Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF199 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property; establishing the redevelopment area homestead
3	3	1.3 credit; appropriating money; amending Minnesota Statutes 2024, sections 273.1392;
4	4	1.4 273.1393; 275.065, subdivision 3; 275.07, by adding a subdivision; 275.08,
5	5	1.5 subdivision 1b; 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] REDEVELOPMENT AREA HOMESTEAD CREDIT.
9	9	1.9 Subdivision 1.Eligibility.Property is eligible to receive the credit under this section if
10	10	1.10it is classified as 1a or 1b under section 273.13, subdivision 22, and is located in a city of
11	11	1.11the second class that was designated as a redevelopment area by the United States Department
12	12	1.12of Commerce under the Public Works and Economic Development Act of 1965, Public
13	13	1.13Law 89-136, title IV, section 401(a)(4).
14	14	1.14 Subd. 2.Credit amount.For each qualifying property, the credit under this section is
15	15	1.15equal to 70 percent multiplied by the property's net tax capacity multiplied by the city capital
16	16	1.16debt tax rate determined under section 275.08, subdivision 1b, paragraph (d).
17	17	1.17 Subd. 3.Credit reimbursements.The county auditor shall determine the tax reductions
18	18	1.18allowed under this section within the county for each taxes payable year and shall certify
19	19	1.19that amount to the commissioner of revenue under section 270C.85, subdivision 2, clause
20	20	1.20(4). The county auditor shall also certify any prior year adjustments. The commissioner
21	21	1.21shall review the certifications for accuracy, and may make such changes as are deemed
22	22	1.22necessary, or return the certification to the county auditor for correction. The credit under
23	23	1.23this section must be used to reduce the city net tax capacity-based property tax as provided
24	24	1.24in section 273.1393.
25	25	1Section 1.
26	26	25-01004 as introduced12/12/24 REVISOR MS/MI
27	27	SENATE
28	28	STATE OF MINNESOTA
29	29	S.F. No. 199NINETY-FOURTH SESSION
30	30	(SENATE AUTHORS: KLEIN and Housley)
31	31	OFFICIAL STATUSD-PGDATE
32	32	Introduction and first reading01/16/2025
33	33	Referred to Taxes 2.1 Subd. 4.Payment.The commissioner of revenue shall reimburse each local taxing
34	34	2.2jurisdiction for the tax reductions granted under this section in two equal installments on
35	35	2.3October 31 and December 26 of the taxes payable year for which the reductions are granted,
36	36	2.4including in each payment the prior year adjustments certified under section 270C.85,
37	37	2.5subdivision 2, for that taxes payable year.
38	38	2.6 Subd. 5.Appropriation.An amount sufficient to make payments required by this section
39	39	2.7is annually appropriated from the general fund to the commissioner of revenue.
40	40	2.8 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
41	41	2.9 Sec. 2. Minnesota Statutes 2024, section 273.1392, is amended to read:
42	42	2.10 273.1392 PAYMENT; SCHOOL DISTRICTS.
43	43	2.11 The amounts of bovine tuberculosis credit reimbursements under section 273.113;
44	44	2.12conservation tax credits under section 273.119; disaster or emergency reimbursement under
45	45	2.13sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
46	46	2.14the redevelopment area homestead credit under section 273.1388; aids and credits under
47	47	2.15section 273.1398; enterprise zone property credit payments under section 469.171;
48	48	2.16metropolitan agricultural preserve reduction under section 473H.10; and electric generation
49	49	2.17transition aid under section 477A.24 for school districts, shall be certified to the Department
50	50	2.18of Education by the Department of Revenue. The amounts so certified shall be paid according
51	51	2.19to section 127A.45, subdivisions 9, 10, and 13.
52	52	2.20 EFFECTIVE DATE.This section is effective beginning with fiscal year 2027.
53	53	2.21 Sec. 3. Minnesota Statutes 2024, section 273.1393, is amended to read:
54	54	2.22 273.1393 COMPUTATION OF NET PROPERTY TAXES.
55	55	2.23 Notwithstanding any other provisions to the contrary, "net" property taxes are determined
56	56	2.24by subtracting the credits in the order listed from the gross tax:
57	57	2.25 (1) disaster credit as provided in sections 273.1231 to 273.1235;
58	58	2.26 (2) powerline credit as provided in section 273.42;
59	59	2.27 (3) agricultural preserves credit as provided in section 473H.10;
60	60	2.28 (4) enterprise zone credit as provided in section 469.171;
61	61	2.29 (5) disparity reduction credit;
62	62	2.30 (6) conservation tax credit as provided in section 273.119;
63	63	2Sec. 3.
64	64	25-01004 as introduced12/12/24 REVISOR MS/MI 3.1 (7) the school bond credit as provided in section 273.1387;
65	65	3.2 (8) agricultural credit as provided in section 273.1384;
66	66	3.3 (9) taconite homestead credit as provided in section 273.135;
67	67	3.4 (10) supplemental homestead credit as provided in section 273.1391; and
68	68	3.5 (11) the bovine tuberculosis zone credit, as provided in section 273.113.; and
69	69	3.6 (12) the redevelopment area homestead credit, as provided in section 273.1388.
70	70	3.7 The combination of all property tax credits must not exceed the gross tax amount.
71	71	3.8 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
72	72	3.9 Sec. 4. Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:
73	73	3.10 Subd. 3.Notice of proposed property taxes.(a) The county auditor shall prepare and
74	74	3.11the county treasurer shall deliver after November 10 and on or before November 24 each
75	75	3.12year, by first class mail to each taxpayer at the address listed on the county's current year's
76	76	3.13assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
77	77	3.14the treasurer may send the notice in electronic form or by electronic mail instead of on paper
78	78	3.15or by ordinary mail.
79	79	3.16 (b) The commissioner of revenue shall prescribe the form of the notice.
80	80	3.17 (c) The notice must inform taxpayers that it contains the amount of property taxes each
81	81	3.18taxing authority proposes to collect for taxes payable the following year. In the case of a
82	82	3.19town, or in the case of the state general tax, the final tax amount will be its proposed tax.
83	83	3.20The notice must clearly state for each city that has a population over 500, county, school
84	84	3.21district, regional library authority established under section 134.201, metropolitan taxing
85	85	3.22districts as defined in paragraph (i), and fire protection and emergency medical services
86	86	3.23special taxing districts established under section 144F.01, the time and place of a meeting
87	87	3.24for each taxing authority in which the budget and levy will be discussed and public input
88	88	3.25allowed, prior to the final budget and levy determination. The taxing authorities must provide
89	89	3.26the county auditor with the information to be included in the notice on or before the time it
90	90	3.27certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
91	91	3.28meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
92	92	3.29must provide a website address and a telephone number for the taxing authority that taxpayers
93	93	3.30may call if they have questions related to the notice and an address where comments will
94	94	3.31be received by mail, except that no notice required under this section shall be interpreted
95	95	3.32as requiring the printing of a personal telephone number or address as the contact information
96	96	3Sec. 4.
97	97	25-01004 as introduced12/12/24 REVISOR MS/MI 4.1for a taxing authority. If a taxing authority does not maintain a website or public offices
98	98	4.2where telephone calls can be received by the authority, the authority may inform the county
99	99	4.3of the lack of a public website or telephone number and the county shall not list a website
100	100	4.4or telephone number for that taxing authority.
101	101	4.5 (d) The notice must state for each parcel:
102	102	4.6 (1) the market value of the property as determined under section 273.11, and used for
103	103	4.7computing property taxes payable in the following year and for taxes payable in the current
104	104	4.8year as each appears in the records of the county assessor on November 1 of the current
105	105	4.9year; and, in the case of residential property, whether the property is classified as homestead
106	106	4.10or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
107	107	4.11values apply and that the values are final values;
108	108	4.12 (2) the items listed below, shown separately by county, city or town, and state general
109	109	4.13tax, agricultural homestead credit under section 273.1384, school building bond agricultural
110	110	4.14credit under section 273.1387, the redevelopment area homestead credit under section
111	111	4.15273.1388, voter approved school levy, other local school levy, and the sum of the special
112	112	4.16taxing districts, and as a total of all taxing authorities:
113	113	4.17 (i) the actual tax for taxes payable in the current year; and
114	114	4.18 (ii) the proposed tax amount.
115	115	4.19 If the county levy under clause (2) includes an amount for a lake improvement district
116	116	4.20as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
117	117	4.21must be separately stated from the remaining county levy amount.
118	118	4.22 In the case of a town or the state general tax, the final tax shall also be its proposed tax
119	119	4.23unless the town changes its levy at a special town meeting under section 365.52. If a school
120	120	4.24district has certified under section 126C.17, subdivision 9, that a referendum will be held
121	121	4.25in the school district at the November general election, the county auditor must note next
122	122	4.26to the school district's proposed amount that a referendum is pending and that, if approved
123	123	4.27by the voters, the tax amount may be higher than shown on the notice. In the case of the
124	124	4.28city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
125	125	4.29from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
126	126	4.30the St. Paul Library Agency must be listed separately from the remaining amount of the
127	127	4.31city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
128	128	4.32listed separately from the remaining amount of the county's levy. In the case of a parcel
129	129	4.33where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
130	130	4.34applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
131	131	4Sec. 4.
132	132	25-01004 as introduced12/12/24 REVISOR MS/MI 5.1capacity subject to the areawide tax must each be stated separately and not included in the
133	133	5.2sum of the special taxing districts; and
134	134	5.3 (3) the increase or decrease between the total taxes payable in the current year and the
135	135	5.4total proposed taxes, expressed as a percentage.
136	136	5.5 For purposes of this section, the amount of the tax on homesteads qualifying under the
137	137	5.6senior citizens' property tax deferral program under chapter 290B is the total amount of
138	138	5.7property tax before subtraction of the deferred property tax amount.
139	139	5.8 (e) The notice must clearly state that the proposed or final taxes do not include the
140	140	5.9following:
141	141	5.10 (1) special assessments;
142	142	5.11 (2) levies approved by the voters after the date the proposed taxes are certified, including
143	143	5.12bond referenda and school district levy referenda;
144	144	5.13 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
145	145	5.14in November of the levy year as provided under section 275.73;
146	146	5.15 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
147	147	5.16after the date the proposed taxes are certified;
148	148	5.17 (5) amounts necessary to pay tort judgments against the taxing authority that become
149	149	5.18final after the date the proposed taxes are certified; and
150	150	5.19 (6) the contamination tax imposed on properties which received market value reductions
151	151	5.20for contamination.
152	152	5.21 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
153	153	5.22county treasurer to deliver the notice as required in this section does not invalidate the
154	154	5.23proposed or final tax levy or the taxes payable pursuant to the tax levy.
155	155	5.24 (g) If the notice the taxpayer receives under this section lists the property as
156	156	5.25nonhomestead, and satisfactory documentation is provided to the county assessor by the
157	157	5.26applicable deadline, and the property qualifies for the homestead classification in that
158	158	5.27assessment year, the assessor shall reclassify the property to homestead for taxes payable
159	159	5.28in the following year.
160	160	5.29 (h) In the case of class 4 residential property used as a residence for lease or rental
161	161	5.30periods of 30 days or more, the taxpayer must either:
162	162	5.31 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
163	163	5.32or lessee; or
164	164	5Sec. 4.
165	165	25-01004 as introduced12/12/24 REVISOR MS/MI 6.1 (2) post a copy of the notice in a conspicuous place on the premises of the property.
166	166	6.2 The notice must be mailed or posted by the taxpayer by November 27 or within three
167	167	6.3days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
168	168	6.4of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
169	169	6.5notice must be mailed in order to fulfill the requirements of this paragraph.
170	170	6.6 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
171	171	6.7districts" means the following taxing districts in the seven-county metropolitan area that
172	172	6.8levy a property tax for any of the specified purposes listed below:
173	173	6.9 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
174	174	6.10473.521, 473.547, or 473.834;
175	175	6.11 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
176	176	6.12 (3) Metropolitan Mosquito Control Commission under section 473.711.
177	177	6.13 For purposes of this section, any levies made by the regional rail authorities in the county
178	178	6.14of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
179	179	6.15shall be included with the appropriate county's levy.
180	180	6.16 (j) The governing body of a county, city, or school district may, with the consent of the
181	181	6.17county board, include supplemental information with the statement of proposed property
182	182	6.18taxes about the impact of state aid increases or decreases on property tax increases or
183	183	6.19decreases and on the level of services provided in the affected jurisdiction. This supplemental
184	184	6.20information may include information for the following year, the current year, and for as
185	185	6.21many consecutive preceding years as deemed appropriate by the governing body of the
186	186	6.22county, city, or school district. It may include only information regarding:
187	187	6.23 (1) the impact of inflation as measured by the implicit price deflator for state and local
188	188	6.24government purchases;
189	189	6.25 (2) population growth and decline;
190	190	6.26 (3) state or federal government action; and
191	191	6.27 (4) other financial factors that affect the level of property taxation and local services
192	192	6.28that the governing body of the county, city, or school district may deem appropriate to
193	193	6.29include.
194	194	6.30 The information may be presented using tables, written narrative, and graphic
195	195	6.31representations and may contain instruction toward further sources of information or
196	196	6.32opportunity for comment.
197	197	6Sec. 4.
198	198	25-01004 as introduced12/12/24 REVISOR MS/MI 7.1 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
199	199	7.2 Sec. 5. Minnesota Statutes 2024, section 275.07, is amended by adding a subdivision to
200	200	7.3read:
201	201	7.4 Subd. 2a.City capital projects levies.Each city containing property eligible for the
202	202	7.5redevelopment area homestead credit under section 273.1388 must certify to the county
203	203	7.6auditor the portion of the city levy that is levied for repayment of capital improvement bonds
204	204	7.7issued under section 475.521.
205	205	7.8 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
206	206	7.9 Sec. 6. Minnesota Statutes 2024, section 275.08, subdivision 1b, is amended to read:
207	207	7.10 Subd. 1b.Computation of tax rates.(a) The amounts certified to be levied against net
208	208	7.11tax capacity under section 275.07 by an individual local government unit shall be divided
209	209	7.12by the total net tax capacity of all taxable properties within the local government unit's
210	210	7.13taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by
211	211	7.14each property's net tax capacity shall be each property's net tax capacity tax for that local
212	212	7.15government unit before reduction by any credits.
213	213	7.16 (b) The auditor must also determine the school debt tax rate for each school district equal
214	214	7.17to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by
215	215	7.18(2) the total net tax capacity of all taxable property within the district.
216	216	7.19 (c) Any amount certified to the county auditor to be levied against market value shall
217	217	7.20be divided by the total referendum market value of all taxable properties within the taxing
218	218	7.21district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each
219	219	7.22property's referendum market value shall be each property's new referendum tax before
220	220	7.23reduction by any credits. For the purposes of this subdivision, "referendum market value"
221	221	7.24means the market value as defined in section 126C.01, subdivision 3.
222	222	7.25 (d) The auditor in a county that contains property eligible for the redevelopment area
223	223	7.26homestead credit under section 273.1388 must also determine the city capital debt tax rate
224	224	7.27for each city containing eligible properties. For the purposes of this paragraph, the city
225	225	7.28capital debt tax rate is equal to (1) the city's levy amount certified under section 275.07,
226	226	7.29subdivision 2a, divided by (2) the total net tax capacity of all taxable property within the
227	227	7.30city.
228	228	7.31 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
229	229	7Sec. 6.
230	230	25-01004 as introduced12/12/24 REVISOR MS/MI 8.1 Sec. 7. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:
231	231	8.2 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
232	232	8.3the tax statements. The commissioner of revenue shall prescribe the form of the property
233	233	8.4tax statement and its contents. The tax statement must not state or imply that property tax
234	234	8.5credits are paid by the state of Minnesota. The statement must contain a tabulated statement
235	235	8.6of the dollar amount due to each taxing authority and the amount of the state tax from the
236	236	8.7parcel of real property for which a particular tax statement is prepared. The dollar amounts
237	237	8.8attributable to the county, the state tax, the voter approved school tax, the other local school
238	238	8.9tax, the township or municipality, and the total of the metropolitan special taxing districts
239	239	8.10as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
240	240	8.11amounts due all other special taxing districts, if any, may be aggregated except that any
241	241	8.12levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
242	242	8.13Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
243	243	8.14under the appropriate county's levy. If the county levy under this paragraph includes an
244	244	8.15amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
245	245	8.16the amount attributable for that purpose must be separately stated from the remaining county
246	246	8.17levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
247	247	8.18an amount for public library service under section 134.07, the amount attributable for that
248	248	8.19purpose may be separated from the remaining county levy amount. The amount of the tax
249	249	8.20on homesteads qualifying under the senior citizens' property tax deferral program under
250	250	8.21chapter 290B is the total amount of property tax before subtraction of the deferred property
251	251	8.22tax amount. The amount of the tax on contamination value imposed under sections 270.91
252	252	8.23to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
253	253	8.24amount of any special assessments, may be rounded to the nearest even whole dollar. For
254	254	8.25purposes of this section whole odd-numbered dollars may be adjusted to the next higher
255	255	8.26even-numbered dollar.
256	256	8.27 (b) The property tax statements for manufactured homes and sectional structures taxed
257	257	8.28as personal property shall contain the same information that is required on the tax statements
258	258	8.29for real property.
259	259	8.30 (c) Real and personal property tax statements must contain the following information
260	260	8.31in the order given in this paragraph. The information must contain the current year tax
261	261	8.32information in the right column with the corresponding information for the previous year
262	262	8.33in a column on the left:
263	263	8.34 (1) the property's estimated market value under section 273.11, subdivision 1;
264	264	8Sec. 7.
265	265	25-01004 as introduced12/12/24 REVISOR MS/MI 9.1 (2) the property's homestead market value exclusion under section 273.13, subdivision
266	266	9.235;
267	267	9.3 (3) the property's taxable market value under section 272.03, subdivision 15;
268	268	9.4 (4) the property's gross tax, before credits;
269	269	9.5 (5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
270	270	9.6 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
271	271	9.7273.1388; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
272	272	9.8of credit received under section 273.135 must be separately stated and identified as "taconite
273	273	9.9tax relief"; and
274	274	9.10 (7) the net tax payable in the manner required in paragraph (a).
275	275	9.11 (d) If the county uses envelopes for mailing property tax statements and if the county
276	276	9.12agrees, a taxing district may include a notice with the property tax statement notifying
277	277	9.13taxpayers when the taxing district will begin its budget deliberations for the current year,
278	278	9.14and encouraging taxpayers to attend the hearings. If the county allows notices to be included
279	279	9.15in the envelope containing the property tax statement, and if more than one taxing district
280	280	9.16relative to a given property decides to include a notice with the tax statement, the county
281	281	9.17treasurer or auditor must coordinate the process and may combine the information on a
282	282	9.18single announcement.
283	283	9.19 EFFECTIVE DATE.This section is effective beginning with taxes payable in 2026.
284	284	9Sec. 7.
285	285	25-01004 as introduced12/12/24 REVISOR MS/MI