SF 4262
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/08/2026 10:34 a.m.
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A bill for an act
relating to taxes; establishing a property tax task force; requiring a report.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin PROPERTY TAX TASK FORCE.
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new text begin Subdivision 1. new text end
new text begin Establishment. new text end
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(a) A property tax task force is established as provided
under this section. The goals of the task force are to:
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(1) investigate ways to reduce property tax on homestead properties; and
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(2) present options for legislation that would provide property tax relief to homestead
properties, including at least one option with minimal general fund impact.
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(b) For the purpose of this section, "homestead property" means a residential homestead
classified as 1a under Minnesota Statutes, section 273.13, subdivision 22, and the portion
of class 2 property under Minnesota Statutes, section 273.13, subdivision 23, consisting of
the house and garage and immediately surrounding one acre of land.
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new text begin Subd. 2. new text end
new text begin Considerations. new text end
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As part of its work, the task force must consider:
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(1) the effectiveness of the homestead market value exclusion in lowering homestead
property taxes relative to nonhomestead residential property;
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(2) the effectiveness of the homestead market value exclusion in lowering homestead
property taxes in 2025 compared to the effectiveness of the homestead market value exclusion
in lowering homestead property taxes in 2011;
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(3) whether changing property tax classification rates would be a preferred tool for
reducing property tax on homestead properties, compared to the homestead market value
exclusion;
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(4) how property tax classification rates compare across all types of property by
comparing classification rates of classifications containing similar types of property and
exploring whether consolidating some classifications could be achieved in a way that reduces
property tax on homestead properties;
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(5) changes and trends in the share of property taxes paid by homestead properties from
2015 through 2025;
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(6) changes and trends in the relative share of state and local property taxes paid by
property classified as commercial, industrial, or public utility property under Minnesota
Statutes, section 273.13, subdivision 24, clauses (1) to (3), from 2015 through 2025; and
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(7) how noncommercial seasonal residential recreational, nonhomestead residential, and
homestead property tax burdens compare in different areas of the state and how these
properties were taxed in 2015 compared to 2025.
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new text begin Subd. 3. new text end
new text begin Membership. new text end
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The task force must consist of the following members:
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(1) two state representatives, one appointed by each of the cochairs of the house of
representatives Taxes Committee;
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(2) two state senators, one appointed by the chair of the senate Taxes Committee and
one appointed by the ranking minority member of the committee;
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(3) the commissioner of revenue, or a designee;
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(4) two people appointed by the Association of Minnesota Counties;
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(5) two people appointed by the League of Minnesota Cities;
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(6) one person appointed by the Minnesota Association of Townships; and
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(7) one person appointed by the Minnesota Association of Assessing Officers.
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new text begin Subd. 4. new text end
new text begin Duties. new text end
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(a) The task force must make advisory recommendations to the
legislature on the goals outlined in subdivision 1.
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(b) The commissioner of revenue or their designee must chair the initial meeting and
the task force must elect a chair at that initial meeting. The task force will meet at the call
of the chair. Members of the task force must serve without compensation. The commissioner
of revenue must provide administrative support to the task force. Minnesota Statutes, chapter
13D, does not apply to meetings of this task force. Meetings of the task force must be open
to the public and the task force must provide notice of a meeting at least seven days before
the meeting. A meeting of the task force occurs when a quorum is present.
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new text begin Subd. 5. new text end
new text begin Report. new text end
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The task force must submit a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over property taxes no later than
February 1, 2027. The report must contain the task force's advisory recommendations and
any additional information the task force deems relevant.
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new text begin Subd. 6. new text end
new text begin Expiration. new text end
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The task force established by this section expires upon submission
of the report under subdivision 5.
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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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