HF826

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:

1. 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.

2. 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.

3. 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.

4. Ongoing Eligibility:

   • The credit continues annually unless the property is sold, all qualifying homeowners die, or the property is no longer the primary residence.

5. 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.

6. 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.