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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
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6,479
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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
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$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
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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