This bill introduces a new property tax credit for seniors, known as the "senior credit," designed to provide financial relief to homeowners aged 65 and older. To qualify, the property must be a homestead owned by eligible individuals or couples, and the application must be submitted by December 15 of the year prior to the taxes payable year. 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 various sections of the Minnesota Statutes to integrate the senior credit into existing property tax frameworks, including provisions for reimbursing local taxing jurisdictions for tax reductions and appropriations from the general fund to support these payments.

Additionally, the bill mandates that county levies for specific purposes, such as lake improvement districts and public library services in Ramsey County, be clearly stated in property tax statements. It clarifies that the total property tax for homesteads under the senior citizens' property tax deferral program should be reported before any deductions for deferred taxes. The bill also standardizes the information included in property tax statements for different property types, ensuring consistency. It allows for notices from taxing districts regarding budget deliberations to be included in property tax statement envelopes, contingent on county agreement. The effective date for the senior credit is set for assessment year 2026, with related amendments taking effect in fiscal year 2028 and for property taxes payable in 2027.

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