Plain English Breakdown
The plain English breakdown is still being put together. The official documents below are already here.
HF4487 • 2026
Onetime property tax refund or credit provided, and money appropriated.
Onetime property tax refund or credit provided, and money appropriated.
Taxes
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-04-09
House
Motion to suspend rules
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2026-03-18
House
Introduction and first reading, referred to Taxes
Official Summary Text
Onetime property tax refund or credit provided, and money appropriated.
Current Bill Text
Read the full stored bill text
A bill for an act relating to taxation; providing a onetime property tax refund or credit; appropriating money. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin ONETIME PROPERTY TAX REFUND FOR TAXES PAYABLE IN 2026. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the terms defined in this subdivision have the meanings given. new text end new text begin (b) "Eligible local property taxes" means property taxes payable in 2026 on the following categories of property: new text end new text begin (1) residential homestead property, including manufactured homes, classified as 1a or 1b under Minnesota Statutes, section 273.13, subdivision 22; new text end new text begin (2) residential nonhomestead property classified as 4b or 4bb under Minnesota Statutes, section 273.13, subdivision 25; new text end new text begin (3) apartment property classified as 4a under Minnesota Statutes, section 273.13, subdivision 25; new text end new text begin (4) agricultural homestead and nonhomestead property classified as 2a under Minnesota Statutes, section 273.13, subdivision 23; new text end new text begin (5) rural vacant land property classified as 2b under Minnesota Statutes, section 273.13, subdivision 23; and new text end new text begin (6) managed forest land classified as 2c under Minnesota Statutes, section 273.13, subdivision 23. new text end new text begin (c) "Eligible property taxes" means the sum of eligible state general levy payments and eligible local property taxes. new text end new text begin (d) "Eligible state general levy payments" means the amount of property taxes payable in 2026 that is attributable to the state general levy under Minnesota Statutes, section 275.025 on: new text end new text begin (1) seasonal residential recreational property subject to the state general levy under Minnesota Statutes, section 275.025, subdivision 3; or new text end new text begin (2) utility real and personal property classified as commercial and industrial property under Minnesota Statutes, section 273.13, subdivision 24. new text end new text begin (e) "Property taxes payable" means the property tax exclusive of special assessments, penalties, and interest payable on a property after deductions under Minnesota Statutes, sections 273.135, 273.1384, 273.1391, and 273.42, subdivision 2, and any other state paid property tax credits in any calendar year, and after any refund claimed and allowable under Minnesota Statutes, section 290A.04, subdivision 2h, that is first payable in the year that the property tax is payable. new text end new text begin Subd. 2. new text end new text begin Refund of eligible property taxes. new text end new text begin (a) A person who paid eligible property taxes may apply to the commissioner of revenue for a refund of a portion of the eligible property taxes paid. To receive a refund under this section, a person must apply to the commissioner of revenue no later than September 15, 2026. The commissioner of revenue may determine the form and manner of the application, but must begin accepting applications no later than July 15, 2026. The commissioner must pay a refund under this section within four weeks of a valid application for a refund. new text end new text begin (b) The refund amount equals the refund percentage determined under subdivision 3, multiplied by the amount of eligible property taxes paid by the person. new text end new text begin Subd. 3. new text end new text begin Determination of eligible percentage. new text end new text begin (a) No later than July 1, 2026, the commissioner of revenue must calculate and publish on the Department of Revenue website the refund percentage determined under paragraph (b). new text end new text begin (b) The refund percentage equals the appropriation under subdivision 4, divided by the total eligible property taxes payable in 2026 in Minnesota. new text end new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin (a) $4,000,000,000 in fiscal year 2027 is appropriated from the general fund to the commissioner of revenue for refunds under this section. new text end new text begin (b) Any unused amount of the appropriation on October 1, 2026, may be used for property tax credits under section 2. The commissioner of revenue may transfer to the commissioner of education the amount necessary to make payments under section 2, subdivision 5. new text end new text begin Subd. 5. new text end new text begin Unclaimed refunds. new text end new text begin For a property for which eligible property taxes were paid, but for which no person applied for a refund under this section, the commissioner must ensure that the amount of the refund is paid as a property tax credit on the property for property taxes payable in 2027, as provided in section 2. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end Sec. 2. new text begin PROPERTY TAX CREDIT FOR UNCLAIMED PROPERTY TAX REFUNDS. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin The definitions in section 1 apply to this section. new text end new text begin Subd. 2. new text end new text begin Eligibility. new text end new text begin A property is eligible for a credit under this section if the property had eligible property taxes assessed against it and no person claimed the refund under section 1 for the property taxes attributable to the property. new text end new text begin Subd. 3. new text end new text begin Credit amount. new text end new text begin The amount of the credit under this section equals the eligible percentage determined under section 1, subdivision 3, multiplied by the amount of eligible property taxes payable on the property in 2026. new text end new text begin Subd. 4. new text end new text begin Certification. new text end new text begin No later than January 2, 2027, the commissioner of revenue must calculate and certify to each county auditor credit amounts under this section. The county auditor must apply the credit to each qualifying property's property taxes payable in 2027. No later than July 1, 2027, the county auditor must certify any reductions under this subdivision to the commissioner of revenue under Minnesota Statutes, section 270C.85, subdivision 2. The commissioner must review the certifications for accuracy and may make any changes the commissioner deems necessary or return the certification to the county auditor for correction. new text end new text begin Subd. 5. new text end new text begin Payment. new text end new text begin (a) The commissioner of revenue must reimburse each local taxing jurisdiction, other than school districts, for the tax reductions granted under this section in one installment on October 31, 2027. The reimbursements related to tax increments must be issued in one installment on December 26, 2027. new text end new text begin (b) The commissioner of revenue shall certify the total of the tax reductions granted under this section within each school district to the commissioner of education. The commissioner of education shall pay the reimbursement amounts to each school district as provided in Minnesota Statutes, section 273.1392. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2027 only. new text end