The proposed bill establishes a "redevelopment area homestead credit" designed to provide tax relief for properties classified as 1a or 1b located in designated redevelopment areas within second-class cities. The credit will be calculated at 70% of the property's net tax capacity multiplied by the city capital debt tax rate. The bill outlines the procedures for determining tax reductions, certifying amounts to the commissioner of revenue, and the reimbursement process for local taxing jurisdictions. It also includes provisions for annual appropriations from the general fund to cover these payments, with the credit set to take effect for taxes payable in 2027.

Additionally, the bill amends several sections of the Minnesota Statutes to integrate the new homestead credit into existing tax frameworks. It requires cities with eligible properties to certify the portion of their levy for capital improvement bonds and mandates that property tax statements include information about the redevelopment area homestead credit to enhance transparency for taxpayers. The bill also updates property tax statement requirements to ensure that they include specific details about property values and applicable credits, while allowing counties to include notices from taxing districts about upcoming budget deliberations. These changes will take effect for taxes payable in 2027, providing time for counties and taxing districts to adjust to the new regulations.

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