Bill > HF727

This bill establishes a new Redevelopment Area Homestead Credit for specific properties located in certain second-class cities that were previously designated as a redevelopment area by the U.S. Department of Commerce. The credit will be equal to 70 percent of the property's net tax capacity multiplied by the city's capital debt tax rate, and will be applied specifically to homestead properties classified as 1a or 1b. The county auditor will determine the tax reductions for each qualifying property 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 property tax statements and notices will display the credit, and ensures that an annual appropriation from the general fund will cover the cost of implementing this program. The credit will first be effective for taxes payable in 2026, and is designed to provide financial relief to homeowners in designated redevelopment areas by reducing their property tax burden through a targeted state-level credit mechanism.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0727&ssn=0&y=2025