HF883

HF883 (Legislative Session 94 (2025-2026))

Senior citizen property tax credit established, and money appropriated.

AI Generated Summary

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:

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

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": [
        "Clarifies eligible property classifications: 1a or 1b, and portions of agricultural homesteads."
      ],
      "removed": [
        "No criteria related to commercial property classifications were removed."
      ],
      "summary": "This bill updates the eligibility criteria for senior citizen credits based on property classifications detailed in section 273.13.",
      "modified": [
        "References to classification of properties for eligibility were modified to include new definitions."
      ]
    },
    "citation": "273.13"
  },
  {
    "analysis": {
      "added": [
        "Direct reference to household income definitions as criteria for eligibility."
      ],
      "removed": [
        "Previous non-referential methods of determining income eligibility."
      ],
      "summary": "This bill refers to the definition of household income for eligibility under section 290A.03 for the senior citizen credit.",
      "modified": [
        "Clarification on the source of the definition of household income."
      ]
    },
    "citation": "290A.03"
  },
  {
    "analysis": {
      "added": [
        "Exclusion criteria for participants in the property tax deferral program."
      ],
      "removed": [
        "Prior mixed eligibility criteria that didn't clearly exclude tax deferral participants."
      ],
      "summary": "This section ensures property owners currently participating in the Senior Citizens Property Tax Deferral Program under chapter 290B are not eligible for the new credit.",
      "modified": [
        "Explicit conditions for non-eligibility based on participation in chapter 290B program."
      ]
    },
    "citation": "290B"
  },
  {
    "analysis": {
      "added": [
        "Certification processes for tax reductions linked to senior citizen credit."
      ],
      "removed": [
        "Elimination of any prior less formal processes for certification."
      ],
      "summary": "This bill requires the certification of tax reductions to be submitted as part of existing data requirements under section 270C.85.",
      "modified": [
        "Adjustment of certification reporting requirements to include senior citizen credit data."
      ]
    },
    "citation": "270C.85"
  },
  {
    "analysis": {
      "added": [
        "Guidelines on applying credits to reduce taxes within local jurisdictions."
      ],
      "removed": [
        "Any previous informal methods of tax credit application were dismissed."
      ],
      "summary": "This section dictates how the credit should be applied to reduce net property taxes payable under 273.1393.",
      "modified": [
        "Modification ensures systematic application across jurisdictions."
      ]
    },
    "citation": "273.1393"
  },
  {
    "analysis": {
      "added": [
        "Procedures for commissioner of education to handle reimbursements to school districts."
      ],
      "removed": [
        "Obsoleted reimbursement protocols not referencing current statutory basis."
      ],
      "summary": "Reimbursement processes for school districts are governed by section 273.1392.",
      "modified": [
        "Clarified and updated reimbursement steps per current legislation."
      ]
    },
    "citation": "273.1392"
  }
]