SF2504

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.