This bill introduces a new advance homestead credit for seniors in Minnesota, allowing eligible senior claimants to receive an advance credit equivalent to 50% of the homestead credit refund they received in the previous year. The credit applies to homestead properties owned by seniors who meet the eligibility criteria established under existing law. The commissioner of revenue is tasked with calculating and certifying the credit amounts to county auditors by January 2 of the applicable year, ensuring that the credit is applied to the first half of property tax payments. If the advance credit exceeds the payment amount, it will be adjusted to ensure that the payment is $0.

In addition to establishing the advance homestead credit, the bill amends various sections of Minnesota Statutes, including the addition of section 273.1389, which outlines the new credit provisions and the election process for seniors to receive advance credits. It defines "eligible senior claimant" as individuals aged 65 or older, or married couples where one spouse is at least 65 and the other is at least 62. The bill also includes provisions for the reimbursement of local taxing jurisdictions and school districts for tax reductions granted under the new credit, mandates that property tax statements inform taxpayers of the credit, and sets the effective date for these changes for property taxes payable in 2027. Additionally, it outlines a reconciliation process for advance credits, ensuring that any advance received will reduce the claimant's homestead credit refund and any excess must be repaid.

Statutes affected:
Introduction: 273.1392, 273.1393, 275.065, 276.04, 290A.03