8.4. SR 07-31-1995 - Laserfiche WebLink

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Law summaries continued transit zone property Commercial/industria] (class 3a) property that is constructed under an initial building permit issued after January 2, 1996, located within a transit zone and school district, and not primazily used for retail or transient lodging will have a reduced class rate of four percent on its market value exceeding $100,000. This tax rate will also apply to improvements as long as the other conditions are met. These changes will be effective for taxes assessed in 1997, payable in 1998. A transit zone is defined as the area within one-quarter mile of a bus route which has certain hours of . service within the metro urban service area and would also include any light transit route that may be established. The Metropolitan Council is respon- sible for producing a map of transit zones by January 1, 1996 and for providing the map to all metro-area assessors. Reduced class rates for apartment, manufactured home park, and cabin property The class rate on apartment property is reduced from 3.4 percent to 2.3 percent in cities outside the metropolitan area and the nine counties immediately adjacent to the metro area with populations of less than 5,000. The property must also be in a city more than l 5 miles from another city with a population over 5,000. The class rate for manufactured home parks will remain at two percent rather than increase to 2.3 percent in 1996 as current law provides. The class rate for noncommercial seasonal residential recreational property (cabins) will also be reduced from two percent to 1.9 percent for taxes payable in 1997 and to 1.8 percent for taxes payable in 1998 and thereafter for the market value under $72,000. In determining HACA, the 3.4 percent class rate will be used on all LS 6 apartment property so that the amount paid by the state does not increase as a result of the above-described reduced class rate. Instead, the net effect will be a shift to other property taxpayers within the taxing districts which contain the qualifying apartment property. The relief for cabins will result in HACA increases to prevent property tax shifts. 'Truth in Taxation notices The estimated percentage increase in Minnesota personal income will no longer be listed on the Truth in Taxa- ~ lion notice. ' Board of Government Innovation and Cooperation The Board will have increased functions and duties, including the production of a report to the Governor and the legislature on unfunded state mandates by January 15, 1996. $2 million is appropriated for fiscal yeazs 1996 and 1997. Non-Minnesota bond interest taxation remedy If a court decides that the taxation of non-Minnesota municipal bond interest violates the Constitution, the remedy will be to tax the interest on Minnesota municipal bonds, rather than to exempt the interest on non-Minne- sota municipal bonds from taxation. Waste management services -For the purpose of clarifying what is subject to the $2 residential or 60 cents per cubic yard commercial state solid waste assessment, "mixed municipal solid waste management services" is defined as the management of such waste through the process from collection to disposal, including transportation and management at a waste facility. Additionally, the costs that are exempt from the general and local option sales tax provisions of Minnesota law are specified. Winona lodging tax proceeds The city of Winona is authorized to used 50 percent of the proceeds of their 1991 special law lodging tax, after the debt for the Julius C. Wilke Steamboat Center is retired, to promote certain, specified tourism activities. Ag processing facilities Materials for use in the construc- tion of certain agricultural processing plants (at least $8.5 million investment which exceeds $12,000 per resident of the city or town and located in a city or town with a median household income of less. than $18,000} are exempt from the sales tax unless the plant is an ethanol production facility. Sales tax study A Sales Tax Advisory Council is established to study the current sales tax system. Homestead cabin property Cabin property can no longer be reclassified as a homestead under the "relative homestead" rules after a four year period. In order to reclassify cabin property the owner must actually occupy it as a homestead. •i Separate spouse homesteads Only partial homestead status will be received by an owner or a spouse occupying a residence owned by their spouse which they. previously occupied ~Jith their spouse if either spouse fails to include the other spouse's name or social security numberon their homestead application. Where the name and social security number of both spouses is included on homestead applications for two separate residences but one of the applications is not signed, the owner or spouse will be deemed to have elected to homestead the residence for which the application is signed. 1995 Law Summaries