HF403

HF403 (Legislative Session 94 (2025-2026))

Senior property tax credit established, and money appropriated.

Related bill: SF443

AI Generated Summary

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.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 12, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
February 19, 2025	House	Floor	Action	Author added
March 05, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Provisions related to appropriation for tax reimbursements to school districts."
      ],
      "removed": [
        "Not applicable as specific removals aren't detailed."
      ],
      "summary": "The bill relates to the senior credit in taxation and proposes modifications to existing sections including 273.1392.",
      "modified": [
        "Details on handling tax reductions and reimbursements for school districts as referenced in 273.1392."
      ]
    },
    "citation": "273.1392"
  },
  {
    "analysis": {
      "added": [
        "Incorporation of senior credits into the net property tax payable to local jurisdictions."
      ],
      "removed": [
        "Not applicable, as specific removals aren't detailed."
      ],
      "summary": "Adjustments included to align with new disbursement methods for the senior credit.",
      "modified": [
        "Specifies procedures on using new credit to reduce property tax payable as laid out in 273.1393."
      ]
    },
    "citation": "273.1393"
  },
  {
    "analysis": {
      "added": [
        "Ensures proper certification and review processes for tax reduction data."
      ],
      "removed": [
        "Not applicable, as specific removals aren't detailed."
      ],
      "summary": "Refers to procedures for tax reduction certifications required under section 270C.85.",
      "modified": [
        "Clarifications on data submission to the commissioner of revenue as required in 270C.85."
      ]
    },
    "citation": "270C.85"
  }
]