HF1297

This bill seeks to amend Minnesota Statutes 2024, section 273.13, subdivision 34, to increase the property tax market value exclusion for veterans with a disability.

Key Changes:

1. Increased Market Value Exclusions:

   • For veterans with a service-connected disability rating of 70% or more, the exclusion increases from $150,000 to $250,000.
   • For veterans with a 100% total and permanent disability, the exclusion increases from $300,000 to $500,000.

2. Surviving Spouse Benefits:

   • If a qualifying veteran dies, their surviving spouse can continue receiving the exclusion until they remarry or sell/transfer the property.
   • If a service member dies in active duty due to a service-connected cause, their spouse qualifies for the 100% disability exclusion.

3. Primary Family Caregiver Eligibility:

   • If a veteran meets the disability requirements but does not own a homestead, their primary family caregiver’s home may qualify for the exclusion.

4. Eligibility for Agricultural Homesteads:

   • Only the house, garage, and one acre of land will qualify for the exclusion.

5. Application and Certification:

   • Veterans, spouses, or caregivers must apply by December 31 of the first assessment year.
   • The county veterans service officer must certify veterans' disability ratings and permanent addresses by July 1.

6. Continuation of Exclusion for Surviving Spouses:

   • If a surviving spouse moves to a new property, they may continue receiving the exclusion as long as the new property’s value does not exceed the original property's value at the time of sale.

7. Reapplication for Previous Beneficiaries:

   • Spouses who previously received this exclusion but lost eligibility before taxes payable in 2020 can reapply to regain the exclusion.

Purpose:

The bill aims to lessen the financial burden on disabled veterans, their family caregivers, and surviving spouses by providing greater property tax relief.