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frosty69
I don't know if anyone has posted this yet, but this is for only MN disabled veterans rated higher then 70% disabled. You have to go to your local county assesor office to get the papers, and sign up before July 1, 2008, I picked up my papers today.
MDVA Bill Review
DATE: March 14, 2008
BILL NO: HF: 3201 CHAPTER: 154
CHIEF AUTHORS: Representative Ann Lenczewski and Senator Tom Bakk
TITLE: Omnibus Tax Bill
SUMMARY:
On, Friday, March 7, 2008 the governor signed into law the Omnibus Technical
Corrections Tax bill. This bill had two provisions of interest to veterans.
First, the bill provides full or partial valuation property tax exclusion for homesteads of
disabled veterans with a disability rating of 70 percent or greater, as determined by the
United States Department of Veterans Affairs.
This new benefit consists of two tiers:
• $150,000 market value exclusion, for a veteran with a serviceconnected
disability rated at 70 percent to 100 percent; or
• $300,000 market value exclusion, for a veteran with a serviceconnected
disability rated as being total and permanent.
Upon the death of a veteran qualifying for the exclusion because of a total and
permanent disability, the market value exclusion carries over to the person’s spouse, if
the spouse co‐owns or inherits the home and permanently resides in the home. For an
agricultural homestead, the market value exclusion applies to only the house, garage
and surrounding one acre of land.
The bill also provides that property qualifying for valuation exclusion under this bill is
not eligible for the market value credit. The property owner must apply to the assessor
each year, unless the person’s disability is rated as total and permanent.
This is effective for assessment year 2008, taxes payable in 2009, and thereafter.
Secondly, the bill expands the 4c property classification to non‐profit community
service‐oriented organizations that make charitable contributions and donations at least
equal to the organization’s previous year’s property taxes and that allow the property to
be used for public and community meetings or events at no charge, as appropriate to
the size of the facility.
Under current law, real property up to a maximum of one acre that is owned by a nonprofit
community service‐oriented organization qualifies for class 4c if the property is
not used for revenue producing activity for more than six days in the calendar year
preceding the year of the assessment. The bill leaves that option, but adds a second
alternative to qualify.
This second option extends the maximum land size to 3 acres. The acreage is made
larger primarily to allow for parking lots, ball fields, etc. It provides that an
organization qualifies if it makes annual charitable contributions and donations at least
equal to the organization’s previous year’s property taxes and it allows the property to
be used, size permitting, for public and community meetings or events for no charge.
The types of organizations that would be affected by this change are the VFWs,
American Legions, Knights of Columbus, etc.
The bill defines “charitable contributions and donations” as having the same meaning
as the lawful gambling purposes, excluding those purposes relating to the payment of
taxes, assessments, fees, auditing costs and utility payments.
This change is effective for the 2008 assessment and thereafter, taxes payable in 2009
and thereafter. For the 2008 assessment year, the application deadline is extended to
September 1, 2008.
The Omnibus bill also contained some items of interest to military members. The
following items were contained in the bill,
Hardship assessment deferral; military persons. The bill extends the option to defer
certain assessments to members of the National Guard and military reserves ordered
into active service. Currently a county, city, or town, at its discretion may defer the
payment of special assessment for any homestead property of seniors and disabled
persons that it determines cause a hardship. National Guard and reserve members in
active service are added to the authorization. This provision was effective the day
following final enactment and applies to any special assessment for which payment is
due on or after that date. The date of enactment was March 7, 2008.
The bill also contained subtractions from taxable income; out‐of‐state military service
of National Guard. Provides that the 2005 enactment that exempts from state taxation
a filer’s earnings for out‐of‐state military service applies to National Guard personnel in
the same manner that it is applies to other Military Reservists. Federal law defines the
term active duty for military Reservists other than the National Guard in Title 10 of
United States Code, but for National Guard personnel in Title 32 of federal code (in
nearly identical language). This would extend the subtraction to
• basic training at out‐of‐state military facilities
• special training and annual training at out‐of‐state military facilities
• Mexican border patrol duty
This part is effective beginning in tax year 2008.
The bill also allows the estate or heirs of a deceased member of the military to
retroactively claim the credit for combat service that occurred before January 1, 2006.
Current law allows only a surviving spouse or dependent to claim the credit on behalf
of individuals who died before January 1, 2006, and only if the member of the military
died as a result of combat zone activity. Current law also allows for the credit to be
claimed on a deceased individual’s final return for individuals who die on or after
January 1, 2006. This change allows the credit to be claimed for all combat zone service
since September 11, 2001, by the estate or heirs of deceased members of the military
who do not have a surviving spouse or dependent, and who died before January 1,
2006. This is effective retroactively for tax years beginning after December 31, 2005.
Additionally, the bill puts Minnesota in conformance with The Heroes Earned
Retirement Opportunities Act, Public Law 109‐227, enacted May 29, 2006, which allows
military personnel to count tax‐exempt combat pay as earned income for the purpose of
qualifying to make tax deductible contributions to individual retirement accounts,
effective retroactively to tax year 2004.
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