MN
Minnesota Senate Bill SF1123

Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF1123

Introduced
2/2/23  

Caption

Valuation limits modification for homestead market value exclusion

Impact

Upon implementation, SF1123 would have a significant impact on the property tax landscape within the state. The revised exclusions could provide some financial relief for homeowners at lower income levels, but might also intensify the tax burden on those with properties valued above the exclusion threshold. While the target is to aid those in need, the bill could provoke contention among homeowners who may see their property taxes rise as a result of the changes. The expected adjustments align with broader objectives to support middle-class families, yet the complexities around various classifications could lead to diverse reactions from stakeholders, especially among those questioning the fairness of the proposed valuation structure.

Summary

SF1123 is a legislative bill proposed in Minnesota that aims to modify the valuation limits for the homestead market value exclusion. This bill seeks to adjust the existing exclusion specifically for properties classified under various classifications including class 1a, class 1b, and some components of class 2a. Notably, the bill proposes a change in the valuation parameters, allowing for a 40% exclusion on homesteads valued at $76,000 or below, with a decreasing exclusion percentage for higher valuations, ultimately eliminating the exclusion for properties valued at $413,800 or more. These amendments are set to impact the property tax calculations for homeowners across Minnesota, particularly with segments of the population struggling with housing costs and property taxes.

Contention

One of the critical points of contention surrounding SF1123 lies in the adjustment of property tax refunds related to the changes outlined in the bill. For the assessment years 2024 and 2025, temporary increases in refund amounts are included, but the parameters of eligibility and the set refunds vary, which could lead to disparities among various household income groups. Critics may argue that the modified formulas may not adequately reflect the financial realities faced by many homeowners, particularly as the effective dates roll out, and they may push back against perceived inequities in the tax burden imposed through these changes.

Companion Bills

No companion bills found.

Previously Filed As

MN SF416

Homestead market value exclusion modification for certain years

MN SF1278

Homestead market value exclusion modification

MN SF651

Value thresholds and maximum valuation increase for the homestead market value exclusion

MN SF973

First-tier valuation limit modification for agricultural homestead properties

MN HF1029

Property tax provisions modified, first-tier valuation limit for agricultural homestead properties modified, homestead resort property tier limits modified, homestead market value exclusion modified, and state general levy reduced.

MN HF3171

Property taxes and individual income taxes modified, first-tier valuation limit for agricultural homestead properties modified, tier limits for homestead resort properties increased, homestead market value exclusion modified, state general levy reduced, unlimited Social Security subtraction allowed, temporary refundable child credit established, and money appropriated.

MN HF1565

Property tax provisions modified, and homestead market value exclusion modified.

MN HF1504

Property tax provisions modified, and homestead market value exclusion modified.

MN HF3045

Income and property tax provisions modified, unlimited subtraction allowed for Social Security income, first and second tier income tax rates reduced by one percentage point, direct payments to taxpayers provided, valuation limit modified for property and homestead market value exclusion increased, and refundable child credit allowed.

MN SF2981

Tax provisions modifications

Similar Bills

MN HF1343

Property tax provisions modified, and identification requirements for homestead determination modified.

MN SF174

Application permission for homestead classification to use federal taxpayer identification numbers in lieu of Social Security Numbers

MN SF3392

Eligibility modification for certain tax programs and classifications

TX HJR87

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

TX HJR20

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

TX HJR19

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

MN HF1029

Property tax provisions modified, first-tier valuation limit for agricultural homestead properties modified, homestead resort property tier limits modified, homestead market value exclusion modified, and state general levy reduced.

MN SF973

First-tier valuation limit modification for agricultural homestead properties