SF 419

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/28/2025 09:17 a.m.

A bill for an act
relating to taxation; property; limiting valuation increase on residential properties;
modifying property tax rates; amending Minnesota Statutes 2024, sections 273.11,
by adding a subdivision; 275.08, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 273.11, is amended by adding a subdivision
to read:

new text begin Subd. 24. new text end

new text begin Limited residential market value. new text end

new text begin (a) In the case of all property classified
as agricultural homestead or nonhomestead and residential homestead or nonhomestead,
the assessor shall compare the value with the taxable portion of the value determined in the
preceding assessment. For assessment year 2025 and thereafter, the amount of the increase
shall not exceed two percent of the value in the preceding assessment.
new text end

new text begin (b) When property in paragraph (a) is sold, a county assessor may reassess the residential
property at the current fair market value for the property.
new text end

new text begin (c) The limitation in paragraph (a) shall not apply to increases in value due to
improvements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2025 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2024, section 275.08, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Residential property tax adjustment. new text end

new text begin Before the county auditor spreads the
taxes, when calculating the net tax capacity and local tax rates, the county auditor shall
adjust the amounts for parcels classified as agricultural homestead, agricultural
nonhomestead, residential homestead, and residential nonhomestead so that the property
tax for each parcel is limited to one percent of the current year assessment value for each
parcel.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2026 and
thereafter.
new text end