Bill > SF199

This bill establishes a new Redevelopment Area Homestead Credit for specific properties located in a second-class city that was designated as a redevelopment area by the U.S. Department of Commerce. The credit will be equal to 70 percent of a property's net tax capacity multiplied by the city's capital debt tax rate, and will apply to homestead properties classified as 1a or 1b. The county auditor will determine the tax reductions and certify them to the commissioner of revenue, who will then reimburse local taxing jurisdictions in two equal installments during the taxes payable year. The bill modifies several existing statutes to incorporate this new credit, including how it will be listed on property tax notices and statements, and ensures that an appropriate amount of money is annually appropriated from the general fund to cover the credit's costs. The credit is designed to provide tax relief for properties in specific redevelopment areas, with the first implementation set for taxes payable in 2026. The legislative changes are technical in nature, updating various sections of Minnesota tax law to accommodate the new credit and ensure proper calculation, reporting, and reimbursement.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0199&ssn=0&y=2025