HF 4487
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/18/2026 11:50 a.m.
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4.1
A bill for an act
relating to taxation; providing a onetime property tax refund or credit; appropriating
money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin ONETIME PROPERTY TAX REFUND FOR TAXES PAYABLE IN 2026.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.
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(b) "Eligible local property taxes" means property taxes payable in 2026 on the following
categories of property:
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(1) residential homestead property, including manufactured homes, classified as 1a or
1b under Minnesota Statutes, section 273.13, subdivision 22;
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(2) residential nonhomestead property classified as 4b or 4bb under Minnesota Statutes,
section 273.13, subdivision 25;
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(3) apartment property classified as 4a under Minnesota Statutes, section 273.13,
subdivision 25;
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(4) agricultural homestead and nonhomestead property classified as 2a under Minnesota
Statutes, section 273.13, subdivision 23;
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(5) rural vacant land property classified as 2b under Minnesota Statutes, section 273.13,
subdivision 23; and
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(6) managed forest land classified as 2c under Minnesota Statutes, section 273.13,
subdivision 23.
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(c) "Eligible property taxes" means the sum of eligible state general levy payments and
eligible local property taxes.
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(d) "Eligible state general levy payments" means the amount of property taxes payable
in 2026 that is attributable to the state general levy under Minnesota Statutes, section 275.025
on:
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(1) seasonal residential recreational property subject to the state general levy under
Minnesota Statutes, section 275.025, subdivision 3; or
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(2) utility real and personal property classified as commercial and industrial property
under Minnesota Statutes, section 273.13, subdivision 24.
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(e) "Property taxes payable" means the property tax exclusive of special assessments,
penalties, and interest payable on a property after deductions under Minnesota Statutes,
sections 273.135, 273.1384, 273.1391, and 273.42, subdivision 2, and any other state paid
property tax credits in any calendar year, and after any refund claimed and allowable under
Minnesota Statutes, section 290A.04, subdivision 2h, that is first payable in the year that
the property tax is payable.
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new text begin Subd. 2. new text end
new text begin Refund of eligible property taxes. new text end
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(a) A person who paid eligible property
taxes may apply to the commissioner of revenue for a refund of a portion of the eligible
property taxes paid. To receive a refund under this section, a person must apply to the
commissioner of revenue no later than September 15, 2026. The commissioner of revenue
may determine the form and manner of the application, but must begin accepting applications
no later than July 15, 2026. The commissioner must pay a refund under this section within
four weeks of a valid application for a refund.
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(b) The refund amount equals the refund percentage determined under subdivision 3,
multiplied by the amount of eligible property taxes paid by the person.
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new text begin Subd. 3. new text end
new text begin Determination of eligible percentage. new text end
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(a) No later than July 1, 2026, the
commissioner of revenue must calculate and publish on the Department of Revenue website
the refund percentage determined under paragraph (b).
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(b) The refund percentage equals the appropriation under subdivision 4, divided by the
total eligible property taxes payable in 2026 in Minnesota.
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new text begin Subd. 4. new text end
new text begin Appropriation. new text end
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(a) $4,000,000,000 in fiscal year 2027 is appropriated from
the general fund to the commissioner of revenue for refunds under this section.
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(b) Any unused amount of the appropriation on October 1, 2026, may be used for property
tax credits under section 2. The commissioner of revenue may transfer to the commissioner
of education the amount necessary to make payments under section 2, subdivision 5.
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new text begin Subd. 5. new text end
new text begin Unclaimed refunds. new text end
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For a property for which eligible property taxes were
paid, but for which no person applied for a refund under this section, the commissioner
must ensure that the amount of the refund is paid as a property tax credit on the property
for property taxes payable in 2027, as provided in section 2.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 2. new text begin PROPERTY TAX CREDIT FOR UNCLAIMED PROPERTY TAX
REFUNDS.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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The definitions in section 1 apply to this section.
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new text begin Subd. 2. new text end
new text begin Eligibility. new text end
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A property is eligible for a credit under this section if the property
had eligible property taxes assessed against it and no person claimed the refund under section
1 for the property taxes attributable to the property.
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new text begin Subd. 3. new text end
new text begin Credit amount. new text end
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The amount of the credit under this section equals the eligible
percentage determined under section 1, subdivision 3, multiplied by the amount of eligible
property taxes payable on the property in 2026.
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new text begin Subd. 4. new text end
new text begin Certification. new text end
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No later than January 2, 2027, the commissioner of revenue must
calculate and certify to each county auditor credit amounts under this section. The county
auditor must apply the credit to each qualifying property's property taxes payable in 2027.
No later than July 1, 2027, the county auditor must certify any reductions under this
subdivision to the commissioner of revenue under Minnesota Statutes, section 270C.85,
subdivision 2. The commissioner must review the certifications for accuracy and may make
any changes the commissioner deems necessary or return the certification to the county
auditor for correction.
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new text begin Subd. 5. new text end
new text begin Payment. new text end
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(a) The commissioner of revenue must reimburse each local taxing
jurisdiction, other than school districts, for the tax reductions granted under this section in
one installment on October 31, 2027. The reimbursements related to tax increments must
be issued in one installment on December 26, 2027.
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(b) The commissioner of revenue shall certify the total of the tax reductions granted
under this section within each school district to the commissioner of education. The
commissioner of education shall pay the reimbursement amounts to each school district as
provided in Minnesota Statutes, section 273.1392.
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new text begin EFFECTIVE DATE. new text end
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This section is effective for property taxes payable in 2027 only.
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