Minnesota 2025-2026 Regular Session

Minnesota House Bill HF403 Compare Versions

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Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property; establishing the senior credit; appropriating money;
3	3	1.3 amending Minnesota Statutes 2024, sections 273.1392; 273.1393; 275.065,
4	4	1.4 subdivision 3; 276.04, subdivision 2; proposing coding for new law in Minnesota
5	5	1.5 Statutes, chapter 273.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. [273.1389] SENIOR CREDIT.
8	8	1.8 Subdivision 1.Eligibility.Property is eligible for a credit under this section provided
9	9	1.9that:
10	10	1.10 (1) the property is classified as 1a or 1b under section 273.13, subdivision 22; 4d(2)
11	11	1.11under section 273.13, subdivision 25; or is the portion of an agricultural homestead under
12	12	1.12section 273.13, subdivision 23, consisting of the house, garage, and immediately surrounding
13	13	1.13one acre of land;
14	14	1.14 (2) the property is owned and occupied as a homestead by a person 65 years of age or
15	15	1.15older. In the case of a married couple, at least one spouse must be at least 65 years of age
16	16	1.16and the other spouse must be at least 62 years of age; and
17	17	1.17 (3) the property has been owned and occupied as the homestead of at least one of the
18	18	1.18homeowners since January 2 of the calendar year in which the initial application under
19	19	1.19subdivision 2 is submitted.
20	20	1.20 Subd. 2.Initial application.(a) The owner of property meeting the qualifications under
21	21	1.21subdivision 1 may apply to the county assessor to receive the credit under this section.
22	22	1.22Applications are due by December 15 of the taxes payable year prior to the taxes payable
23	23	1.23year in which the credit is first granted. A taxpayer may first apply in the calendar year in
24	24	1Section 1.
25	25	REVISOR MS/AC 25-0345102/07/25
26	26	State of Minnesota
27	27	This Document can be made available
28	28	in alternative formats upon request
29	29	HOUSE OF REPRESENTATIVES
30	30	H. F. No. 403
31	31	NINETY-FOURTH SESSION
32	32	Authored by Myers and Nadeau02/13/2025
33	33	The bill was read for the first time and referred to the Committee on Taxes 2.1which the taxpayer becomes 65 years of age. The application must be in a form and manner
34	34	2.2prescribed by the county assessor and must include the following items and any other
35	35	2.3information the county assessor deems necessary:
36	36	2.4 (1) the name, address, and Social Security number or individual taxpayer identification
37	37	2.5number of the owner or owners; and
38	38	2.6 (2) the initial date of ownership and occupancy of the property as a homestead, except
39	39	2.7that if this date is prior to the calendar year in which the application is submitted, only the
40	40	2.8year must be provided.
41	41	2.9 (b) Properties determined to be eligible after the application under paragraph (a) must
42	42	2.10continue to receive the credit under this section for subsequent taxes payable years until
43	43	2.11one of the following occurs:
44	44	2.12 (1) the property is sold or transferred;
45	45	2.13 (2) the death of all qualifying homeowners; or
46	46	2.14 (3) the property no longer qualifies as a homestead.
47	47	2.15 Subd. 3.Credit amount.The annual credit amount under this section is equal to the
48	48	2.16difference between (1) the amount of tax due in the current taxes payable year on an eligible
49	49	2.17property, after the application of all other property tax credits, minus (2) the product of (i)
50	50	2.181.08, times (ii) the amount of tax due in the previous taxes payable year on the property
51	51	2.19after the application of all property tax credits. The credit amount cannot be less than $0.
52	52	2.20If the credit amount reduces the overall tax on the property to less than $0, the credit amount
53	53	2.21must be reduced so that the overall tax on the property is equal to $0.
54	54	2.22 Subd. 4.Credit reimbursements.The county auditor must determine the tax reductions
55	55	2.23to the commissioner of revenue as part of the data required under section 270C.85,
56	56	2.24subdivision 2. Any prior year adjustments must also be certified as part of the data required
57	57	2.25under section 270C.85, subdivision 2. The commissioner must review the certifications for
58	58	2.26accuracy, and make such changes as are deemed necessary, or return the certification to the
59	59	2.27county auditor for correction. The credit under this section must be used to proportionately
60	60	2.28reduce the net property tax payable to each local taxing jurisdiction as provided in section
61	61	2.29273.1393.
62	62	2.30 Subd. 5.Payment.(a) The commissioner of revenue must reimburse each local taxing
63	63	2.31jurisdiction, other than school districts, for the tax reductions granted under this section in
64	64	2.32two equal installments on October 31 and December 26 of the taxes payable year for which
65	65	2Section 1.
66	66	REVISOR MS/AC 25-0345102/07/25 3.1the reductions are granted, including in each payment the prior year adjustments certified
67	67	3.2under section 270C.85, subdivision 2, for that taxes payable year.
68	68	3.3 (b) The commissioner of revenue must certify the total of the tax reductions granted
69	69	3.4under this section for each taxes payable year within each school district to the commissioner
70	70	3.5of education, and the commissioner of education must pay the reimbursement amounts to
71	71	3.6each school district as provided in section 273.1392.
72	72	3.7 Subd. 6.Appropriation.An amount sufficient to make the payments required by this
73	73	3.8section to taxing jurisdictions other than school districts is annually appropriated from the
74	74	3.9general fund to the commissioner of revenue. An amount sufficient to make the payments
75	75	3.10required by this section for school districts is annually appropriated from the general fund
76	76	3.11to the commissioner of education.
77	77	3.12 EFFECTIVE DATE.This section is effective beginning with assessment year 2026.
78	78	3.13 Sec. 2. Minnesota Statutes 2024, section 273.1392, is amended to read:
79	79	3.14 273.1392 PAYMENT; SCHOOL DISTRICTS.
80	80	3.15 The amounts of bovine tuberculosis credit reimbursements under section 273.113;
81	81	3.16conservation tax credits under section 273.119; disaster or emergency reimbursement under
82	82	3.17sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
83	83	3.18the senior credit under section 273.1389; aids and credits under section 273.1398; enterprise
84	84	3.19zone property credit payments under section 469.171; metropolitan agricultural preserve
85	85	3.20reduction under section 473H.10; and electric generation transition aid under section 477A.24
86	86	3.21for school districts, shall be certified to the Department of Education by the Department of
87	87	3.22Revenue. The amounts so certified shall be paid according to section 127A.45, subdivisions
88	88	3.239, 10, and 13.
89	89	3.24 EFFECTIVE DATE.This section is effective beginning with fiscal year 2028.
90	90	3.25 Sec. 3. Minnesota Statutes 2024, section 273.1393, is amended to read:
91	91	3.26 273.1393 COMPUTATION OF NET PROPERTY TAXES.
92	92	3.27 Notwithstanding any other provisions to the contrary, "net" property taxes are determined
93	93	3.28by subtracting the credits in the order listed from the gross tax:
94	94	3.29 (1) disaster credit as provided in sections 273.1231 to 273.1235;
95	95	3.30 (2) powerline credit as provided in section 273.42;
96	96	3.31 (3) agricultural preserves credit as provided in section 473H.10;
97	97	3Sec. 3.
98	98	REVISOR MS/AC 25-0345102/07/25 4.1 (4) enterprise zone credit as provided in section 469.171;
99	99	4.2 (5) disparity reduction credit;
100	100	4.3 (6) conservation tax credit as provided in section 273.119;
101	101	4.4 (7) the school bond credit as provided in section 273.1387;
102	102	4.5 (8) agricultural credit as provided in section 273.1384;
103	103	4.6 (9) taconite homestead credit as provided in section 273.135;
104	104	4.7 (10) supplemental homestead credit as provided in section 273.1391; and
105	105	4.8 (11) the bovine tuberculosis zone credit, as provided in section 273.113; and
106	106	4.9 (12) the senior credit, as provided in section 273.1389.
107	107	4.10 The combination of all property tax credits must not exceed the gross tax amount.
108	108	4.11 EFFECTIVE DATE.This section is effective beginning with property taxes payable
109	109	4.12in 2027.
110	110	4.13 Sec. 4. Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:
111	111	4.14 Subd. 3.Notice of proposed property taxes.(a) The county auditor shall prepare and
112	112	4.15the county treasurer shall deliver after November 10 and on or before November 24 each
113	113	4.16year, by first class mail to each taxpayer at the address listed on the county's current year's
114	114	4.17assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
115	115	4.18the treasurer may send the notice in electronic form or by electronic mail instead of on paper
116	116	4.19or by ordinary mail.
117	117	4.20 (b) The commissioner of revenue shall prescribe the form of the notice.
118	118	4.21 (c) The notice must inform taxpayers that it contains the amount of property taxes each
119	119	4.22taxing authority proposes to collect for taxes payable the following year. In the case of a
120	120	4.23town, or in the case of the state general tax, the final tax amount will be its proposed tax.
121	121	4.24The notice must clearly state for each city that has a population over 500, county, school
122	122	4.25district, regional library authority established under section 134.201, metropolitan taxing
123	123	4.26districts as defined in paragraph (i), and fire protection and emergency medical services
124	124	4.27special taxing districts established under section 144F.01, the time and place of a meeting
125	125	4.28for each taxing authority in which the budget and levy will be discussed and public input
126	126	4.29allowed, prior to the final budget and levy determination. The taxing authorities must provide
127	127	4.30the county auditor with the information to be included in the notice on or before the time it
128	128	4.31certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
129	129	4Sec. 4.
130	130	REVISOR MS/AC 25-0345102/07/25 5.1meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
131	131	5.2must provide a website address and a telephone number for the taxing authority that taxpayers
132	132	5.3may call if they have questions related to the notice and an address where comments will
133	133	5.4be received by mail, except that no notice required under this section shall be interpreted
134	134	5.5as requiring the printing of a personal telephone number or address as the contact information
135	135	5.6for a taxing authority. If a taxing authority does not maintain a website or public offices
136	136	5.7where telephone calls can be received by the authority, the authority may inform the county
137	137	5.8of the lack of a public website or telephone number and the county shall not list a website
138	138	5.9or telephone number for that taxing authority.
139	139	5.10 (d) The notice must state for each parcel:
140	140	5.11 (1) the market value of the property as determined under section 273.11, and used for
141	141	5.12computing property taxes payable in the following year and for taxes payable in the current
142	142	5.13year as each appears in the records of the county assessor on November 1 of the current
143	143	5.14year; and, in the case of residential property, whether the property is classified as homestead
144	144	5.15or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
145	145	5.16values apply and that the values are final values;
146	146	5.17 (2) the items listed below, shown separately by county, city or town, and state general
147	147	5.18tax, agricultural homestead credit under section 273.1384, school building bond agricultural
148	148	5.19credit under section 273.1387, senior credit under section 273.1389, voter approved school
149	149	5.20levy, other local school levy, and the sum of the special taxing districts, and as a total of all
150	150	5.21taxing authorities:
151	151	5.22 (i) the actual tax for taxes payable in the current year; and
152	152	5.23 (ii) the proposed tax amount.
153	153	5.24 If the county levy under clause (2) includes an amount for a lake improvement district
154	154	5.25as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
155	155	5.26must be separately stated from the remaining county levy amount.
156	156	5.27 In the case of a town or the state general tax, the final tax shall also be its proposed tax
157	157	5.28unless the town changes its levy at a special town meeting under section 365.52. If a school
158	158	5.29district has certified under section 126C.17, subdivision 9, that a referendum will be held
159	159	5.30in the school district at the November general election, the county auditor must note next
160	160	5.31to the school district's proposed amount that a referendum is pending and that, if approved
161	161	5.32by the voters, the tax amount may be higher than shown on the notice. In the case of the
162	162	5.33city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
163	163	5.34from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
164	164	5Sec. 4.
165	165	REVISOR MS/AC 25-0345102/07/25 6.1the St. Paul Library Agency must be listed separately from the remaining amount of the
166	166	6.2city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
167	167	6.3listed separately from the remaining amount of the county's levy. In the case of a parcel
168	168	6.4where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
169	169	6.5applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
170	170	6.6capacity subject to the areawide tax must each be stated separately and not included in the
171	171	6.7sum of the special taxing districts; and
172	172	6.8 (3) the increase or decrease between the total taxes payable in the current year and the
173	173	6.9total proposed taxes, expressed as a percentage.
174	174	6.10 For purposes of this section, the amount of the tax on homesteads qualifying under the
175	175	6.11senior citizens' property tax deferral program under chapter 290B is the total amount of
176	176	6.12property tax before subtraction of the deferred property tax amount.
177	177	6.13 (e) The notice must clearly state that the proposed or final taxes do not include the
178	178	6.14following:
179	179	6.15 (1) special assessments;
180	180	6.16 (2) levies approved by the voters after the date the proposed taxes are certified, including
181	181	6.17bond referenda and school district levy referenda;
182	182	6.18 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
183	183	6.19in November of the levy year as provided under section 275.73;
184	184	6.20 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
185	185	6.21after the date the proposed taxes are certified;
186	186	6.22 (5) amounts necessary to pay tort judgments against the taxing authority that become
187	187	6.23final after the date the proposed taxes are certified; and
188	188	6.24 (6) the contamination tax imposed on properties which received market value reductions
189	189	6.25for contamination.
190	190	6.26 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
191	191	6.27county treasurer to deliver the notice as required in this section does not invalidate the
192	192	6.28proposed or final tax levy or the taxes payable pursuant to the tax levy.
193	193	6.29 (g) If the notice the taxpayer receives under this section lists the property as
194	194	6.30nonhomestead, and satisfactory documentation is provided to the county assessor by the
195	195	6.31applicable deadline, and the property qualifies for the homestead classification in that
196	196	6Sec. 4.
197	197	REVISOR MS/AC 25-0345102/07/25 7.1assessment year, the assessor shall reclassify the property to homestead for taxes payable
198	198	7.2in the following year.
199	199	7.3 (h) In the case of class 4 residential property used as a residence for lease or rental
200	200	7.4periods of 30 days or more, the taxpayer must either:
201	201	7.5 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
202	202	7.6or lessee; or
203	203	7.7 (2) post a copy of the notice in a conspicuous place on the premises of the property.
204	204	7.8 The notice must be mailed or posted by the taxpayer by November 27 or within three
205	205	7.9days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
206	206	7.10of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
207	207	7.11notice must be mailed in order to fulfill the requirements of this paragraph.
208	208	7.12 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
209	209	7.13districts" means the following taxing districts in the seven-county metropolitan area that
210	210	7.14levy a property tax for any of the specified purposes listed below:
211	211	7.15 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
212	212	7.16473.521, 473.547, or 473.834;
213	213	7.17 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
214	214	7.18 (3) Metropolitan Mosquito Control Commission under section 473.711.
215	215	7.19 For purposes of this section, any levies made by the regional rail authorities in the county
216	216	7.20of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
217	217	7.21shall be included with the appropriate county's levy.
218	218	7.22 (j) The governing body of a county, city, or school district may, with the consent of the
219	219	7.23county board, include supplemental information with the statement of proposed property
220	220	7.24taxes about the impact of state aid increases or decreases on property tax increases or
221	221	7.25decreases and on the level of services provided in the affected jurisdiction. This supplemental
222	222	7.26information may include information for the following year, the current year, and for as
223	223	7.27many consecutive preceding years as deemed appropriate by the governing body of the
224	224	7.28county, city, or school district. It may include only information regarding:
225	225	7.29 (1) the impact of inflation as measured by the implicit price deflator for state and local
226	226	7.30government purchases;
227	227	7.31 (2) population growth and decline;
228	228	7.32 (3) state or federal government action; and
229	229	7Sec. 4.
230	230	REVISOR MS/AC 25-0345102/07/25 8.1 (4) other financial factors that affect the level of property taxation and local services
231	231	8.2that the governing body of the county, city, or school district may deem appropriate to
232	232	8.3include.
233	233	8.4 The information may be presented using tables, written narrative, and graphic
234	234	8.5representations and may contain instruction toward further sources of information or
235	235	8.6opportunity for comment.
236	236	8.7 EFFECTIVE DATE.This section is effective beginning with property taxes payable
237	237	8.8in 2027.
238	238	8.9 Sec. 5. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:
239	239	8.10 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
240	240	8.11the tax statements. The commissioner of revenue shall prescribe the form of the property
241	241	8.12tax statement and its contents. The tax statement must not state or imply that property tax
242	242	8.13credits are paid by the state of Minnesota. The statement must contain a tabulated statement
243	243	8.14of the dollar amount due to each taxing authority and the amount of the state tax from the
244	244	8.15parcel of real property for which a particular tax statement is prepared. The dollar amounts
245	245	8.16attributable to the county, the state tax, the voter approved school tax, the other local school
246	246	8.17tax, the township or municipality, and the total of the metropolitan special taxing districts
247	247	8.18as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
248	248	8.19amounts due all other special taxing districts, if any, may be aggregated except that any
249	249	8.20levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
250	250	8.21Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
251	251	8.22under the appropriate county's levy. If the county levy under this paragraph includes an
252	252	8.23amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
253	253	8.24the amount attributable for that purpose must be separately stated from the remaining county
254	254	8.25levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
255	255	8.26an amount for public library service under section 134.07, the amount attributable for that
256	256	8.27purpose may be separated from the remaining county levy amount. The amount of the tax
257	257	8.28on homesteads qualifying under the senior citizens' property tax deferral program under
258	258	8.29chapter 290B is the total amount of property tax before subtraction of the deferred property
259	259	8.30tax amount. The amount of the tax on contamination value imposed under sections 270.91
260	260	8.31to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
261	261	8.32amount of any special assessments, may be rounded to the nearest even whole dollar. For
262	262	8.33purposes of this section whole odd-numbered dollars may be adjusted to the next higher
263	263	8.34even-numbered dollar.
264	264	8Sec. 5.
265	265	REVISOR MS/AC 25-0345102/07/25 9.1 (b) The property tax statements for manufactured homes and sectional structures taxed
266	266	9.2as personal property shall contain the same information that is required on the tax statements
267	267	9.3for real property.
268	268	9.4 (c) Real and personal property tax statements must contain the following information
269	269	9.5in the order given in this paragraph. The information must contain the current year tax
270	270	9.6information in the right column with the corresponding information for the previous year
271	271	9.7in a column on the left:
272	272	9.8 (1) the property's estimated market value under section 273.11, subdivision 1;
273	273	9.9 (2) the property's homestead market value exclusion under section 273.13, subdivision
274	274	9.1035;
275	275	9.11 (3) the property's taxable market value under section 272.03, subdivision 15;
276	276	9.12 (4) the property's gross tax, before credits;
277	277	9.13 (5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
278	278	9.14 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
279	279	9.15273.1389; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
280	280	9.16of credit received under section 273.135 must be separately stated and identified as "taconite
281	281	9.17tax relief"; and
282	282	9.18 (7) the net tax payable in the manner required in paragraph (a).
283	283	9.19 (d) If the county uses envelopes for mailing property tax statements and if the county
284	284	9.20agrees, a taxing district may include a notice with the property tax statement notifying
285	285	9.21taxpayers when the taxing district will begin its budget deliberations for the current year,
286	286	9.22and encouraging taxpayers to attend the hearings. If the county allows notices to be included
287	287	9.23in the envelope containing the property tax statement, and if more than one taxing district
288	288	9.24relative to a given property decides to include a notice with the tax statement, the county
289	289	9.25treasurer or auditor must coordinate the process and may combine the information on a
290	290	9.26single announcement.
291	291	9.27 EFFECTIVE DATE.This section is effective beginning with property taxes payable
292	292	9.28in 2027.
293	293	9Sec. 5.
294	294	REVISOR MS/AC 25-0345102/07/25