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SF416 (Legislative Session 94 (2025-2026))

Homestead market value exclusion modification for certain years

AI Generated Summary

The bill, SF No 416, proposes amendments to the taxation of property in Minnesota, specifically focusing on the homestead market value exclusion for certain years. The key points of the bill include:

  1. Homestead Market Value Exclusion Adjustment: The bill adjusts the formula and thresholds for calculating the homestead market value exclusion for specific assessment years. This exclusion reduces the market value of a homestead before property taxes are calculated, thereby potentially lowering property taxes for eligible homeowners.

  2. Details of the Exclusion for Different Years:

    • For 2025 and 2028 and later:
      • Homesteads valued at $95,000 or less get a 40% exclusion.
      • Homesteads valued between $95,000 and $517,200 get a $38,000 exclusion minus 9% of the valuation over $95,000.
      • Homesteads valued over $517,200 do not receive an exclusion.
  • For 2026 and 2027:
    • Homesteads valued at $107,450 or less get a 40% exclusion.
    • Homesteads valued between $107,450 and $585,000 get a $42,980 exclusion minus 9% of the valuation over $107,450.
    • Homesteads valued over $585,000 do not receive an exclusion.

  1. Application of Exclusions: The exclusions or adjustments under another related section must be applied before determining the amount of the exclusion under this subdivision.

  2. Part Homestead and Part Non-Homestead Properties: The exclusion applies only to the homestead portion of the property. However, for properties that are partially non-homestead because not all owners or their spouses occupy the property, the exclusion amount is computed as if the entire property was homestead and then prorated based on the owner-occupant's percentage of ownership.

In summary, this legislative bill adjusts how the market value exclusion for homestead properties is calculated and applied, aiming to provide tax relief to homeowners in Minnesota for certain years based on the value of their property.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 20, 2025SenateFloorActionIntroduction and first reading
January 20, 2025SenateFloorActionReferred toTaxes
March 26, 2025SenateFloorActionAuthor stricken

Citations

 
[
  {
    "analysis": {
      "added": [
        "Introduces new assessment year brackets for calculations."
      ],
      "removed": [
        "Old percentage calculations not applicable after reforms."
      ],
      "summary": "This bill modifies the homestead market value exclusion rules under section 273.13 by adjusting valuation thresholds and exclusion amounts.",
      "modified": [
        "Valuation thresholds for the exclusion have been adjusted for assessment years 2025, 2026, and beyond."
      ]
    },
    "citation": "273.13"
  },
  {
    "analysis": {
      "added": [
        "Clarification on priority application of section 273.11 adjustments."
      ],
      "removed": [
        "Not applicable as the section is referenced unchanged."
      ],
      "summary": "The bill ensures valuation exclusions or adjustments are applied per section 273.11 before determining the exclusion under section 273.13.",
      "modified": [
        "Reiterates order of application for adjustments."
      ]
    },
    "citation": "273.11"
  }
]

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