as introduced - 93rd Legislature (2023 - 2024) Posted on 02/03/2023 11:22am
A bill for an act
relating to taxation; property; limiting valuation increase on residential properties;
modifying property tax rates; amending Minnesota Statutes 2022, sections 273.11,
by adding a subdivision; 275.08, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 273.11, is amended by adding a subdivision
to read:
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(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 2023 and thereafter, the amount of the increase
shall not exceed two percent of the value in the preceding assessment.
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(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.
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(c) The limitation in paragraph (a) shall not apply to increases in value due to
improvements. For purposes of this subdivision, "assessment" means the value prior to any
exclusion under subdivision 16.
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This section is effective retroactively for assessment year 2023
and thereafter.
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Minnesota Statutes 2022, section 275.08, is amended by adding a subdivision to
read:
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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.
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This section is effective for property taxes payable in 2024 and
thereafter.
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