A bill for an act
relating to taxation; property; property tax refund; establishing a process for seniors
to receive an advance credit of the homestead credit refund; establishing the advance
credit; amending Minnesota Statutes 2022, sections 273.1393; 276.04, subdivision
2; 290A.03, by adding subdivisions; Minnesota Statutes 2023 Supplement, sections
273.1392; 275.065, subdivision 3; proposing coding for new law in Minnesota
Statutes, chapters 273; 290A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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Homestead property is eligible to receive the advance
homestead credit for seniors under this section if it is owned by an eligible senior claimant
who received homestead treatment on the property in the prior taxes payable year. For the
purposes of this section, "eligible senior claimant" means a claimant who has submitted an
application and has been determined eligible under section 290A.071.
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For each qualifying property, the amount of the advance
homestead credit for seniors is equal to 50 percent of the amount of the homestead credit
refund the property owner received in the previous year.
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No later than January 2 of the year for which an eligible senior
claimant elected to receive the advance homestead credit for seniors under this section, 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
gross tax pursuant to section 273.1393. If a property's credit amount under subdivision 2
exceeds the tax due on the property after all other applicable credits, the auditor must reduce
the advance homestead credit for seniors so that the final net tax amount is $0. No later than
July 1 of the taxes payable year in which the credit is applied, the county auditor must certify
any reductions under this subdivision to the commissioner of revenue under section 270C.85,
subdivision 2. The commissioner shall 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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(a) The commissioner of revenue shall reimburse each local taxing
jurisdiction, other than school districts, for the tax reductions granted under this section in
one installment on October 31 of the taxes payable year for which the reductions are granted,
including in each payment any prior year adjustments. The reimbursements related to tax
increments shall be issued in one installment each year on December 26.
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(b) The commissioner of revenue shall certify the total of the tax reductions granted
under this section for each taxes payable year 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 section 273.1392.
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An amount sufficient to make the payments required by this
section to taxing jurisdictions other than school districts is annually appropriated from the
general fund to the commissioner of revenue. An amount sufficient to make the payments
required by this section for school districts is annually appropriated from the general fund
to the commissioner of education.
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This section is effective beginning with property taxes payable
in 2026.
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Minnesota Statutes 2023 Supplement, section 273.1392, is amended to read:
The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;new text begin
the advance homestead credit for seniors under section 273.1389;new text end aids and credits under
section 273.1398; enterprise zone property credit payments under section 469.171;
metropolitan agricultural preserve reduction under section 473H.10; and electric generation
transition aid under section 477A.24 for school districts, shall be certified to the Department
of Education by the Department of Revenue. The amounts so certified shall be paid according
to section 127A.45, subdivisions 9, 10, and 13.
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This section is effective beginning July 1, 2026.
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Minnesota Statutes 2022, section 273.1393, is amended to read:
Notwithstanding any other provisions to the contrary, "net" property taxes are determined
by subtracting the credits in the order listed from the gross tax:
(1) disaster credit as provided in sections 273.1231 to 273.1235;
(2) powerline credit as provided in section 273.42;
(3) agricultural preserves credit as provided in section 473H.10;
(4) enterprise zone credit as provided in section 469.171;
(5) disparity reduction credit;
(6) conservation tax credit as provided in section 273.119;
(7) the school bond credit as provided in section 273.1387;
(8) agricultural credit as provided in section 273.1384;
(9) taconite homestead credit as provided in section 273.135;
(10) supplemental homestead credit as provided in section 273.1391; deleted text begin and
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(11) the bovine tuberculosis zone credit, as provided in section 273.113deleted text begin .deleted text end new text begin ; and
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(12) the advance homestead credit for seniors under section 273.1389.
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The combination of all property tax credits must not exceed the gross tax amount.
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This section is effective beginning with property taxes payable
in 2026.
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Minnesota Statutes 2023 Supplement, section 275.065, subdivision 3, is amended
to read:
(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
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