No. 13-08 | House-Senate Side-by-Side
Sec House Tax Bill (HF 0677)
Comments SecSenate Tax Bill (SF 0552)Article 2: Homestead Credit Refund andRenter Property Tax RefundArticle 2: Property Tax2, 4Homestead credit refund.
Renames thehomestead PTR the “homestead credit refund”.Reduces the threshold percentage for filers with$19,500 to $105,300 in income in various amounts,with the maximum falling from 3.5% to 2.5%.Updates the maximum refund and householdincome amounts to what current law projects forrefunds based on payable 2014 taxes. Reduces thenumber of income ranges from 27 to 23. Sets thebase year for inflation adjustments to 2013.
An “apples-to-apples”comparison of the currentand proposed refundprograms is difficult becausethe number of income rangesfalls in the proposed refundprogram from 27 to 23.No comparable provision.3-4Renters property tax refund.
Reduces thethreshold percentage for filers with incomebetween $31,030 and $57,170 in various amounts,with the maximum falling from 3.5% to 2.0%.Increases the maximum refund for all incomeranges, increasing at the lowest income ranges from$1,620 to $2,000. Reduces the number of incomeranges from 29 to 22. Sets the base year forinflation adjustments to 2013.
An “apples-to-apples”comparison of the currentand proposed refundprograms in the House bill isdifficult because the numberof income ranges falls in theproposed refund programfrom 29to 22.3-4Renters property tax refund.
Generally reducesfilers’ copay share by five percentage points.Increases the maximum refund for all incomeranges, with the refund for the lowest incomeranges increasing from $1,620 to $1,790. Sets thebase year for inflation adjustments to 2013.
5Notification of potential eligibility.
Requires thatRevenue notify homeowners it determines may beeligible for a homestead credit refund based onavailable property tax and income informationabout their potential eligibility.
No comparable provision.No comparable provision.
The proposal would haveaffected the subtraction forclaims against rent paid in2012 as follows:
# of Depend-entsSubtractionCurrentProposed
1 $5,320 $5,7002 $10,260 $11,0203 $14,820 $15,9604 $19,000 $20,5205 or more $22,800 $24,700
24Renters property tax refund; income.
Increasesthe income subtraction, the size of which iscontingent upon the number of dependents the filerclaims, by 10% of the base exemption amount(currently $3,800) for the filer’s first through fifthdependents.
House Article 3: Property Tax Aids and Credits
Sec House Tax Bill (HF 0677)
Comments Art:SecSenate Tax Bill (SF 0552)Article 3: Property Tax Aids and Credits Article 1: Aids and Credits (unless noted)Article 2: Property Tax1, 6 Surcharge on homeowners and auto policies.
Imposes an annual $5 surcharge on eachhomeowners and automobile insurance policyissued or renewed in Minnesota. Dedicates thehomeowners insurance surcharge revenue tosupplement firefighter-related pension financingand the auto insurance surcharge revenue tosupplement police-related pension financing. Terminates the surcharge when the PERA Policeand Fire and MSRS State Patrol Plans reach 90%funded on an actuarial basis.
1Local pension aids.
Appropriates $745,000 in FY2015 and thereafter for pension aids as follows:
$130,065 for PERA Police and Fire
$64,935 to municipalities whose firefightersare covered by PERA
$550,000 to municipalities with volunteerfirefighter retirement plansAppropriates $1.55 million in FY 2015 andthereafter for pension aids as follows:
1/3 as supplemental polic estate aids
2/3 to MSRS –State Patrol and PERA Policeand Fire Terminates the aids at the earlier of 12/31/2020 or