| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; property; modifying classification of community land trust |
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| 3 | 3 | | 1.3 property; amending Minnesota Statutes 2022, sections 273.11, subdivision 12; |
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| 4 | 4 | | 1.4 273.13, subdivision 25. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2022, section 273.11, subdivision 12, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 12.Community land trusts.(a) A community land trust, as defined under chapter |
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| 8 | 8 | | 1.8462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which |
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| 9 | 9 | | 1.9qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02, |
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| 10 | 10 | | 1.10subdivision 6, which has received funding from the Minnesota housing finance agency for |
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| 11 | 11 | | 1.11purposes of the community land trust program. The Minnesota Housing Finance Agency |
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| 12 | 12 | | 1.12shall set the criteria for community land trusts. |
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| 13 | 13 | | 1.13 (b) Before the community land trust can rent or sell a unit to an applicant, the community |
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| 14 | 14 | | 1.14land trust shall verify to the satisfaction of the administering agency or the city that the |
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| 15 | 15 | | 1.15family income of each person or family applying for a unit in the community land trust |
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| 16 | 16 | | 1.16building is within the income criteria provided in section 462A.30, subdivision 9. The |
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| 17 | 17 | | 1.17administering agency or the city shall verify to the satisfaction of the county assessor that |
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| 18 | 18 | | 1.18the occupant meets the income criteria under section 462A.30, subdivision 9. The property |
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| 19 | 19 | | 1.19tax benefits under paragraph (c) shall be granted only to property owned or rented by persons |
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| 20 | 20 | | 1.20or families within the qualifying income limits. The family income criteria and verification |
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| 21 | 21 | | 1.21is only necessary at the time of initial occupancy in the property. |
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| 22 | 22 | | 1.22 (c) A unit which is owned by the occupant and used as a homestead by the occupant |
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| 23 | 23 | | 1.23qualifies for homestead treatment as class 1a under section 273.13, subdivision 22, or class |
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| 24 | 24 | | 1Section 1. |
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| 25 | 25 | | 23-00153 as introduced10/25/22 REVISOR MS/LN |
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| 26 | 26 | | SENATE |
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| 27 | 27 | | STATE OF MINNESOTA |
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| 28 | 28 | | S.F. No. 696NINETY-THIRD SESSION |
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| 29 | 29 | | (SENATE AUTHORS: DIBBLE, Nelson and Rest) |
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| 30 | 30 | | OFFICIAL STATUSD-PGDATE |
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| 31 | 31 | | Introduction and first reading01/25/2023 |
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| 32 | 32 | | Referred to Taxes 2.14d if the requirements of section 273.13, subdivision 25, paragraph (e), clause (2), are met. |
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| 33 | 33 | | 2.2A unit which is rented by the occupant and used as a homestead by the occupant shall be |
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| 34 | 34 | | 2.3class 4a or 4b property, under section 273.13, subdivision 25, whichever is applicable. Any |
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| 35 | 35 | | 2.4remaining portion of the property not used for residential purposes shall be classified by |
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| 36 | 36 | | 2.5the assessor in the appropriate class based upon the use of that portion of the property owned |
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| 37 | 37 | | 2.6by the community land trust. The land upon which the building is located shall be assessed |
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| 38 | 38 | | 2.7at the same classification rate as the units within the building, provided that if the building |
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| 39 | 39 | | 2.8contains some units assessed as class 1a or class 4d and some units assessed as class 4a or |
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| 40 | 40 | | 2.94b, the market value of the land will be assessed in the same proportions as the value of the |
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| 41 | 41 | | 2.10building. |
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| 42 | 42 | | 2.11 EFFECTIVE DATE.This section is effective beginning with assessment year 2024 |
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| 43 | 43 | | 2.12and thereafter. |
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| 44 | 44 | | 2.13 Sec. 2. Minnesota Statutes 2022, section 273.13, subdivision 25, is amended to read: |
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| 45 | 45 | | 2.14 Subd. 25.Class 4.(a) Class 4a is residential real estate containing four or more units |
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| 46 | 46 | | 2.15and used or held for use by the owner or by the tenants or lessees of the owner as a residence |
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| 47 | 47 | | 2.16for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a |
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| 48 | 48 | | 2.17also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt |
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| 49 | 49 | | 2.18under section 272.02, and contiguous property used for hospital purposes, without regard |
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| 50 | 50 | | 2.19to whether the property has been platted or subdivided. The market value of class 4a property |
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| 51 | 51 | | 2.20has a classification rate of 1.25 percent. |
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| 52 | 52 | | 2.21 (b) Class 4b includes: |
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| 53 | 53 | | 2.22 (1) residential real estate containing less than four units, including property rented as a |
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| 54 | 54 | | 2.23short-term rental property for more than 14 days in the preceding year, that does not qualify |
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| 55 | 55 | | 2.24as class 4bb, other than seasonal residential recreational property; |
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| 56 | 56 | | 2.25 (2) manufactured homes not classified under any other provision; |
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| 57 | 57 | | 2.26 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm |
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| 58 | 58 | | 2.27classified under subdivision 23, paragraph (b) containing two or three units; and |
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| 59 | 59 | | 2.28 (4) unimproved property that is classified residential as determined under subdivision |
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| 60 | 60 | | 2.2933. |
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| 61 | 61 | | 2.30 For the purposes of this paragraph, "short-term rental property" means nonhomestead |
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| 62 | 62 | | 2.31residential real estate rented for periods of less than 30 consecutive days. |
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| 63 | 63 | | 2.32 The market value of class 4b property has a classification rate of 1.25 percent. |
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| 64 | 64 | | 2Sec. 2. |
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| 65 | 65 | | 23-00153 as introduced10/25/22 REVISOR MS/LN 3.1 (c) Class 4bb includes: |
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| 66 | 66 | | 3.2 (1) nonhomestead residential real estate containing one unit, other than seasonal |
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| 67 | 67 | | 3.3residential recreational property; |
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| 68 | 68 | | 3.4 (2) a single family dwelling, garage, and surrounding one acre of property on a |
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| 69 | 69 | | 3.5nonhomestead farm classified under subdivision 23, paragraph (b); and |
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| 70 | 70 | | 3.6 (3) a condominium-type storage unit having an individual property identification number |
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| 71 | 71 | | 3.7that is not used for a commercial purpose. |
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| 72 | 72 | | 3.8 Class 4bb property has the same classification rates as class 1a property under subdivision |
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| 73 | 73 | | 3.922. |
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| 74 | 74 | | 3.10 Property that has been classified as seasonal residential recreational property at any time |
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| 75 | 75 | | 3.11during which it has been owned by the current owner or spouse of the current owner does |
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| 76 | 76 | | 3.12not qualify for class 4bb. |
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| 77 | 77 | | 3.13 (d) Class 4c property includes: |
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| 78 | 78 | | 3.14 (1) except as provided in subdivision 22, paragraph (c), real and personal property |
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| 79 | 79 | | 3.15devoted to commercial temporary and seasonal residential occupancy for recreation purposes, |
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| 80 | 80 | | 3.16for not more than 250 days in the year preceding the year of assessment. For purposes of |
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| 81 | 81 | | 3.17this clause, property is devoted to a commercial purpose on a specific day if any portion of |
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| 82 | 82 | | 3.18the property is used for residential occupancy, and a fee is charged for residential occupancy. |
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| 83 | 83 | | 3.19Class 4c property under this clause must contain three or more rental units. A "rental unit" |
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| 84 | 84 | | 3.20is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site |
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| 85 | 85 | | 3.21equipped with water and electrical hookups for recreational vehicles. A camping pad offered |
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| 86 | 86 | | 3.22for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c |
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| 87 | 87 | | 3.23under this clause regardless of the term of the rental agreement, as long as the use of the |
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| 88 | 88 | | 3.24camping pad does not exceed 250 days. In order for a property to be classified under this |
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| 89 | 89 | | 3.25clause, either (i) the business located on the property must provide recreational activities, |
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| 90 | 90 | | 3.26at least 40 percent of the annual gross lodging receipts related to the property must be from |
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| 91 | 91 | | 3.27business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid |
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| 92 | 92 | | 3.28bookings by lodging guests during the year must be for periods of at least two consecutive |
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| 93 | 93 | | 3.29nights; or (B) at least 20 percent of the annual gross receipts must be from charges for |
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| 94 | 94 | | 3.30providing recreational activities, or (ii) the business must contain 20 or fewer rental units, |
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| 95 | 95 | | 3.31and must be located in a township or a city with a population of 2,500 or less located outside |
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| 96 | 96 | | 3.32the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion |
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| 97 | 97 | | 3.33of a state trail administered by the Department of Natural Resources. For purposes of item |
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| 98 | 98 | | 3.34(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c |
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| 99 | 99 | | 3Sec. 2. |
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| 100 | 100 | | 23-00153 as introduced10/25/22 REVISOR MS/LN 4.1property also includes commercial use real property used exclusively for recreational |
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| 101 | 101 | | 4.2purposes in conjunction with other class 4c property classified under this clause and devoted |
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| 102 | 102 | | 4.3to temporary and seasonal residential occupancy for recreational purposes, up to a total of |
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| 103 | 103 | | 4.4two acres, provided the property is not devoted to commercial recreational use for more |
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| 104 | 104 | | 4.5than 250 days in the year preceding the year of assessment and is located within two miles |
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| 105 | 105 | | 4.6of the class 4c property with which it is used. In order for a property to qualify for |
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| 106 | 106 | | 4.7classification under this clause, the owner must submit a declaration to the assessor |
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| 107 | 107 | | 4.8designating the cabins or units occupied for 250 days or less in the year preceding the year |
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| 108 | 108 | | 4.9of assessment by January 15 of the assessment year. Those cabins or units and a proportionate |
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| 109 | 109 | | 4.10share of the land on which they are located must be designated class 4c under this clause |
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| 110 | 110 | | 4.11as otherwise provided. The remainder of the cabins or units and a proportionate share of |
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| 111 | 111 | | 4.12the land on which they are located will be designated as class 3a. The owner of property |
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| 112 | 112 | | 4.13desiring designation as class 4c property under this clause must provide guest registers or |
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| 113 | 113 | | 4.14other records demonstrating that the units for which class 4c designation is sought were not |
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| 114 | 114 | | 4.15occupied for more than 250 days in the year preceding the assessment if so requested. The |
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| 115 | 115 | | 4.16portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center |
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| 116 | 116 | | 4.17or meeting room, and (5) other nonresidential facility operated on a commercial basis not |
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| 117 | 117 | | 4.18directly related to temporary and seasonal residential occupancy for recreation purposes |
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| 118 | 118 | | 4.19does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" |
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| 119 | 119 | | 4.20means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country |
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| 120 | 120 | | 4.21ski equipment; providing marina services, launch services, or guide services; or selling bait |
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| 121 | 121 | | 4.22and fishing tackle; |
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| 122 | 122 | | 4.23 (2) qualified property used as a golf course if: |
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| 123 | 123 | | 4.24 (i) it is open to the public on a daily fee basis. It may charge membership fees or dues, |
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| 124 | 124 | | 4.25but a membership fee may not be required in order to use the property for golfing, and its |
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| 125 | 125 | | 4.26green fees for golfing must be comparable to green fees typically charged by municipal |
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| 126 | 126 | | 4.27courses; and |
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| 127 | 127 | | 4.28 (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). |
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| 128 | 128 | | 4.29 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with |
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| 129 | 129 | | 4.30the golf course is classified as class 3a property; |
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| 130 | 130 | | 4.31 (3) real property up to a maximum of three acres of land owned and used by a nonprofit |
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| 131 | 131 | | 4.32community service oriented organization and not used for residential purposes on either a |
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| 132 | 132 | | 4.33temporary or permanent basis, provided that: |
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| 133 | 133 | | 4Sec. 2. |
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| 134 | 134 | | 23-00153 as introduced10/25/22 REVISOR MS/LN 5.1 (i) the property is not used for a revenue-producing activity for more than six days in |
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| 135 | 135 | | 5.2the calendar year preceding the year of assessment; or |
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| 136 | 136 | | 5.3 (ii) the organization makes annual charitable contributions and donations at least equal |
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| 137 | 137 | | 5.4to the property's previous year's property taxes and the property is allowed to be used for |
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| 138 | 138 | | 5.5public and community meetings or events for no charge, as appropriate to the size of the |
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| 139 | 139 | | 5.6facility. |
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| 140 | 140 | | 5.7 For purposes of this clause: |
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| 141 | 141 | | 5.8 (A) "charitable contributions and donations" has the same meaning as lawful gambling |
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| 142 | 142 | | 5.9purposes under section 349.12, subdivision 25, excluding those purposes relating to the |
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| 143 | 143 | | 5.10payment of taxes, assessments, fees, auditing costs, and utility payments; |
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| 144 | 144 | | 5.11 (B) "property taxes" excludes the state general tax; |
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| 145 | 145 | | 5.12 (C) a "nonprofit community service oriented organization" means any corporation, |
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| 146 | 146 | | 5.13society, association, foundation, or institution organized and operated exclusively for |
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| 147 | 147 | | 5.14charitable, religious, fraternal, civic, or educational purposes, and which is exempt from |
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| 148 | 148 | | 5.15federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal |
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| 149 | 149 | | 5.16Revenue Code; and |
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| 150 | 150 | | 5.17 (D) "revenue-producing activities" shall include but not be limited to property or that |
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| 151 | 151 | | 5.18portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt |
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| 152 | 152 | | 5.19liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling |
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| 153 | 153 | | 5.20alley, a retail store, gambling conducted by organizations licensed under chapter 349, an |
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| 154 | 154 | | 5.21insurance business, or office or other space leased or rented to a lessee who conducts a |
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| 155 | 155 | | 5.22for-profit enterprise on the premises. |
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| 156 | 156 | | 5.23 Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The |
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| 157 | 157 | | 5.24use of the property for social events open exclusively to members and their guests for periods |
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| 158 | 158 | | 5.25of less than 24 hours, when an admission is not charged nor any revenues are received by |
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| 159 | 159 | | 5.26the organization shall not be considered a revenue-producing activity. |
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| 160 | 160 | | 5.27 The organization shall maintain records of its charitable contributions and donations |
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| 161 | 161 | | 5.28and of public meetings and events held on the property and make them available upon |
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| 162 | 162 | | 5.29request any time to the assessor to ensure eligibility. An organization meeting the requirement |
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| 163 | 163 | | 5.30under item (ii) must file an application by May 1 with the assessor for eligibility for the |
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| 164 | 164 | | 5.31current year's assessment. The commissioner shall prescribe a uniform application form |
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| 165 | 165 | | 5.32and instructions; |
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| 166 | 166 | | 5Sec. 2. |
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| 167 | 167 | | 23-00153 as introduced10/25/22 REVISOR MS/LN 6.1 (4) postsecondary student housing of not more than one acre of land that is owned by a |
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| 168 | 168 | | 6.2nonprofit corporation organized under chapter 317A and is used exclusively by a student |
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| 169 | 169 | | 6.3cooperative, sorority, or fraternity for on-campus housing or housing located within two |
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| 170 | 170 | | 6.4miles of the border of a college campus; |
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| 171 | 171 | | 6.5 (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding |
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| 172 | 172 | | 6.6manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as |
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| 173 | 173 | | 6.7defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision |
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| 174 | 174 | | 6.83a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision |
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| 175 | 175 | | 6.92; |
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| 176 | 176 | | 6.10 (6) real property that is actively and exclusively devoted to indoor fitness, health, social, |
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| 177 | 177 | | 6.11recreational, and related uses, is owned and operated by a not-for-profit corporation, and is |
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| 178 | 178 | | 6.12located within the metropolitan area as defined in section 473.121, subdivision 2; |
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| 179 | 179 | | 6.13 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under |
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| 180 | 180 | | 6.14section 272.01, subdivision 2, and the land on which it is located, provided that: |
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| 181 | 181 | | 6.15 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan |
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| 182 | 182 | | 6.16Airports Commission, or group thereof; and |
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| 183 | 183 | | 6.17 (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased |
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| 184 | 184 | | 6.18premise, prohibits commercial activity performed at the hangar. |
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| 185 | 185 | | 6.19 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be |
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| 186 | 186 | | 6.20filed by the new owner with the assessor of the county where the property is located within |
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| 187 | 187 | | 6.2160 days of the sale; |
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| 188 | 188 | | 6.22 (8) a privately owned noncommercial aircraft storage hangar not exempt under section |
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| 189 | 189 | | 6.23272.01, subdivision 2, and the land on which it is located, provided that: |
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| 190 | 190 | | 6.24 (i) the land abuts a public airport; and |
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| 191 | 191 | | 6.25 (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement |
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| 192 | 192 | | 6.26restricting the use of the premises, prohibiting commercial use or activity performed at the |
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| 193 | 193 | | 6.27hangar; and |
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| 194 | 194 | | 6.28 (9) residential real estate, a portion of which is used by the owner for homestead purposes, |
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| 195 | 195 | | 6.29and that is also a place of lodging, if all of the following criteria are met: |
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| 196 | 196 | | 6.30 (i) rooms are provided for rent to transient guests that generally stay for periods of 14 |
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| 197 | 197 | | 6.31or fewer days; |
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| 198 | 198 | | 6Sec. 2. |
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| 199 | 199 | | 23-00153 as introduced10/25/22 REVISOR MS/LN 7.1 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in |
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| 200 | 200 | | 7.2the basic room rate; |
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| 201 | 201 | | 7.3 (iii) meals are not provided to the general public except for special events on fewer than |
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| 202 | 202 | | 7.4seven days in the calendar year preceding the year of the assessment; and |
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| 203 | 203 | | 7.5 (iv) the owner is the operator of the property. |
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| 204 | 204 | | 7.6 The market value subject to the 4c classification under this clause is limited to five rental |
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| 205 | 205 | | 7.7units. Any rental units on the property in excess of five, must be valued and assessed as |
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| 206 | 206 | | 7.8class 3a. The portion of the property used for purposes of a homestead by the owner must |
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| 207 | 207 | | 7.9be classified as class 1a property under subdivision 22; |
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| 208 | 208 | | 7.10 (10) real property up to a maximum of three acres and operated as a restaurant as defined |
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| 209 | 209 | | 7.11under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under |
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| 210 | 210 | | 7.12section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to |
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| 211 | 211 | | 7.13commercial purposes for not more than 250 consecutive days, or receives at least 60 percent |
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| 212 | 212 | | 7.14of its annual gross receipts from business conducted during four consecutive months. Gross |
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| 213 | 213 | | 7.15receipts from the sale of alcoholic beverages must be included in determining the property's |
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| 214 | 214 | | 7.16qualification under item (ii). The property's primary business must be as a restaurant and |
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| 215 | 215 | | 7.17not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. |
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| 216 | 216 | | 7.18Owners of real property desiring 4c classification under this clause must submit an annual |
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| 217 | 217 | | 7.19declaration to the assessor by February 1 of the current assessment year, based on the |
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| 218 | 218 | | 7.20property's relevant information for the preceding assessment year; |
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| 219 | 219 | | 7.21 (11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as |
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| 220 | 220 | | 7.22a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public |
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| 221 | 221 | | 7.23and devoted to recreational use for marina services. The marina owner must annually provide |
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| 222 | 222 | | 7.24evidence to the assessor that it provides services, including lake or river access to the public |
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| 223 | 223 | | 7.25by means of an access ramp or other facility that is either located on the property of the |
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| 224 | 224 | | 7.26marina or at a publicly owned site that abuts the property of the marina. No more than 800 |
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| 225 | 225 | | 7.27feet of lakeshore may be included in this classification. Buildings used in conjunction with |
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| 226 | 226 | | 7.28a marina for marina services, including but not limited to buildings used to provide food |
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| 227 | 227 | | 7.29and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified |
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| 228 | 228 | | 7.30as class 3a property; and |
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| 229 | 229 | | 7.31 (12) real and personal property devoted to noncommercial temporary and seasonal |
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| 230 | 230 | | 7.32residential occupancy for recreation purposes. |
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| 231 | 231 | | 7.33 Class 4c property has a classification rate of 1.5 percent of market value, except that (i) |
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| 232 | 232 | | 7.34each parcel of noncommercial seasonal residential recreational property under clause (12) |
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| 233 | 233 | | 7Sec. 2. |
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| 234 | 234 | | 23-00153 as introduced10/25/22 REVISOR MS/LN 8.1has the same classification rates as class 4bb property, (ii) manufactured home parks assessed |
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| 235 | 235 | | 8.2under clause (5), item (i), have the same classification rate as class 4b property, the market |
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| 236 | 236 | | 8.3value of manufactured home parks assessed under clause (5), item (ii), have a classification |
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| 237 | 237 | | 8.4rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by |
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| 238 | 238 | | 8.5shareholders in the cooperative corporation or association and a classification rate of one |
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| 239 | 239 | | 8.6percent if 50 percent or less of the lots are so occupied, and class I manufactured home |
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| 240 | 240 | | 8.7parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent, |
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| 241 | 241 | | 8.8(iii) commercial-use seasonal residential recreational property and marina recreational land |
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| 242 | 242 | | 8.9as described in clause (11), has a classification rate of one percent for the first $500,000 of |
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| 243 | 243 | | 8.10market value, and 1.25 percent for the remaining market value, (iv) the market value of |
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| 244 | 244 | | 8.11property described in clause (4) has a classification rate of one percent, (v) the market value |
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| 245 | 245 | | 8.12of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, |
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| 246 | 246 | | 8.13(vi) that portion of the market value of property in clause (9) qualifying for class 4c property |
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| 247 | 247 | | 8.14has a classification rate of 1.25 percent, and (vii) property qualifying for classification under |
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| 248 | 248 | | 8.15clause (3) that is owned or operated by a congressionally chartered veterans organization |
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| 249 | 249 | | 8.16has a classification rate of one percent. The commissioner of veterans affairs must provide |
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| 250 | 250 | | 8.17a list of congressionally chartered veterans organizations to the commissioner of revenue |
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| 251 | 251 | | 8.18by June 30, 2017, and by January 1, 2018, and each year thereafter. |
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| 252 | 252 | | 8.19 (e) Class 4d property is includes: |
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| 253 | 253 | | 8.20 (1) qualifying low-income rental housing certified to the assessor by the Housing Finance |
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| 254 | 254 | | 8.21Agency under section 273.128, subdivision 3. If only a portion of the units in the building |
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| 255 | 255 | | 8.22qualify as low-income rental housing units as certified under section 273.128, subdivision |
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| 256 | 256 | | 8.233, only the proportion of qualifying units to the total number of units in the building qualify |
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| 257 | 257 | | 8.24for class 4d(1). The remaining portion of the building shall be classified by the assessor |
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| 258 | 258 | | 8.25based upon its use. Class 4d(1) also includes the same proportion of land as the qualifying |
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| 259 | 259 | | 8.26low-income rental housing units are to the total units in the building. For all properties |
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| 260 | 260 | | 8.27qualifying as class 4d(1), the market value determined by the assessor must be based on the |
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| 261 | 261 | | 8.28normal approach to value using normal unrestricted rents.; and |
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| 262 | 262 | | 8.29 (2) a unit that is owned by the occupant and used as a homestead by the occupant, and |
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| 263 | 263 | | 8.30otherwise meets all the requirements for community land trust property under section 273.11, |
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| 264 | 264 | | 8.31subdivision 12, provided that by December 15 of each assessment year, the community land |
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| 265 | 265 | | 8.32trust certifies to the assessor that (i) the community land trust owns the real property on |
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| 266 | 266 | | 8.33which the unit is located, and (ii) the unit owner is a member in good standing of the |
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| 267 | 267 | | 8.34community land trust. For all units qualifying as class 4d(2), the market value determined |
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| 268 | 268 | | 8Sec. 2. |
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| 269 | 269 | | 23-00153 as introduced10/25/22 REVISOR MS/LN 9.1by the assessor must be based on the normal approach to value without regard to any |
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| 270 | 270 | | 9.2restrictions that apply because the unit is a community land trust property. |
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| 271 | 271 | | 9.3 (f) The first tier of market value of class 4d(1) property has a classification rate of 0.75 |
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| 272 | 272 | | 9.4percent. The remaining value of class 4d(1) property has a classification rate of 0.25 percent. |
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| 273 | 273 | | 9.5For the purposes of this paragraph, the "first tier of market value of class 4d(1) property" |
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| 274 | 274 | | 9.6means the market value of each housing unit up to the first tier limit. For the purposes of |
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| 275 | 275 | | 9.7this paragraph, all class 4d property value must be assigned to individual housing units. The |
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| 276 | 276 | | 9.8first tier limit is $100,000 for assessment years 2022 and 2023. For subsequent assessment |
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| 277 | 277 | | 9.9years, the limit is adjusted each year by the average statewide change in estimated market |
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| 278 | 278 | | 9.10value of property classified as class 4a and 4d under this section for the previous assessment |
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| 279 | 279 | | 9.11year, excluding valuation change due to new construction, rounded to the nearest $1,000, |
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| 280 | 280 | | 9.12provided, however, that the limit may never be less than $100,000. Beginning with |
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| 281 | 281 | | 9.13assessment year 2015, the commissioner of revenue must certify the limit for each assessment |
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| 282 | 282 | | 9.14year by November 1 of the previous year. Class 4d(2) property has a classification rate of |
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| 283 | 283 | | 9.150.75 percent. |
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| 284 | 284 | | 9.16 EFFECTIVE DATE.This section is effective beginning with assessment year 2024 |
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| 285 | 285 | | 9.17and thereafter. |
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| 286 | 286 | | 9Sec. 2. |
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| 287 | 287 | | 23-00153 as introduced10/25/22 REVISOR MS/LN |
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