1.1 A bill for an act
1.2 relating to taxation; property; limiting annual valuation increase on residential
1.3 properties; amending Minnesota Statutes 2024, section 273.11, by adding a
1.4 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.Residential valuation increase limitation.(a) In determining the market
1.9value of residential property, a county assessor shall not increase the market value of
1.10residential property by more than three percent of the prior year's assessment value.
1.11 (b) When residential property is sold, the limitation in paragraph (a) shall not apply for
1.12the following assessment year. During a sale of residential property, a purchaser or an agent
1.13of a purchaser may request the county auditor provide a property tax estimate based off the
1.14current year's fair market value of the property.
1.15 (c) If the estimated market value of a sold residential property increases more than .......
1.16percent over the prior year's assessment value, the county auditor shall spread the percent
1.17increase across the net tax capacity of all residential properties effective for taxes payable
1.18in the two years following the next taxes payable year.
1.19 EFFECTIVE DATE.This section is effective for assessment year 2026 and thereafter.
1Section 1.
25-01118 as introduced12/17/24 REVISOR MS/CH
SENATE
STATE OF MINNESOTA
S.F. No. 420NINETY-FOURTH SESSION
(SENATE AUTHORS: EICHORN, Farnsworth and Bahr)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/21/2025
Referred to Taxes