Property tax refunds and renters credits increased by reducing co-pay percentages.

A bill for an act

relating to taxation; increasing property tax refunds and renters credits by reducing

co-pay percentages; amending Minnesota Statutes 2024, sections 290.0693,

subdivision 3; 290A.04, subdivisions 2, 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 290.0693, subdivision 3, is amended to read:

Subd. 3.

Renters.

(a) A taxpayer whose rent constituting property taxes exceeds the

percentage of the household income stated below must pay an amount equal to the percent

of income shown for the appropriate household income level along with the percent paid

by claimant of the remaining amount of rent constituting property taxes. The credit under

subdivision 2 equals the amount of rent constituting property taxes that remain, up to the

maximum credit amount shown below.

Household Income

Percent of Income

Percent paid by
claimant

Maximum Credit

$0 to
deleted text begin
6,479
deleted text end
new text begin

6,819
new text end

1.0 percent

deleted text begin
5
deleted text end
new text begin
2.5
new text end
percent

$

deleted text begin

2,640

deleted text end

new text begin

2,780

new text end

deleted text begin

6,480 to 8,609

deleted text end

new text begin

6,820 to 9,059

new text end

1.0 percent

deleted text begin
10
deleted text end
new text begin
5
new text end
percent

$

deleted text begin

2,640

deleted text end

new text begin

2,780

new text end

deleted text begin

8,610 to 10,759

deleted text end

new text begin

9,060 to 11,319

new text end

1.1 percent

deleted text begin
10
deleted text end
new text begin
5
new text end
percent

$

deleted text begin

2,570

deleted text end

new text begin

2,700

new text end

deleted text begin

10,760 to 15,089

deleted text end

new text begin

11,320 to 15,879

new text end

1.2 percent

deleted text begin
10
deleted text end
new text begin
5
new text end
percent

$

deleted text begin

2,510

deleted text end

new text begin

2,640

new text end

deleted text begin

15,090 to 19,399

deleted text end

new text begin

15,880 to 20,409

new text end

1.3 percent

deleted text begin
15
deleted text end
new text begin
10
new text end
percent

$

deleted text begin

2,430

deleted text end

new text begin

2,560

new text end

deleted text begin

19,400 to 21,539

deleted text end

new text begin

20,410 to 22,669

new text end

1.4 percent

deleted text begin
15
deleted text end
new text begin
10
new text end
percent

$

deleted text begin

2,370

deleted text end

new text begin

2,490

new text end

deleted text begin

21,540 to 23,679

deleted text end

new text begin

22,670 to 24,919

new text end

1.4 percent

deleted text begin
20
deleted text end
new text begin
15
new text end
percent

$

deleted text begin

2,310

deleted text end

new text begin

2,430

new text end

deleted text begin

23,680 to 28,009

deleted text end

new text begin

24,920 to 29,469

new text end

1.5 percent

deleted text begin
20
deleted text end
new text begin
15
new text end
percent

$

deleted text begin

2,240

deleted text end

new text begin

2,360

new text end

deleted text begin

28,010 to 30,159

deleted text end

new text begin

29,470 to 31,739

new text end

1.6 percent

deleted text begin
20
deleted text end
new text begin
15
new text end
percent

$

deleted text begin

2,180

deleted text end

new text begin

2,290

new text end

deleted text begin

30,160 to 32,309

deleted text end

new text begin

31,740 to 33,999

new text end

1.7 percent

deleted text begin
25
deleted text end
new text begin
20
new text end
percent

$

deleted text begin

2,180

deleted text end

new text begin

2,290

new text end

deleted text begin

32,310 to 36,629

deleted text end

new text begin

34,000 to 38,539

new text end

1.8 percent

deleted text begin
25
deleted text end
new text begin
20
new text end
percent

$

deleted text begin

2,180

deleted text end

new text begin

2,290

new text end

deleted text begin

36,630 to 38,769

deleted text end

new text begin

38,540 to 40,799

new text end

1.9 percent

deleted text begin
30
deleted text end
new text begin
25
new text end
percent

$

deleted text begin

2,180

deleted text end

new text begin

2,290

new text end

deleted text begin

38,770 to 45,229

deleted text end

new text begin

40,800 to 47,589

new text end

2.0 percent

deleted text begin
30
deleted text end
new text begin
25
new text end
percent

$

deleted text begin

2,180

deleted text end

new text begin

2,290

new text end

deleted text begin

45,230 to 51,689

deleted text end

new text begin

47,590 to 54,389

new text end

2.0 percent

deleted text begin
35
deleted text end
new text begin
30
new text end
percent

$

deleted text begin

2,180

deleted text end

new text begin

2,290

new text end

deleted text begin

51,690 to 60,319

deleted text end

new text begin

54,390 to 63,469

new text end

2.0 percent

deleted text begin
40
deleted text end
new text begin
35
new text end
percent

$

deleted text begin

2,180

deleted text end

new text begin

2,290

new text end

deleted text begin

60,320 to 62,459

deleted text end

new text begin

63,470 to 65,719

new text end

2.0 percent

deleted text begin
45
deleted text end
new text begin
40
new text end
percent

$

deleted text begin

1,980

deleted text end

new text begin

2,080

new text end

deleted text begin

62,460 to 64,619

deleted text end

new text begin

65,720 to 67,999

new text end

2.0 percent

deleted text begin
45
deleted text end
new text begin
40
new text end
percent

$

deleted text begin

1,780

deleted text end

new text begin

1,870

new text end

deleted text begin

64,620 to 66,789

deleted text end

new text begin

68,000 to 70,279

new text end

2.0 percent

deleted text begin
45
deleted text end
new text begin
40
new text end
percent

$

deleted text begin

1,510

deleted text end

new text begin

1,590

new text end

deleted text begin

66,790 to 68,929

deleted text end

new text begin

70,280 to 72,529

new text end

2.0 percent

deleted text begin
50
deleted text end
new text begin
45
new text end
percent

$

deleted text begin

1,320

deleted text end

new text begin

1,390

new text end

deleted text begin

68,930 to 71,089

deleted text end

new text begin

72,530 to 74,809

new text end

2.0 percent

deleted text begin
50
deleted text end
new text begin
45
new text end
percent

$

deleted text begin

1,190

deleted text end

new text begin

1,250

new text end

deleted text begin

71,090 to 73,239

deleted text end

new text begin

74,810 to 77,069

new text end

2.0 percent

deleted text begin
50
deleted text end
new text begin
45
new text end
percent

$

deleted text begin

660

deleted text end

new text begin

690

new text end

deleted text begin

73,240 to 75,389

deleted text end

new text begin

77,070 to 79,329

new text end

2.0 percent

deleted text begin
50
deleted text end
new text begin
45
new text end
percent

$

deleted text begin

260

deleted text end

new text begin

270

new text end

The credit is the amount calculated under this subdivision. No credit is allowed if the

taxpayer's household income is
deleted text begin
$75,389
deleted text end
new text begin
$79,330
new text end
or more.

(b) The commissioner must annually adjust the dollar amounts of the income thresholds

and the maximum refunds in paragraph (a), as provided in section
270C.22
. The statutory

year is
deleted text begin
2024
deleted text end
new text begin
2026
new text end
.

(c) The commissioner shall construct and make available to taxpayers a comprehensive

table showing the rent constituting property taxes to be paid and refund allowed at various

levels of income and assessment. The table shall follow the schedule of income percentages,

maximums, and other provisions specified in paragraph (a), except that the commissioner

may graduate the transition between income brackets. All refunds shall be computed in

accordance with tables prepared and issued by the commissioner.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxable years beginning after December

31, 2025.

new text end

Sec. 2.

Minnesota Statutes 2024, section 290A.04, subdivision 2, is amended to read:

Subd. 2.

Homeowners; homestead credit refund.

A claimant whose property taxes

payable are in excess of the percentage of the household income stated below shall pay an

amount equal to the percent of income shown for the appropriate household income level

along with the percent to be paid by the claimant of the remaining amount of property taxes

payable. The state refund equals the amount of property taxes payable that remain, up to

the state refund amount shown below.

Household Income

Percent of Income

Percent Paid by
Claimant

Maximum
State
Refund

$0 to
deleted text begin
2,079
deleted text end
new text begin

2,249
new text end

1.0 percent

deleted text begin
12
deleted text end
new text begin
7
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

2,080 to 4,139

deleted text end

new text begin

2,250 to 4,469

new text end

1.1 percent

deleted text begin
12
deleted text end
new text begin
7
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

4,140 to 6,269

deleted text end

new text begin

4,470 to 6,779

new text end

1.2 percent

deleted text begin
12
deleted text end
new text begin
7
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

6,270 to 8,369

deleted text end

new text begin

6,780 to 9,049

new text end

1.3 percent

deleted text begin
17
deleted text end
new text begin
12
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

8,370 to 10,439

deleted text end

new text begin

9,050 to 11,279

new text end

1.4 percent

deleted text begin
17
deleted text end
new text begin
12
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

10,440 to 14,619

deleted text end

new text begin

11,280 to 15,799

new text end

1.5 percent

deleted text begin
17
deleted text end
new text begin
12
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

14,620 to 16,689

deleted text end

new text begin

15,800 to 18,039

new text end

1.6 percent

deleted text begin
17
deleted text end
new text begin
12
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

16,690 to 18,799

deleted text end

new text begin

18,040 to 20,319

new text end

1.7 percent

deleted text begin
17
deleted text end
new text begin
12
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

18,800 to 20,879

deleted text end

new text begin

20,320 to 22,559

new text end

1.8 percent

deleted text begin
17
deleted text end
new text begin
12
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

20,880 to 22,949

deleted text end

new text begin

20,560 to 24,799

new text end

1.9 percent

deleted text begin
22
deleted text end
new text begin
17
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

22,950 to 29,239

deleted text end

new text begin

24,800 to 31,599

new text end

2.0 percent

deleted text begin
22
deleted text end
new text begin
17
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

29,240 to 31,319

deleted text end

new text begin

31,600 to 33,849

new text end

2.0 percent

deleted text begin
27
deleted text end
new text begin
22
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

31,320 to 35,509

deleted text end

new text begin

33,850 to 38,379

new text end

2.0 percent

deleted text begin
27
deleted text end
new text begin
22
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

35,510 to 50,099

deleted text end

new text begin

38,380 to 54,139

new text end

2.0 percent

deleted text begin
32
deleted text end
new text begin
27
new text end
percent

$

deleted text begin

3,310

deleted text end

new text begin

3,580

new text end

deleted text begin

50,100 to 73,059

deleted text end

new text begin

54,140 to 78,959

new text end

2.0 percent

deleted text begin
32
deleted text end
new text begin
27
new text end
percent

$

deleted text begin

2,680

deleted text end

new text begin

2,900

new text end

deleted text begin

73,060 to 83,499

deleted text end

new text begin

78,960 to 90,239

new text end

2.0 percent

deleted text begin
37
deleted text end
new text begin
32
new text end
percent

$

deleted text begin

2,350

deleted text end

new text begin

2,540

new text end

deleted text begin

83,500 to 93,939

deleted text end

new text begin

90,240 to 101,519

new text end

2.1 percent

deleted text begin
37
deleted text end
new text begin
32
new text end
percent

$

deleted text begin

1,940

deleted text end

new text begin

2,100

new text end

deleted text begin

93,940 to 104,379

deleted text end

new text begin

101,520 to 112,799

new text end

2.2 percent

deleted text begin
37
deleted text end
new text begin
32
new text end
percent

$

deleted text begin

1,740

deleted text end

new text begin

1,880

new text end

deleted text begin

104,380 to 114,819

deleted text end

new text begin

112,800 to 124,089

new text end

2.3 percent

deleted text begin
37
deleted text end
new text begin
32
new text end
percent

$

deleted text begin

1,520

deleted text end

new text begin

1,640

new text end

deleted text begin

114,820 to 121,089

deleted text end

new text begin

124,090 to 130,859

new text end

2.4 percent

deleted text begin
42
deleted text end
new text begin
37
new text end
percent

$

deleted text begin

1,280

deleted text end

new text begin

1,380

new text end

deleted text begin

121,090 to 125,289

deleted text end

new text begin

130,860 to 135,399

new text end

2.5 percent

deleted text begin
42
deleted text end
new text begin
37
new text end
percent

$

deleted text begin

1,070

deleted text end

new text begin

1,160

new text end

deleted text begin

125,290 to 130,349

deleted text end

new text begin

135,400 to 140,869

new text end

2.5 percent

deleted text begin
47
deleted text end
new text begin
42
new text end
percent

$

deleted text begin

870

deleted text end

new text begin

940

new text end

deleted text begin

130,350 to 135,409

deleted text end

new text begin

140,870 to 146,339

new text end

2.5 percent

deleted text begin
47
deleted text end
new text begin
42
new text end
percent

$

deleted text begin

650

deleted text end

new text begin

700

new text end

The payment made to a claimant shall be the amount of the state refund calculated under

this subdivision. No payment is allowed if the claimant's household income is
deleted text begin
$135,410
deleted text end
new text begin

$146,340
new text end
or more.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with refunds based on property

taxes payable in 2027.

new text end

Sec. 3.

Minnesota Statutes 2024, section 290A.04, subdivision 4, is amended to read:

Subd. 4.

Inflation adjustment.

The commissioner shall annually adjust the dollar

amounts of the income thresholds and the maximum refunds under subdivision 2 as provided

in section
270C.22
. The statutory year is
deleted text begin
2023
deleted text end
new text begin
2026
new text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with refunds based on property

taxes payable in 2027.

new text end