HF826

HF826 (Legislative Session 94 (2025-2026))

Senior citizen property tax credit established, and money appropriated.

AI Generated Summary

This bill, proposed by Representative Dotseth, aims to create a new property tax credit specifically for senior citizens in Minnesota. It has several primary components and requirements:

Eligibility for Senior Citizen Credit:
- The property must be classified as residential homestead.
- At least one property owner must be 65 years or older; if married, the other spouse should be at least 62 years old.
- The total household income should not exceed $75,000.
- The property must have been owned and occupied as a homestead by one of the owners for a minimum of five years before applying.
- The owners should not be part of the senior citizens property tax deferral program.
Application Process:
- Qualifying property owners must apply for the credit through their county assessor by March 1 of the year before the taxes are due.
- The application requires details such as names, address, Social Security number, a copy of the property tax statement, year the property became a homestead, and total household income from the previous year.
Credit Amount:
- The credit amount is the property tax due after other credits minus 3% of the household's total income.
- The credit cannot be negative, implying that it can offset the tax owed but not result in a payment to the homeowner.
Ongoing Eligibility:
- The credit continues annually unless the property is sold, all qualifying homeowners die, or the property is no longer the primary residence.
Administration and Reimbursement:
- The county auditor reviews and certifies the tax reductions and forwards them to the state's commissioner of revenue.
- The state reimburses local taxing jurisdictions for the reduction in tax revenue, ensuring schools and other entities are compensated.
Funding:
- The required funds for the credit are appropriated annually from the general fund to the respective authorities—the commissioner of revenue and the commissioner of education for non-school and school district reimbursements respectively.

The amendments this bill would make to existing statutes and the introduction of new codes are designed to implement and support the function of this new tax credit efficiently. This legislative effort aims to alleviate the property tax burden on older residents, ensuring financial relief for those who often face fixed or limited income post-retirement.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 16, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Appropriation for payments to school districts as part of the senior citizen credit."
      ],
      "removed": [],
      "summary": "The bill establishes the senior citizen credit and modifies reimbursement procedure for school districts under section 273.1392.",
      "modified": []
    },
    "citation": "273.1392"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill relates to the proportional reduction of net property tax payable under section 273.1393.",
      "modified": [
        "Clarifies the proportional reduction process for property taxes as impacted by the senior citizen credit."
      ]
    },
    "citation": "273.1393"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill refers to the senior citizen credit in relation to section 275.065 subdivision 3.",
      "modified": [
        "Section now includes provisions affecting taxation notice requirements due to the senior citizen credit."
      ]
    },
    "citation": "275.065 subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies how property tax statements reflect the senior citizen credit under section 276.04 subdivision 2.",
      "modified": [
        "Revision of information included in property tax statements to account for the senior citizen credit."
      ]
    },
    "citation": "276.04 subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section addresses property classification affecting eligibility for the senior citizen credit.",
      "modified": [
        "Inclusion of specific property classifications eligible for the senior citizen credit."
      ]
    },
    "citation": "273.13 subdivision 22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Part of the property eligibility criteria under the senior citizen credit.",
      "modified": [
        "Provides specifics on agricultural homestead portions applicable to the credit."
      ]
    },
    "citation": "273.13 subdivision 23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This addresses the definition of household income in relation to the senior citizen credit.",
      "modified": [
        "Clarification on income definitions for calculating the credit."
      ]
    },
    "citation": "290A.03 subdivision 5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section provides the framework for data certification related to tax reductions.",
      "modified": [
        "Adjustment of certification processes for annual and prior year adjustments regarding the credit."
      ]
    },
    "citation": "270C.85 subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Ineligibility criteria concerning participation in the tax deferral program.",
      "modified": [
        "States properties in the senior citizens tax deferral are not eligible for the credit."
      ]
    },
    "citation": "290B"
  }
]