1.1 A bill for an act
1.2 relating to taxation; property; limiting valuation increase on residential properties;
1.3 modifying property tax rates; amending Minnesota Statutes 2024, sections 273.11,
1.4 by adding a subdivision; 275.08, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 273.11, is amended by adding a subdivision
1.7to read:
1.8 Subd. 24.Limited residential market value.(a) In the case of all property classified
1.9as agricultural homestead or nonhomestead and residential homestead or nonhomestead,
1.10the assessor shall compare the value with the taxable portion of the value determined in the
1.11preceding assessment. For assessment year 2025 and thereafter, the amount of the increase
1.12shall not exceed two percent of the value in the preceding assessment.
1.13 (b) When property in paragraph (a) is sold, a county assessor may reassess the residential
1.14property at the current fair market value for the property.
1.15 (c) The limitation in paragraph (a) shall not apply to increases in value due to
1.16improvements.
1.17 EFFECTIVE DATE.This section is effective for assessment year 2025 and thereafter.
1.18 Sec. 2. Minnesota Statutes 2024, section 275.08, is amended by adding a subdivision to
1.19read:
1.20 Subd. 5.Residential property tax adjustment.Before the county auditor spreads the
1.21taxes, when calculating the net tax capacity and local tax rates, the county auditor shall
1.22adjust the amounts for parcels classified as agricultural homestead, agricultural
1Sec. 2.
25-01120 as introduced01/08/25 REVISOR MS/CH
SENATE
STATE OF MINNESOTA
S.F. No. 419NINETY-FOURTH SESSION
(SENATE AUTHORS: EICHORN and Bahr)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/21/2025
Referred to Taxes 2.1nonhomestead, residential homestead, and residential nonhomestead so that the property
2.2tax for each parcel is limited to one percent of the current year assessment value for each
2.3parcel.
2.4 EFFECTIVE DATE.This section is effective for property taxes payable in 2026 and
2.5thereafter.
2Sec. 2.
25-01120 as introduced01/08/25 REVISOR MS/CH