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SF2504 (Legislative Session 94 (2025-2026))

Senior citizens' property tax deferral program modification

Related bill: HF2086

AI Generated Summary

Purpose of the Bill

This bill aims to modify the qualifications for senior citizens to participate in Minnesota's property tax deferral program. The program is designed to help senior homeowners defer their property taxes to reduce their annual tax burden.

Main Provisions

  • Age Requirement: To qualify, the person must own and occupy the property as a homestead and be 65 years or older. For married couples, one spouse must be at least 65, and the other at least 62 for eligibility.
  • Income Limit: The maximum allowable total household income for eligibility is increased from $96,000 to $110,000 for the calendar year before application.
  • Ownership Duration: The requirement for how long the home must have been owned and occupied by the qualifying seniors is changed. Previously, the property had to be owned and occupied for at least five years before application, which is now reduced to two years.
  • Lien and Mortgage Criteria: The bill maintains that there should be no state or federal tax liens on the home. Also, the total unpaid balances of debts secured by mortgages or other liens cannot exceed 75% of the property's assessed market value.

Significant Changes

  • The bill raises the income eligibility cap for participants, making it accessible to more seniors with higher incomes.
  • It reduces the minimum time a home must have been owned and occupied, from five years to two, allowing newer homeowners to qualify sooner.

Relevant Terms

senior citizens, property tax deferral, homestead, household income limit, tax liens, mortgage liens, assessed 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 qualifications for the senior citizens property tax deferral program under section 290B.03.",
      "modified": [
        "Increases the total household income limit for qualifying homeowners from $96,000 to $110,000.",
        "Reduces the required period the homestead must be owned and occupied to qualify from five years to two years."
      ]
    },
    "citation": "290B.03"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 290A.03 for the definition of total household income.",
      "modified": []
    },
    "citation": "290A.03"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 216C.435 for the definition of a residential PACE lien.",
      "modified": []
    },
    "citation": "216C.435"
  }
]

Sponsors