Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3392 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; modifying eligibility for certain tax programs and
3	3	1.3 classifications; amending Minnesota Statutes 2024, sections 273.124, subdivision
4	4	1.4 13; 290.0661, subdivision 1; 290.0671, subdivision 1.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 273.124, subdivision 13, is amended to read:
7	7	1.7 Subd. 13.Homestead application.(a) A person who meets the homestead requirements
8	8	1.8under subdivision 1 must file a homestead application with the county assessor to initially
9	9	1.9obtain homestead classification.
10	10	1.10 (b) The commissioner shall prescribe the content, format, and manner of the homestead
11	11	1.11application required to be filed under this chapter pursuant to section 270C.30. The
12	12	1.12application must clearly inform the taxpayer that this application must be signed by all
13	13	1.13owners who occupy the property or by the qualifying relative and returned to the county
14	14	1.14assessor in order for the property to receive homestead treatment.
15	15	1.15 (c) Every property owner applying for homestead classification must furnish to the
16	16	1.16county assessor the Social Security number or individual taxpayer identification number of
17	17	1.17each occupant who is listed as an owner of the property on the deed of record, the name
18	18	1.18and address of each owner who does not occupy the property, and the name and Social
19	19	1.19Security number or individual taxpayer identification number of the spouse of each occupying
20	20	1.20owner. The application must be signed by each owner who occupies the property and by
21	21	1.21each owner's spouse who occupies the property, or, in the case of property that qualifies as
22	22	1.22a homestead under subdivision 1, paragraph (c), by the qualifying relative. For purposes of
23	23	1.23this paragraph, an individual taxpayer identification number shall not be accepted by the
24	24	1Section 1.
25	25	25-05369 as introduced04/03/25 REVISOR MS/ES
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 3392NINETY-FOURTH SESSION
29	29	(SENATE AUTHORS: RASMUSSON, Drazkowski and Bahr)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading04/22/2025
32	32	Referred to Taxes 2.1county assessor if the individual taxpayer identification number is assigned to an individual
33	33	2.2who is a noncitizen of the United States who is either undocumented or otherwise not
34	34	2.3lawfully present in the United States.
35	35	2.4 If a property owner occupies a homestead, the property owner's spouse may not claim
36	36	2.5another property as a homestead unless the property owner and the property owner's spouse
37	37	2.6file with the assessor an affidavit or other proof required by the assessor stating that the
38	38	2.7property qualifies as a homestead under subdivision 1, paragraph (e).
39	39	2.8 Owners or spouses occupying residences owned by their spouses and previously occupied
40	40	2.9with the other spouse, either of whom fail to include the other spouse's name and Social
41	41	2.10Security number or individual taxpayer identification number on the homestead application
42	42	2.11or provide the affidavits or other proof requested, will be deemed to have elected to receive
43	43	2.12only partial homestead treatment of their residence. The remainder of the residence will be
44	44	2.13classified as nonhomestead residential. When an owner or spouse's name and Social Security
45	45	2.14number or individual taxpayer identification number appear on homestead applications for
46	46	2.15two separate residences and only one application is signed, the owner or spouse will be
47	47	2.16deemed to have elected to homestead the residence for which the application was signed.
48	48	2.17 (d) If residential real estate is occupied and used for purposes of a homestead by a relative
49	49	2.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
50	50	2.19the property to receive homestead status, a homestead application must be filed with the
51	51	2.20assessor. The Social Security number or individual taxpayer identification number of each
52	52	2.21relative occupying the property and the name and Social Security number or individual
53	53	2.22taxpayer identification number of the spouse of a relative occupying the property shall be
54	54	2.23required on the homestead application filed under this subdivision. If a different relative of
55	55	2.24the owner subsequently occupies the property, the owner of the property must notify the
56	56	2.25assessor within 30 days of the change in occupancy. The Social Security number or individual
57	57	2.26taxpayer identification number of a relative occupying the property or the spouse of a relative
58	58	2.27occupying the property is private data on individuals as defined by section 13.02, subdivision
59	59	2.2812, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding
60	60	2.29under the Revenue Recapture Act to recover personal property taxes owing, to the county
61	61	2.30treasurer.
62	62	2.31 (e) The homestead application shall also notify the property owners that if the property
63	63	2.32is granted homestead status for any assessment year, that same property shall remain
64	64	2.33classified as homestead until the property is sold or transferred to another person, or the
65	65	2.34owners, the spouse of the owner, or the relatives no longer use the property as their
66	66	2.35homestead. Upon the sale or transfer of the homestead property, a certificate of value must
67	67	2Section 1.
68	68	25-05369 as introduced04/03/25 REVISOR MS/ES 3.1be timely filed with the county auditor as provided under section 272.115. Failure to notify
69	69	3.2the assessor within 30 days that the property has been sold, transferred, or that the owner,
70	70	3.3the spouse of the owner, or the relative is no longer occupying the property as a homestead,
71	71	3.4shall result in the penalty provided under this subdivision and the property will lose its
72	72	3.5current homestead status.
73	73	3.6 (f) If a homestead application has not been filed with the county by December 31, the
74	74	3.7assessor shall classify the property as nonhomestead for the current assessment year for
75	75	3.8taxes payable in the following year, provided that the owner may be entitled to receive the
76	76	3.9homestead classification by proper application under section 375.192.
77	77	3.10 EFFECTIVE DATE.This section is effective beginning with homestead applications
78	78	3.11filed in 2026.
79	79	3.12 Sec. 2. Minnesota Statutes 2024, section 290.0661, subdivision 1, is amended to read:
80	80	3.13 Subdivision 1.Definitions.(a) For the purposes of this section, "qualifying child" has
81	81	3.14the meaning given in section 32(c) of the Internal Revenue Code, except:
82	82	3.15 (1) excluding individuals who attained the age of 18 or greater in the taxable year; and
83	83	3.16 (2) section 32(m) of the Internal Revenue Code does not apply.
84	84	3.17 (b) If the taxpayer and qualifying child are noncitizens, paragraph (a), clause (2), is
85	85	3.18applicable only if the taxpayer and qualifying child are documented and lawfully present
86	86	3.19in the United States.
87	87	3.20 EFFECTIVE DATE.This section is effective for taxable years beginning after December
88	88	3.2131, 2024.
89	89	3.22 Sec. 3. Minnesota Statutes 2024, section 290.0671, subdivision 1, is amended to read:
90	90	3.23 Subdivision 1.Credit allowed.(a) An individual who is a resident of Minnesota is
91	91	3.24allowed a credit against the tax imposed by this chapter equal to a percentage of earned
92	92	3.25income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
93	93	3.26Internal Revenue Code, except that:
94	94	3.27 (1) a taxpayer with no qualifying children who has attained the age of 19, but not attained
95	95	3.28age 65 before the close of the taxable year and is otherwise eligible for a credit under section
96	96	3.2932 of the Internal Revenue Code may also receive a credit;
97	97	3.30 (2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal
98	98	3.31Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted
99	99	3Sec. 3.
100	100	25-05369 as introduced04/03/25 REVISOR MS/ES 4.1gross income exceeds the income limitation under section 32 of the Internal Revenue Code;
101	101	4.2and
102	102	4.3 (3) section 32(m) of the Internal Revenue Code does not apply.
103	103	4.4 (b) If the taxpayer and qualifying child are noncitizens, paragraph (a), clause (3), is
104	104	4.5applicable only if the taxpayer and qualifying child are documented and lawfully present
105	105	4.6in the United States.
106	106	4.7 (b) (c) A taxpayer's working family credit equals four percent of the first $8,750 of
107	107	4.8earned income.
108	108	4.9 (c) (d) The credit under this section is increased by:
109	109	4.10 (1) $925 for a taxpayer with one qualifying older child;
110	110	4.11 (2) $2,100 for a taxpayer with two qualifying older children; or
111	111	4.12 (3) $2,500 for a taxpayer with three or more qualifying older children.
112	112	4.13 (d) (e) The credit under this section is phased out jointly with the credit under section
113	113	4.14290.0661, subdivision 4. For a taxpayer with one or more qualifying older children who
114	114	4.15did not qualify for the credit under section 290.0661, the phaseout rate equals nine percent.
115	115	4.16 (e) (f) For a person who was a resident for the entire tax year and has earned income not
116	116	4.17subject to tax under this chapter, the credit must be allocated based on the ratio of federal
117	117	4.18adjusted gross income reduced by the earned income not subject to tax under this chapter
118	118	4.19over federal adjusted gross income. For purposes of this paragraph, the following clauses
119	119	4.20are not considered "earned income not subject to tax under this chapter":
120	120	4.21 (1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
121	121	4.22 (2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
122	122	4.23 (3) income derived from an Indian reservation by an enrolled member of the reservation
123	123	4.24while living on the reservation.
124	124	4.25 EFFECTIVE DATE.This section is effective for taxable years beginning after December
125	125	4.2631, 2024.
126	126	4Sec. 3.
127	127	25-05369 as introduced04/03/25 REVISOR MS/ES