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SF3260 (Legislative Session 94 (2025-2026))

Property tax market value exclusion for veterans with a disability modification; exclusion amounts increase annually with inflation authorization; surviving spouses benefit modification

Related bill: HF1756

AI Generated Summary

Purpose of the Bill

The bill aims to provide property tax relief for disabled veterans, their primary family caregivers, and surviving spouses by modifying the market value exclusion available to them. The exclusion amounts will also adjust annually with inflation, ensuring that the benefits remain consistent with economic changes.

Main Provisions

  • Market Value Exclusion for Disabled Veterans: The bill modifies the property tax exclusion amounts for veterans with disabilities. Veterans with a disability rating of 70% or more can exclude a base amount from the market value of their homestead when calculating taxable value. Those with a 100% permanent disability can exclude twice the base amount.
  • Annual Inflation Adjustment: Starting in the assessment year 2027, the exclusion base amount will increase annually in line with inflation based on government consumption indices.
  • Benefits for Surviving Spouses: The bill provides that the exclusion can continue for surviving spouses of veterans, as long as they do not remarry or sell the property. Spouses of service members who died during active service are also eligible under specific conditions.
  • Family Caregivers: If a veteran does not own property in Minnesota, their primary family caregiver's homestead can qualify for the exclusion.
  • Application Process: Property owners must apply to their local assessor to receive the exclusion for the first assessment year they are eligible and must notify when there are changes in property ownership or use.

Significant Changes to Existing Law

  • Inflation Adjustment: Previously, the exclusion amounts were fixed. This bill introduces an adjustment mechanism tied to inflation for maintaining the relevance of the benefits.
  • Extension of Benefits: Provides clarified and extended protections and eligibility for family caregivers and surviving spouses, allowing for continuity in tax relief benefits under various circumstances.

Relevant Terms

  • Disabled veterans
  • Property tax exclusion
  • Inflation adjustment
  • Surviving spouse benefits
  • Family caregivers
  • Homestead valuation

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increases the exclusion amounts annually with inflation.",
        "Modifies the benefit for surviving spouses."
      ],
      "removed": [],
      "summary": "This bill modifies the market value exclusion for veterans with a disability under section 273.13, subdivision 34.",
      "modified": [
        "Adjustments made to the exclusion base amount and terms of eligibility for spouses.",
        "Clarifications on application requirements and continuation of benefits."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 34"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Active service is given meaning under section 190.05.",
      "modified": []
    },
    "citation": "190.05",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines the term 'veteran' under section 197.447.",
      "modified": []
    },
    "citation": "197.447",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relates to the Program of Comprehensive Assistance for Family Caregivers under federal law.",
      "modified": []
    },
    "citation": "38 U.S.C. 1720G",
    "subdivision": ""
  }
]

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