	17	1.17to the extent necessary to administer section 290A.25.
18	18	1.18 EFFECTIVE DATE.This section is effective for credits based on rent paid after
19	19	1.19December 31, 2022.
20	20	1.20 Sec. 2. Minnesota Statutes 2022, section 289A.38, subdivision 4, is amended to read:
21	21	1.21 Subd. 4.Property tax refund.For purposes of computing the limitation under this
22	22	1.22section, the due date of the property tax refund return as provided for in chapter 290A is
23	23	1.23the due date for an income tax return covering the year in which the rent was paid or the
24	24	1.24year preceding the year in which the property taxes are payable.
25	25	1Sec. 2.
26	26	23-00701 as introduced12/21/22 REVISOR EAP/NB
27	27	SENATE
28	28	STATE OF MINNESOTA
29	29	S.F. No. 45NINETY-THIRD SESSION
30	30	(SENATE AUTHORS: KLEIN and Rest)
31	31	OFFICIAL STATUSD-PGDATE
32	32	Introduction and first reading01/05/2023
33	33	Referred to Taxes 2.1 EFFECTIVE DATE.This section is effective for credits based on rent paid after
34	34	2.2December 31, 2022.
35	35	2.3 Sec. 3. Minnesota Statutes 2022, section 289A.56, subdivision 6, is amended to read:
36	36	2.4 Subd. 6.Property tax refunds under chapter 290A.(a) When a renter is owed a
37	37	2.5property tax refund, an unpaid refund bears interest after August 14, or 60 days after the
38	38	2.6refund claim was made, whichever is later, until the date the refund is paid.
39	39	2.7 (b) When any other a claimant is owed a property tax refund under chapter 290A, the
40	40	2.8unpaid refund bears interest after September 29, or 60 days after the refund claim was made,
41	41	2.9whichever is later, until the date the refund is paid.
42	42	2.10 EFFECTIVE DATE.This section is effective for credits based on rent paid after
43	43	2.11December 31, 2022.
44	44	2.12 Sec. 4. Minnesota Statutes 2022, section 289A.60, subdivision 12, is amended to read:
45	45	2.13 Subd. 12.Penalties relating to property tax refunds.(a) If it is determined that a
46	46	2.14property tax refund claim is excessive and was negligently prepared, a claimant is liable
47	47	2.15for a penalty of ten percent of the disallowed claim. If the claim has been paid, the amount
48	48	2.16disallowed must be recovered by assessment and collection.
49	49	2.17 (b) An owner who without reasonable cause fails to give a certificate of rent constituting
50	50	2.18property tax to a renter, as required by section sections 290.0693, subdivision 4, and 290A.19,
51	51	2.19paragraph (a), is liable to the commissioner for a penalty of $100 for each failure.
52	52	2.20 (c) If the owner or managing agent knowingly gives rent certificates that report total
53	53	2.21rent constituting property taxes in excess of the amount of actual rent constituting property
54	54	2.22taxes paid on the rented part of a property, the owner or managing agent is liable for a
55	55	2.23penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An
56	56	2.24overstatement of rent constituting property taxes is presumed to be knowingly made if it
57	57	2.25exceeds by ten percent or more the actual rent constituting property taxes.
58	58	2.26 EFFECTIVE DATE.This section is effective for credits based on rent paid after
59	59	2.27December 31, 2022.
60	60	2.28 Sec. 5. [290.0693] RENTER'S CREDIT.
61	61	2.29 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
62	62	2.30the meanings given.
63	63	2Sec. 5.
64	64	23-00701 as introduced12/21/22 REVISOR EAP/NB 3.1 (b) "Dependent" means any individual who is considered a dependent under sections
65	65	3.2151 and 152 of the Internal Revenue Code.
66	66	3.3 (c) "Disability" has the meaning given in section 290A.03, subdivision 10.
67	67	3.4 (d) "Exemption amount" means the exemption amount under section 290.0121,
68	68	3.5subdivision 1, paragraph (b).
69	69	3.6 (e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
70	70	3.7homestead, exclusive of charges for any medical services furnished by the landlord as a
71	71	3.8part of the rental agreement, whether expressly set out in the rental agreement or not. The
72	72	3.9gross rent of a resident of a nursing home or intermediate care facility is $530 per month.
73	73	3.10The gross rent of a resident of an adult foster care home is $830 per month. The commissioner
74	74	3.11shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
75	75	3.12statutory year is 2022. If the landlord and tenant have not dealt with each other at arm's
76	76	3.13length and the commissioner determines that the gross rent charged was excessive, the
77	77	3.14commissioner may adjust the gross rent to a reasonable amount for purposes of this chapter.
78	78	3.15 (f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
79	79	3.16 (g) "Household" has the meaning given in section 290A.03, subdivision 4.
80	80	3.17 (h) "Household income" means all income received by all persons of a household in a
81	81	3.18taxable year while members of the household, other than income of a dependent.
82	82	3.19 (i) "Income" means adjusted gross income, minus:
83	83	3.20 (1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
84	84	3.21 (2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
85	85	3.22 (3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
86	86	3.23 (4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
87	87	3.24 (5) for the taxpayer's fifth dependent, the exemption amount; and
88	88	3.25 (6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
89	89	3.26before the close of the taxable year, the exemption amount.
90	90	3.27 (j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid
91	91	3.28in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable
92	92	3.29year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the
93	93	3.30taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim
94	94	3.31for a credit under this section by the claimant. If an individual occupies a homestead with
95	95	3Sec. 5.
96	96	23-00701 as introduced12/21/22 REVISOR EAP/NB 4.1another person or persons not related to the individual as the individual's spouse or as
97	97	4.2dependents, and the other person or persons are residing at the homestead under a rental or
98	98	4.3lease agreement with the individual, the amount of rent constituting property tax for the
99	99	4.4individual equals that portion not covered by the rental agreement.
100	100	4.5 Subd. 2.Credit allowed; refundable.(a) An individual is allowed a credit against the
101	101	4.6tax due under this chapter equal to the amount that rent constituting property taxes exceeds
102	102	4.7the percentage of the household income of the claimant specified in subdivision 3 in the
103	103	4.8taxable year in which the rent was paid as specified in that subdivision.
104	104	4.9 (b) If the amount of credit which a taxpayer is eligible to receive under this section
105	105	4.10exceeds the taxpayer's liability for tax under this chapter, the commissioner shall refund the
106	106	4.11excess to the taxpayer.
107	107	4.12 Subd. 3.Renters.(a) A taxpayer whose rent constituting property taxes exceeds the
108	108	4.13percentage of the household income stated below must pay an amount equal to the percent
109	109	4.14of income shown for the appropriate household income level along with the co-payment of
110	110	4.15the remaining amount of rent constituting property taxes. The credit under subdivision 2
111	111	4.16equals the amount of rent constituting property taxes that remain, up to the maximum credit
112	112	4.17amount shown below.
113	113	Maximum CreditCo-paymentPercent of Income4.18 Household Income
114	114	2,400$5 percent1.0 percent4.19 $0 to 5,879
115	115	2,400$10 percent1.0 percent4.20 5,880 to 7,809
116	116	2,330$10 percent1.1 percent4.21 7,810 to 9,769
117	117	2,280$10 percent1.2 percent4.22 9,770 to 13,699
118	118	2,210$15 percent1.3 percent4.23 13,700 to 17,609
119	119	2,150$15 percent1.4 percent4.24 17,610 to 19,559
120	120	2,100$20 percent1.4 percent4.25 19,560 to 21,499
121	121	2,030$20 percent1.5 percent4.26 21,500 to 25,429
122	122	1,980$20 percent1.6 percent4.27 25,430 to 27,379
123	123	1,980$25 percent1.7 percent4.28 27,380 to 29,329
124	124	1,980$25 percent1.8 percent4.29 29,330 to 33,249
125	125	1,980$30 percent1.9 percent4.30 33,250 to 35,189
126	126	1,980$30 percent2.0 percent4.31 35,190 to 41,059
127	127	1,980$35 percent2.0 percent4.32 41,060 to 46,919
128	128	1,980$40 percent2.0 percent4.33 46,920 to 54,759
129	129	1,800$45 percent2.0 percent4.34 54,760 to 56,699
130	130	1,620$45 percent2.0 percent4.35 56,700 to 58,669
131	131	1,370$45 percent2.0 percent4.36 58,670 to 60,629
132	132	4Sec. 5.
133	133	23-00701 as introduced12/21/22 REVISOR EAP/NB 1,190$50 percent2.0 percent5.1 60,630 to 62,569
134	134	1,080$50 percent2.0 percent5.2 62,570 to 64,539
135	135	600$50 percent2.0 percent5.3 64,540 to 66,489
136	136	230$50 percent2.0 percent5.4 66,490 to 68,439
137	137	5.5 The credit is the amount calculated under this subdivision. No credit is allowed if the
138	138	5.6taxpayer's household income is $68,440 or more.
139	139	5.7 (b) The commissioner must annually adjust the dollar amounts of the income thresholds
140	140	5.8and the maximum refunds in paragraph (a), as provided in section 270C.22. The statutory
141	141	5.9year is 2022.
142	142	5.10 (c) The commissioner shall construct and make available to taxpayers a comprehensive
143	143	5.11table showing the rent constituting property taxes to be paid and refund allowed at various
144	144	5.12levels of income and assessment. The table shall follow the schedule of income percentages,
145	145	5.13maximums, and other provisions specified in paragraph (a), except that the commissioner
146	146	5.14may graduate the transition between income brackets. All refunds shall be computed in
147	147	5.15accordance with tables prepared and issued by the commissioner.
148	148	5.16 Subd. 4.Owner or managing agent to furnish rent certificate.(a) The owner or
149	149	5.17managing agent of any property for which rent is paid for occupancy as a homestead must
150	150	5.18furnish a certificate of rent paid to a person who is a renter on December 31, in the form
151	151	5.19prescribed by the commissioner. If the renter moves before December 31, the owner or
152	152	5.20managing agent may give the certificate to the renter at the time of moving, or mail the
153	153	5.21certificate to the forwarding address if an address has been provided by the renter. The
154	154	5.22certificate must be made available to the renter before February 1 of the year following the
155	155	5.23year in which the rent was paid. The owner or managing agent must retain a duplicate of
156	156	5.24each certificate or an equivalent record showing the same information for a period of three
157	157	5.25years. The duplicate or other record must be made available to the commissioner upon
158	158	5.26request.
159	159	5.27 (b) The commissioner may require the owner or managing agent, through a simple
160	160	5.28process, to furnish to the commissioner on or before March 1 a copy of each certificate of
161	161	5.29rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe
162	162	5.30the content, format, and manner of the form pursuant to section 270C.30. The commissioner
163	163	5.31may require the Social Security number, individual taxpayer identification number, federal
164	164	5.32employer identification number, or Minnesota taxpayer identification number of the owner
165	165	5.33or managing agent who is required to furnish a certificate of rent paid under this paragraph.
166	166	5.34Before implementation, the commissioner, after consulting with representatives of owners
167	167	5.35or managing agents, shall develop an implementation and administration plan for the
168	168	5Sec. 5.
169	169	23-00701 as introduced12/21/22 REVISOR EAP/NB 6.1requirements of this paragraph that attempts to minimize financial burdens, administration
170	170	6.2and compliance costs, and takes into consideration existing systems of owners and managing
171	171	6.3agents.
172	172	6.4 Subd. 5.Eligibility; residency.(a) A taxpayer is eligible for the credit under this section
173	173	6.5if the taxpayer is an individual, other than a dependent, as defined under sections 151 and
174	174	6.6152 of the Internal Revenue Code, disregarding section 152(b)(3) of the Internal Revenue
175	175	6.7Code, who filed for a credit and who was a resident of this state during the taxable year for
176	176	6.8which the credit was claimed.
177	177	6.9 (b) In the case of a credit for rent constituting property taxes of a part-year Minnesota
178	178	6.10resident, the household income and rent constituting property taxes reflected in this
179	179	6.11computation shall be for the period of Minnesota residency only. Any rental expenses paid
180	180	6.12that may be reflected in arriving at federal adjusted gross income cannot be utilized for this
181	181	6.13computation.
182	182	6.14 (c) When two individuals of a household are able to meet the qualifications to claim a
183	183	6.15credit under this section, the individuals may determine among them as to which individual
184	184	6.16may claim the credit. If the individuals are unable to agree, the matter shall be referred to
185	185	6.17the commissioner of revenue whose decision shall be final.
186	186	6.18 (d) To claim a credit under this section, the taxpayer must have resided in a rented or
187	187	6.19leased unit on which ad valorem taxes or payments made in lieu of ad valorem taxes,
188	188	6.20including payments of special assessments imposed in lieu of ad valorem taxes, are payable
189	189	6.21at some time during the taxable year for which the taxpayer claimed the credit.
190	190	6.22 Subd. 6.Residents of nursing homes, intermediate care facilities, long-term care
191	191	6.23facilities, or facilities accepting housing support payments.(a) A taxpayer must not claim
192	192	6.24a credit under this section if the taxpayer is a resident of a nursing home, intermediate care
193	193	6.25facility, long-term residential facility, or a facility that accepts housing support payments
194	194	6.26whose rent constituting property taxes is paid pursuant to the Supplemental Security Income
195	195	6.27program under title XVI of the Social Security Act, the Minnesota supplemental aid program
196	196	6.28under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
197	197	6.29of the Social Security Act, or the housing support program under chapter 256I.
198	198	6.30 (b) If only a portion of the rent constituting property taxes is paid by these programs,
199	199	6.31the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction,
200	200	6.32the numerator of which is adjusted gross income, reduced by the total amount of income
201	201	6.33from the above sources other than vendor payments under the medical assistance program
202	202	6Sec. 5.
203	203	23-00701 as introduced12/21/22 REVISOR EAP/NB 7.1and the denominator of which is adjusted gross income, plus vendor payments under the
204	204	7.2medical assistance program, to determine the allowable credit.
205	205	7.3 (c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing
206	206	7.4home, intermediate care facility, long-term residential facility, or facility for which the rent
207	207	7.5was paid for the claimant by the housing support program for only a portion of the taxable
208	208	7.6year covered by the claim, the taxpayer may compute rent constituting property taxes by
209	209	7.7disregarding the rent constituting property taxes from the nursing home or facility and may
210	210	7.8use only that amount of rent constituting property taxes or property taxes payable relating
211	211	7.9to that portion of the year when the taxpayer was not in the facility. The taxpayer's household
212	212	7.10income is the income for the entire taxable year covered by the claim.
213	213	7.11 Subd. 7.Credit for unmarried taxpayers residing in the same household.If a
214	214	7.12homestead is occupied by two or more renters who are not married to each other, the rent
215	215	7.13shall be deemed to be paid equally by each renter, and separate claims shall be filed by each
216	216	7.14renter. The income of each renter shall be each renter's household income for purposes of
217	217	7.15computing the amount of credit to be allowed.
218	218	7.16 Subd. 8.One claimant per household.Only one taxpayer per household per year is
219	219	7.17entitled to claim a credit under this section. In the case of a married taxpayer filing a separate
220	220	7.18return, only one spouse may claim the credit under this section. The credit amount for the
221	221	7.19spouse that claims the credit must be calculated based on household income and not solely
222	222	7.20on the income of the spouse.
223	223	7.21 Subd. 9.Proof of claim.(a) Every taxpayer claiming a credit under this section shall
224	224	7.22supply to the commissioner of revenue, in support of the claim, proof of eligibility under
225	225	7.23this section, including but not limited to amount of rent paid, name and address of owner
226	226	7.24or managing agent of property rented, changes in household membership, and household
227	227	7.25income.
228	228	7.26 (b) Taxpayers with a disability shall submit proof of disability in the form and manner
229	229	7.27as the commissioner prescribes. The department may require examination and certification
230	230	7.28by the taxpayer's physician or by a physician designated by the commissioner. The cost of
231	231	7.29any examination shall be borne by the taxpayer, unless the examination proves the disability,
232	232	7.30in which case the cost of the examination shall be borne by the commissioner.
233	233	7.31 (c) A determination of disability of a taxpayer by the Social Security Administration
234	234	7.32under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of
235	235	7.33disability.
236	236	7Sec. 5.
237	237	23-00701 as introduced12/21/22 REVISOR EAP/NB 8.1 Subd. 10.No relief allowed in certain cases.No claim for a credit under this section
238	238	8.2shall be allowed if the commissioner determines that the claimant received tenancy to the
239	239	8.3homestead primarily for the purpose of receiving a credit under this section and not for bona
240	240	8.4fide residence purposes.
241	241	8.5 Subd. 11.Appropriation.The amount necessary to pay the refunds under this section
242	242	8.6is appropriated from the general fund to the commissioner.
243	243	8.7 Subd. 12.Simplified filing for individuals without an income tax liability.The
244	244	8.8commissioner of revenue must establish a simplified filing process through which a taxpayer
245	245	8.9who did not file an individual income tax return due to a lack of tax liability may file a
246	246	8.10return to claim the credit under this section. The filing process and forms may be in the
247	247	8.11form or manner determined by the commissioner, but must be designed to reduce the
248	248	8.12complexity of the filing process and the time needed to file for individuals without an income
249	249	8.13tax liability.
250	250	8.14 EFFECTIVE DATE.This section is effective for taxable years beginning after December
251	251	8.1531, 2022.
252	252	8.16 Sec. 6. Minnesota Statutes 2022, section 290A.02, is amended to read:
253	253	8.17 290A.02 PURPOSE.
254	254	8.18 The purpose of this chapter is to provide property tax relief to certain persons who own
255	255	8.19or rent their homesteads.
256	256	8.20 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
257	257	8.21and following years.
258	258	8.22 Sec. 7. Minnesota Statutes 2022, section 290A.03, subdivision 3, is amended to read:
259	259	8.23 Subd. 3.Income.(a) "Income" means the sum of the following:
260	260	8.24 (1) federal adjusted gross income as defined in the Internal Revenue Code; and
261	261	8.25 (2) the sum of the following amounts to the extent not included in clause (1):
262	262	8.26 (i) all nontaxable income;
263	263	8.27 (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
264	264	8.28paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
265	265	8.29carryover allowed under section 469(b) of the Internal Revenue Code;
266	266	8Sec. 7.
267	267	23-00701 as introduced12/21/22 REVISOR EAP/NB 9.1 (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
268	268	9.2solvent individual excluded from gross income under section 108(g) of the Internal Revenue
269	269	9.3Code;
270	270	9.4 (iv) cash public assistance and relief;
271	271	9.5 (v) any pension or annuity (including railroad retirement benefits, all payments received
272	272	9.6under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
273	273	9.7which was not exclusively funded by the claimant or spouse, or which was funded exclusively
274	274	9.8by the claimant or spouse and which funding payments were excluded from federal adjusted
275	275	9.9gross income in the years when the payments were made;
276	276	9.10 (vi) interest received from the federal or a state government or any instrumentality or
277	277	9.11political subdivision thereof;
278	278	9.12 (vii) workers' compensation;
279	279	9.13 (viii) nontaxable strike benefits;
280	280	9.14 (ix) the gross amounts of payments received in the nature of disability income or sick
281	281	9.15pay as a result of accident, sickness, or other disability, whether funded through insurance
282	282	9.16or otherwise;
283	283	9.17 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
284	284	9.181986, as amended through December 31, 1995;
285	285	9.19 (xi) contributions made by the claimant to an individual retirement account, including
286	286	9.20a qualified voluntary employee contribution; simplified employee pension plan;
287	287	9.21self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
288	288	9.22the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
289	289	9.23Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
290	290	9.24the claimant and spouse;
291	291	9.25 (xii) to the extent not included in federal adjusted gross income, distributions received
292	292	9.26by the claimant or spouse from a traditional or Roth style retirement account or plan;
293	293	9.27 (xiii) nontaxable scholarship or fellowship grants;
294	294	9.28 (xiv) alimony received to the extent not included in the recipient's income;
295	295	9.29 (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
296	296	9.30Code;
297	297	9.31 (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
298	298	9.32Code; and
299	299	9Sec. 7.
300	300	23-00701 as introduced12/21/22 REVISOR EAP/NB 10.1 (xvii) the amount deducted for certain expenses of elementary and secondary school
301	301	10.2teachers under section 62(a)(2)(D) of the Internal Revenue Code.
302	302	10.3 In the case of an individual who files an income tax return on a fiscal year basis, the
303	303	10.4term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
304	304	10.5the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
305	305	10.6by the amount of a net operating loss carryback or carryforward or a capital loss carryback
306	306	10.7or carryforward allowed for the year.
307	307	10.8 (b) "Income" does not include:
308	308	10.9 (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
309	309	10.10 (2) amounts of any pension or annuity which was exclusively funded by the claimant
310	310	10.11or spouse and which funding payments were not excluded from federal adjusted gross
311	311	10.12income in the years when the payments were made;
312	312	10.13 (3) to the extent included in federal adjusted gross income, amounts contributed by the
313	313	10.14claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
314	314	10.15the retirement base amount reduced by the amount of contributions excluded from federal
315	315	10.16adjusted gross income, but not less than zero;
316	316	10.17 (4) surplus food or other relief in kind supplied by a governmental agency;
317	317	10.18 (5) relief granted under this chapter;
318	318	10.19 (6) child support payments received under a temporary or final decree of dissolution or
319	319	10.20legal separation;
320	320	10.21 (7) restitution payments received by eligible individuals and excludable interest as
321	321	10.22defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
322	322	10.23Public Law 107-16;
323	323	10.24 (8) alimony paid; or
324	324	10.25 (9) veterans disability compensation paid under title 38 of the United States Code.
325	325	10.26 (c) The sum of the following amounts may be subtracted from income:
326	326	10.27 (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
327	327	10.28 (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
328	328	10.29 (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
329	329	10.30 (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
330	330	10Sec. 7.
331	331	23-00701 as introduced12/21/22 REVISOR EAP/NB 11.1 (5) for the claimant's fifth dependent, the exemption amount; and
332	332	11.2 (6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
333	333	11.3before December 31 of the year for which the taxes were levied or rent paid, the exemption
334	334	11.4amount.
335	335	11.5 (d) For purposes of this subdivision, the following terms have the meanings given:
336	336	11.6 (1) "exemption amount" means the exemption amount under section 290.0121,
337	337	11.7subdivision 1, paragraph (b), for the taxable year for which the income is reported;
338	338	11.8 (2) "retirement base amount" means the deductible amount for the taxable year for the
339	339	11.9claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
340	340	11.10inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
341	341	11.11to whether the claimant or spouse claimed a deduction; and
342	342	11.12 (3) "traditional or Roth style retirement account or plan" means retirement plans under
343	343	11.13sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
344	344	11.14 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
345	345	11.15and following years.
346	346	11.16Sec. 8. Minnesota Statutes 2022, section 290A.03, subdivision 6, is amended to read:
347	347	11.17 Subd. 6.Homestead."Homestead" means the dwelling occupied as the claimant's
348	348	11.18principal residence and so much of the land surrounding it, not exceeding ten acres, as is
349	349	11.19reasonably necessary for use of the dwelling as a home and any other property used for
350	350	11.20purposes of a homestead as defined in section 273.13, subdivision 22, except for agricultural
351	351	11.21land assessed as part of a homestead pursuant to section 273.13, subdivision 23, "homestead"
352	352	11.22is limited to the house and garage and immediately surrounding one acre of land. The
353	353	11.23homestead may be owned or rented and may be as a part of a multidwelling or multipurpose
354	354	11.24building and the land on which it is built. A manufactured home, as defined in section
355	355	11.25273.125, subdivision 8, or a park trailer taxed as a manufactured home under section 168.012,
356	356	11.26subdivision 9, assessed as personal property may be a dwelling for purposes of this
357	357	11.27subdivision.
358	358	11.28 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
359	359	11.29and following years.
360	360	11Sec. 8.
361	361	23-00701 as introduced12/21/22 REVISOR EAP/NB 12.1 Sec. 9. Minnesota Statutes 2022, section 290A.03, subdivision 8, is amended to read:
362	362	12.2 Subd. 8.Claimant.(a) "Claimant" means a person, other than a dependent, as defined
363	363	12.3under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3)
364	364	12.4of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a
365	365	12.5resident of this state as provided in chapter 290 during the calendar year for which the claim
366	366	12.6for relief was filed.
367	367	12.7 (b) In the case of a claim relating to rent constituting property taxes, the claimant shall
368	368	12.8have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu
369	369	12.9of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem
370	370	12.10taxes, are payable at some time during the calendar year covered by the claim.
371	371	12.11 (c) "Claimant" shall not include a resident of a nursing home, intermediate care facility,
372	372	12.12long-term residential facility, or a facility that accepts housing support payments whose
373	373	12.13rent constituting property taxes is paid pursuant to the Supplemental Security Income
374	374	12.14program under title XVI of the Social Security Act, the Minnesota supplemental aid program
375	375	12.15under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
376	376	12.16of the Social Security Act, or the housing support program under chapter 256I.
377	377	12.17 If only a portion of the rent constituting property taxes is paid by these programs, the
378	378	12.18resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant
379	379	12.19to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as
380	380	12.20defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income
381	381	12.21from the above sources other than vendor payments under the medical assistance program
382	382	12.22and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b),
383	383	12.23plus vendor payments under the medical assistance program, to determine the allowable
384	384	12.24refund pursuant to this chapter.
385	385	12.25 (d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home,
386	386	12.26intermediate care facility, long-term residential facility, or facility for which the rent was
387	387	12.27paid for the claimant by the housing support program for only a portion of the calendar year
388	388	12.28covered by the claim, the claimant may compute rent constituting property taxes by
389	389	12.29disregarding the rent constituting property taxes from the nursing home or facility and use
390	390	12.30only that amount of rent constituting property taxes or property taxes payable relating to
391	391	12.31that portion of the year when the claimant was not in the facility. The claimant's household
392	392	12.32income is the income for the entire calendar year covered by the claim.
393	393	12.33 (e) In the case of a claim for rent constituting property taxes of a part-year Minnesota
394	394	12.34resident, the income and rent reflected in this computation shall be for the period of
395	395	12Sec. 9.
396	396	23-00701 as introduced12/21/22 REVISOR EAP/NB 13.1Minnesota residency only. Any rental expenses paid which may be reflected in arriving at
397	397	13.2federal adjusted gross income cannot be utilized for this computation. When two individuals
398	398	13.3of a household are able to meet the qualifications for a claimant, they may determine among
399	399	13.4them as to who the claimant shall be. If they are unable to agree, the matter shall be referred
400	400	13.5to the commissioner of revenue whose decision shall be final. If a homestead property owner
401	401	13.6was a part-year Minnesota resident, the income reflected in the computation made pursuant
402	402	13.7to section 290A.04 shall be for the entire calendar year, including income not assignable to
403	403	13.8Minnesota.
404	404	13.9 (f) If a homestead is occupied by two or more renters, who are not married to each other,
405	405	13.10the rent shall be deemed to be paid equally by each, and separate claims shall be filed by
406	406	13.11each. The income of each shall be each renter's household income for purposes of computing
407	407	13.12the amount of credit to be allowed.
408	408	13.13 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
409	409	13.14and following years.
410	410	13.15Sec. 10. Minnesota Statutes 2022, section 290A.03, subdivision 12, is amended to read:
411	411	13.16 Subd. 12.Gross rent.(a) "Gross rent" means rent paid for the right of occupancy, at
412	412	13.17arm's length, of a site on which a homestead, exclusive of charges for any medical services
413	413	13.18furnished by the landlord as a part of the rental agreement, whether expressly set out in the
414	414	13.19rental agreement or not which is a manufactured home as defined in section 273.125,
415	415	13.20subdivision 8, including a manufactured home located in a manufactured home community
416	416	13.21owned by a cooperative organized under chapter 308A or 308B, and park trailers taxed as
417	417	13.22manufactured homes under section 168.012, subdivision 9, is located.
418	418	13.23 (b) The gross rent of a resident of a nursing home or intermediate care facility is $500
419	419	13.24per month. The gross rent of a resident of an adult foster care home is $780 per month. The
420	420	13.25commissioner shall annually adjust the amounts in this paragraph as provided in section
421	421	13.26270C.22. The statutory year is 2018.
422	422	13.27 (c) (b) If the landlord and tenant have not dealt with each other at arm's length and the
423	423	13.28commissioner determines that the gross rent charged was excessive, the commissioner may
424	424	13.29adjust the gross rent to a reasonable amount for purposes of this chapter.
425	425	13.30 (d) (c) Any amount paid by a claimant residing in property assessed pursuant to section
426	426	13.31273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be excluded from
427	427	13.32gross rent for purposes of this chapter. However, property taxes imputed to the homestead
428	428	13.33of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead
429	429	13Sec. 10.
430	430	23-00701 as introduced12/21/22 REVISOR EAP/NB 14.1treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6 shall be included within the
431	431	14.2term "property taxes payable" as defined in subdivision 13, to the extent allowed,
432	432	14.3notwithstanding the fact that ownership is not in the name of the claimant.
433	433	14.4 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
434	434	14.5and following years.
435	435	14.6 Sec. 11. Minnesota Statutes 2022, section 290A.04, subdivision 1, is amended to read:
436	436	14.7 Subdivision 1.Refund.A refund shall be allowed each claimant in the amount that
437	437	14.8property taxes payable or rent constituting property taxes exceed the percentage of the
438	438	14.9household income of the claimant specified in subdivision 2 or 2a in the year for which the
439	439	14.10taxes were levied or in the year in which the rent was paid as specified in subdivision 2 or
440	440	14.112a. If the amount of property taxes payable or rent constituting property taxes is equal to
441	441	14.12or less than the percentage of the household income of the claimant specified in subdivision
442	442	14.132 or 2a in the year for which the taxes were levied or in the year in which the rent was paid,
443	443	14.14the claimant shall not be eligible for a state refund pursuant to this section.
444	444	14.15 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
445	445	14.16and following years.
446	446	14.17Sec. 12. Minnesota Statutes 2022, section 290A.05, is amended to read:
447	447	14.18 290A.05 COMBINED HOUSEHOLD INCOME; RENTAL AGREEMENTS AND
448	448	14.19REDUCTION OF PROPERTY TAXES PAYABLE.
449	449	14.20 (a) If a person occupies a homestead with another person not related to the person as
450	450	14.21the person's spouse, excluding dependents, roomers or boarders on contract, and has property
451	451	14.22tax payable with respect to the homestead, the household income of the claimant or claimants
452	452	14.23for the purpose of computing the refund allowed by section 290A.04 shall include the total
453	453	14.24income received by the other persons residing in the homestead. For purposes of this section,
454	454	14.25"dependent" includes a parent of the claimant or spouse who lives in the claimant's homestead
455	455	14.26and does not have an ownership interest in the homestead.
456	456	14.27 (b) If a person occupies a homestead with another person or persons not related to the
457	457	14.28person as the person's spouse or as dependents, the property tax payable or rent constituting
458	458	14.29property tax shall be reduced as follows.
459	459	14.30 If and the other person or persons are residing at the homestead under a rental or lease
460	460	14.31agreement with the homeowner, the amount of property tax payable or rent constituting
461	461	14.32property tax shall be equals that portion not covered by the rental agreement.
462	462	14Sec. 12.
463	463	23-00701 as introduced12/21/22 REVISOR EAP/NB 15.1 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
464	464	15.2and property taxes payable in 2024, and following years.
465	465	15.3 Sec. 13. Minnesota Statutes 2022, section 290A.07, subdivision 2a, is amended to read:
466	466	15.4 Subd. 2a.Time of payment to renter or manufactured home homeowner.A claimant
467	467	15.5who is a renter or a homeowner who occupies a manufactured home, as defined in section
468	468	15.6273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured home under
469	469	15.7section 168.012, subdivision 9, shall receive full payment after August 1 and before August
470	470	15.815 or 60 days after receipt of the application, whichever is later.
471	471	15.9 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
472	472	15.10and following years.
473	473	15.11Sec. 14. Minnesota Statutes 2022, section 290A.08, is amended to read:
474	474	15.12 290A.08 ONE CLAIMANT PER HOUSEHOLD.
475	475	15.13 Only one claimant per household per year is entitled to relief under this chapter. Payment
476	476	15.14of the claim for relief may be made payable to the spouses as one claimant. The
477	477	15.15commissioner, upon written request, may issue separate checks, to the spouses for one-half
478	478	15.16of the relief provided the original check has not been issued or has been returned. Individuals
479	479	15.17related as spouses who were married during the year may elect to file a joint claim which
480	480	15.18shall include each spouse's income, rent constituting property taxes, and property taxes
481	481	15.19payable. Spouses who were married for the entire year and were domiciled in the same
482	482	15.20household for the entire year must file a joint claim. The maximum dollar amount allowable
483	483	15.21for a joint claim shall not exceed the amount that one person could receive.
484	484	15.22 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
485	485	15.23and following years.
486	486	15.24Sec. 15. Minnesota Statutes 2022, section 290A.09, is amended to read:
487	487	15.25 290A.09 PROOF OF CLAIM.
488	488	15.26 Every claimant shall supply to the commissioner of revenue, in support of the claim,
489	489	15.27proof of eligibility under this chapter, including but not limited to amount of rent paid or
490	490	15.28property taxes accrued, name and address of owner or managing agent of property rented,
491	491	15.29changes in homestead, household membership, household income, size and nature of property
492	492	15.30claimed as a homestead.
493	493	15Sec. 15.
494	494	23-00701 as introduced12/21/22 REVISOR EAP/NB 16.1 Persons with a disability filing claims shall submit proof of disability in the form and
495	495	16.2manner as the commissioner may prescribe. The department may require examination and
496	496	16.3certification by the claimant's physician or by a physician designated by the commissioner.
497	497	16.4The cost of any examination shall be borne by the claimant, unless the examination proves
498	498	16.5the disability, in which case the cost of the examination shall be borne by the commissioner.
499	499	16.6 A determination of disability of a claimant by the Social Security Administration under
500	500	16.7Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.
501	501	16.8 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
502	502	16.9and following years.
503	503	16.10Sec. 16. Minnesota Statutes 2022, section 290A.091, is amended to read:
504	504	16.11 290A.091 CLAIMS OF TENANTS IN LEASEHOLD COOPERATIVES.
505	505	16.12 The cooperative manager of a leasehold cooperative shall furnish a statement to each
506	506	16.13tenant by March 31 of the year in which the property tax is payable showing each unit's
507	507	16.14share of the gross property tax and each unit's share of any property tax credits. Each tenant
508	508	16.15may apply for a property tax refund under this chapter as a homeowner based on each
509	509	16.16tenant's share of property taxes. The tenant may not include any rent constituting property
510	510	16.17taxes paid on that unit claim the renter's credit under section 290.0693. For the purposes of
511	511	16.18this section, a leasehold cooperative is formed on the day that leasehold cooperative status
512	512	16.19is granted by the appropriate county official.
513	513	16.20 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
514	514	16.21and following years.
515	515	16.22Sec. 17. Minnesota Statutes 2022, section 290A.13, is amended to read:
516	516	16.23 290A.13 NO RELIEF ALLOWED IN CERTAIN CASES.
517	517	16.24 No claim for relief under this chapter shall be allowed if the commissioner determines
518	518	16.25that the claimant received title or tenancy to the homestead primarily for the purpose of
519	519	16.26receiving benefits under this chapter and not for bona fide residence purposes.
520	520	16.27 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
521	521	16.28and following years.
522	522	16Sec. 17.
523	523	23-00701 as introduced12/21/22 REVISOR EAP/NB 17.1 Sec. 18. Minnesota Statutes 2022, section 290A.19, is amended to read:
524	524	17.2 290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
525	525	17.3 (a) The park owner or managing agent of any of a property for which rent is paid for
526	526	17.4occupancy as a homestead must furnish a certificate of rent paid to a person who is a renter
527	527	17.5on December 31, in the form prescribed by the commissioner. If the renter moves before
528	528	17.6December 31, the park owner or managing agent may give the certificate to the renter at
529	529	17.7the time of moving, or mail the certificate to the forwarding address if an address has been
530	530	17.8provided by the renter. The certificate must be made available to the renter before February
531	531	17.91 of the year following the year in which the rent was paid. The park owner or managing
532	532	17.10agent must retain a duplicate of each certificate or an equivalent record showing the same
533	533	17.11information for a period of three years. The duplicate or other record must be made available
534	534	17.12to the commissioner upon request.
535	535	17.13 (b) The commissioner may require the park owner or managing agent, through a simple
536	536	17.14process, to furnish to the commissioner on or before March 1 a copy of each certificate of
537	537	17.15rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe
538	538	17.16the content, format, and manner of the form pursuant to section 270C.30. Prior to
539	539	17.17implementation, the commissioner, after consulting with representatives of park owners or
540	540	17.18managing agents, shall develop an implementation and administration plan for the
541	541	17.19requirements of this paragraph that attempts to minimize financial burdens, administration
542	542	17.20and compliance costs, and takes into consideration existing systems of park owners and
543	543	17.21managing agents.
544	544	17.22 (c) For the purposes of this section, "owner" includes "park owner" means a park owner
545	545	17.23as defined under section 327C.015, subdivision 9, and "property" includes a lot as defined
546	546	17.24under section 327C.015, subdivision 6.
547	547	17.25 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
548	548	17.26and following years.
549	549	17.27Sec. 19. Minnesota Statutes 2022, section 290A.25, is amended to read:
550	550	17.28 290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.
551	551	17.29 Annually, the commissioner of revenue shall furnish a list to the county assessor
552	552	17.30containing the names and Social Security numbers of persons who have applied for both
553	553	17.31homestead classification under section 273.13 and a property tax refund as a renter under
554	554	17.32this chapter renter's credit under section 290.0693.
555	555	17Sec. 19.
556	556	23-00701 as introduced12/21/22 REVISOR EAP/NB 18.1 Within 90 days of the notification, the county assessor shall investigate to determine if
557	557	18.2the homestead classification was improperly claimed. If the property owner does not qualify,
558	558	18.3the county assessor shall notify the county auditor who will determine the amount of
559	559	18.4homestead benefits that has been improperly allowed. For the purpose of this section,
560	560	18.5"homestead benefits" has the meaning given in section 273.124, subdivision 13b. The county
561	561	18.6auditor shall send a notice to persons who owned the affected property at the time the
562	562	18.7homestead application related to the improper homestead was filed, demanding
563	563	18.8reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead
564	564	18.9benefits. The person notified may appeal the county's determination with the Minnesota
565	565	18.10Tax Court within 60 days of the date of the notice from the county as provided in section
566	566	18.11273.124, subdivision 13b.
567	567	18.12 If the amount of homestead benefits and penalty is not paid within 60 days, and if no
568	568	18.13appeal has been filed, the county auditor shall certify the amount of taxes and penalty to
569	569	18.14the county treasurer. The county treasurer will add interest to the unpaid homestead benefits
570	570	18.15and penalty amounts at the rate provided for delinquent personal property taxes for the
571	571	18.16period beginning 60 days after demand for payment was made until payment. If the person
572	572	18.17notified is the current owner of the property, the treasurer may add the total amount of
573	573	18.18benefits, penalty, interest, and costs to the real estate taxes otherwise payable on the property
574	574	18.19in the following year. If the person notified is not the current owner of the property, the
575	575	18.20treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A,
576	576	18.21or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce
577	577	18.22payment of the benefits, penalty, interest, and costs, as if those amounts were delinquent
578	578	18.23tax obligations of the person who owned the property at the time the application related to
579	579	18.24the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
580	580	18.25personal liability for the benefits, penalty, interest, and costs, and instead extend those
581	581	18.26amounts on the tax lists against the property for taxes payable in the following year to the
582	582	18.27extent that the current owner agrees in writing.
583	583	18.28 Any amount of homestead benefits recovered by the county from the property owner
584	584	18.29shall be distributed to the county, city or town, and school district where the property is
585	585	18.30located in the same proportion that each taxing district's levy was to the total of the three
586	586	18.31taxing districts' levy for the current year. Any amount recovered attributable to taconite
587	587	18.32homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the
588	588	18.33taconite property tax relief account. Any amount recovered that is attributable to supplemental
589	589	18.34homestead credit is to be transmitted to the commissioner of revenue for deposit in the
590	590	18Sec. 19.
591	591	23-00701 as introduced12/21/22 REVISOR EAP/NB 19.1general fund of the state treasury. The total amount of penalty collected must be deposited
592	592	19.2in the county general fund.
593	593	19.3 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
594	594	19.4and following years.
595	595	19.5 Sec. 20. Minnesota Statutes 2022, section 462A.05, subdivision 24, is amended to read:
596	596	19.6 Subd. 24.Housing for elderly, persons with physical or developmental disabilities,
597	597	19.7and single parent families.(a) It may engage in housing programs for low- and
598	598	19.8moderate-income elderly, persons with physical or developmental disabilities, or single
599	599	19.9parent families in the case of home sharing programs, as defined by the agency, to provide
600	600	19.10grants or loans, with or without interest, for:
601	601	19.11 (1) accessibility improvements to residences occupied by elderly persons;
602	602	19.12 (2) housing sponsors, as defined by the agency, of home sharing programs to match
603	603	19.13existing homeowners with prospective tenants who will contribute either rent or services
604	604	19.14to the homeowner, where either the homeowner or the prospective tenant is elderly, a person
605	605	19.15with physical or developmental disabilities, or the head of a single parent family;
606	606	19.16 (3) the construction of or conversion of existing buildings into structures for occupancy
607	607	19.17by the elderly that contain from three to 12 private sleeping rooms with shared cooking
608	608	19.18facilities and common space; and
609	609	19.19 (4) housing sponsors, as defined by the agency, to demonstrate the potential for home
610	610	19.20equity conversion in Minnesota for the elderly, in both rural and urban areas, and to determine
611	611	19.21the need in those equity conversions for consumer safeguards.
612	612	19.22 (b) In making the grants or loans, the agency shall determine the terms and conditions
613	613	19.23of repayment and the appropriate security, if any, should repayment be required. The agency
614	614	19.24may provide technical assistance to sponsors of home sharing programs or may contract or
615	615	19.25delegate the provision of the technical assistance in accordance with section 462A.07,
616	616	19.26subdivision 12.
617	617	19.27 (c) Housing sponsors who receive funding through these programs shall provide
618	618	19.28homeowners and tenants participating in a home sharing program with information regarding
619	619	19.29their rights and obligations as they relate to federal and state tax law including, but not
620	620	19.30limited to, taxable rental income, homestead classification under chapter 273, the renter's
621	621	19.31credit under section 290.0693, and the property tax refund act under chapter 290A.
622	622	19Sec. 20.
623	623	23-00701 as introduced12/21/22 REVISOR EAP/NB 20.1 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
624	624	20.2and following years.
625	625	20.3 Sec. 21. REPEALER.
626	626	20.4 Minnesota Statutes 2022, sections 290A.03, subdivisions 9 and 11; 290A.04, subdivisions
627	627	20.52a and 5; and 290A.23, subdivision 1, are repealed.
628	628	20.6 EFFECTIVE DATE.This section is effective for claims based on rent paid in 2023
629	629	20.7and following years.
630	630	20Sec. 21.
631	631	23-00701 as introduced12/21/22 REVISOR EAP/NB 290A.03 DEFINITIONS.
632	632	Subd. 9.Disabled claimant."Disabled claimant" means any claimant who has a disability.
633	633	Subd. 11.Rent constituting property taxes."Rent constituting property taxes" means 17
634	634	percent of the gross rent actually paid in cash, or its equivalent, or the portion of rent paid in lieu
635	635	of property taxes, in any calendar year by a claimant for the right of occupancy of the claimant's
636	636	Minnesota homestead in the calendar year, and which rent constitutes the basis, in the succeeding
637	637	calendar year of a claim for relief under this chapter by the claimant.
638	638	290A.04 REFUND ALLOWABLE.
639	639	Subd. 2a.Renters.A claimant whose rent constituting property taxes exceeds the percentage
640	640	of the household income stated below must pay an amount equal to the percent of income shown
641	641	for the appropriate household income level along with the percent to be paid by the claimant of the
642	642	remaining amount of rent constituting property taxes. The state refund equals the amount of rent
643	643	constituting property taxes that remain, up to the maximum state refund amount shown below.
644	644	Maximum
645	645	State
646	646	Refund
647	647	Percent Paid by
648	648	ClaimantPercent of IncomeHousehold Income
649	649	2,150$5 percent1.0 percent$0 to 5,269
650	650	2,150$10 percent1.0 percent5,270 to 6,999
651	651	2,090$10 percent1.1 percent7,000 to 8,749
652	652	2,040$10 percent1.2 percent8,750 to 12,269
653	653	1,980$15 percent1.3 percent12,270 to 15,779
654	654	1,930$15 percent1.4 percent15,780 to 17,519
655	655	1,880$20 percent1.4 percent17,520 to 19,259
656	656	1,820$20 percent1.5 percent19,260 to 22,779
657	657	1,770$20 percent1.6 percent22,780 to 24,529
658	658	1,770$25 percent1.7 percent24,530 to 26,279
659	659	1,770$25 percent1.8 percent26,280 to 29,789
660	660	1,770$30 percent1.9 percent29,790 to 31,529
661	661	1,770$30 percent2.0 percent31,530 to 36,789
662	662	1,770$35 percent2.0 percent36,790 to 42,039
663	663	1,770$40 percent2.0 percent42,040 to 49,059
664	664	1,610$45 percent2.0 percent49,060 to 50,799
665	665	1,450$45 percent2.0 percent50,800 to 52,559
666	666	1,230$45 percent2.0 percent52,560 to 54,319
667	667	1,070$50 percent2.0 percent54,320 to 56,059
668	668	970$50 percent2.0 percent56,060 to 57,819
669	669	540$50 percent2.0 percent57,820 to 59,569
670	670	210$50 percent2.0 percent59,570 to 61,319
671	671	The payment made to a claimant is the amount of the state refund calculated under this
672	672	subdivision. No payment is allowed if the claimant's household income is $61,320 or more.
673	673	Subd. 5.Combined renter and homeowner refund.In the case of a claimant who is entitled
674	674	to a refund in a calendar year for claims based both on rent constituting property taxes and property
675	675	taxes payable, the refund allowable equals the sum of the refunds allowable.
676	676	1R
677	677	APPENDIX
678	678	Repealed Minnesota Statutes: 23-00701 290A.23 APPROPRIATION.
679	679	Subdivision 1.Renters credit.There is appropriated from the general fund in the state treasury
680	680	to the commissioner of revenue the amount necessary to make the payments required under section
681	681	290A.04, subdivision 2a.
682	682	2R
683	683	APPENDIX
684	684	Repealed Minnesota Statutes: 23-00701