This bill introduces a "redevelopment area homestead credit" designed to provide property tax relief for eligible properties situated in designated redevelopment areas within second-class cities. The credit is calculated at 70% of the property's net tax capacity multiplied by the city capital debt tax rate. The legislation outlines eligibility criteria, the process for determining tax reductions, and a reimbursement mechanism for local taxing jurisdictions. It also includes provisions for annual appropriations from the general fund to support the costs associated with the credit.

Additionally, the bill amends several sections of the Minnesota Statutes to incorporate this new credit into the existing property tax credits, ensuring that the county auditor certifies the city capital debt tax rate for eligible cities. It mandates that property tax statements include detailed information about the redevelopment area homestead credit and aligns the information requirements for manufactured homes and sectional structures with those for real property. A significant insertion in the bill is the effective date, which establishes that these changes will take effect for taxes payable in 2026, thereby enhancing transparency and taxpayer engagement in local budgeting processes.

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