MN
Minnesota Senate Bill SF416

Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF416

Introduced
1/21/25  

Caption

Homestead market value exclusion modification for certain years

Impact

The proposed changes in SF416 will likely lead to a decrease in property tax burdens for many homeowners, particularly those with properties valued at or below $95,000, as they will continue to benefit from a substantial 40% market value exclusion. Moreover, the bill temporarily increases property tax refund amounts for assessments payable in 2026 and 2027, directing more financial support to homeowners most in need based on income thresholds provided in the legislation. This approach aims to mitigate the financial impact of potential tax liabilities on families during the years specified.

Summary

SF416 is a legislative proposal aimed at modifying the current homestead market value exclusion framework within Minnesota's property tax system. Specifically, it seeks to amend existing statutes to introduce new valuation exclusion rates for homesteads based on their market value during assessment years 2025 and 2026. The new structure provides significant tax relief for lower-valued homesteads while modifying the exclusion criteria for mid-range valued properties. The bill establishes new thresholds that will affect how property tax refunds are calculated, especially for taxpayers with varied income levels.

Contention

While proponents of SF416 argue that the modifications will make property tax burdens more equitable, opponents may voice concerns regarding the long-term fiscal implications for state revenue. Adjusted tax refunds and valuation exclusions could lead to significant revenue reductions for local governments that rely on property taxes as a primary funding source. Additionally, some legislators might contend that the bill's income thresholds for refund eligibility may not adequately address the needs of all lower-income homeowners, thus resulting in a debate surrounding the sufficiency and equity of the proposed tax relief measures.

Latest SF416 Activity

Companion Bills

No companion bills found.

Similar Bills

MN HF1343

Property tax provisions modified, and identification requirements for homestead determination modified.

MN SF174

Application permission for homestead classification to use federal taxpayer identification numbers in lieu of Social Security Numbers

MN SF3392

Eligibility modification for certain tax programs and classifications

TX HJR87

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

TX HJR20

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

TX HJR19

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

MN HF1029

Property tax provisions modified, first-tier valuation limit for agricultural homestead properties modified, homestead resort property tier limits modified, homestead market value exclusion modified, and state general levy reduced.

MN SF973

First-tier valuation limit modification for agricultural homestead properties