Minnesota 2025-2026 Regular Session

Minnesota House Bill HF363 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to taxation; property; establishing a credit for certain acres certified under
3	3		1.3 the Minnesota agricultural water quality certification program; appropriating
4	4		1.4 money; amending Minnesota Statutes 2024, sections 273.1392; 273.1393; 275.065,
5	5		1.5 subdivision 3; 276.04, subdivision 2; proposing coding for new law in Minnesota
6	6		1.6 Statutes, chapter 273.
7	7		1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8		1.8 Section 1. [273.1388] AGRICULTURAL WATER QUALITY CREDIT.
9	9		1.9 Subdivision 1.Eligibility.(a) A property is eligible for an agricultural water quality
10	10		1.10credit under this section if the property is:
11	11		1.11 (1) class 2a or 2b property under section 273.13, subdivision 23;
12	12		1.12 (2) certified by the commissioner of agriculture or a certifying agent under sections
13	13		1.1317.9891 to 17.993; and
14	14		1.14 (3) located in Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Wabasha, or
15	15		1.15Winona County.
16	16		1.16 (b) The commissioner of agriculture must annually notify county assessors of the location
17	17		1.17of each certified acre in the assessor's county.
18	18		1.18 Subd. 2.Credit amount.The amount of the agricultural water quality credit is $5 per
19	19		1.19certified acre.
20	20		1.20 Subd. 3.Credit reimbursement.The county auditor must determine the tax reductions
21	21		1.21allowed under this section within the county for each taxes payable year and must certify
22	22		1.22that amount to the commissioner of revenue as part of the data required under section
23	23		1Section 1.
24		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~
	24	+	REVISOR MS/KR 25-0293301/29/25
25	25		State of Minnesota
26	26		This Document can be made available
27	27		in alternative formats upon request
28	28		HOUSE OF REPRESENTATIVES
29	29		H. F. No. 363
30	30		NINETY-FOURTH SESSION
31	31		Authored by Jacob; Anderson, P. H.; Burkel; Nelson; Gander and others02/13/2025
32		-	The bill was read for the first time and referred to the Committee on Taxes
33		-	Adoption of Report: Amended and re-referred to the Committee on Legacy Finance04/01/2025 2.1270C.85, subdivision 2. Any prior year adjustments must also be certified as part of the
	32	+	The bill was read for the first time and referred to the Committee on Taxes 2.1270C.85, subdivision 2. Any prior year adjustments must also be certified as part of the
34	33		2.2data required under section 270C.85, subdivision 2. The commissioner must review the
35	34		2.3certifications for accuracy, and may make such changes as are deemed necessary or return
36	35		2.4the certification to the county auditor for correction. The credit under this section must be
37	36		2.5used to proportionately reduce the net tax capacity based property tax payable to each local
38	37		2.6taxing jurisdiction as provided in section 273.1393.
39	38		2.7 Subd. 4.Payment.(a) The commissioner of revenue shall reimburse each local taxing
40	39		2.8jurisdiction, other than school districts, for the tax reductions granted under this section in
41	40		2.9two equal installments on October 31 and December 26 of the taxes payable year for which
42	41		2.10the reductions are granted, including in each payment the prior year adjustments certified
43	42		2.11under section 270C.85, subdivision 2, for that taxes payable year.
44	43		2.12 (b) The commissioner of revenue shall certify the total of the tax reductions granted
45	44		2.13under this section for each taxes payable year within each school district to the commissioner
46	45		2.14of education, and the commissioner of education must pay the reimbursement amounts to
47	46		2.15each school district as provided in section 273.1392.
48	47		2.16 Subd. 5.Appropriation.An amount sufficient to make the payments required by this
49	48		2.17section to taxing jurisdictions other than school districts is annually appropriated from the
50		-	2.~~18clean water~~ fund to the commissioner of revenue. An amount sufficient to make the payments
51		-	2.19required by this section for school districts is annually appropriated from the ~~clean water~~
52		-	2.~~20fund to~~ the commissioner of education.
	49	+	2.18general fund to the commissioner of revenue. An amount sufficient to make the payments
	50	+	2.19required by this section for school districts is annually appropriated from the general fund
	51	+	2.20to the commissioner of education.
53	52		2.21 EFFECTIVE DATE.This section is effective beginning with property taxes payable
54	53		2.22in 2026.
55	54		2.23 Sec. 2. Minnesota Statutes 2024, section 273.1392, is amended to read:
56	55		2.24 273.1392 PAYMENT; SCHOOL DISTRICTS.
57	56		2.25 The amounts of bovine tuberculosis credit reimbursements under section 273.113;
58	57		2.26conservation tax credits under section 273.119; disaster or emergency reimbursement under
59	58		2.27sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and, 273.1387,
60	59		2.28and 273.1388; aids and credits under section 273.1398; enterprise zone property credit
61	60		2.29payments under section 469.171; metropolitan agricultural preserve reduction under section
62	61		2.30473H.10; and electric generation transition aid under section 477A.24 for school districts,
63	62		2.31shall be certified to the Department of Education by the Department of Revenue. The
64	63		2.32amounts so certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.
65	64		2.33 EFFECTIVE DATE.This section is effective July 1, 2026.
66	65		2Sec. 2.
67		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~ 3.1 Sec. 3. Minnesota Statutes 2024, section 273.1393, is amended to read:
	66	+	REVISOR MS/KR 25-0293301/29/25 3.1 Sec. 3. Minnesota Statutes 2024, section 273.1393, is amended to read:
68	67		3.2 273.1393 COMPUTATION OF NET PROPERTY TAXES.
69	68		3.3 Notwithstanding any other provisions to the contrary, "net" property taxes are determined
70	69		3.4by subtracting the credits in the order listed from the gross tax:
71	70		3.5 (1) disaster credit as provided in sections 273.1231 to 273.1235;
72	71		3.6 (2) powerline credit as provided in section 273.42;
73	72		3.7 (3) agricultural preserves credit as provided in section 473H.10;
74	73		3.8 (4) enterprise zone credit as provided in section 469.171;
75	74		3.9 (5) disparity reduction credit;
76	75		3.10 (6) conservation tax credit as provided in section 273.119;
77	76		3.11 (7) the school bond credit as provided in section 273.1387;
78	77		3.12 (8) agricultural credit as provided in section 273.1384;
79	78		3.13 (9) taconite homestead credit as provided in section 273.135;
80	79		3.14 (10) supplemental homestead credit as provided in section 273.1391; and
81	80		3.15 (11) the bovine tuberculosis zone credit, as provided in section 273.113.; and
82	81		3.16 (12) the agricultural water quality credit as provided in section 273.1388.
83	82		3.17 The combination of all property tax credits must not exceed the gross tax amount.
84	83		3.18 EFFECTIVE DATE.This section is effective beginning with property taxes payable
85	84		3.19in 2026.
86	85		3.20 Sec. 4. Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:
87	86		3.21 Subd. 3.Notice of proposed property taxes.(a) The county auditor shall prepare and
88	87		3.22the county treasurer shall deliver after November 10 and on or before November 24 each
89	88		3.23year, by first class mail to each taxpayer at the address listed on the county's current year's
90	89		3.24assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
91	90		3.25the treasurer may send the notice in electronic form or by electronic mail instead of on paper
92	91		3.26or by ordinary mail.
93	92		3.27 (b) The commissioner of revenue shall prescribe the form of the notice.
94	93		3.28 (c) The notice must inform taxpayers that it contains the amount of property taxes each
95	94		3.29taxing authority proposes to collect for taxes payable the following year. In the case of a
96	95		3Sec. 4.
97		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~ 4.1town, or in the case of the state general tax, the final tax amount will be its proposed tax.
	96	+	REVISOR MS/KR 25-0293301/29/25 4.1town, or in the case of the state general tax, the final tax amount will be its proposed tax.
98	97		4.2The notice must clearly state for each city that has a population over 500, county, school
99	98		4.3district, regional library authority established under section 134.201, metropolitan taxing
100	99		4.4districts as defined in paragraph (i), and fire protection and emergency medical services
101	100		4.5special taxing districts established under section 144F.01, the time and place of a meeting
102	101		4.6for each taxing authority in which the budget and levy will be discussed and public input
103	102		4.7allowed, prior to the final budget and levy determination. The taxing authorities must provide
104	103		4.8the county auditor with the information to be included in the notice on or before the time it
105	104		4.9certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
106	105		4.10meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
107	106		4.11must provide a website address and a telephone number for the taxing authority that taxpayers
108	107		4.12may call if they have questions related to the notice and an address where comments will
109	108		4.13be received by mail, except that no notice required under this section shall be interpreted
110	109		4.14as requiring the printing of a personal telephone number or address as the contact information
111	110		4.15for a taxing authority. If a taxing authority does not maintain a website or public offices
112	111		4.16where telephone calls can be received by the authority, the authority may inform the county
113	112		4.17of the lack of a public website or telephone number and the county shall not list a website
114	113		4.18or telephone number for that taxing authority.
115	114		4.19 (d) The notice must state for each parcel:
116	115		4.20 (1) the market value of the property as determined under section 273.11, and used for
117	116		4.21computing property taxes payable in the following year and for taxes payable in the current
118	117		4.22year as each appears in the records of the county assessor on November 1 of the current
119	118		4.23year; and, in the case of residential property, whether the property is classified as homestead
120	119		4.24or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
121	120		4.25values apply and that the values are final values;
122	121		4.26 (2) the items listed below, shown separately by county, city or town, and state general
123	122		4.27tax, agricultural homestead credit under section 273.1384, school building bond agricultural
124	123		4.28credit under section 273.1387, agricultural water quality credit under section 273.1388,
125	124		4.29voter approved school levy, other local school levy, and the sum of the special taxing
126	125		4.30districts, and as a total of all taxing authorities:
127	126		4.31 (i) the actual tax for taxes payable in the current year; and
128	127		4.32 (ii) the proposed tax amount.
129	128		4Sec. 4.
130		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~ 5.1 If the county levy under clause (2) includes an amount for a lake improvement district
	129	+	REVISOR MS/KR 25-0293301/29/25 5.1 If the county levy under clause (2) includes an amount for a lake improvement district
131	130		5.2as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
132	131		5.3must be separately stated from the remaining county levy amount.
133	132		5.4 In the case of a town or the state general tax, the final tax shall also be its proposed tax
134	133		5.5unless the town changes its levy at a special town meeting under section 365.52. If a school
135	134		5.6district has certified under section 126C.17, subdivision 9, that a referendum will be held
136	135		5.7in the school district at the November general election, the county auditor must note next
137	136		5.8to the school district's proposed amount that a referendum is pending and that, if approved
138	137		5.9by the voters, the tax amount may be higher than shown on the notice. In the case of the
139	138		5.10city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
140	139		5.11from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
141	140		5.12the St. Paul Library Agency must be listed separately from the remaining amount of the
142	141		5.13city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
143	142		5.14listed separately from the remaining amount of the county's levy. In the case of a parcel
144	143		5.15where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
145	144		5.16applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
146	145		5.17capacity subject to the areawide tax must each be stated separately and not included in the
147	146		5.18sum of the special taxing districts; and
148	147		5.19 (3) the increase or decrease between the total taxes payable in the current year and the
149	148		5.20total proposed taxes, expressed as a percentage.
150	149		5.21 For purposes of this section, the amount of the tax on homesteads qualifying under the
151	150		5.22senior citizens' property tax deferral program under chapter 290B is the total amount of
152	151		5.23property tax before subtraction of the deferred property tax amount.
153	152		5.24 (e) The notice must clearly state that the proposed or final taxes do not include the
154	153		5.25following:
155	154		5.26 (1) special assessments;
156	155		5.27 (2) levies approved by the voters after the date the proposed taxes are certified, including
157	156		5.28bond referenda and school district levy referenda;
158	157		5.29 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
159	158		5.30in November of the levy year as provided under section 275.73;
160	159		5.31 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
161	160		5.32after the date the proposed taxes are certified;
162	161		5Sec. 4.
163		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~ 6.1 (5) amounts necessary to pay tort judgments against the taxing authority that become
	162	+	REVISOR MS/KR 25-0293301/29/25 6.1 (5) amounts necessary to pay tort judgments against the taxing authority that become
164	163		6.2final after the date the proposed taxes are certified; and
165	164		6.3 (6) the contamination tax imposed on properties which received market value reductions
166	165		6.4for contamination.
167	166		6.5 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
168	167		6.6county treasurer to deliver the notice as required in this section does not invalidate the
169	168		6.7proposed or final tax levy or the taxes payable pursuant to the tax levy.
170	169		6.8 (g) If the notice the taxpayer receives under this section lists the property as
171	170		6.9nonhomestead, and satisfactory documentation is provided to the county assessor by the
172	171		6.10applicable deadline, and the property qualifies for the homestead classification in that
173	172		6.11assessment year, the assessor shall reclassify the property to homestead for taxes payable
174	173		6.12in the following year.
175	174		6.13 (h) In the case of class 4 residential property used as a residence for lease or rental
176	175		6.14periods of 30 days or more, the taxpayer must either:
177	176		6.15 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
178	177		6.16or lessee; or
179	178		6.17 (2) post a copy of the notice in a conspicuous place on the premises of the property.
180	179		6.18 The notice must be mailed or posted by the taxpayer by November 27 or within three
181	180		6.19days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
182	181		6.20of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
183	182		6.21notice must be mailed in order to fulfill the requirements of this paragraph.
184	183		6.22 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
185	184		6.23districts" means the following taxing districts in the seven-county metropolitan area that
186	185		6.24levy a property tax for any of the specified purposes listed below:
187	186		6.25 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
188	187		6.26473.521, 473.547, or 473.834;
189	188		6.27 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
190	189		6.28 (3) Metropolitan Mosquito Control Commission under section 473.711.
191	190		6.29 For purposes of this section, any levies made by the regional rail authorities in the county
192	191		6.30of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
193	192		6.31shall be included with the appropriate county's levy.
194	193		6Sec. 4.
195		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~ 7.1 (j) The governing body of a county, city, or school district may, with the consent of the
	194	+	REVISOR MS/KR 25-0293301/29/25 7.1 (j) The governing body of a county, city, or school district may, with the consent of the
196	195		7.2county board, include supplemental information with the statement of proposed property
197	196		7.3taxes about the impact of state aid increases or decreases on property tax increases or
198	197		7.4decreases and on the level of services provided in the affected jurisdiction. This supplemental
199	198		7.5information may include information for the following year, the current year, and for as
200	199		7.6many consecutive preceding years as deemed appropriate by the governing body of the
201	200		7.7county, city, or school district. It may include only information regarding:
202	201		7.8 (1) the impact of inflation as measured by the implicit price deflator for state and local
203	202		7.9government purchases;
204	203		7.10 (2) population growth and decline;
205	204		7.11 (3) state or federal government action; and
206	205		7.12 (4) other financial factors that affect the level of property taxation and local services
207	206		7.13that the governing body of the county, city, or school district may deem appropriate to
208	207		7.14include.
209	208		7.15 The information may be presented using tables, written narrative, and graphic
210	209		7.16representations and may contain instruction toward further sources of information or
211	210		7.17opportunity for comment.
212	211		7.18 EFFECTIVE DATE.This section is effective beginning with property taxes payable
213	212		7.19in 2026.
214	213		7.20 Sec. 5. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:
215	214		7.21 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
216	215		7.22the tax statements. The commissioner of revenue shall prescribe the form of the property
217	216		7.23tax statement and its contents. The tax statement must not state or imply that property tax
218	217		7.24credits are paid by the state of Minnesota. The statement must contain a tabulated statement
219	218		7.25of the dollar amount due to each taxing authority and the amount of the state tax from the
220	219		7.26parcel of real property for which a particular tax statement is prepared. The dollar amounts
221	220		7.27attributable to the county, the state tax, the voter approved school tax, the other local school
222	221		7.28tax, the township or municipality, and the total of the metropolitan special taxing districts
223	222		7.29as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
224	223		7.30amounts due all other special taxing districts, if any, may be aggregated except that any
225	224		7.31levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
226	225		7.32Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
227	226		7.33under the appropriate county's levy. If the county levy under this paragraph includes an
228	227		7Sec. 5.
229		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~ 8.1amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
	228	+	REVISOR MS/KR 25-0293301/29/25 8.1amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
230	229		8.2the amount attributable for that purpose must be separately stated from the remaining county
231	230		8.3levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
232	231		8.4an amount for public library service under section 134.07, the amount attributable for that
233	232		8.5purpose may be separated from the remaining county levy amount. The amount of the tax
234	233		8.6on homesteads qualifying under the senior citizens' property tax deferral program under
235	234		8.7chapter 290B is the total amount of property tax before subtraction of the deferred property
236	235		8.8tax amount. The amount of the tax on contamination value imposed under sections 270.91
237	236		8.9to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
238	237		8.10amount of any special assessments, may be rounded to the nearest even whole dollar. For
239	238		8.11purposes of this section whole odd-numbered dollars may be adjusted to the next higher
240	239		8.12even-numbered dollar.
241	240		8.13 (b) The property tax statements for manufactured homes and sectional structures taxed
242	241		8.14as personal property shall contain the same information that is required on the tax statements
243	242		8.15for real property.
244	243		8.16 (c) Real and personal property tax statements must contain the following information
245	244		8.17in the order given in this paragraph. The information must contain the current year tax
246	245		8.18information in the right column with the corresponding information for the previous year
247	246		8.19in a column on the left:
248	247		8.20 (1) the property's estimated market value under section 273.11, subdivision 1;
249	248		8.21 (2) the property's homestead market value exclusion under section 273.13, subdivision
250	249		8.2235;
251	250		8.23 (3) the property's taxable market value under section 272.03, subdivision 15;
252	251		8.24 (4) the property's gross tax, before credits;
253	252		8.25 (5) for agricultural properties, the credits under sections 273.1384 and, 273.1387, and
254	253		8.26273.1388;
255	254		8.27 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
256	255		8.28273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
257	256		8.29received under section 273.135 must be separately stated and identified as "taconite tax
258	257		8.30relief"; and
259	258		8.31 (7) the net tax payable in the manner required in paragraph (a).
260	259		8.32 (d) If the county uses envelopes for mailing property tax statements and if the county
261	260		8.33agrees, a taxing district may include a notice with the property tax statement notifying
262	261		8Sec. 5.
263		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~ 9.1taxpayers when the taxing district will begin its budget deliberations for the current year,
	262	+	REVISOR MS/KR 25-0293301/29/25 9.1taxpayers when the taxing district will begin its budget deliberations for the current year,
264	263		9.2and encouraging taxpayers to attend the hearings. If the county allows notices to be included
265	264		9.3in the envelope containing the property tax statement, and if more than one taxing district
266	265		9.4relative to a given property decides to include a notice with the tax statement, the county
267	266		9.5treasurer or auditor must coordinate the process and may combine the information on a
268	267		9.6single announcement.
269	268		9.7 EFFECTIVE DATE.This section is effective beginning with property taxes payable
270	269		9.8in 2026.
271	270		9Sec. 5.
272		-	REVISOR MS ~~H0363-1~~~~HF363 FIRST ENGROSSMENT~~
	271	+	REVISOR MS/KR 25-0293301/29/25