Bill > SF3869

This bill establishes a new "redevelopment area homestead credit" for properties classified as 1a or 1b (typically homestead properties) located in cities of the second class that were designated as redevelopment areas by the U.S. Department of Commerce under a specific federal act. The credit will be equal to 70 percent of the property's net tax capacity (its taxable value for tax purposes) multiplied by the city's capital debt tax rate, which is a rate specifically for repaying capital improvement bonds. This credit will be applied to reduce the property tax owed to the city, and the state will reimburse local governments for the tax reductions granted. The bill also makes conforming changes to existing laws regarding how property tax credits are listed on tax statements and how reimbursements are handled, with the new credit taking effect for taxes payable in 2027.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/SF/3869/