HF2475

Purpose of the Bill

This bill aims to reduce property tax burdens for homeowners in Minnesota by adjusting the homestead credit refund (property tax refund) system. The bill seeks to make it easier for homeowners to receive refunds by lowering the percentage of income that must be paid in property taxes before qualifying for a state refund.

Main Provisions

• The bill outlines changes to the calculation of how much property tax homeowners must pay compared to their household income in order to qualify for a state refund.
• Different income brackets have specific percentages applied to determine the claimant's copay and the maximum state refund amount.
• The percentage of taxes that the homeowner is responsible for is decreased across different income levels, making more homeowners eligible for larger savings.

Significant Changes to Existing Law

• The bill modifies the income and tax percentage brackets defined in the Minnesota Statutes (2024) by adjusting the percentages that determine the refund calculations.
• For each income range, the bill reduces the percentage of property taxes homeowners must pay to qualify for the refund.
• The maximum state refund amounts have been recalculated, providing more relief for lower-income homeowners.

Relevant Terms

• Homestead credit refund
• Property tax refund
• Household income
• State refund amount
• Income brackets
• Tax copay percentages