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SF1473 (Legislative Session 94 (2025-2026))

Senior citizens' property tax credit establishment

Related bill: HF551

AI Generated Summary

This bill proposes the establishment of a property tax credit for senior citizens in Minnesota. Here are the key points outlined in the bill:

  1. Definition: The tax credit applies to senior citizens, defined as individuals of normal retirement age as outlined in the U.S. Social Security guidelines. This includes those retired by normal age or through mandatory retirement policies, with the minimum qualifying age set at 65, or if married, one spouse must be at least 65 and the other at least 62.

  2. Eligibility: The property tax credit is available for primary residences including the house, garage, and the immediate one acre of land. To qualify, the property must be formally registered as a homestead, meaning it is the owner's principal residence.

  3. Calculation of the Credit: The credit amount is the difference between the actual property tax based on the current market value and the tax based on the median market value of owner-occupied housing in the same municipality. However, the credit will be capped at a certain amount and rounded to the nearest whole dollar.

  4. Application Process: Senior citizens must apply for this credit with the county auditor by July 1 of the assessment year, to take effect the following year. Approval or disapproval of the application must come within 30 days of submission.

  5. Duration and Reapplication: Once approved, the credit continues annually as long as the applicant still owns the property and continues to meet eligibility requirements. Changes in ownership or eligibility must be reported, affecting the continuation of the credit.

  6. Credit Reimbursements: The county auditors track tax reductions under this program and report to the state's commissioner of revenue for reimbursement to local taxation authorities excluding school districts, which are handled separately.

  7. Funding: The bill ensures the program’s funding by appropriating necessary amounts from the state's general fund to cover the reimbursements required for taxing authorities and school districts.

In summary, this bill aims to provide financial relief to senior citizens in Minnesota by reducing property tax liabilities based on a comparison with median market values, with procedures in place for application, continuation, and government reimbursement of the tax credits.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025SenateFloorActionIntroduction and first reading
February 16, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amending section 273.1393 involves modifications to the property tax statutes.",
      "modified": [
        "Clarified language regarding senior citizens property tax credits."
      ]
    },
    "citation": "273.1393"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Changes to 275.065, subdivision 3, are related to property tax proceedings.",
      "modified": [
        "May include revisions to deadlines or processes for property tax appeals."
      ]
    },
    "citation": "275.065, subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amendments in 276.04, subdivision 2, pertain to property tax statement regulations.",
      "modified": [
        "Introduces clearer guidelines for how property tax credits must be reflected on statements."
      ]
    },
    "citation": "276.04, subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the classification of property types under section 273.13.",
      "modified": [
        "Specifies property type eligibility for senior citizens property tax credit."
      ]
    },
    "citation": "273.13, subdivision 22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Covers the inclusion of parts of property classified as class 2a.",
      "modified": [
        "Defines what parts of a property can be included for tax credit eligibility."
      ]
    },
    "citation": "273.13, subdivision 23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 270C.85, subdivision 2, governs data certification requirements related to tax adjustments.",
      "modified": [
        "Clarifies data submission requirements for tax credit reimbursements."
      ]
    },
    "citation": "270C.85, subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Clause 4 within 270C.85, subdivision 2, stipulates details for communication between county auditors and the state.",
      "modified": [
        "Requires additional data elements for submission regarding tax reductions."
      ]
    },
    "citation": "270C.85, subdivision 2, clause 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 273.1392 deals with reimbursements to school districts.",
      "modified": [
        "Outlines reimbursement process changes to reflect updated tax credit procedures."
      ]
    },
    "citation": "273.1392"
  }
]

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