This bill establishes a "redevelopment area homestead credit" designed to provide property tax relief for eligible properties in designated redevelopment areas within second-class cities. The credit is calculated as 70% of the property's net tax capacity multiplied by the city capital debt tax rate. It outlines eligibility criteria, the process for determining tax reductions, and a reimbursement mechanism for local taxing jurisdictions. The bill also includes provisions for annual appropriations from the general fund to cover the costs associated with the credit and amends several sections of the Minnesota Statutes to incorporate this new credit into the existing property tax credits. The effective date for these changes is set for taxes payable in 2026, with some provisions taking effect in fiscal year 2027.

Additionally, the bill enhances transparency in property tax statements by requiring them to include specific details such as estimated market value, homestead market value exclusion, taxable market value, gross tax before credits, and applicable credits for both real and personal properties. It allows counties to include notices from taxing districts about upcoming budget deliberations, provided they coordinate the information effectively. The bill also introduces a provision for rounding dollar amounts, including special assessments, to the nearest even whole dollar, with odd-numbered dollars adjusted to the next higher even-numbered dollar. These changes will also take effect for taxes payable in 2026.

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