1.1 A bill for an act
1.2 relating to taxation; property; prohibiting an increase in property value for
1.3 homesteads owned by persons 65 years of age or older; amending Minnesota
1.4 Statutes 2022, sections 273.11, subdivision 5, by adding a subdivision; 273.121,
1.5 subdivision 1; 276.04, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2022, section 273.11, subdivision 5, is amended to read:
1.8 Subd. 5.Boards of review and equalization.Notwithstanding any other provision of
1.9law to the contrary, the limitation contained any limitations on valuation in subdivisions 1
1.10and 1a shall this section also apply to the authority of the local board of review as provided
1.11in section 274.01, the county board of equalization as provided in section 274.13, the State
1.12Board of Equalization and the commissioner of revenue as provided in sections 270.11,
1.13subdivision 1, 270.12, 270C.92, and 270C.94.
1.14 EFFECTIVE DATE.This section is effective beginning with assessment year 2023.
1.15 Sec. 2. Minnesota Statutes 2022, section 273.11, is amended by adding a subdivision to
1.16read:
1.17 Subd. 24.Homesteads of persons age 65 or older; valuation increase prohibited.(a)
1.18The estimated market value for class 1 property as defined in section 273.13, subdivision
1.1922, and that portion of class 2a property as defined in section 273.13, subdivision 23,
1.20consisting of the house, garage, and surrounding one acre of land, may not exceed the
1.21property's estimated market value for the preceding year, provided that as of the assessment
1.22date the property is owned and occupied as a homestead by a person that is 65 years of age
1.23or older. In the case of a married couple, both of the spouses must be at least 65 years of
1Sec. 2.
23-01772 as introduced01/05/23 REVISOR MS/RC
SENATE
STATE OF MINNESOTA
S.F. No. 377NINETY-THIRD SESSION
(SENATE AUTHORS: DRAHEIM)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/17/2023
Referred to Taxes 2.1age regardless of whether the property is titled in the name of one spouse or both spouses
2.2or titled in another way that permits the property to have homestead status.
2.3 (b) An owner or owners must apply to the county assessor by July 1 of the assessment
2.4year for which the valuation freeze under paragraph (a) is first requested. The applicant or
2.5applicants must submit proof of age as required by the assessor to determine eligibility for
2.6the valuation freeze under paragraph (a). In succeeding years, applicants must submit
2.7information the county assessor deems necessary to determine continued eligibility under
2.8this section.
2.9 (c) This subdivision does not prohibit an increase in estimated market value attributable
2.10to improvements made to the property.
2.11 (d) The county assessor shall annually inform the public of the availability of the valuation
2.12freeze under this subdivision as part of the notice published under section 273.121.
2.13 EFFECTIVE DATE.This section is effective beginning with assessment year 2023.
2.14 Sec. 3. Minnesota Statutes 2022, section 273.121, subdivision 1, is amended to read:
2.15 Subdivision 1.Notice.Any county assessor or city assessor having the powers of a
2.16county assessor, valuing or classifying taxable real property shall in each year notify those
2.17persons whose property is to be included on the assessment roll that year if the person's
2.18address is known to the assessor, otherwise the occupant of the property. The notice shall
2.19be in writing and shall be sent by ordinary mail at least ten days before the meeting of the
2.20local board of appeal and equalization under section 274.01 or the review process established
2.21under section 274.13, subdivision 1c. Upon written request by the owner of the property,
2.22the assessor may send the notice in electronic form or by electronic mail instead of on paper
2.23or by ordinary mail. It shall contain: (1) the estimated market value for the current and prior
2.24assessment,; (2) any value reduction resulting from the limitation under section 273.11,
2.25subdivision 24; (3) the qualifying amount of any improvements under section 273.11,
2.26subdivision 16, for the current assessment, (3); (4) the market value subject to taxation after
2.27subtracting the amount of any qualifying improvements for the current assessment, (4); (5)
2.28the classification of the property for the current and prior assessment, (5); (6) the assessor's
2.29office address,; and (6) (7) the dates, places, and times set for the meetings of the local board
2.30of appeal and equalization, the review process established under section 274.13, subdivision
2.311c, and the county board of appeal and equalization. If the classification of the property has
2.32changed between the current and prior assessments, a specific note to that effect shall be
2.33prominently listed on the statement. The commissioner of revenue shall specify the form
2.34of the notice. The assessor shall attach to the assessment roll a statement that the notices
2Sec. 3.
23-01772 as introduced01/05/23 REVISOR MS/RC 3.1required by this section have been mailed. Any assessor who is not provided sufficient funds
3.2from the assessor's governing body to provide such notices, may make application to the
3.3commissioner of revenue to finance such notices. The commissioner of revenue shall conduct
3.4an investigation and, if satisfied that the assessor does not have the necessary funds, issue
3.5a certification to the commissioner of management and budget of the amount necessary to
3.6provide such notices. The commissioner of management and budget shall issue a payment
3.7for such amount and shall deduct such amount from any state payment to such county or
3.8municipality. The necessary funds to make such payments are hereby appropriated. Failure
3.9to receive the notice shall in no way affect the validity of the assessment, the resulting tax,
3.10the procedures of any board of review or equalization, or the enforcement of delinquent
3.11taxes by statutory means.
3.12 EFFECTIVE DATE.This section is effective beginning with assessment year 2023.
3.13 Sec. 4. Minnesota Statutes 2022, section 276.04, subdivision 2, is amended to read:
3.14 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
3.15the tax statements. The commissioner of revenue shall prescribe the form of the property
3.16tax statement and its contents. The tax statement must not state or imply that property tax
3.17credits are paid by the state of Minnesota. The statement must contain a tabulated statement
3.18of the dollar amount due to each taxing authority and the amount of the state tax from the
3.19parcel of real property for which a particular tax statement is prepared. The dollar amounts
3.20attributable to the county, the state tax, the voter approved school tax, the other local school
3.21tax, the township or municipality, and the total of the metropolitan special taxing districts
3.22as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
3.23amounts due all other special taxing districts, if any, may be aggregated except that any
3.24levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
3.25Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
3.26under the appropriate county's levy. If the county levy under this paragraph includes an
3.27amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
3.28the amount attributable for that purpose must be separately stated from the remaining county
3.29levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
3.30an amount for public library service under section 134.07, the amount attributable for that
3.31purpose may be separated from the remaining county levy amount. The amount of the tax
3.32on homesteads qualifying under the senior citizens' property tax deferral program under
3.33chapter 290B is the total amount of property tax before subtraction of the deferred property
3.34tax amount. The amount of the tax on contamination value imposed under sections 270.91
3.35to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
3Sec. 4.
23-01772 as introduced01/05/23 REVISOR MS/RC 4.1amount of any special assessments, may be rounded to the nearest even whole dollar. For
4.2purposes of this section whole odd-numbered dollars may be adjusted to the next higher
4.3even-numbered dollar. The amount of market value excluded under section 273.11,
4.4subdivision 16, if any, must also be listed on the tax statement.
4.5 (b) The property tax statements for manufactured homes and sectional structures taxed
4.6as personal property shall contain the same information that is required on the tax statements
4.7for real property.
4.8 (c) Real and personal property tax statements must contain the following information
4.9in the order given in this paragraph. The information must contain the current year tax
4.10information in the right column with the corresponding information for the previous year
4.11in a column on the left:
4.12 (1) the property's estimated market value under section 273.11, subdivision 1;
4.13 (2) the property's homestead market value exclusion under section 273.13, subdivision
4.1435, and any reduction due to section 273.11, subdivision 24;
4.15 (3) the property's taxable market value under section 272.03, subdivision 15;
4.16 (4) the property's gross tax, before credits;
4.17 (5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
4.18 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
4.19273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
4.20received under section 273.135 must be separately stated and identified as "taconite tax
4.21relief"; and
4.22 (7) the net tax payable in the manner required in paragraph (a).
4.23 (d) If the county uses envelopes for mailing property tax statements and if the county
4.24agrees, a taxing district may include a notice with the property tax statement notifying
4.25taxpayers when the taxing district will begin its budget deliberations for the current year,
4.26and encouraging taxpayers to attend the hearings. If the county allows notices to be included
4.27in the envelope containing the property tax statement, and if more than one taxing district
4.28relative to a given property decides to include a notice with the tax statement, the county
4.29treasurer or auditor must coordinate the process and may combine the information on a
4.30single announcement.
4.31 EFFECTIVE DATE.This section is effective beginning with assessment year 2023.
4Sec. 4.
23-01772 as introduced01/05/23 REVISOR MS/RC