Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF615 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property; modifying the market value exclusion for veterans
3	3	1.3 with a disability by increasing exclusion amount for totally and permanently
4	4	1.4 disabled veterans; amending Minnesota Statutes 2024, section 273.13, subdivision
5	5	1.5 34.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 273.13, subdivision 34, is amended to read:
8	8	1.8 Subd. 34.Homestead of veteran with a disability or family caregiver.(a) All or a
9	9	1.9portion of the market value of property owned by a veteran and serving as the veteran's
10	10	1.10homestead under this section is excluded in determining the property's taxable market value
11	11	1.11if the veteran has a service-connected disability of 70 percent or more as certified by the
12	12	1.12United States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
13	13	1.13the veteran must have been honorably discharged from the United States armed forces, as
14	14	1.14indicated by United States Government Form DD214 or other official military discharge
15	15	1.15papers.
16	16	1.16 (b)(1) For a disability rating of 70 percent or more, $150,000 $200,000 of market value
17	17	1.17is excluded, except as provided in clause (2); and
18	18	1.18 (2) for a total (100 percent) and permanent disability, $300,000 $400,000 of market
19	19	1.19value is excluded.
20	20	1.20 (c) If a veteran with a disability qualifying for a valuation exclusion under paragraph
21	21	1.21(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
22	22	1.22spouse holds the legal or beneficial title to the homestead and permanently resides there,
23	23	1.23the exclusion shall carry over to the benefit of the veteran's spouse until such time as the
24	24	1Section 1.
25	25	25-01781 as introduced01/09/25 REVISOR MS/MI
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 615NINETY-FOURTH SESSION
29	29	(SENATE AUTHORS: DRAHEIM, Lang, Howe, Anderson and Port)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading01/27/2025
32	32	Referred to Taxes 2.1spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise
33	33	2.2provided in paragraph (n). Qualification under this paragraph requires an application under
34	34	2.3paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
35	35	2.4marital status, ownership of the property, or use of the property as a permanent residence.
36	36	2.5 (d) If the spouse of a member of any branch or unit of the United States armed forces
37	37	2.6who dies due to a service-connected cause while serving honorably in active service, as
38	38	2.7indicated on United States Government Form DD1300 or DD2064, holds the legal or
39	39	2.8beneficial title to a homestead and permanently resides there, the spouse is entitled to the
40	40	2.9benefit described in paragraph (b), clause (2), until such time as the spouse remarries or
41	41	2.10sells, transfers, or otherwise disposes of the property, except as otherwise provided in
42	42	2.11paragraph (n).
43	43	2.12 (e) If a veteran meets the disability criteria of paragraph (a) but does not own property
44	44	2.13classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
45	45	2.14family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
46	46	2.15for under paragraph (b).
47	47	2.16 (f) In the case of an agricultural homestead, only the portion of the property consisting
48	48	2.17of the house and garage and immediately surrounding one acre of land qualifies for the
49	49	2.18valuation exclusion under this subdivision.
50	50	2.19 (g) A property qualifying for a valuation exclusion under this subdivision is not eligible
51	51	2.20for the market value exclusion under subdivision 35, or classification under subdivision 22,
52	52	2.21paragraph (b).
53	53	2.22 (h) To qualify for a valuation exclusion under this subdivision a property owner must
54	54	2.23apply to the assessor by December 31 of the first assessment year for which the exclusion
55	55	2.24is sought. Except as provided in paragraph (c), the owner of a property that has been accepted
56	56	2.25for a valuation exclusion must notify the assessor if there is a change in ownership of the
57	57	2.26property or in the use of the property as a homestead.
58	58	2.27 (i) A first-time application by a qualifying spouse for the market value exclusion under
59	59	2.28paragraph (d) must be made any time within two years of the death of the service member.
60	60	2.29 (j) For purposes of this subdivision:
61	61	2.30 (1) "active service" has the meaning given in section 190.05;
62	62	2.31 (2) "own" means that the person's name is present as an owner on the property deed;
63	63	2.32 (3) "primary family caregiver" means a person who is approved by the secretary of the
64	64	2.33United States Department of Veterans Affairs for assistance as the primary provider of
65	65	2Section 1.
66	66	25-01781 as introduced01/09/25 REVISOR MS/MI 3.1personal care services for an eligible veteran under the Program of Comprehensive Assistance
67	67	3.2for Family Caregivers, codified as United States Code, title 38, section 1720G; and
68	68	3.3 (4) "veteran" has the meaning given the term in section 197.447.
69	69	3.4 (k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause
70	70	3.5(2), before dying, or the exclusion under paragraph (b), clause (2), did not exist at the time
71	71	3.6of the veterans death, the veteran's spouse is entitled to the benefit under paragraph (b),
72	72	3.7clause (2), until the spouse remarries or sells, transfers, or otherwise disposes of the property,
73	73	3.8except as otherwise provided in paragraph (n), if:
74	74	3.9 (1) the spouse files a first-time application;
75	75	3.10 (2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
76	76	3.11homestead and permanently resides there;
77	77	3.12 (3) the veteran met the honorable discharge requirements of paragraph (a); and
78	78	3.13 (4) the United States Department of Veterans Affairs certifies that:
79	79	3.14 (i) the veteran met the total (100 percent) and permanent disability requirement under
80	80	3.15paragraph (b), clause (2); or
81	81	3.16 (ii) the spouse has been awarded dependency and indemnity compensation.
82	82	3.17 (l) The purpose of this provision of law providing a level of homestead property tax
83	83	3.18relief for veterans with a disability, their primary family caregivers, and their surviving
84	84	3.19spouses is to help ease the burdens of war for those among our state's citizens who bear
85	85	3.20those burdens most heavily.
86	86	3.21 (m) By July 1, the county veterans service officer must certify the disability rating and
87	87	3.22permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
88	88	3.23 (n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
89	89	3.24the legal or beneficial title to the property may continue to receive the exclusion for a
90	90	3.25property other than the property for which the exclusion was initially granted until the spouse
91	91	3.26remarries or sells, transfers, or otherwise disposes of the property, provided that:
92	92	3.27 (1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
93	93	3.28under this paragraph;
94	94	3.29 (2) the spouse holds the legal or beneficial title to the property for which the continuation
95	95	3.30of the exclusion is sought under this paragraph, and permanently resides there;
96	96	3Section 1.
97	97	25-01781 as introduced01/09/25 REVISOR MS/MI 4.1 (3) the estimated market value of the property for which the exclusion is sought under
98	98	4.2this paragraph is less than or equal to the estimated market value of the property that first
99	99	4.3received the exclusion, based on the value of each property on the date of the sale of the
100	100	4.4property that first received the exclusion; and
101	101	4.5 (4) the spouse has not previously received the benefit under this paragraph for a property
102	102	4.6other than the property for which the exclusion is sought.
103	103	4.7 (o) If a spouse had previously received the exclusion under paragraph (c) or (d) and the
104	104	4.8exclusion expired prior to taxes payable in 2020, the spouse may reapply under this section
105	105	4.9for the exclusion under paragraph (c) or (d).
106	106	4.10 EFFECTIVE DATE.This section is effective beginning with assessment year 2026.
107	107	4Section 1.
108	108	25-01781 as introduced01/09/25 REVISOR MS/MI