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HF194 (Legislative Session 94 (2025-2026))

Exclusion amount increased for homesteads of veterans with a disability.

Related bill: SF262

AI Generated Summary

The bill proposes an increase in the property tax exclusion for homesteads owned by veterans with disabilities in Minnesota. Here are the key points:

  1. Disability Requirements: Veterans who have a service-connected disability of 70% or more, and have been honorably discharged, can qualify for this property tax exclusion.

  2. Exclusion Amount:

    • 70% disability or more: Increases the value excluded from property taxes from $150,000 to $200,000.
    • 100% total and permanent disability: Boosts the exclusion from $300,000 to $400,000.

  3. Spousal Benefits:

    • The exclusion can be transferred to the veteran's spouse if the veteran dies, provided the spouse does not remarry and continues to live in the homestead. This benefit continues until the spouse remarries, or sells or otherwise disposes of the property.
    • The same benefit extends to spouses of veterans who died from a service-connected cause while serving actively.

  4. Family Caregiver Provision: If a veteran qualifies for the exclusion but does not own a homestead, their primary family caregiver’s property can receive the exclusion instead.

  5. Agricultural Property: For agricultural homesteads, the exclusion only applies to the house, garage, and the immediate surrounding one acre.

  6. Application and Notification Requirements:

    • Property owners must apply by December 31 for the first assessment year they seek the exclusion.
    • Changes in ownership or use of the property as a homestead must be reported to maintain the exclusion.

  7. Extensions and Reapplications:

    • If a spouse has previously received the exclusion, they may apply to continue receiving it if they acquire a new property under certain conditions.
    • Spouses can reapply for an expired exclusion under certain previous conditions if it lapsed before 2020.

This legislative amendment is designed to provide greater financial relief and support to veterans with disabilities, their caregivers, and spouses through property tax reductions.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 09, 2025HouseFloorActionIntroduction and first reading, referred toVeterans and Military Affairs Division
February 12, 2025HouseFloorActionAuthors added
February 16, 2025HouseFloorActionCommittee report, to adopt and re-refer toTaxes
February 16, 2025HouseFloorActionAuthors added
February 19, 2025HouseFloorActionAuthor added
March 04, 2025HouseFloorActionAuthor stricken
March 11, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increases the exclusion amount for veterans with a 70% disability rating from $150,000 to $200,000.",
        "Increases the exclusion amount for veterans with 100% disability from $300,000 to $400,000."
      ],
      "removed": [],
      "summary": "This bill modifies property tax exclusions for homesteads of veterans with disabilities under section 273.13.",
      "modified": [
        "Clarifies application procedures for surviving spouses and primary family caregivers."
      ]
    },
    "citation": "273.13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the definition of 'veteran' as given in section 197.447.",
      "modified": []
    },
    "citation": "197.447"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the definition of 'active service' as given in section 190.05.",
      "modified": []
    },
    "citation": "190.05"
  }
]

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