The proposed bill introduces a "redevelopment area homestead credit" designed to provide tax relief for properties classified as 1a or 1b within designated redevelopment areas recognized by the U.S. Department of Commerce. The credit is calculated at 70% of the property's net tax capacity multiplied by the city capital debt tax rate. The bill assigns responsibilities to county auditors for determining tax reductions and certifying amounts to the commissioner of revenue, who will reimburse local taxing jurisdictions for these reductions. Additionally, it mandates an annual appropriation from the general fund to support these payments.

The bill also amends various sections of the Minnesota Statutes to integrate the new credit, including changes to the computation of net property taxes and the information included in tax statements. It specifies that the redevelopment area homestead credit will be included among the credits that reduce gross property taxes and requires cities with eligible properties to certify their capital improvement bond levies. The effective date for these changes is set for taxes payable in 2026, allowing time for counties and taxing districts to adapt to the new requirements. Furthermore, the bill ensures that property tax statements provide detailed information for both real and personal properties, including current and previous year tax data, and allows for the inclusion of notices from taxing districts regarding budget deliberations.

Statutes affected:
Introduction: 273.1392, 273.1393, 275.065, 275.07, 275.08, 276.04