The proposed bill introduces a new property tax credit for seniors, known as the "senior credit," aimed at providing financial relief to homeowners aged 65 and older. To qualify, the property must be classified under specific categories and owned and occupied as a homestead by eligible individuals. The application process must be completed by December 15 of the year prior to the taxes payable year, and the credit amount is determined by the difference between the current year's tax due and a specified percentage of the previous year's tax, ensuring that the credit does not reduce the overall tax liability below zero. The bill also amends several sections of the Minnesota Statutes to incorporate this new credit into existing property tax frameworks and includes provisions for reimbursing local taxing jurisdictions for the tax reductions granted under this credit.

Additionally, the bill mandates that counties distinctly state any amounts allocated for specific purposes, such as lake improvement districts or public library services, from the overall county levy amount. It requires property tax statements for manufactured homes and sectional structures to include similar information as real property tax statements, detailing estimated market value, homestead market value exclusion, taxable market value, gross tax before credits, and net tax payable. The bill also allows taxing districts to include notices with property tax statements to inform taxpayers about upcoming budget deliberations, contingent upon county agreement. These changes will take effect for property taxes payable in 2027, with the senior credit effective starting with the assessment year 2026.

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