HF436

Purpose

• Establish a homestead market value exclusion for property owned by persons 65 years or older and retired.
  
• Make related amendments to Minnesota tax statutes to implement this exclusion and to improve how notices about property assessment and exclusions are sent to property owners.

Main Provisions

• Creation of a homestead market value exclusion for eligible senior homeowners (65+ and retired) as part of the property tax system.
  
• Amend Minnesota Statutes 2024 section 273.121, subdivision 1 to require annual notice to property owners about assessments, with details including:
  • current and prior market value;
  • value reductions from the homestead exclusion under section 273.13;
  • market value subject to taxation after subtracting any qualifying improvements;
  • the property's current and prior classifications;
  • the assessor’s office address and the dates/places/times for meetings of the local board of appeal and equalization or the review process under section 274.13, subdivision 1c; and the county board of appeal and equalization process.
• If the property’s classification changes between current and prior assessments, a prominent note must appear on the notice.
  
• Allow for electronic notices if the property owner requests them in writing (instead of paper or ordinary mail).
• The commissioner of revenue will specify the form of the notice. The assessor must attach to the assessment roll a statement confirming that notices have been mailed.
• If an assessor lacks sufficient funds to mail notices, they may apply to the commissioner of revenue for funding. The commissioner will investigate and, if appropriate, certify the needed amount to the commissioner of management and budget, which will pay the funds and deduct them from state payments to the county or municipality.
• The appropriation authority for these payments is provided in the bill (funds to support the notice mailing).
• The bill also states that failure to receive the notice does not affect the validity of the assessment, the tax, procedures of any appeal/equalization board, or the enforcement of delinquent taxes by statutory means.

Significant Changes to Existing Law

• Adds a new homestead market value exclusion for seniors to the property tax framework.
  
• Introduces a formal, annual notice requirement to inform property owners about their assessment, exclusions, and related details, with standardized content and delivery options (including electronic notice).
  
• Creates a funding mechanism to ensure notices are mailed by local assessors, involving state-level appropriations via the commissioner of revenue and the commissioner of management and budget.
  
• Clarifies that not receiving the notice does not invalidate assessments, appeals processes, or tax collection.

Relevant terms - Homestead market value exclusion - Senior homeowners / 65 years or older / retired - Property assessment - Market value - Exclusion (273.13) - Notice of assessment - Local board of appeal and equalization - Review process (section 274.13) - Electronic notice / electronic mail - Assessor - Commissioner of Revenue - Commissioner of Management and Budget - State payments / funding - Assessment roll - Classification of property - Qualifying improvements - Delinquent taxes - Notice form / notice content - Exclusions funding mechanism