Minnesota 2025-2026 Regular Session

Minnesota House Bill HF826 Compare Versions

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1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property; establishing the senior citizen credit; appropriating
3	3	1.3 money; 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 CITIZEN CREDIT.
8	8	1.8 Subdivision 1.Eligibility.Property is eligible for a senior citizen credit under this section,
9	9	1.9provided that:
10	10	1.10 (1) the property is classified as 1a or 1b under section 273.13, subdivision 22, or is the
11	11	1.11portion of an agricultural homestead under section 273.13, subdivision 23, consisting of the
12	12	1.12house, garage, and immediately surrounding one acre of land;
13	13	1.13 (2) the property is owned and occupied as a homestead by a person 65 years of age or
14	14	1.14older. In the case of a married couple at least one spouse must be at least 65 years of age
15	15	1.15and the other spouse must be at least 62 years of age;
16	16	1.16 (3) the total household income of the homeowners, as defined in section 290A.03,
17	17	1.17subdivision 5, for the calendar year preceding the year of the initial application under
18	18	1.18subdivision 2 does not exceed $75,000;
19	19	1.19 (4) the property has been owned and occupied as the homestead of at least one of the
20	20	1.20homeowners for at least five years prior to the initial application under subdivision 2; and
21	21	1.21 (5) the property owners are not currently participating in the senior citizens' property
22	22	1.22tax deferral program under chapter 290B.
23	23	1Section 1.
24	24	REVISOR MS/NS 25-0208501/10/25
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. 826
30	30	NINETY-FOURTH SESSION
31	31	Authored by Dotseth02/17/2025
32	32	The bill was read for the first time and referred to the Committee on Taxes 2.1 Subd. 2.Initial application.(a) The owner of property meeting the qualifications under
33	33	2.2subdivision 1 may apply to the county assessor to receive the credit under this section.
34	34	2.3Applications are due on or before March 1 in the year prior to the taxes payable year in
35	35	2.4which the credit is first granted. A taxpayer may first apply in the calendar year in which
36	36	2.5the taxpayer becomes 65 years of age. The application must be in a form and manner
37	37	2.6prescribed by the county assessor and must include the following items and any other
38	38	2.7information the county assessor deems necessary:
39	39	2.8 (1) the name, address, and Social Security number of the owner or owners;
40	40	2.9 (2) a copy of the property tax statement for the current taxes payable year for the
41	41	2.10homesteaded property;
42	42	2.11 (3) the initial year of ownership and occupancy of the property as a homestead; and
43	43	2.12 (4) the owner's total household income for the previous calendar year.
44	44	2.13 (b) Eligible properties must continue to receive the senior citizen credit under this section
45	45	2.14for subsequent taxes payable years until one of the following occurs:
46	46	2.15 (1) the property is sold or transferred;
47	47	2.16 (2) the death of all qualifying homeowners; or
48	48	2.17 (3) the property no longer qualifies as a homestead.
49	49	2.18 Subd. 3.Credit amount.The annual credit amount under this section is equal to the
50	50	2.19amount of tax due on an eligible property after the application of any other property tax
51	51	2.20credits, minus three percent of the homeowner's total household income provided in the
52	52	2.21initial application under subdivision 2. The credit amount must not be less than $0.
53	53	2.22 Subd. 4.Credit reimbursement.The county auditor must determine the tax reductions
54	54	2.23under this section within the county for each taxes payable year and must certify the amount
55	55	2.24to the commissioner of revenue as part of the data required under section 270C.85,
56	56	2.25subdivision 2. Any prior year adjustments must also be certified as part of the data required
57	57	2.26under section 270C.85, subdivision 2. The commissioner must review the certifications for
58	58	2.27accuracy, and make such changes as are deemed necessary, or return the certification to the
59	59	2.28county auditor for correction. The credit under this section must be used to proportionately
60	60	2.29reduce the net property tax payable to each local taxing jurisdiction as provided in section
61	61	2.30273.1393.
62	62	2.31 Subd. 5.Payment.(a) The commissioner of revenue must reimburse each local taxing
63	63	2.32jurisdiction, other than school districts, for the tax reductions granted under this section in
64	64	2Section 1.
65	65	REVISOR MS/NS 25-0208501/10/25 3.1two equal installments on October 31 and December 26 of the taxes payable year for which
66	66	3.2the reductions are granted, including in each payment the prior year adjustments certified
67	67	3.3under section 270C.85, subdivision 2, for that taxes payable year.
68	68	3.4 (b) The commissioner of revenue must certify the total of the tax reductions granted
69	69	3.5under this section for each taxes payable year within each school district to the commissioner
70	70	3.6of education, and the commissioner of education must pay the reimbursement amounts to
71	71	3.7each school district as provided in section 273.1392.
72	72	3.8 Subd. 6.Appropriation.An amount sufficient to make the payments required by this
73	73	3.9section to taxing jurisdictions other than school districts is annually appropriated from the
74	74	3.10general fund to the commissioner of revenue. An amount sufficient to make the payments
75	75	3.11required by this section for school districts is annually appropriated from the general fund
76	76	3.12to the commissioner of education.
77	77	3.13 EFFECTIVE DATE.This section is effective beginning with assessment year 2026.
78	78	3.14 Sec. 2. Minnesota Statutes 2024, section 273.1392, is amended to read:
79	79	3.15 273.1392 PAYMENT; SCHOOL DISTRICTS.
80	80	3.16 The amounts of bovine tuberculosis credit reimbursements under section 273.113;
81	81	3.17conservation tax credits under section 273.119; disaster or emergency reimbursement under
82	82	3.18sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
83	83	3.19the senior citizen credit under section 273.1389; aids and credits under section 273.1398;
84	84	3.20enterprise zone property credit payments under section 469.171; metropolitan agricultural
85	85	3.21preserve reduction under section 473H.10; and electric generation transition aid under
86	86	3.22section 477A.24 for school districts, shall be certified to the Department of Education by
87	87	3.23the Department of Revenue. The amounts so certified shall be paid according to section
88	88	3.24127A.45, subdivisions 9, 10, and 13.
89	89	3.25 EFFECTIVE DATE.This section is effective beginning with fiscal year 2028.
90	90	3.26 Sec. 3. Minnesota Statutes 2024, section 273.1393, is amended to read:
91	91	3.27 273.1393 COMPUTATION OF NET PROPERTY TAXES.
92	92	3.28 Notwithstanding any other provisions to the contrary, "net" property taxes are determined
93	93	3.29by subtracting the credits in the order listed from the gross tax:
94	94	3.30 (1) disaster credit as provided in sections 273.1231 to 273.1235;
95	95	3.31 (2) powerline credit as provided in section 273.42;
96	96	3Sec. 3.
97	97	REVISOR MS/NS 25-0208501/10/25 4.1 (3) agricultural preserves credit as provided in section 473H.10;
98	98	4.2 (4) enterprise zone credit as provided in section 469.171;
99	99	4.3 (5) disparity reduction credit;
100	100	4.4 (6) conservation tax credit as provided in section 273.119;
101	101	4.5 (7) the school bond credit as provided in section 273.1387;
102	102	4.6 (8) agricultural credit as provided in section 273.1384;
103	103	4.7 (9) taconite homestead credit as provided in section 273.135;
104	104	4.8 (10) supplemental homestead credit as provided in section 273.1391; and
105	105	4.9 (11) the bovine tuberculosis zone credit, as provided in section 273.113.; and
106	106	4.10 (12) senior citizen credit, as provided in section 273.1389.
107	107	4.11 The combination of all property tax credits must not exceed the gross tax amount.
108	108	4.12 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2027.
109	109	4.13 Sec. 4. Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:
110	110	4.14 Subd. 3.Notice of proposed property taxes.(a) The county auditor shall prepare and
111	111	4.15the county treasurer shall deliver after November 10 and on or before November 24 each
112	112	4.16year, by first class mail to each taxpayer at the address listed on the county's current year's
113	113	4.17assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
114	114	4.18the treasurer may send the notice in electronic form or by electronic mail instead of on paper
115	115	4.19or by ordinary mail.
116	116	4.20 (b) The commissioner of revenue shall prescribe the form of the notice.
117	117	4.21 (c) The notice must inform taxpayers that it contains the amount of property taxes each
118	118	4.22taxing authority proposes to collect for taxes payable the following year. In the case of a
119	119	4.23town, or in the case of the state general tax, the final tax amount will be its proposed tax.
120	120	4.24The notice must clearly state for each city that has a population over 500, county, school
121	121	4.25district, regional library authority established under section 134.201, metropolitan taxing
122	122	4.26districts as defined in paragraph (i), and fire protection and emergency medical services
123	123	4.27special taxing districts established under section 144F.01, the time and place of a meeting
124	124	4.28for each taxing authority in which the budget and levy will be discussed and public input
125	125	4.29allowed, prior to the final budget and levy determination. The taxing authorities must provide
126	126	4.30the county auditor with the information to be included in the notice on or before the time it
127	127	4.31certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
128	128	4Sec. 4.
129	129	REVISOR MS/NS 25-0208501/10/25 5.1meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
130	130	5.2must provide a website address and a telephone number for the taxing authority that taxpayers
131	131	5.3may call if they have questions related to the notice and an address where comments will
132	132	5.4be received by mail, except that no notice required under this section shall be interpreted
133	133	5.5as requiring the printing of a personal telephone number or address as the contact information
134	134	5.6for a taxing authority. If a taxing authority does not maintain a website or public offices
135	135	5.7where telephone calls can be received by the authority, the authority may inform the county
136	136	5.8of the lack of a public website or telephone number and the county shall not list a website
137	137	5.9or telephone number for that taxing authority.
138	138	5.10 (d) The notice must state for each parcel:
139	139	5.11 (1) the market value of the property as determined under section 273.11, and used for
140	140	5.12computing property taxes payable in the following year and for taxes payable in the current
141	141	5.13year as each appears in the records of the county assessor on November 1 of the current
142	142	5.14year; and, in the case of residential property, whether the property is classified as homestead
143	143	5.15or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
144	144	5.16values apply and that the values are final values;
145	145	5.17 (2) the items listed below, shown separately by county, city or town, and state general
146	146	5.18tax, agricultural homestead credit under section 273.1384, school building bond agricultural
147	147	5.19credit under section 273.1387, senior citizen credit under section 273.1389, voter approved
148	148	5.20school levy, other local school levy, and the sum of the special taxing districts, and as a
149	149	5.21total of all taxing authorities:
150	150	5.22 (i) the actual tax for taxes payable in the current year; and
151	151	5.23 (ii) the proposed tax amount.
152	152	5.24 If the county levy under clause (2) includes an amount for a lake improvement district
153	153	5.25as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
154	154	5.26must be separately stated from the remaining county levy amount.
155	155	5.27 In the case of a town or the state general tax, the final tax shall also be its proposed tax
156	156	5.28unless the town changes its levy at a special town meeting under section 365.52. If a school
157	157	5.29district has certified under section 126C.17, subdivision 9, that a referendum will be held
158	158	5.30in the school district at the November general election, the county auditor must note next
159	159	5.31to the school district's proposed amount that a referendum is pending and that, if approved
160	160	5.32by the voters, the tax amount may be higher than shown on the notice. In the case of the
161	161	5.33city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
162	162	5.34from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
163	163	5Sec. 4.
164	164	REVISOR MS/NS 25-0208501/10/25 6.1the St. Paul Library Agency must be listed separately from the remaining amount of the
165	165	6.2city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
166	166	6.3listed separately from the remaining amount of the county's levy. In the case of a parcel
167	167	6.4where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
168	168	6.5applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
169	169	6.6capacity subject to the areawide tax must each be stated separately and not included in the
170	170	6.7sum of the special taxing districts; and
171	171	6.8 (3) the increase or decrease between the total taxes payable in the current year and the
172	172	6.9total proposed taxes, expressed as a percentage.
173	173	6.10 For purposes of this section, the amount of the tax on homesteads qualifying under the
174	174	6.11senior citizens' property tax deferral program under chapter 290B is the total amount of
175	175	6.12property tax before subtraction of the deferred property tax amount.
176	176	6.13 (e) The notice must clearly state that the proposed or final taxes do not include the
177	177	6.14following:
178	178	6.15 (1) special assessments;
179	179	6.16 (2) levies approved by the voters after the date the proposed taxes are certified, including
180	180	6.17bond referenda and school district levy referenda;
181	181	6.18 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
182	182	6.19in November of the levy year as provided under section 275.73;
183	183	6.20 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
184	184	6.21after the date the proposed taxes are certified;
185	185	6.22 (5) amounts necessary to pay tort judgments against the taxing authority that become
186	186	6.23final after the date the proposed taxes are certified; and
187	187	6.24 (6) the contamination tax imposed on properties which received market value reductions
188	188	6.25for contamination.
189	189	6.26 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
190	190	6.27county treasurer to deliver the notice as required in this section does not invalidate the
191	191	6.28proposed or final tax levy or the taxes payable pursuant to the tax levy.
192	192	6.29 (g) If the notice the taxpayer receives under this section lists the property as
193	193	6.30nonhomestead, and satisfactory documentation is provided to the county assessor by the
194	194	6.31applicable deadline, and the property qualifies for the homestead classification in that
195	195	6Sec. 4.
196	196	REVISOR MS/NS 25-0208501/10/25 7.1assessment year, the assessor shall reclassify the property to homestead for taxes payable
197	197	7.2in the following year.
198	198	7.3 (h) In the case of class 4 residential property used as a residence for lease or rental
199	199	7.4periods of 30 days or more, the taxpayer must either:
200	200	7.5 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
201	201	7.6or lessee; or
202	202	7.7 (2) post a copy of the notice in a conspicuous place on the premises of the property.
203	203	7.8 The notice must be mailed or posted by the taxpayer by November 27 or within three
204	204	7.9days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
205	205	7.10of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
206	206	7.11notice must be mailed in order to fulfill the requirements of this paragraph.
207	207	7.12 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
208	208	7.13districts" means the following taxing districts in the seven-county metropolitan area that
209	209	7.14levy a property tax for any of the specified purposes listed below:
210	210	7.15 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
211	211	7.16473.521, 473.547, or 473.834;
212	212	7.17 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
213	213	7.18 (3) Metropolitan Mosquito Control Commission under section 473.711.
214	214	7.19 For purposes of this section, any levies made by the regional rail authorities in the county
215	215	7.20of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
216	216	7.21shall be included with the appropriate county's levy.
217	217	7.22 (j) The governing body of a county, city, or school district may, with the consent of the
218	218	7.23county board, include supplemental information with the statement of proposed property
219	219	7.24taxes about the impact of state aid increases or decreases on property tax increases or
220	220	7.25decreases and on the level of services provided in the affected jurisdiction. This supplemental
221	221	7.26information may include information for the following year, the current year, and for as
222	222	7.27many consecutive preceding years as deemed appropriate by the governing body of the
223	223	7.28county, city, or school district. It may include only information regarding:
224	224	7.29 (1) the impact of inflation as measured by the implicit price deflator for state and local
225	225	7.30government purchases;
226	226	7.31 (2) population growth and decline;
227	227	7.32 (3) state or federal government action; and
228	228	7Sec. 4.
229	229	REVISOR MS/NS 25-0208501/10/25 8.1 (4) other financial factors that affect the level of property taxation and local services
230	230	8.2that the governing body of the county, city, or school district may deem appropriate to
231	231	8.3include.
232	232	8.4 The information may be presented using tables, written narrative, and graphic
233	233	8.5representations and may contain instruction toward further sources of information or
234	234	8.6opportunity for comment.
235	235	8.7 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2027.
236	236	8.8 Sec. 5. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:
237	237	8.9 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
238	238	8.10the tax statements. The commissioner of revenue shall prescribe the form of the property
239	239	8.11tax statement and its contents. The tax statement must not state or imply that property tax
240	240	8.12credits are paid by the state of Minnesota. The statement must contain a tabulated statement
241	241	8.13of the dollar amount due to each taxing authority and the amount of the state tax from the
242	242	8.14parcel of real property for which a particular tax statement is prepared. The dollar amounts
243	243	8.15attributable to the county, the state tax, the voter approved school tax, the other local school
244	244	8.16tax, the township or municipality, and the total of the metropolitan special taxing districts
245	245	8.17as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
246	246	8.18amounts due all other special taxing districts, if any, may be aggregated except that any
247	247	8.19levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
248	248	8.20Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
249	249	8.21under the appropriate county's levy. If the county levy under this paragraph includes an
250	250	8.22amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
251	251	8.23the amount attributable for that purpose must be separately stated from the remaining county
252	252	8.24levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
253	253	8.25an amount for public library service under section 134.07, the amount attributable for that
254	254	8.26purpose may be separated from the remaining county levy amount. The amount of the tax
255	255	8.27on homesteads qualifying under the senior citizens' property tax deferral program under
256	256	8.28chapter 290B is the total amount of property tax before subtraction of the deferred property
257	257	8.29tax amount. The amount of the tax on contamination value imposed under sections 270.91
258	258	8.30to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
259	259	8.31amount of any special assessments, may be rounded to the nearest even whole dollar. For
260	260	8.32purposes of this section whole odd-numbered dollars may be adjusted to the next higher
261	261	8.33even-numbered dollar.
262	262	8Sec. 5.
263	263	REVISOR MS/NS 25-0208501/10/25 9.1 (b) The property tax statements for manufactured homes and sectional structures taxed
264	264	9.2as personal property shall contain the same information that is required on the tax statements
265	265	9.3for real property.
266	266	9.4 (c) Real and personal property tax statements must contain the following information
267	267	9.5in the order given in this paragraph. The information must contain the current year tax
268	268	9.6information in the right column with the corresponding information for the previous year
269	269	9.7in a column on the left:
270	270	9.8 (1) the property's estimated market value under section 273.11, subdivision 1;
271	271	9.9 (2) the property's homestead market value exclusion under section 273.13, subdivision
272	272	9.1035;
273	273	9.11 (3) the property's taxable market value under section 272.03, subdivision 15;
274	274	9.12 (4) the property's gross tax, before credits;
275	275	9.13 (5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
276	276	9.14 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
277	277	9.15273.1389; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
278	278	9.16of credit received under section 273.135 must be separately stated and identified as "taconite
279	279	9.17tax relief"; and
280	280	9.18 (7) the net tax payable in the manner required in paragraph (a).
281	281	9.19 (d) If the county uses envelopes for mailing property tax statements and if the county
282	282	9.20agrees, a taxing district may include a notice with the property tax statement notifying
283	283	9.21taxpayers when the taxing district will begin its budget deliberations for the current year,
284	284	9.22and encouraging taxpayers to attend the hearings. If the county allows notices to be included
285	285	9.23in the envelope containing the property tax statement, and if more than one taxing district
286	286	9.24relative to a given property decides to include a notice with the tax statement, the county
287	287	9.25treasurer or auditor must coordinate the process and may combine the information on a
288	288	9.26single announcement.
289	289	9.27 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2027.
290	290	9Sec. 5.
291	291	REVISOR MS/NS 25-0208501/10/25