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HF2715 (Legislative Session 94 (2025-2026))

Homestead credit refund co-pays reduced.

AI Generated Summary

Purpose of the Bill

The bill aims to adjust the property tax refunds in Minnesota by reducing the amount homeowners have to co-pay on their property taxes through a recalibration of the homestead credit refund percentages.

Main Provisions

  • Amendments to Minnesota Statutes 2024, section 290A.04, subdivision 2, focus on changes to the homestead credit refund for homeowners.
  • The refund calculation method is adjusted so that homeowners pay a smaller percentage of their property taxes relative to their household income.
  • The new structure specifies different income brackets and the associated percentage of income required for paying property taxes.
  • The bill includes the maximum state refund amounts available for each income bracket, which decreases as household income increases.

Significant Changes

  • The bill reduces the percentage of income that homeowners need to pay before qualifying for a state refund. For example, households with higher income will see a percentage decrease in what they pay out-of-pocket.
  • It introduces adjusted percentages of income and percentages paid by the claimant for various income ranges, lowering the financial burden on middle to low-income earners.
  • There are caps set on the maximum state refund, and this limit varies by income level.

Relevant Terms

property tax, homestead credit refund, copayment reduction, household income, state refund, income brackets, Minnesota Statutes section 290A.04

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies property tax refunds and homestead credit refund copays under section 290A.04.",
      "modified": [
        "Adjusts homeowner's homestead credit refund percentages based on income brackets."
      ]
    },
    "citation": "290A.04",
    "subdivision": "subdivision 2"
  }
]

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