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HF3045 (Legislative Session 94 (2025-2026))

Property tax; state general levy for commercial-industrial property reduced.

Related bill: SF3218

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend the state general property tax levy in Minnesota, specifically aimed at reducing the tax burden on commercial-industrial properties.

Main Provisions

  • State General Levy Reduction: The bill proposes a reduction in the state general levy on commercial-industrial properties. Specifically, the levy amount is decreased from $716,990,000 to $684,990,000 starting for taxes payable in the year 2026 and onwards.

  • Tax Rate Adjustments: The bill ensures procedures for adjustments in the levy rate to correct errors in taxable value reporting or calculation discrepancies from previous years. This includes corrections for commercial-industrial or seasonal residential recreational properties.

  • Error and Adjustment Criteria: Adjustments to levy rates may include:

    1. Corrections due to erroneous reports by local officials.
    2. Corrections due to calculation errors by the commissioner.
    3. Adjustments for changes in taxable value affecting the levy from the previous years.

  • Threshold for Adjustments: The commissioner may choose not to make adjustments if the total difference in tax levied due to errors is less than $100,000.

Significant Changes to Existing Law

  • The reduction in the levy amount for commercial-industrial property represents a significant change aimed at decreasing tax liability for owners of these property types.

  • The process of making adjustments to levy rates due to reporting or calculation errors has been clarified and provided with specific criteria and a threshold.

Relevant Terms

commercial-industrial property, state general levy, tax reductions, levy adjustments, taxable value, commissioner, reporting errors, levy rate certification, tax base changes.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 01, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends the state general levy for commercial-industrial and seasonal residential recreational property under section 275.025 subdivision 1.",
      "modified": [
        "Reduces the state general levy for commercial-industrial property for taxes payable in 2026 and thereafter."
      ]
    },
    "citation": "275.025",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Clarifies treatment of the tax under section 275.025 as not a local tax rate under section 469.177.",
      "modified": []
    },
    "citation": "469.177",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Confirms levy under section 275.025 is not considered a levy of a governmental unit under chapter 276A.",
      "modified": []
    },
    "citation": "276A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Confirms levy under section 275.025 is not considered a levy of a governmental unit under chapter 473F.",
      "modified": []
    },
    "citation": "473F",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Accounts for increase or decrease in taxable value for certain properties reported under section 270C.85 subdivision 2.",
      "modified": []
    },
    "citation": "270C.85",
    "subdivision": "subdivision 2"
  }
]

Sponsors