The proposed bill establishes an advance homestead credit for seniors in Minnesota, allowing eligible senior claimants to receive a credit equal to 50% of the homestead credit refund they received in the previous year. The bill outlines the eligibility criteria, certification process, and payment procedures for this credit, which will be administered by the commissioner of revenue and applied to the gross tax of qualifying properties. It also includes provisions for reimbursement to local taxing jurisdictions and school districts for the tax reductions granted under this new credit. The effective date for the implementation of this credit is set for property taxes payable in 2026.

Additionally, the bill amends various sections of the Minnesota Statutes to incorporate the new advance homestead credit, including the insertion of new language that allows for the inclusion of notices regarding budget deliberations from taxing districts in property tax statements. It establishes definitions for "eligible senior claimant" and "homestead credit refund," and introduces a process for eligible senior claimants to elect to receive advance credits. The bill also specifies that a claimant's homestead credit refund will be reduced by any advance credit received, with provisions for repayment if the advance credit exceeds the eligible refund. These provisions will also take effect for property taxes payable in 2026 and thereafter, with specific rules for advance payment elections applicable after December 31, 2024.

Statutes affected:
Introduction: 273.1393, 276.04, 290A.03