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. To qualify, the homestead property must be owned by a senior who meets the eligibility criteria established under existing law. The commissioner of revenue is tasked with calculating and certifying these credit amounts to county auditors by January 2 of the applicable year, with the credits applied to the first half of property tax payments. The bill also amends various sections of Minnesota Statutes to incorporate this new credit, ensuring it is included in the computation of net property taxes and reflected in notices of proposed property taxes sent to taxpayers.

Furthermore, the bill establishes a new definition for "Eligible senior claimant," which encompasses individuals aged 65 or older, or married couples where one spouse is at least 65 and the other is at least 62. It introduces the concept of a "Homestead credit refund" and allows eligible senior claimants to elect to receive advance credits for their homestead credit refunds, effective for property taxes payable in 2027 and thereafter. The bill also outlines a reconciliation process for advance payments, requiring claimants to repay any difference if their homestead credit refund exceeds the advance credit received. Additionally, it emphasizes the need for coordination among taxing districts regarding property tax statements and sets various effective dates for the new provisions, particularly focusing on the year 2027.

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