Agenda - Council - 07/12/1982 - Special

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e a homestead property owner but more than two townships away is considered non- homcstcad property. The homestead tax credit is applied to the homestead credit gross tax less all other credits on the dwelling and 240 acres most contiguous, surrounding or closest to the dwellings including buildings located on the 240 acres. Non-contiguous ]and owned by the taxpayer may be included in order to reach the maximum 240 acres, but such non-contiguous ]and must be no farther than two townships or cities from the dwelling. Thc qualifying tax amount for the Minnesota Property Tax Refund (Line 1, 1982 Property Tax State) is the homestead credit tax amount used in //3 above for deter- mining thc homestead credit. The qualifying tax amount for the Special Property Tax Refund (Line 3, 1982 Property Tax Statement) is the gross tax less all other credits on the dwe]Iing and 240 acres including buildings located on the 240 acres. Fractional Homesteads A fractional amount of the first $54,000 of vaIue is assessed at the lower percentage. This amount is determined by multiplying the owner-occupant's fractional ownership interest in the property by the $54,000 of value (i.e., one-half homestead, I/2 X $54,000 = $27,000). If the total value of the property is less than $54,000, one-half of the total value is assessed at the lower percentage. The 18 mill state school agricultural credit applies to the owner-occupant's fractional ownership interest in the first 320 acres of land. A 10 mill state school agricultural credit applies to the remainder of the first 320 acres. The 10 mill state school agricultural credit also applies to the owner-occupant's fractional ownership interest in the next 320 acres. The balance of this receives an 8 mill state school agricultural credit as does all acreage in excess of 640 acres (i.e., 700 acre farm one-half homestead; 160 acres X 18 mills, 320 acres X 10 mills, 220 acres X 8 mills). The homestead credit is limited to the homestea~d'credit gross tax less all other credits on the owner-occupant's fractional interest in 240 acres (i.e., 500 acre farm, one-half homestead; maximum homestead credit 1/2 X $650 = $325; maximum acreage 1/2 X 24(I acres = 120 acres). The qualifying tax amount for the Minnesota Property Tax Refund (Line 1, 1982 Property Tax Statement) is the homestead credit tax amount used in #3 above for determining the homestead credit. The qualifying tax amour, t for the Special Property Tax Refund (Line 3, 1982 Property Tax Statement) is the gross tax ]ess all other credits on the owner- occupant's fractional interest in 240 acres. Mid-Year Homestead One-half of the total vaIue is assessed at the homestead percentages. The value for a mid-year homestead is one-half the first $54,000 of value of a full homestead (i.i., 1/2 X $54,000 = $27,000). The 18 mill state school agricultural credit applies to one half of the first 320 acres. The balance of this first 320 acres receives the 10 mill state school agricultural credit. One half of the next 320 acres receives the 10 mill credit and 8 mills is applied to the balance of the second 320 acres as well as to all acreage in excess of 640 acres. -3-