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