SF 3305

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/08/2025 09:16 a.m.

A bill for an act
relating to taxation; property; establishing a homestead market value exclusion
for property owned by persons 65 years or older and retired; amending Minnesota
Statutes 2024, sections 273.121, subdivision 1; 273.13, by adding a subdivision;
276.04, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 273.121, subdivision 1, is amended to read:

Subdivision 1.

Notice.

Any county assessor or city assessor having the powers of a
county assessor, valuing or classifying taxable real property shall in each year notify those
persons whose property is to be included on the assessment roll that year if the person's
address is known to the assessor, otherwise the occupant of the property. The notice shall
be in writing and shall be sent by ordinary mail at least ten days before the meeting of the
local board of appeal and equalization under section 274.01 or the review process established
under section 274.13, subdivision 1c. Upon written request by the owner of the property,
the assessor may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail. It shall contain: (1) the market value for the current and prior assessment;
(2) new text begin any value reduction resulting from an exclusion under section 273.13, subdivision 35
or 36; new text end new text begin (3) new text end the market value subject to taxation after subtracting the amount of any qualifying
improvements for the current assessment; deleted text begin (3) deleted text end new text begin (4) new text end the classification of the property for the
current and prior assessment; deleted text begin (4) deleted text end new text begin (5) new text end the assessor's office address; and deleted text begin (5) deleted text end new text begin (6) new text end the dates,
places, and times set for the meetings of the local board of appeal and equalization, the
review process established under section 274.13, subdivision 1c, and the county board of
appeal and equalization. If the classification of the property has changed between the current
and prior assessments, a specific note to that effect shall be prominently listed on the
statement. The commissioner of revenue shall specify the form of the notice. The assessor
shall attach to the assessment roll a statement that the notices required by this section have
been mailed. Any assessor who is not provided sufficient funds from the assessor's governing
body to provide such notices, may make application to the commissioner of revenue to
finance such notices. The commissioner of revenue shall conduct an investigation and, if
satisfied that the assessor does not have the necessary funds, issue a certification to the
commissioner of management and budget of the amount necessary to provide such notices.
The commissioner of management and budget shall issue a payment for such amount and
shall deduct such amount from any state payment to such county or municipality. The
necessary funds to make such payments are hereby appropriated. Failure to receive the
notice shall in no way affect the validity of the assessment, the resulting tax, the procedures
of any board of review or equalization, or the enforcement of delinquent taxes by statutory
means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 273.13, is amended by adding a subdivision to
read:

new text begin Subd. 36. new text end

new text begin Homestead of persons 65 years or older and retired. new text end

new text begin (a) All of the market
value of property owned by a person 65 years of age or older is excluded in determining
the property's taxable market value. To qualify for exclusion under this subdivision, the
property must meet the following criteria:
new text end

new text begin (1) the property is classified as 1a or 1b under subdivision 22 or is the portion of an
agricultural homestead under subdivision 23 consisting of the house, garage, and immediately
surrounding one acre of land; and
new text end

new text begin (2) the property is owned and occupied as a homestead by a person 65 years of age or
older who is retired. In the case of a married couple, at least one spouse must be 65 years
of age or older and the other spouse must be at least 62 years of age. The property may be
titled in the name of one spouse or both spouses or titled in another way that permits the
property to have homestead status.
new text end

new text begin (b) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, property tax credits under this chapter,
a property tax refund under chapter 290A, or the senior citizens' property tax deferral program
under chapter 290B.
new text end

new text begin (c) To qualify for a valuation exclusion under this subdivision, a property owner must
apply to the assessor by December 31 of the first assessment year for which the exclusion
is sought. Eligible properties must continue to receive the valuation exclusion for subsequent
taxes payable years until one of the following occurs: (1) the property is sold or transferred;
(2) the death of all qualifying homeowners; or (3) the property no longer qualifies as a
homestead.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2026.
new text end

Sec. 3.

Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar.

(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13, subdivision
35 new text begin or 36 new text end ;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for agricultural properties, the credits under sections 273.1384 and 273.1387;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
received under section 273.135 must be separately stated and identified as "taconite tax
relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2026.
new text end