SF420

This bill, introduced in the Minnesota Senate as SF No 420, proposes changes to the state's property tax system, specifically concerning residential properties. The main points of the bill are:

1. Limit on Valuation Increases: The county assessor is not permitted to increase the market value of a residential property by more than 3% compared to the previous year’s assessment value.

2. Exemption Upon Sale: The 3% limit does not apply in the year following the sale of a property. After a property is sold, the new assessment can reflect its current fair market value.

3. Tax Impact of Property Sales: If the estimated market value of a sold residential property increases by more than 3% over the previous year’s assessment, this increase in tax burden is distributed across all residential properties within the county. This redistribution is effective for taxes payable in the two years following the next taxation year.

Overall, the bill aims to stabilize property tax increases on residential properties, providing predictability for homeowners, while still allowing for adjustments upon the sale of properties.