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SF2405 (Legislative Session 94 (2025-2026))

Housing and redevelopment authority levy limits modification

Related bill: HF1863

AI Generated Summary

Purpose of the Bill

The bill aims to modify the limits on the property tax levies imposed by housing and redevelopment authorities within specific operational areas in Minnesota. This change is intended to provide these authorities with greater flexibility in raising funds to support their projects.

Main Provisions

  • The bill outlines that the area of operation of any housing and redevelopment authority shall serve as a taxing district. This allows for the imposition of special benefit taxes on all taxable property—both real and personal—within this district.
  • Authorities can levy taxes with the consent of the city's governing body. These taxes will be part of the general taxes collected for state, county, and municipal purposes.
  • Collected taxes, including penalties and interest, will be placed in a separate fund called the housing and redevelopment project fund. These funds are earmarked specifically for projects as outlined in Minnesota Statutes sections 469.001 to 469.047.
  • The bill specifies that the housing and redevelopment authority must prepare and submit a budget annually. The tax levy for the upcoming year will be determined based on this budget.
  • Section 275.067 requirements will apply to any housing and redevelopment authority that has not previously certified a levy.

Significant Changes to Existing Law

  • The maximum allowable levy rate by housing and redevelopment authorities has been increased from 0.0185 percent to 0.037 percent of estimated market value. This change allows authorities to generate more revenue from property taxes.

Relevant Terms

  • Tax levy
  • Housing and redevelopment authority
  • Taxing district
  • Special benefit taxes
  • Project fund
  • Estimated market value

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025SenateFloorActionIntroduction and first reading
March 12, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the housing and redevelopment authority levy limits under section 469.033, subdivision 6.",
      "modified": [
        "Changes the maximum levy limit from 0.0185 percent to 0.037 percent of estimated market value."
      ]
    },
    "citation": "469.033"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Specifies the use of the housing and redevelopment project fund monies for the purposes outlined in sections 469.001 to 469.047.",
      "modified": []
    },
    "citation": "469.001 to 469.047"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The requirements of section 275.067 apply to a housing and redevelopment authority that has not previously certified a levy.",
      "modified": []
    },
    "citation": "275.067"
  }
]

Sponsors