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HF2086 (Legislative Session 94 (2025-2026))

Requirements for the senior citizens' property tax deferral program modified.

Related bill: SF2504

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify the property tax deferral program for senior citizens in Minnesota. The bill aims to make changes to the eligibility criteria and requirements to allow more seniors to qualify for the program.

Main Provisions

  1. Age and Ownership Requirements:

    • The property must be owned and occupied as a homestead by someone who is at least 65 years old. If the homeowners are a married couple, one spouse must be at least 65 years old, and the other must be at least 62 years old.

  2. Income Cap Adjustment:

    • The maximum allowable household income for eligibility is increased from $96,000 to $110,000 for the year before the application is made.

  3. Ownership Duration Requirements:

    • The requirement that the property must have been owned and occupied as a homestead for at least five years before applying is reduced to two years.

  4. Liens and Mortgages on Property:

    • The property must have no state or federal tax liens or judgment liens, and no future advances secured by mortgages, to qualify.

  5. Debt Limit on Property:

    • Total unpaid balances on the property, including mortgages, liens, and delinquent taxes, must not exceed 75% of the assessor's estimated market value. This calculation excludes the property taxes payable during the application year and any residential PACE liens.

Significant Changes

  • The bill notably raises the income limit and shortens the required time for property ownership, potentially allowing more senior citizens to defer their property taxes under the program. It also clarifies the types of liens that affect eligibility and adjusts the percentage limit of secured debt on the property relative to its market value.

Relevant Terms

senior citizens property tax deferral program, homestead, qualifying homeowners, household income, property ownership duration, tax liens, mortgages, assessors estimated market value

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 11, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the income definition used for determining eligibility for the senior citizens property tax deferral program under section 290A.03.",
      "modified": [
        "Updates the total household income threshold from 96,000 to 110,000 dollars."
      ]
    },
    "citation": "290A.03"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the definition of a residential PACE lien under section 216C.435.",
      "modified": [
        "Provides clarification on exceptions for liens related to residential PACE programs."
      ]
    },
    "citation": "216C.435"
  }
]

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