Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF772 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; increasing the market value exclusion for veterans
3	3	1.3 with a disability; amending Minnesota Statutes 2024, section 273.13, subdivision
4	4	1.4 34.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 273.13, subdivision 34, is amended to read:
7	7	1.7 Subd. 34.Homestead of veteran with a disability or family caregiver.(a) All or a
8	8	1.8portion of the market value of property owned by a veteran and serving as the veteran's
9	9	1.9homestead under this section is excluded in determining the property's taxable market value
10	10	1.10if the veteran has a service-connected disability of 70 percent or more as certified by the
11	11	1.11United States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
12	12	1.12the veteran must have been honorably discharged from the United States armed forces, as
13	13	1.13indicated by United States Government Form DD214 or other official military discharge
14	14	1.14papers.
15	15	1.15 (b)(1) For a disability rating of 70 percent or more, $150,000 $250,000 of market value
16	16	1.16is excluded, except as provided in clause (2); and
17	17	1.17 (2) for a total (100 percent) and permanent disability, $300,000 $500,000 of market
18	18	1.18value is excluded.
19	19	1.19 (c) If a veteran with a disability qualifying for a valuation exclusion under paragraph
20	20	1.20(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
21	21	1.21spouse holds the legal or beneficial title to the homestead and permanently resides there,
22	22	1.22the exclusion shall carry over to the benefit of the veteran's spouse until such time as the
23	23	1.23spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise
24	24	1Section 1.
25	25	25-02364 as introduced01/17/25 REVISOR MS/VJ
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 772NINETY-FOURTH SESSION
29	29	(SENATE AUTHORS: LIESKE, Wesenberg, Duckworth and Hoffman)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading01/30/2025
32	32	Referred to Taxes 2.1provided in paragraph (n). Qualification under this paragraph requires an application under
33	33	2.2paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
34	34	2.3marital status, ownership of the property, or use of the property as a permanent residence.
35	35	2.4 (d) If the spouse of a member of any branch or unit of the United States armed forces
36	36	2.5who dies due to a service-connected cause while serving honorably in active service, as
37	37	2.6indicated on United States Government Form DD1300 or DD2064, holds the legal or
38	38	2.7beneficial title to a homestead and permanently resides there, the spouse is entitled to the
39	39	2.8benefit described in paragraph (b), clause (2), until such time as the spouse remarries or
40	40	2.9sells, transfers, or otherwise disposes of the property, except as otherwise provided in
41	41	2.10paragraph (n).
42	42	2.11 (e) If a veteran meets the disability criteria of paragraph (a) but does not own property
43	43	2.12classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
44	44	2.13family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
45	45	2.14for under paragraph (b).
46	46	2.15 (f) In the case of an agricultural homestead, only the portion of the property consisting
47	47	2.16of the house and garage and immediately surrounding one acre of land qualifies for the
48	48	2.17valuation exclusion under this subdivision.
49	49	2.18 (g) A property qualifying for a valuation exclusion under this subdivision is not eligible
50	50	2.19for the market value exclusion under subdivision 35, or classification under subdivision 22,
51	51	2.20paragraph (b).
52	52	2.21 (h) To qualify for a valuation exclusion under this subdivision a property owner must
53	53	2.22apply to the assessor by December 31 of the first assessment year for which the exclusion
54	54	2.23is sought. Except as provided in paragraph (c), the owner of a property that has been accepted
55	55	2.24for a valuation exclusion must notify the assessor if there is a change in ownership of the
56	56	2.25property or in the use of the property as a homestead.
57	57	2.26 (i) A first-time application by a qualifying spouse for the market value exclusion under
58	58	2.27paragraph (d) must be made any time within two years of the death of the service member.
59	59	2.28 (j) For purposes of this subdivision:
60	60	2.29 (1) "active service" has the meaning given in section 190.05;
61	61	2.30 (2) "own" means that the person's name is present as an owner on the property deed;
62	62	2.31 (3) "primary family caregiver" means a person who is approved by the secretary of the
63	63	2.32United States Department of Veterans Affairs for assistance as the primary provider of
64	64	2Section 1.
65	65	25-02364 as introduced01/17/25 REVISOR MS/VJ 3.1personal care services for an eligible veteran under the Program of Comprehensive Assistance
66	66	3.2for Family Caregivers, codified as United States Code, title 38, section 1720G; and
67	67	3.3 (4) "veteran" has the meaning given the term in section 197.447.
68	68	3.4 (k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause
69	69	3.5(2), before dying, or the exclusion under paragraph (b), clause (2), did not exist at the time
70	70	3.6of the veterans death, the veteran's spouse is entitled to the benefit under paragraph (b),
71	71	3.7clause (2), until the spouse remarries or sells, transfers, or otherwise disposes of the property,
72	72	3.8except as otherwise provided in paragraph (n), if:
73	73	3.9 (1) the spouse files a first-time application;
74	74	3.10 (2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
75	75	3.11homestead and permanently resides there;
76	76	3.12 (3) the veteran met the honorable discharge requirements of paragraph (a); and
77	77	3.13 (4) the United States Department of Veterans Affairs certifies that:
78	78	3.14 (i) the veteran met the total (100 percent) and permanent disability requirement under
79	79	3.15paragraph (b), clause (2); or
80	80	3.16 (ii) the spouse has been awarded dependency and indemnity compensation.
81	81	3.17 (l) The purpose of this provision of law providing a level of homestead property tax
82	82	3.18relief for veterans with a disability, their primary family caregivers, and their surviving
83	83	3.19spouses is to help ease the burdens of war for those among our state's citizens who bear
84	84	3.20those burdens most heavily.
85	85	3.21 (m) By July 1, the county veterans service officer must certify the disability rating and
86	86	3.22permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
87	87	3.23 (n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
88	88	3.24the legal or beneficial title to the property may continue to receive the exclusion for a
89	89	3.25property other than the property for which the exclusion was initially granted until the spouse
90	90	3.26remarries or sells, transfers, or otherwise disposes of the property, provided that:
91	91	3.27 (1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
92	92	3.28under this paragraph;
93	93	3.29 (2) the spouse holds the legal or beneficial title to the property for which the continuation
94	94	3.30of the exclusion is sought under this paragraph, and permanently resides there;
95	95	3Section 1.
96	96	25-02364 as introduced01/17/25 REVISOR MS/VJ 4.1 (3) the estimated market value of the property for which the exclusion is sought under
97	97	4.2this paragraph is less than or equal to the estimated market value of the property that first
98	98	4.3received the exclusion, based on the value of each property on the date of the sale of the
99	99	4.4property that first received the exclusion; and
100	100	4.5 (4) the spouse has not previously received the benefit under this paragraph for a property
101	101	4.6other than the property for which the exclusion is sought.
102	102	4.7 (o) If a spouse had previously received the exclusion under paragraph (c) or (d) and the
103	103	4.8exclusion expired prior to taxes payable in 2020, the spouse may reapply under this section
104	104	4.9for the exclusion under paragraph (c) or (d).
105	105	4.10 EFFECTIVE DATE.This section is effective beginning with property taxes payable
106	106	4.11in 2026.
107	107	4Section 1.
108	108	25-02364 as introduced01/17/25 REVISOR MS/VJ