HF551

HF551 (Legislative Session 94 (2025-2026))

Senior citizens' property tax credit established, and money appropriated.

Related bill: SF1473

AI Generated Summary

This bill is focused on supporting senior citizens in Minnesota by setting up a property tax credit system specifically for them. Here are the key points simplified:

Eligibility for Tax Credit: Senior citizens who own and live in their own homes can qualify for a property tax credit. To be eligible, the property owner must be retired and at least 65 years old. If married, one spouse must be at least 65 and the other at least 62 years old.
How the Credit Works: The amount of the tax credit is calculated by comparing the actual property tax on the senior's home with the property tax based on the median market value of homes in their municipality. The credit is the difference between these two amounts, ensuring it does not go below zero.
Application Process: Seniors need to apply for this credit by July 1 of the assessment year to receive the benefit for the following year's taxes. This application must be approved by the county auditor.
Continuation and Disqualification: Once approved, a senior can continue to receive the credit each year as long as they own the property and still qualify under the rules. If they no longer own the property or meet the eligibility requirements, the credit stops.
Reimbursement to Local Taxing Authorities: The tax reductions resulting from these credits are reimbursed to local taxing jurisdictions, which include cities and counties but exclude school districts. These reimbursements help offset the financial impact on these jurisdictions due to the reduced tax revenue.
Funding: Funds for these reimbursements are provided from the state's general fund to both the commissioner of revenue and the commissioner of education, who handle the financial transactions for non-school and school district taxing bodies, respectively.

In essence, the bill is designed to help senior citizens manage their property taxes more effectively, potentially easing their financial burden in retirement.

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

Citations

[
  {
    "analysis": {
      "added": [
        "New property tax credit for senior citizens."
      ],
      "removed": [],
      "summary": "The bill amends section 273.1393 to establish a senior citizens property tax credit.",
      "modified": [
        "Updates eligibility requirements for properties classified under section 273.13."
      ]
    },
    "citation": "273.1393"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 275.065 subdivision 3, related to property tax procedures.",
      "modified": [
        "Potential adjustments related to processing the new tax credit."
      ]
    },
    "citation": "275.065 subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill amends section 276.04 subdivision 2 regarding the indication of tax credits on property statements.",
      "modified": [
        "Requires county auditors to indicate tax credits on property tax statements for eligible senior citizens."
      ]
    },
    "citation": "276.04 subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 270C.85 subdivision 2 concerning the certification of tax data by county auditors.",
      "modified": [
        "Clarifies requirements for certifying tax reductions under the new senior citizens property tax credit."
      ]
    },
    "citation": "270C.85 subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 273.1392 in connection to reimbursements related to school districts.",
      "modified": [
        "Aligns payment procedures for reimbursements due to the new tax credit."
      ]
    },
    "citation": "273.1392"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References existing property classification under section 273.13 subdivision 22 for eligibility.",
      "modified": [
        "Eligibility criteria for tax credit based on property classification."
      ]
    },
    "citation": "273.13 subdivision 22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References existing property classification under section 273.13 subdivision 23 for specific eligibility.",
      "modified": [
        "Clarifies property classification criteria for eligibility for the tax credit."
      ]
    },
    "citation": "273.13 subdivision 23"
  }
]