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SF3218 (Legislative Session 94 (2025-2026))

Commercial-industrial property state general levy reduction provision

Related bill: HF3045

AI Generated Summary

Purpose of the Bill

This bill aims to amend Minnesota's tax code to reduce the state general levy specifically for commercial-industrial property, thereby relieving some of the tax burdens on businesses within this category.

Main Provisions

  • The bill proposes to lower the state general levy on commercial-industrial property from $716,990,000 to $684,990,000 for taxes payable in 2026 and thereafter.
  • The levy for seasonal residential recreational property is set to remain unchanged at $41,690,000 for taxes payable from 2020 onwards.
  • The state general levy is distinct from other local tax rates and is not considered a levy by a governmental unit.

Significant Changes to Existing Law

  • The reduction in the levy amount for commercial-industrial property implements a decrease in state taxation on these properties, potentially increasing competitiveness and economic activity.
  • The bill also includes provisions allowing the commissioner to make rate adjustments to correct errors or to reflect changes in taxable values for up to two preceding years, provided the necessary data is available.
  • Adjustments may be made due to an erroneous report of taxable value, calculation errors by the commissioner, or changes in reported taxable value for commercial-industrial or seasonal residential recreational property.

Relevant Terms

  • Commercial-industrial property
  • State general levy
  • Seasonal residential recreational property
  • Taxable value adjustments
  • Taxation commissioner

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 01, 2025SenateFloorActionIntroduction and first reading
April 01, 2025SenateFloorActionIntroduction and first reading
April 01, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill reduces the state general levy for commercial-industrial property under section 275.025, subdivision 1.",
      "modified": [
        "Reduced the state general levy from 716,990,000 to 684,990,000 for commercial-industrial property taxes payable in 2026 and thereafter."
      ]
    },
    "citation": "275.025",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill maintains the provision that state general levy is not treated as a local tax rate under section 469.177.",
      "modified": []
    },
    "citation": "469.177",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references reporting requirements for changes in taxable value under section 270C.85, subdivision 2, clause 4.",
      "modified": []
    },
    "citation": "270C.85",
    "subdivision": "subdivision 2, clause 4"
  }
]

Sponsors