HF 633

1st Engrossment - 94th Legislature (2025 - 2026) Posted on 03/05/2025 12:25pm

A bill for an act
relating to taxation; property; establishing a market value exclusion for licensed
in-home child care providers; amending Minnesota Statutes 2024, sections 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 273.13, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Licensed in-home child care provider exclusion. new text end

new text begin (a) Prior to determining a
property's net tax capacity under this section, property that is (1) classified as 1a under
subdivision 22, or is of the portion of property classified as 2a under subdivision 23 consisting
of the house, garage, and surrounding one acre of land, and (2) used to operate a family day
care or group family day care program as defined under Minnesota Rules, chapter 9502, is
eligible for a market value exclusion as determined under paragraph (b).
new text end

new text begin (b) For a property eligible for the exclusion under this subdivision, the exclusion amount
is 50 percent of the property's market value. The valuation exclusion must be rounded to
the nearest whole dollar, and may not be less than zero.
new text end

new text begin (c) By July 1, 2025, and each June 1 thereafter, the commissioner of human services
must provide a list to each county of all licensed family day care and group family day care
providers located within the county.
new text end

new text begin (d) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 34 or 35.
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. 2.

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;

(3) new text begin the property's licensed in-home child care provider exclusion under section 273.13,
subdivision 36;
new text end

new text begin (4) new text end the property's taxable market value under section 272.03, subdivision 15;

deleted text begin (4) deleted text end new text begin (5) new text end the property's gross tax, before credits;

deleted text begin (5) deleted text end new text begin (6) new text end for agricultural properties, the credits under sections 273.1384 and 273.1387;

deleted text begin (6) deleted text end new text begin (7) new text end 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

deleted text begin (7) deleted text end new text begin (8) new text end 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