SF199 (Legislative Session 94 (2025-2026))
Homestead redevelopment area credit establishment and appropriation
Related bill: HF727
AI Generated Summary
The bill introduces a new tax credit called the "Redevelopment Area Homestead Credit" for certain properties in Minnesota. To be eligible for this credit, a property must be defined as residential (1a or 1b classification) and located in a city classified as a second-class city, which has been designated as a redevelopment area by the U.S. Department of Commerce under specific criteria from a 1965 law.
The tax credit calculation gives qualifying properties a reduction equal to 70% of the property's net tax capacity multiplied by the city's capital debt tax rate. The mechanism for managing this tax reduction involves local county auditors, who will calculate the amount of tax reduction each year and certify this to the state's revenue commissioner. Any adjustments necessary are handled between the auditors and the commissioner.
Local taxing jurisdictions will be reimbursed for the tax reductions granted to homeowners, with payments made twice a year. The funds for these reimbursements will come from the state’s general fund, specifically set aside annually for this purpose.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 15, 2025 | Senate | Floor | Action | Introduction and first reading | |
| January 15, 2025 | Senate | Floor | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Potential adjustments to redevelopment area homestead credits."
],
"removed": [],
"summary": "This bill refers to the amendment of section 273.1392 regarding tax credits.",
"modified": []
},
"citation": "273.1392"
},
{
"analysis": {
"added": [
"Details on credit reimbursements to the local jurisdictions."
],
"removed": [],
"summary": "Amendment to section 273.1393, which involves homestead credit reimbursements.",
"modified": []
},
"citation": "273.1393"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Modification proposed for section 275.065, subd. 3, possibly affecting tax notifications.",
"modified": [
"Subdivisions governing tax rate notifications."
]
},
"citation": "275.065, subdivision 3"
},
{
"analysis": {
"added": [
"New subdivision possibly providing clarification on tax rate calculations."
],
"removed": [],
"summary": "A subdivision is added to 275.07, affecting general provisions related to taxation.",
"modified": []
},
"citation": "275.07"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amendment to section 275.08, subd. 1b, likely concerning tax rate determination.",
"modified": [
"Paragraph detailing debt tax rate calculations."
]
},
"citation": "275.08, subdivision 1b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Changes to section 276.04, subd. 2, possibly affecting tax statements.",
"modified": [
"Clarifies information required on tax statements."
]
},
"citation": "276.04, subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Mentions section 270C.85, subd. 2, related to taxation procedures.",
"modified": [
"Involves certification process for tax adjustments."
]
},
"citation": "270C.85, subdivision 2"
}
]