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HF1756 (Legislative Session 94 (2025-2026))

Property tax; market value exclusion modified for veterans with a disability, exclusion amounts increased annually with inflation, and surviving spouses benefit modified.

Related bill: SF3260

AI Generated Summary

This bill modifies Minnesota's existing property tax exclusion for disabled veterans and their spouses. Key changes include:

  1. Increased Exclusion Amounts: The market value exclusion for qualified veterans will increase, with a base amount of $200,000 starting in the 2026 assessment year. Veterans with a 70% or higher service-connected disability will have this amount excluded from their home's taxable value, while those who are 100% and permanently disabled will have twice the base amount ($400,000) excluded. These values will adjust annually based on inflation.

  2. Expanded Benefits for Surviving Spouses:

    • If a veteran with 100% permanent disability dies, the spouse can continue to receive the property tax exclusion as long as they remain unmarried and reside in the home.
    • Surviving spouses of service members who die from service-connected causes while on active duty are also eligible for this benefit.
    • If such a spouse moves to a new home, they may transfer the exclusion to the new property, provided its value does not exceed the original home’s value and they have not previously received this benefit for another property.

  3. Family Caregiver Eligibility: If a disabled veteran does not own a home, their primary family caregiver (recognized by the VA) may receive the property tax exclusion on their residence.

  4. Application Process and Compliance:

    • Veterans, spouses, and caregivers must apply for the exclusion and notify the local tax assessor of changes in marital status, property ownership, or residence.
    • The county veterans service officer must certify veterans' disability ratings annually.

  5. Legislative Intent: The bill emphasizes that the purpose of this expanded exclusion is to ease financial burdens on veterans, their families, and caregivers due to war-related disabilities.

In summary, this bill increases the property tax relief for disabled veterans, ensures annual inflation adjustments, extends and secures benefits for surviving spouses, and includes family caregivers in the program.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 11, 2025HouseFloorActionAuthors added
March 12, 2025HouseFloorActionAuthors added
March 19, 2025HouseFloorActionAuthor added
March 23, 2025HouseFloorActionAuthor added
March 23, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increases exclusion amounts annually with inflation.",
        "Modifies benefit for surviving spouses."
      ],
      "removed": [],
      "summary": "This bill modifies the market value exclusion for veterans with a disability under section 273.13 subdivision 34.",
      "modified": [
        "Clarifies eligibility criteria and conditions for maintaining the exclusion."
      ]
    },
    "citation": "273.13 subdivision 34"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the ineligibility of a property for market value exclusion under subdivision 35 if it qualifies under subdivision 34.",
      "modified": [
        "Specifies property ineligibility conditions related to subdivision 34."
      ]
    },
    "citation": "273.13 subdivision 35"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This citation relates to the definition of 'active service' as referenced in the bill.",
      "modified": [
        "Clarifies meaning of 'active service' within the context of the bill."
      ]
    },
    "citation": "190.05"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This citation defines 'veteran' as used in the bill.",
      "modified": [
        "Clarifies the definition of 'veteran' for eligibility under the bill."
      ]
    },
    "citation": "197.447"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This federal law is referenced to describe the primary family caregiver under the United States Department of Veterans Affairs program.",
      "modified": [
        "Details eligibility criteria for primary family caregivers based on federal standards."
      ]
    },
    "citation": "38 U.S.C. § 1720G"
  }
]

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