1.1 A bill for an act
1.2 relating to taxation; property; establishing the senior credit; appropriating money;
1.3 amending Minnesota Statutes 2024, sections 273.1392; 273.1393; 275.065,
1.4 subdivision 3; 276.04, subdivision 2; proposing coding for new law in Minnesota
1.5 Statutes, chapter 273.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [273.1389] SENIOR CREDIT.
1.8 Subdivision 1.Eligibility.Property is eligible for a credit under this section provided
1.9that:
1.10 (1) the property is classified as 1a or 1b under section 273.13, subdivision 22; 4d(2)
1.11under section 273.13, subdivision 25; or is the portion of an agricultural homestead under
1.12section 273.13, subdivision 23, consisting of the house, garage, and immediately surrounding
1.13one acre of land;
1.14 (2) the property is owned and occupied as a homestead by a person 65 years of age or
1.15older. In the case of a married couple, at least one spouse must be at least 65 years of age
1.16and the other spouse must be at least 62 years of age; and
1.17 (3) the property has been owned and occupied as the homestead of at least one of the
1.18homeowners since January 2 of the calendar year in which the initial application under
1.19subdivision 2 is submitted.
1.20 Subd. 2.Initial application.(a) The owner of property meeting the qualifications under
1.21subdivision 1 may apply to the county assessor to receive the credit under this section.
1.22Applications are due by December 15 of the taxes payable year prior to the taxes payable
1.23year in which the credit is first granted. A taxpayer may first apply in the calendar year in
1Section 1.
25-01448 as introduced12/18/24 REVISOR MS/VJ
SENATE
STATE OF MINNESOTA
S.F. No. 443NINETY-FOURTH SESSION
(SENATE AUTHORS: COLEMAN)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/21/2025
Referred to Taxes 2.1which the taxpayer becomes 65 years of age. The application must be in a form and manner
2.2prescribed by the county assessor and must include the following items and any other
2.3information the county assessor deems necessary:
2.4 (1) the name, address, and Social Security number or individual taxpayer identification
2.5number of the owner or owners; and
2.6 (2) the initial date of ownership and occupancy of the property as a homestead, except
2.7that if this date is prior to the calendar year in which the application is submitted, only the
2.8year must be provided.
2.9 (b) Properties determined to be eligible after the application under paragraph (a) must
2.10continue to receive the credit under this section for subsequent taxes payable years until
2.11one of the following occurs:
2.12 (1) the property is sold or transferred;
2.13 (2) the death of all qualifying homeowners; or
2.14 (3) the property no longer qualifies as a homestead.
2.15 Subd. 3.Credit amount.The annual credit amount under this section is equal to the
2.16difference between (1) the amount of tax due in the current taxes payable year on an eligible
2.17property, after the application of all other property tax credits, minus (2) the product of (i)
2.181.08, times (ii) the amount of tax due in the previous taxes payable year on the property
2.19after the application of all property tax credits. The credit amount cannot be less than $0.
2.20If the credit amount reduces the overall tax on the property to less than $0, the credit amount
2.21must be reduced so that the overall tax on the property is equal to $0.
2.22 Subd. 4.Credit reimbursements.The county auditor must determine the tax reductions
2.23to the commissioner of revenue as part of the data required under section 270C.85,
2.24subdivision 2. Any prior year adjustments must also be certified as part of the data required
2.25under section 270C.85, subdivision 2. The commissioner must review the certifications for
2.26accuracy, and make such changes as are deemed necessary, or return the certification to the
2.27county auditor for correction. The credit under this section must be used to proportionately
2.28reduce the net property tax payable to each local taxing jurisdiction as provided in section
2.29273.1393.
2.30 Subd. 5.Payment.(a) The commissioner of revenue must reimburse each local taxing
2.31jurisdiction, other than school districts, for the tax reductions granted under this section in
2.32two equal installments on October 31 and December 26 of the taxes payable year for which
2Section 1.
25-01448 as introduced12/18/24 REVISOR MS/VJ 3.1the reductions are granted, including in each payment the prior year adjustments certified
3.2under section 270C.85, subdivision 2, for that taxes payable year.
3.3 (b) The commissioner of revenue must certify the total of the tax reductions granted
3.4under this section for each taxes payable year within each school district to the commissioner
3.5of education, and the commissioner of education must pay the reimbursement amounts to
3.6each school district as provided in section 273.1392.
3.7 Subd. 6.Appropriation.An amount sufficient to make the payments required by this
3.8section to taxing jurisdictions other than school districts is annually appropriated from the
3.9general fund to the commissioner of revenue. An amount sufficient to make the payments
3.10required by this section for school districts is annually appropriated from the general fund
3.11to the commissioner of education.
3.12 EFFECTIVE DATE.This section is effective beginning with assessment year 2026.
3.13 Sec. 2. Minnesota Statutes 2024, section 273.1392, is amended to read:
3.14 273.1392 PAYMENT; SCHOOL DISTRICTS.
3.15 The amounts of bovine tuberculosis credit reimbursements under section 273.113;
3.16conservation tax credits under section 273.119; disaster or emergency reimbursement under
3.17sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
3.18the senior credit under section 273.1389; aids and credits under section 273.1398; enterprise
3.19zone property credit payments under section 469.171; metropolitan agricultural preserve
3.20reduction under section 473H.10; and electric generation transition aid under section 477A.24
3.21for school districts, shall be certified to the Department of Education by the Department of
3.22Revenue. The amounts so certified shall be paid according to section 127A.45, subdivisions
3.239, 10, and 13.
3.24 EFFECTIVE DATE.This section is effective beginning with fiscal year 2028.
3.25 Sec. 3. Minnesota Statutes 2024, section 273.1393, is amended to read:
3.26 273.1393 COMPUTATION OF NET PROPERTY TAXES.
3.27 Notwithstanding any other provisions to the contrary, "net" property taxes are determined
3.28by subtracting the credits in the order listed from the gross tax:
3.29 (1) disaster credit as provided in sections 273.1231 to 273.1235;
3.30 (2) powerline credit as provided in section 273.42;
3.31 (3) agricultural preserves credit as provided in section 473H.10;
3Sec. 3.
25-01448 as introduced12/18/24 REVISOR MS/VJ 4.1 (4) enterprise zone credit as provided in section 469.171;
4.2 (5) disparity reduction credit;
4.3 (6) conservation tax credit as provided in section 273.119;
4.4 (7) the school bond credit as provided in section 273.1387;
4.5 (8) agricultural credit as provided in section 273.1384;
4.6 (9) taconite homestead credit as provided in section 273.135;
4.7 (10) supplemental homestead credit as provided in section 273.1391; and
4.8 (11) the bovine tuberculosis zone credit, as provided in section 273.113; and
4.9 (12) the senior credit, as provided in section 273.1389.
4.10 The combination of all property tax credits must not exceed the gross tax amount.
4.11 EFFECTIVE DATE.This section is effective beginning with property taxes payable
4.12in 2027.
4.13 Sec. 4. Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:
4.14 Subd. 3.Notice of proposed property taxes.(a) The county auditor shall prepare and
4.15the county treasurer shall deliver after November 10 and on or before November 24 each
4.16year, by first class mail to each taxpayer at the address listed on the county's current year's
4.17assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
4.18the treasurer may send the notice in electronic form or by electronic mail instead of on paper
4.19or by ordinary mail.
4.20 (b) The commissioner of revenue shall prescribe the form of the notice.
4.21 (c) The notice must inform taxpayers that it contains the amount of property taxes each
4.22taxing authority proposes to collect for taxes payable the following year. In the case of a
4.23town, or in the case of the state general tax, the final tax amount will be its proposed tax.
4.24The notice must clearly state for each city that has a population over 500, county, school
4.25district, regional library authority established under section 134.201, metropolitan taxing
4.26districts as defined in paragraph (i), and fire protection and emergency medical services
4.27special taxing districts established under section 144F.01, the time and place of a meeting
4.28for each taxing authority in which the budget and levy will be discussed and public input
4.29allowed, prior to the final budget and levy determination. The taxing authorities must provide
4.30the county auditor with the information to be included in the notice on or before the time it
4.31certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
4Sec. 4.
25-01448 as introduced12/18/24 REVISOR MS/VJ 5.1meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
5.2must provide a website address and a telephone number for the taxing authority that taxpayers
5.3may call if they have questions related to the notice and an address where comments will
5.4be received by mail, except that no notice required under this section shall be interpreted
5.5as requiring the printing of a personal telephone number or address as the contact information
5.6for a taxing authority. If a taxing authority does not maintain a website or public offices
5.7where telephone calls can be received by the authority, the authority may inform the county
5.8of the lack of a public website or telephone number and the county shall not list a website
5.9or telephone number for that taxing authority.
5.10 (d) The notice must state for each parcel:
5.11 (1) the market value of the property as determined under section 273.11, and used for
5.12computing property taxes payable in the following year and for taxes payable in the current
5.13year as each appears in the records of the county assessor on November 1 of the current
5.14year; and, in the case of residential property, whether the property is classified as homestead
5.15or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
5.16values apply and that the values are final values;
5.17 (2) the items listed below, shown separately by county, city or town, and state general
5.18tax, agricultural homestead credit under section 273.1384, school building bond agricultural
5.19credit under section 273.1387, senior credit under section 273.1389, voter approved school
5.20levy, other local school levy, and the sum of the special taxing districts, and as a total of all
5.21taxing authorities:
5.22 (i) the actual tax for taxes payable in the current year; and
5.23 (ii) the proposed tax amount.
5.24 If the county levy under clause (2) includes an amount for a lake improvement district
5.25as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
5.26must be separately stated from the remaining county levy amount.
5.27 In the case of a town or the state general tax, the final tax shall also be its proposed tax
5.28unless the town changes its levy at a special town meeting under section 365.52. If a school
5.29district has certified under section 126C.17, subdivision 9, that a referendum will be held
5.30in the school district at the November general election, the county auditor must note next
5.31to the school district's proposed amount that a referendum is pending and that, if approved
5.32by the voters, the tax amount may be higher than shown on the notice. In the case of the
5.33city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
5.34from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
5Sec. 4.
25-01448 as introduced12/18/24 REVISOR MS/VJ 6.1the St. Paul Library Agency must be listed separately from the remaining amount of the
6.2city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
6.3listed separately from the remaining amount of the county's levy. In the case of a parcel
6.4where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
6.5applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
6.6capacity subject to the areawide tax must each be stated separately and not included in the
6.7sum of the special taxing districts; and
6.8 (3) the increase or decrease between the total taxes payable in the current year and the
6.9total proposed taxes, expressed as a percentage.
6.10 For purposes of this section, the amount of the tax on homesteads qualifying under the
6.11senior citizens' property tax deferral program under chapter 290B is the total amount of
6.12property tax before subtraction of the deferred property tax amount.
6.13 (e) The notice must clearly state that the proposed or final taxes do not include the
6.14following:
6.15 (1) special assessments;
6.16 (2) levies approved by the voters after the date the proposed taxes are certified, including
6.17bond referenda and school district levy referenda;
6.18 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
6.19in November of the levy year as provided under section 275.73;
6.20 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
6.21after the date the proposed taxes are certified;
6.22 (5) amounts necessary to pay tort judgments against the taxing authority that become
6.23final after the date the proposed taxes are certified; and
6.24 (6) the contamination tax imposed on properties which received market value reductions
6.25for contamination.
6.26 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
6.27county treasurer to deliver the notice as required in this section does not invalidate the
6.28proposed or final tax levy or the taxes payable pursuant to the tax levy.
6.29 (g) If the notice the taxpayer receives under this section lists the property as
6.30nonhomestead, and satisfactory documentation is provided to the county assessor by the
6.31applicable deadline, and the property qualifies for the homestead classification in that
6Sec. 4.
25-01448 as introduced12/18/24 REVISOR MS/VJ 7.1assessment year, the assessor shall reclassify the property to homestead for taxes payable
7.2in the following year.
7.3 (h) In the case of class 4 residential property used as a residence for lease or rental
7.4periods of 30 days or more, the taxpayer must either:
7.5 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
7.6or lessee; or
7.7 (2) post a copy of the notice in a conspicuous place on the premises of the property.
7.8 The notice must be mailed or posted by the taxpayer by November 27 or within three
7.9days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
7.10of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
7.11notice must be mailed in order to fulfill the requirements of this paragraph.
7.12 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
7.13districts" means the following taxing districts in the seven-county metropolitan area that
7.14levy a property tax for any of the specified purposes listed below:
7.15 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
7.16473.521, 473.547, or 473.834;
7.17 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
7.18 (3) Metropolitan Mosquito Control Commission under section 473.711.
7.19 For purposes of this section, any levies made by the regional rail authorities in the county
7.20of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
7.21shall be included with the appropriate county's levy.
7.22 (j) The governing body of a county, city, or school district may, with the consent of the
7.23county board, include supplemental information with the statement of proposed property
7.24taxes about the impact of state aid increases or decreases on property tax increases or
7.25decreases and on the level of services provided in the affected jurisdiction. This supplemental
7.26information may include information for the following year, the current year, and for as
7.27many consecutive preceding years as deemed appropriate by the governing body of the
7.28county, city, or school district. It may include only information regarding:
7.29 (1) the impact of inflation as measured by the implicit price deflator for state and local
7.30government purchases;
7.31 (2) population growth and decline;
7.32 (3) state or federal government action; and
7Sec. 4.
25-01448 as introduced12/18/24 REVISOR MS/VJ 8.1 (4) other financial factors that affect the level of property taxation and local services
8.2that the governing body of the county, city, or school district may deem appropriate to
8.3include.
8.4 The information may be presented using tables, written narrative, and graphic
8.5representations and may contain instruction toward further sources of information or
8.6opportunity for comment.
8.7 EFFECTIVE DATE.This section is effective beginning with property taxes payable
8.8in 2027.
8.9 Sec. 5. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:
8.10 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
8.11the tax statements. The commissioner of revenue shall prescribe the form of the property
8.12tax statement and its contents. The tax statement must not state or imply that property tax
8.13credits are paid by the state of Minnesota. The statement must contain a tabulated statement
8.14of the dollar amount due to each taxing authority and the amount of the state tax from the
8.15parcel of real property for which a particular tax statement is prepared. The dollar amounts
8.16attributable to the county, the state tax, the voter approved school tax, the other local school
8.17tax, the township or municipality, and the total of the metropolitan special taxing districts
8.18as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
8.19amounts due all other special taxing districts, if any, may be aggregated except that any
8.20levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
8.21Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
8.22under the appropriate county's levy. If the county levy under this paragraph includes an
8.23amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
8.24the amount attributable for that purpose must be separately stated from the remaining county
8.25levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
8.26an amount for public library service under section 134.07, the amount attributable for that
8.27purpose may be separated from the remaining county levy amount. The amount of the tax
8.28on homesteads qualifying under the senior citizens' property tax deferral program under
8.29chapter 290B is the total amount of property tax before subtraction of the deferred property
8.30tax amount. The amount of the tax on contamination value imposed under sections 270.91
8.31to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
8.32amount of any special assessments, may be rounded to the nearest even whole dollar. For
8.33purposes of this section whole odd-numbered dollars may be adjusted to the next higher
8.34even-numbered dollar.
8Sec. 5.
25-01448 as introduced12/18/24 REVISOR MS/VJ 9.1 (b) The property tax statements for manufactured homes and sectional structures taxed
9.2as personal property shall contain the same information that is required on the tax statements
9.3for real property.
9.4 (c) Real and personal property tax statements must contain the following information
9.5in the order given in this paragraph. The information must contain the current year tax
9.6information in the right column with the corresponding information for the previous year
9.7in a column on the left:
9.8 (1) the property's estimated market value under section 273.11, subdivision 1;
9.9 (2) the property's homestead market value exclusion under section 273.13, subdivision
9.1035;
9.11 (3) the property's taxable market value under section 272.03, subdivision 15;
9.12 (4) the property's gross tax, before credits;
9.13 (5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
9.14 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
9.15273.1389; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
9.16of credit received under section 273.135 must be separately stated and identified as "taconite
9.17tax relief"; and
9.18 (7) the net tax payable in the manner required in paragraph (a).
9.19 (d) If the county uses envelopes for mailing property tax statements and if the county
9.20agrees, a taxing district may include a notice with the property tax statement notifying
9.21taxpayers when the taxing district will begin its budget deliberations for the current year,
9.22and encouraging taxpayers to attend the hearings. If the county allows notices to be included
9.23in the envelope containing the property tax statement, and if more than one taxing district
9.24relative to a given property decides to include a notice with the tax statement, the county
9.25treasurer or auditor must coordinate the process and may combine the information on a
9.26single announcement.
9.27 EFFECTIVE DATE.This section is effective beginning with property taxes payable
9.28in 2027.
9Sec. 5.
25-01448 as introduced12/18/24 REVISOR MS/VJ