Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3260 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 taxes; property taxes; modifying the market value exclusion for veterans
3	3	1.3 with a disability; increasing the exclusion amounts annually with inflation;
4	4	1.4 modifying the benefit for surviving spouses; amending Minnesota Statutes 2024,
5	5	1.5 section 273.13, subdivision 34.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 273.13, subdivision 34, is amended to read:
8	8	1.8 Subd. 34.Homestead of veteran with a disability or family caregiver.(a) All or a
9	9	1.9portion of the market value of property owned by a veteran and serving as the veteran's
10	10	1.10homestead under this section is excluded in determining the property's taxable market value
11	11	1.11if the veteran has a service-connected disability of 70 percent or more as certified by the
12	12	1.12United States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
13	13	1.13the veteran must have been honorably discharged from the United States armed forces, as
14	14	1.14indicated by United States Government Form DD214 or other official military discharge
15	15	1.15papers.
16	16	1.16 (b)(1) For a disability rating of 70 percent or more, $150,000 the amount of market value
17	17	1.17is excluded is the exclusion base amount, except as provided in clause (2); and
18	18	1.18 (2) for a total (100 percent) and permanent disability, $300,000 the amount of market
19	19	1.19value is excluded is two times the exclusion base amount.
20	20	1.20For the purposes of this paragraph, the exclusion base amount for assessment year 2026 is
21	21	1.21$200,000. For assessment year 2027 and thereafter, the exclusion base amount is adjusted
22	22	1.22annually by multiplying the exclusion base amount for the prior assessment year by the sum
23	23	1.23of one plus the percentage increase, if any, in the implicit price deflator for government
24	24	1Section 1.
25	25	25-01684 as introduced01/03/25 REVISOR MS/CH
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 3260NINETY-FOURTH SESSION
29	29	(SENATE AUTHORS: KUPEC, Limmer and Klein)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading04/03/2025
32	32	Referred to Taxes 2.1consumption expenditures and gross investment for state and local governments prepared
33	33	2.2by the Bureau of Economic Analysis of the United States Department of Commerce for the
34	34	2.312-month period ending March 31 of the prior assessment year.
35	35	2.4 (c) If a veteran with a disability qualifying for a valuation exclusion under paragraph
36	36	2.5(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
37	37	2.6spouse holds the legal or beneficial title to the homestead and permanently resides there,
38	38	2.7the exclusion shall carry over to the benefit of the veteran's spouse until such time as the
39	39	2.8spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise
40	40	2.9provided in paragraph (n). Qualification under this paragraph requires an application under
41	41	2.10paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
42	42	2.11marital status, ownership of the property, or use of the property as a permanent residence.
43	43	2.12 (d) If the spouse of a member of any branch or unit of the United States armed forces
44	44	2.13who dies due to a service-connected cause while serving honorably in active service, as
45	45	2.14indicated on United States Government Form DD1300 or DD2064, holds the legal or
46	46	2.15beneficial title to a homestead and permanently resides there, the spouse is entitled to the
47	47	2.16benefit described in paragraph (b), clause (2), until such time as the spouse remarries or
48	48	2.17sells, transfers, or otherwise disposes of the property, except as otherwise provided in
49	49	2.18paragraph (n). If the death of the service member occurred while the service member and
50	50	2.19the spouse lived outside of Minnesota, the surviving spouse is eligible for the exclusion
51	51	2.20pursuant to this paragraph. The exclusion may be applied to the surviving spouse's homestead
52	52	2.21at the time of initial application, until such time as the spouse sells, transfers, or otherwise
53	53	2.22disposes of the property, except as otherwise provided in paragraph (n).
54	54	2.23 (e) If a veteran meets the disability criteria of paragraph (a) but does not own property
55	55	2.24classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
56	56	2.25family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
57	57	2.26for under paragraph (b).
58	58	2.27 (f) In the case of an agricultural homestead, only the portion of the property consisting
59	59	2.28of the house and garage and immediately surrounding one acre of land qualifies for the
60	60	2.29valuation exclusion under this subdivision.
61	61	2.30 (g) A property qualifying for a valuation exclusion under this subdivision is not eligible
62	62	2.31for the market value exclusion under subdivision 35, or classification under subdivision 22,
63	63	2.32paragraph (b).
64	64	2.33 (h) To qualify for a valuation exclusion under this subdivision a property owner must
65	65	2.34apply to the assessor by December 31 of the first assessment year for which the exclusion
66	66	2Section 1.
67	67	25-01684 as introduced01/03/25 REVISOR MS/CH 3.1is sought. Except as provided in paragraph (c), the owner of a property that has been accepted
68	68	3.2for a valuation exclusion must notify the assessor if there is a change in ownership of the
69	69	3.3property or in the use of the property as a homestead.
70	70	3.4 (i) A first-time application by a qualifying spouse for the market value exclusion under
71	71	3.5paragraph (d) must be made any time within two years of may be filed any time after the
72	72	3.6death of the service member. A qualifying spouse whose application was previously denied
73	73	3.7may reapply pursuant to this paragraph for the exclusion to begin in the current assessment
74	74	3.8year.
75	75	3.9 (j) For purposes of this subdivision:
76	76	3.10 (1) "active service" has the meaning given in section 190.05;
77	77	3.11 (2) "own" means that the person's name is present as an owner on the property deed;
78	78	3.12 (3) "primary family caregiver" means a person who is approved by the secretary of the
79	79	3.13United States Department of Veterans Affairs for assistance as the primary provider of
80	80	3.14personal care services for an eligible veteran under the Program of Comprehensive Assistance
81	81	3.15for Family Caregivers, codified as United States Code, title 38, section 1720G; and
82	82	3.16 (4) "veteran" has the meaning given the term in means a person defined under section
83	83	3.17197.447 or a service member who has not been discharged.
84	84	3.18 (k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause
85	85	3.19(2), before dying, or the exclusion under paragraph (b), clause (2), did not exist at the time
86	86	3.20of the veterans death, the veteran's spouse is entitled to the benefit under paragraph (b),
87	87	3.21clause (2), until the spouse remarries or sells, transfers, or otherwise disposes of the property,
88	88	3.22except as otherwise provided in paragraph (n), if:
89	89	3.23 (1) the spouse files a first-time application;
90	90	3.24 (2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
91	91	3.25homestead and permanently resides there; and
92	92	3.26 (3) the veteran met the honorable discharge requirements of paragraph (a); and
93	93	3.27 (4) (3) the United States Department of Veterans Affairs certifies that:
94	94	3.28 (i) the veteran met the total (100 percent) and permanent disability requirement under
95	95	3.29paragraph (b), clause (2); or
96	96	3.30 (ii) the spouse has been awarded dependency and indemnity compensation.
97	97	3Section 1.
98	98	25-01684 as introduced01/03/25 REVISOR MS/CH 4.1 (l) The purpose of this provision of law providing a level of homestead property tax
99	99	4.2relief for veterans with a disability, their primary family caregivers, and their surviving
100	100	4.3spouses is to help ease the burdens of war for those among our state's citizens who bear
101	101	4.4those burdens most heavily.
102	102	4.5 (m) By July 1, the county veterans service officer must certify the disability rating and
103	103	4.6permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
104	104	4.7 (n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
105	105	4.8the legal or beneficial title to the property may continue to receive the exclusion for a
106	106	4.9property other than the property for which the exclusion was initially granted until the spouse
107	107	4.10remarries or sells, transfers, or otherwise disposes of the property, provided that:
108	108	4.11 (1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
109	109	4.12under this paragraph;
110	110	4.13 (2) the spouse holds the legal or beneficial title to the property for which the continuation
111	111	4.14of the exclusion is sought under this paragraph, and permanently resides there; and
112	112	4.15 (3) the estimated market value of the property for which the exclusion is sought under
113	113	4.16this paragraph is less than or equal to the estimated market value of the property that first
114	114	4.17received the exclusion, based on the value of each property on the date of the sale of the
115	115	4.18property that first received the exclusion; and
116	116	4.19 (4) (3) the spouse has not previously received the benefit under this paragraph for a
117	117	4.20property other than the property for which the exclusion is sought.
118	118	4.21 (o) If a spouse had previously received the exclusion under paragraph (c) or (d) and the
119	119	4.22exclusion expired prior to taxes payable in 2020, the spouse may reapply under this section
120	120	4.23for the exclusion under paragraph (c) or (d).
121	121	4.24 EFFECTIVE DATE.This section is effective for assessment year 2026 and thereafter.
122	122	4Section 1.
123	123	25-01684 as introduced01/03/25 REVISOR MS/CH