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SF339 (Legislative Session 94 (2025-2026))

Licensed in-home child care provider property tax credit establishment; appropriating money

Related bill: HF633

AI Generated Summary

Senate File No. 339 is a proposed legislative bill from Minnesota that focuses on supporting licensed in-home child care providers. This bill proposes to establish a tax credit specifically for properties used by these providers for family day care or group family day care activities. Key aspects of the bill include:

  1. Eligibility: Only properties that are classified under certain tax classifications and are used to operate a licensed family day care or group family day care qualify for this credit.

  2. Notification: By a set deadline each year, the Commissioner of Human Services is required to provide a list of all licensed family day care or group family day care providers in each county.

  3. Credit Amount: The bill proposes a tax credit amounting to 50% of the net tax owed on the property after all other applicable credits.

  4. Reimbursement Process: The county auditor determines the total tax reduction for qualifying providers and notifies the Commissioner of Revenue who is responsible for rechecking and possibly adjusting these figures. Tax reductions are reimbursed to local taxing jurisdictions and school districts in specific installments.

  5. Funding: The necessary funds to cover these tax credits and reimbursements are appropriated annually from the state’s general fund both to the Commissioner of Revenue and the Commissioner of Education as needed for distributions.

The bill aims to alleviate financial burdens on in-home child care providers by reducing their property tax expenses, thereby potentially supporting the availability of child care services.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 20, 2025SenateFloorActionIntroduction and first reading
January 20, 2025SenateFloorActionReferred toTaxes
January 26, 2025SenateFloorActionAuthors added
February 05, 2025SenateFloorActionAuthor added
March 16, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Specifies reimbursement for school districts related to the child care provider credit."
      ],
      "removed": [],
      "summary": "References existing provisions for the reimbursement amounts to school districts for tax reductions granted.",
      "modified": []
    },
    "citation": "273.1392"
  },
  {
    "analysis": {
      "added": [
        "Incorporates a new licensed inhome child care provider credit calculation."
      ],
      "removed": [],
      "summary": "Outlines the determination of applicable credits for property tax purposes, used here to calculate the child care provider credit.",
      "modified": []
    },
    "citation": "273.1393"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Revised to reflect changes in the computation of tax levies related to the child care provider credit.",
      "modified": [
        "Subdivision 3 altered to accommodate adjustments for the child care provider credit."
      ]
    },
    "citation": "275.065"
  },
  {
    "analysis": {
      "added": [
        "Includes provisions for notice to taxpayers regarding new credits available."
      ],
      "removed": [],
      "summary": "Discusses the process of providing notice and claim for reimbursement of tax credits, here applied to the child care provider credit.",
      "modified": [
        "Subdivision 2 updates to include information on inhome child care provider credits."
      ]
    },
    "citation": "276.04"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relation to property classification for eligibility in receiving the inhome child care provider credit.",
      "modified": [
        "Clarification on property classifications under subdivisions 22 and 23, now including day care operations."
      ]
    },
    "citation": "273.13"
  },
  {
    "analysis": {
      "added": [
        "Clause 4 specifies the role of the commissioner with regards to new credit calculations."
      ],
      "removed": [],
      "summary": "Details the duties of the commissioner of revenue, particularly certification of tax reductions, now including child care provider credits.",
      "modified": []
    },
    "citation": "270C.85"
  }
]

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