This bill establishes a homestead market value exclusion for property owned by individuals aged 65 years or older who are retired. It amends Minnesota Statutes to include a new subdivision that specifies the criteria for qualifying properties, which must be classified as either 1a or 1b, or consist of the house, garage, and surrounding one acre of land of an agricultural homestead. To qualify, the property must be owned and occupied by a qualifying individual, with specific age requirements for married couples. The bill also stipulates that properties qualifying for this exclusion are not eligible for other property tax credits or refunds. Property owners must apply for the exclusion by December 31 of the first assessment year for which they seek it, and the exclusion will continue until certain conditions are met, such as the sale of the property or the death of all qualifying homeowners.

Additionally, the bill amends existing statutes regarding property tax notices and statements. It requires assessors to include any value reduction resulting from the new exclusion in the assessment notices sent to property owners. The bill also updates the contents of property tax statements to reflect the new exclusion, ensuring that the market value exclusion is clearly stated. The effective date for these changes is set for property taxes payable in 2026.

Statutes affected:
Introduction: 273.121, 273.13, 276.04