Minnesota Senate Bill SF1973

Minnesota 2023-2024 Regular Session

• Introduced: 2/20/23
• Refer: 2/20/23

Caption

Limited market value increases provision

Impact

The implementation of SF1973 is expected to have significant implications for local taxation systems. By requiring assessors across the state to adopt a consistent method of determining property values, the bill aims to prevent extreme fluctuations in property tax liabilities year-over-year. Additionally, the bill aims to ease the financial burden on property owners in times of sharply rising market values, as the averaging approach may limit sudden increases in tax obligations.

Summary

SF1973, titled 'Limited Market Value Increases Provision', seeks to amend taxation statutes regarding property assessments in Minnesota. The bill introduces a method of calculating the market value of properties, which would affect how properties are evaluated and taxed beginning in the assessment year 2024. This new calculation method proposes averaging the current year's market value with the market values from the previous four years, which is intended to stabilize property tax assessments across fluctuating markets.

Contention

Despite its intended benefits, SF1973 has sparked discussions and concerns among stakeholders. Some local governments and their officials worry that this change might limit their ability to respond flexibly to local market conditions. There are fears that the bill could hinder revenue-generating capabilities for municipalities that rely heavily on property taxes. Opponents argue that averaging could lead to inequities, where properties that may have appreciated significantly are assessed lower than current market value, thus affecting the overall tax base and funding for public services.