HF727

HF727 (Legislative Session 94 (2025-2026))

Redevelopment area homestead credit established, and money appropriated.

Related bill: SF199

AI Generated Summary

H.F. No. 727 is a legislative bill introduced in Minnesota that aims to implement a new property tax credit called the "Redevelopment Area Homestead Credit." This credit is designed for homes in certain designated redevelopment areas within cities classified as "second class," according to specific criteria set by the United States Department of Commerce under the Public Works and Economic Development Act of 1965.

Here's a simplified explanation of the key points of the bill:

Eligibility: Homes must be in specific redevelopment areas and classified under certain property types to qualify for this tax credit.
Credit Amount: The amount of the tax credit is calculated by taking 70% of the property’s net tax capacity and multiplying it by the city's capital debt tax rate.
Process: The county auditor will calculate the tax reduction for eligible properties and certify this to the state's revenue commissioner. Any necessary adjustments can be made for accuracy.
Payments: The tax reductions will be reimbursed to local taxing bodies in two equal payments during the tax year.
Funding: Funds for this tax credit will come from the state’s general fund, and the necessary amounts are appropriated annually.

The introduction of this tax credit aims to provide financial relief to homeowners in redevelopment areas, potentially encouraging investment and improvements in these zones.

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": [
        "Introduces new calculation methods for redevelopment area homestead credits."
      ],
      "removed": [
        "None"
      ],
      "summary": "This bill modifies taxation rules related to property credits under section 273.1392.",
      "modified": [
        "Adjusts the calculation and reimbursement process for tax reductions."
      ]
    },
    "citation": "273.1392"
  },
  {
    "analysis": {
      "added": [
        "Provisions for county auditor certification of tax reductions."
      ],
      "removed": [
        "None"
      ],
      "summary": "This bill updates procedures for property tax credits adjustments and reimbursements under section 273.1393.",
      "modified": [
        "Details of tax capacity based property tax reductions."
      ]
    },
    "citation": "273.1393"
  },
  {
    "analysis": {
      "added": [
        "None"
      ],
      "removed": [
        "None"
      ],
      "summary": "This bill amends the property tax levy limits as stated in section 275.065 subdivision 3.",
      "modified": [
        "Clarifies levy limits in relation to new tax credits."
      ]
    },
    "citation": "275.065 subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "New paragraphs affecting the calculation of tax rate for homestead credits."
      ],
      "removed": [
        "None"
      ],
      "summary": "This bill impacts the tax rate determination as described in section 275.08 subdivision 1b.",
      "modified": [
        "Adjusts components of tax rate calculation."
      ]
    },
    "citation": "275.08 subdivision 1b"
  },
  {
    "analysis": {
      "added": [
        "None"
      ],
      "removed": [
        "None"
      ],
      "summary": "This bill updates assessment notices and collection procedures under section 276.04 subdivision 2.",
      "modified": [
        "Adjusts wording to align with new tax credit implementations."
      ]
    },
    "citation": "276.04 subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Process for handling previous year adjustments."
      ],
      "removed": [
        "None"
      ],
      "summary": "This bill adjusts certification and payment management process under section 270C.85 subdivision 2.",
      "modified": [
        "Clarifies certification roles of county auditors and the commissioner of revenue."
      ]
    },
    "citation": "270C.85 subdivision 2"
  }
]