1.1 A bill for an act
1.2 relating to taxation; property; establishing the redevelopment area homestead
1.3 credit; appropriating money; amending Minnesota Statutes 2024, sections 273.1392;
1.4 273.1393; 275.065, subdivision 3; 275.07, by adding a subdivision; 275.08,
1.5 subdivision 1b; 276.04, subdivision 2; proposing coding for new law in Minnesota
1.6 Statutes, chapter 273.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [273.1388] REDEVELOPMENT AREA HOMESTEAD CREDIT.
1.9 Subdivision 1.Eligibility.Property is eligible to receive the credit under this section if
1.10it is classified as 1a or 1b under section 273.13, subdivision 22, and is located in a city of
1.11the second class that was designated as a redevelopment area by the United States Department
1.12of Commerce under the Public Works and Economic Development Act of 1965, Public
1.13Law 89-136, title IV, section 401(a)(4).
1.14 Subd. 2.Credit amount.For each qualifying property, the credit under this section is
1.15equal to 70 percent multiplied by the property's net tax capacity multiplied by the city capital
1.16debt tax rate determined under section 275.08, subdivision 1b, paragraph (d).
1.17 Subd. 3.Credit reimbursements.The county auditor shall determine the tax reductions
1.18allowed under this section within the county for each taxes payable year and shall certify
1.19that amount to the commissioner of revenue under section 270C.85, subdivision 2, clause
1.20(4). The county auditor shall also certify any prior year adjustments. The commissioner
1.21shall review the certifications for accuracy, and may make such changes as are deemed
1.22necessary, or return the certification to the county auditor for correction. The credit under
1.23this section must be used to reduce the city net tax capacity-based property tax as provided
1.24in section 273.1393.
1Section 1.
REVISOR MS/MI 25-0100412/12/24
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 727
NINETY-FOURTH SESSION
Authored by Hansen, R.,02/13/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1 Subd. 4.Payment.The commissioner of revenue shall reimburse each local taxing
2.2jurisdiction for the tax reductions granted under this section in two equal installments on
2.3October 31 and December 26 of the taxes payable year for which the reductions are granted,
2.4including in each payment the prior year adjustments certified under section 270C.85,
2.5subdivision 2, for that taxes payable year.
2.6 Subd. 5.Appropriation.An amount sufficient to make payments required by this section
2.7is annually appropriated from the general fund to the commissioner of revenue.
2.8 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
2.9 Sec. 2. Minnesota Statutes 2024, section 273.1392, is amended to read:
2.10 273.1392 PAYMENT; SCHOOL DISTRICTS.
2.11 The amounts of bovine tuberculosis credit reimbursements under section 273.113;
2.12conservation tax credits under section 273.119; disaster or emergency reimbursement under
2.13sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
2.14the redevelopment area homestead credit under section 273.1388; aids and credits under
2.15section 273.1398; enterprise zone property credit payments under section 469.171;
2.16metropolitan agricultural preserve reduction under section 473H.10; and electric generation
2.17transition aid under section 477A.24 for school districts, shall be certified to the Department
2.18of Education by the Department of Revenue. The amounts so certified shall be paid according
2.19to section 127A.45, subdivisions 9, 10, and 13.
2.20 EFFECTIVE DATE.This section is effective beginning with fiscal year 2027.
2.21 Sec. 3. Minnesota Statutes 2024, section 273.1393, is amended to read:
2.22 273.1393 COMPUTATION OF NET PROPERTY TAXES.
2.23 Notwithstanding any other provisions to the contrary, "net" property taxes are determined
2.24by subtracting the credits in the order listed from the gross tax:
2.25 (1) disaster credit as provided in sections 273.1231 to 273.1235;
2.26 (2) powerline credit as provided in section 273.42;
2.27 (3) agricultural preserves credit as provided in section 473H.10;
2.28 (4) enterprise zone credit as provided in section 469.171;
2.29 (5) disparity reduction credit;
2.30 (6) conservation tax credit as provided in section 273.119;
2Sec. 3.
REVISOR MS/MI 25-0100412/12/24 3.1 (7) the school bond credit as provided in section 273.1387;
3.2 (8) agricultural credit as provided in section 273.1384;
3.3 (9) taconite homestead credit as provided in section 273.135;
3.4 (10) supplemental homestead credit as provided in section 273.1391; and
3.5 (11) the bovine tuberculosis zone credit, as provided in section 273.113.; and
3.6 (12) the redevelopment area homestead credit, as provided in section 273.1388.
3.7 The combination of all property tax credits must not exceed the gross tax amount.
3.8 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
3.9 Sec. 4. Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:
3.10 Subd. 3.Notice of proposed property taxes.(a) The county auditor shall prepare and
3.11the county treasurer shall deliver after November 10 and on or before November 24 each
3.12year, by first class mail to each taxpayer at the address listed on the county's current year's
3.13assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
3.14the treasurer may send the notice in electronic form or by electronic mail instead of on paper
3.15or by ordinary mail.
3.16 (b) The commissioner of revenue shall prescribe the form of the notice.
3.17 (c) The notice must inform taxpayers that it contains the amount of property taxes each
3.18taxing authority proposes to collect for taxes payable the following year. In the case of a
3.19town, or in the case of the state general tax, the final tax amount will be its proposed tax.
3.20The notice must clearly state for each city that has a population over 500, county, school
3.21district, regional library authority established under section 134.201, metropolitan taxing
3.22districts as defined in paragraph (i), and fire protection and emergency medical services
3.23special taxing districts established under section 144F.01, the time and place of a meeting
3.24for each taxing authority in which the budget and levy will be discussed and public input
3.25allowed, prior to the final budget and levy determination. The taxing authorities must provide
3.26the county auditor with the information to be included in the notice on or before the time it
3.27certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
3.28meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
3.29must provide a website address and a telephone number for the taxing authority that taxpayers
3.30may call if they have questions related to the notice and an address where comments will
3.31be received by mail, except that no notice required under this section shall be interpreted
3.32as requiring the printing of a personal telephone number or address as the contact information
3Sec. 4.
REVISOR MS/MI 25-0100412/12/24 4.1for a taxing authority. If a taxing authority does not maintain a website or public offices
4.2where telephone calls can be received by the authority, the authority may inform the county
4.3of the lack of a public website or telephone number and the county shall not list a website
4.4or telephone number for that taxing authority.
4.5 (d) The notice must state for each parcel:
4.6 (1) the market value of the property as determined under section 273.11, and used for
4.7computing property taxes payable in the following year and for taxes payable in the current
4.8year as each appears in the records of the county assessor on November 1 of the current
4.9year; and, in the case of residential property, whether the property is classified as homestead
4.10or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
4.11values apply and that the values are final values;
4.12 (2) the items listed below, shown separately by county, city or town, and state general
4.13tax, agricultural homestead credit under section 273.1384, school building bond agricultural
4.14credit under section 273.1387, the redevelopment area homestead credit under section
4.15273.1388, voter approved school levy, other local school levy, and the sum of the special
4.16taxing districts, and as a total of all taxing authorities:
4.17 (i) the actual tax for taxes payable in the current year; and
4.18 (ii) the proposed tax amount.
4.19 If the county levy under clause (2) includes an amount for a lake improvement district
4.20as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
4.21must be separately stated from the remaining county levy amount.
4.22 In the case of a town or the state general tax, the final tax shall also be its proposed tax
4.23unless the town changes its levy at a special town meeting under section 365.52. If a school
4.24district has certified under section 126C.17, subdivision 9, that a referendum will be held
4.25in the school district at the November general election, the county auditor must note next
4.26to the school district's proposed amount that a referendum is pending and that, if approved
4.27by the voters, the tax amount may be higher than shown on the notice. In the case of the
4.28city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
4.29from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
4.30the St. Paul Library Agency must be listed separately from the remaining amount of the
4.31city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
4.32listed separately from the remaining amount of the county's levy. In the case of a parcel
4.33where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
4.34applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
4Sec. 4.
REVISOR MS/MI 25-0100412/12/24 5.1capacity subject to the areawide tax must each be stated separately and not included in the
5.2sum of the special taxing districts; and
5.3 (3) the increase or decrease between the total taxes payable in the current year and the
5.4total proposed taxes, expressed as a percentage.
5.5 For purposes of this section, the amount of the tax on homesteads qualifying under the
5.6senior citizens' property tax deferral program under chapter 290B is the total amount of
5.7property tax before subtraction of the deferred property tax amount.
5.8 (e) The notice must clearly state that the proposed or final taxes do not include the
5.9following:
5.10 (1) special assessments;
5.11 (2) levies approved by the voters after the date the proposed taxes are certified, including
5.12bond referenda and school district levy referenda;
5.13 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
5.14in November of the levy year as provided under section 275.73;
5.15 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
5.16after the date the proposed taxes are certified;
5.17 (5) amounts necessary to pay tort judgments against the taxing authority that become
5.18final after the date the proposed taxes are certified; and
5.19 (6) the contamination tax imposed on properties which received market value reductions
5.20for contamination.
5.21 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
5.22county treasurer to deliver the notice as required in this section does not invalidate the
5.23proposed or final tax levy or the taxes payable pursuant to the tax levy.
5.24 (g) If the notice the taxpayer receives under this section lists the property as
5.25nonhomestead, and satisfactory documentation is provided to the county assessor by the
5.26applicable deadline, and the property qualifies for the homestead classification in that
5.27assessment year, the assessor shall reclassify the property to homestead for taxes payable
5.28in the following year.
5.29 (h) In the case of class 4 residential property used as a residence for lease or rental
5.30periods of 30 days or more, the taxpayer must either:
5.31 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
5.32or lessee; or
5Sec. 4.
REVISOR MS/MI 25-0100412/12/24 6.1 (2) post a copy of the notice in a conspicuous place on the premises of the property.
6.2 The notice must be mailed or posted by the taxpayer by November 27 or within three
6.3days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
6.4of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
6.5notice must be mailed in order to fulfill the requirements of this paragraph.
6.6 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
6.7districts" means the following taxing districts in the seven-county metropolitan area that
6.8levy a property tax for any of the specified purposes listed below:
6.9 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
6.10473.521, 473.547, or 473.834;
6.11 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
6.12 (3) Metropolitan Mosquito Control Commission under section 473.711.
6.13 For purposes of this section, any levies made by the regional rail authorities in the county
6.14of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
6.15shall be included with the appropriate county's levy.
6.16 (j) The governing body of a county, city, or school district may, with the consent of the
6.17county board, include supplemental information with the statement of proposed property
6.18taxes about the impact of state aid increases or decreases on property tax increases or
6.19decreases and on the level of services provided in the affected jurisdiction. This supplemental
6.20information may include information for the following year, the current year, and for as
6.21many consecutive preceding years as deemed appropriate by the governing body of the
6.22county, city, or school district. It may include only information regarding:
6.23 (1) the impact of inflation as measured by the implicit price deflator for state and local
6.24government purchases;
6.25 (2) population growth and decline;
6.26 (3) state or federal government action; and
6.27 (4) other financial factors that affect the level of property taxation and local services
6.28that the governing body of the county, city, or school district may deem appropriate to
6.29include.
6.30 The information may be presented using tables, written narrative, and graphic
6.31representations and may contain instruction toward further sources of information or
6.32opportunity for comment.
6Sec. 4.
REVISOR MS/MI 25-0100412/12/24 7.1 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
7.2 Sec. 5. Minnesota Statutes 2024, section 275.07, is amended by adding a subdivision to
7.3read:
7.4 Subd. 2a.City capital projects levies.Each city containing property eligible for the
7.5redevelopment area homestead credit under section 273.1388 must certify to the county
7.6auditor the portion of the city levy that is levied for repayment of capital improvement bonds
7.7issued under section 475.521.
7.8 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
7.9 Sec. 6. Minnesota Statutes 2024, section 275.08, subdivision 1b, is amended to read:
7.10 Subd. 1b.Computation of tax rates.(a) The amounts certified to be levied against net
7.11tax capacity under section 275.07 by an individual local government unit shall be divided
7.12by the total net tax capacity of all taxable properties within the local government unit's
7.13taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by
7.14each property's net tax capacity shall be each property's net tax capacity tax for that local
7.15government unit before reduction by any credits.
7.16 (b) The auditor must also determine the school debt tax rate for each school district equal
7.17to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by
7.18(2) the total net tax capacity of all taxable property within the district.
7.19 (c) Any amount certified to the county auditor to be levied against market value shall
7.20be divided by the total referendum market value of all taxable properties within the taxing
7.21district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each
7.22property's referendum market value shall be each property's new referendum tax before
7.23reduction by any credits. For the purposes of this subdivision, "referendum market value"
7.24means the market value as defined in section 126C.01, subdivision 3.
7.25 (d) The auditor in a county that contains property eligible for the redevelopment area
7.26homestead credit under section 273.1388 must also determine the city capital debt tax rate
7.27for each city containing eligible properties. For the purposes of this paragraph, the city
7.28capital debt tax rate is equal to (1) the city's levy amount certified under section 275.07,
7.29subdivision 2a, divided by (2) the total net tax capacity of all taxable property within the
7.30city.
7.31 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
7Sec. 6.
REVISOR MS/MI 25-0100412/12/24 8.1 Sec. 7. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:
8.2 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
8.3the tax statements. The commissioner of revenue shall prescribe the form of the property
8.4tax statement and its contents. The tax statement must not state or imply that property tax
8.5credits are paid by the state of Minnesota. The statement must contain a tabulated statement
8.6of the dollar amount due to each taxing authority and the amount of the state tax from the
8.7parcel of real property for which a particular tax statement is prepared. The dollar amounts
8.8attributable to the county, the state tax, the voter approved school tax, the other local school
8.9tax, the township or municipality, and the total of the metropolitan special taxing districts
8.10as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
8.11amounts due all other special taxing districts, if any, may be aggregated except that any
8.12levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
8.13Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
8.14under the appropriate county's levy. If the county levy under this paragraph includes an
8.15amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
8.16the amount attributable for that purpose must be separately stated from the remaining county
8.17levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
8.18an amount for public library service under section 134.07, the amount attributable for that
8.19purpose may be separated from the remaining county levy amount. The amount of the tax
8.20on homesteads qualifying under the senior citizens' property tax deferral program under
8.21chapter 290B is the total amount of property tax before subtraction of the deferred property
8.22tax amount. The amount of the tax on contamination value imposed under sections 270.91
8.23to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
8.24amount of any special assessments, may be rounded to the nearest even whole dollar. For
8.25purposes of this section whole odd-numbered dollars may be adjusted to the next higher
8.26even-numbered dollar.
8.27 (b) The property tax statements for manufactured homes and sectional structures taxed
8.28as personal property shall contain the same information that is required on the tax statements
8.29for real property.
8.30 (c) Real and personal property tax statements must contain the following information
8.31in the order given in this paragraph. The information must contain the current year tax
8.32information in the right column with the corresponding information for the previous year
8.33in a column on the left:
8.34 (1) the property's estimated market value under section 273.11, subdivision 1;
8Sec. 7.
REVISOR MS/MI 25-0100412/12/24 9.1 (2) the property's homestead market value exclusion under section 273.13, subdivision
9.235;
9.3 (3) the property's taxable market value under section 272.03, subdivision 15;
9.4 (4) the property's gross tax, before credits;
9.5 (5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
9.6 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
9.7273.1388; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
9.8of credit received under section 273.135 must be separately stated and identified as "taconite
9.9tax relief"; and
9.10 (7) the net tax payable in the manner required in paragraph (a).
9.11 (d) If the county uses envelopes for mailing property tax statements and if the county
9.12agrees, a taxing district may include a notice with the property tax statement notifying
9.13taxpayers when the taxing district will begin its budget deliberations for the current year,
9.14and encouraging taxpayers to attend the hearings. If the county allows notices to be included
9.15in the envelope containing the property tax statement, and if more than one taxing district
9.16relative to a given property decides to include a notice with the tax statement, the county
9.17treasurer or auditor must coordinate the process and may combine the information on a
9.18single announcement.
9.19 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
9Sec. 7.
REVISOR MS/MI 25-0100412/12/24