HF883

This bill, introduced by Representative Dotseth, proposes the creation of a Senior Citizen Credit for property taxes in Minnesota. The main elements of the bill include:

1. Eligibility Requirements:

   • The property must be classified properly under specific sections and include a house, garage, and surrounding land.
   • The homeowner must be at least 65 years old, and if married, the spouse must be at least 62.
   • The total household income must not exceed $75,000 prior to the application year.
   • The property should have been owned and occupied as a homestead for at least five years.
   • Homeowners must not be participants in the senior citizens property tax deferral program.

2. Application Process:

   • Homeowners must apply by March 1 of the year before the taxes are due.
   • Applications must include names, addresses, Social Security numbers, property tax statements, proof of ownership duration, and household income info.

3. Credit Amount:

   • The credit equals the amount of property tax due minus 3% of the household income, but it must not be less than zero.

4. Ongoing Eligibility:

   • The credit continues annually until the property is sold, all qualifying owners die, or the property no longer qualifies as a homestead.

5. Reimbursement and Payment:

   • County auditors will calculate and report tax reductions, which the commissioner of revenue will verify and adjust if necessary.
   • Payments to local taxing jurisdictions and school districts will be managed by the commissioners of revenue and education respectively.

6. Funding:

   • Funds for these reimbursements will be appropriated annually from the general fund to the necessary commissioners.

In essence, this bill is designed to reduce property tax burdens for senior citizens by introducing a new credit system, subject to specific eligibility and income criteria.