Minnesota Senate Bill SF4701

Minnesota 2023-2024 Regular Session

• Introduced: 3/7/24
• Refer: 3/7/24

Caption

Property tax classification consolidation

Impact

If enacted, SF4701 would significantly alter state tax laws regarding property classification and assessment. By introducing a more streamlined classification system, local governments may experience changes in revenue as property taxes will be more uniformly assessed. The bill includes provisions to generate criteria for community land trusts, potentially expanding assistance to organizations that aid low-income housing, thereby influencing housing policy in Minnesota.

Summary

SF4701, officially titled 'Property Tax Classification Consolidation', seeks to reform the existing framework for property tax classifications in Minnesota. The bill aims to consolidate various property classifications, adjust rates, and redefine the 'referendum market value'. Notably, it proposes eliminating the state general levy on seasonal residential recreational properties and replacing the blind and disabled property tax classification with a refund system. The intended outcomes are to simplify the property tax structure and potentially lower property taxes for certain groups while ensuring a fair assessment across the board.

Contention

The bill has drawn both support and criticism during discussions. Proponents argue that the consolidation of property tax classifications can lead to a more equitable tax system and reduced burdens on property owners. However, opponents express concerns over the elimination of the state general levy on certain properties, fearing it could lead to funding deficits for local governments reliant on these revenues. Furthermore, the shift away from specific tax classifications for the blind and disabled could leave vulnerable populations with lesser protections, igniting debates over the effects on public assistance programs.