HF403

This bill introduces a "senior credit" property tax relief program for homeowners who are 65 years old or older in Minnesota. To be eligible for this credit, the property must meet certain classifications and be owned and occupied by at least one senior homeowner. The bill outlines the application process, detailing that applications should be submitted by December 15 prior to the tax year the credit would apply.

Key points about the senior credit include: 1. Once a property is approved, it continually receives the credit until ownership changes, the qualifying homeowner(s) die, or it no longer serves as their primary residence. 2. The credit amount is calculated by comparing the current year's taxes after previous credits to 108% of the previous year’s taxes after credits. The reduction cannot bring the total tax owed to less than zero.

The county auditor is responsible for reporting tax reductions, and the commissioner of revenue adjusts the data as needed. The bill specifies that the credit should proportionately reduce the net property tax owed to various local taxing jurisdictions.

Each local taxing jurisdiction, excluding school districts, will receive reimbursement from the commissioner of revenue in two equal payments annually. For school districts, the reimbursement is handled by the commissioner of education.

Funding for these payments comes from the general fund, and the necessary amounts are appropriated annually to both the commissioners of revenue and education to facilitate these reimbursements.