Increase in property value for homesteads owned by persons age 65 or older prohibited.

A bill for an act

relating to taxation; property; prohibiting an increase in property value for

homesteads owned by persons age 65 or older; amending Minnesota Statutes 2024,

sections 273.11, subdivision 5, by adding a subdivision; 273.121, subdivision 1;

276.04, subdivision 2.

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

Section 1.

Minnesota Statutes 2024, section 273.11, subdivision 5, is amended to read:

Subd. 5.

Boards of review and equalization.

Notwithstanding any other provision of

law to the contrary,
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the limitation contained
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any limitations on valuation
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in
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subdivisions 1

and 1a shall
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this section
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also apply to the authority of the local board of review as provided

in section
274.01
, the county board of equalization as provided in section
274.13
, the State

Board of Equalization and the commissioner of revenue as provided in sections
270.11,

subdivision 1
,
270.12
,
270C.92
, and
270C.94
.

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EFFECTIVE DATE.

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This section is effective beginning with assessment year 2026.

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Sec. 2.

Minnesota Statutes 2024, section 273.11, is amended by adding a subdivision to

read:

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Subd. 24.

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Homesteads of persons age 65 or older; valuation increase prohibited.

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(a)

For a property owned and occupied as a homestead by a person that is 65 years of age or

older by the assessment date, the estimated market value for class 1 property as defined in

section 273.13, subdivision 22, and that portion of class 2a property as defined in section

273.13, subdivision 23, consisting of the house, garage, and surrounding one acre of land,

may not exceed the property's estimated market value for the preceding year. In the case of

a married couple, both of the spouses must be at least 65 years of age regardless of whether

the property is titled in the name of one spouse or both spouses, or titled in another way

that permits the property to have homestead status.

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(b) An owner or owners must apply to the county assessor by July 1 of the assessment

year for which the valuation freeze under paragraph (a) is first requested. The applicant or

applicants must submit proof of age as required by the assessor to determine eligibility for

the valuation freeze under paragraph (a). In succeeding years, an applicant must submit any

information the county assessor deems necessary to determine continued eligibility under

this section.

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(c) This subdivision does not prohibit an increase in estimated market value attributable

to improvements made to the property.

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(d) The county assessor must annually inform the public of the availability of the

valuation freeze under this subdivision as part of the notice published under section 273.121.

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EFFECTIVE DATE.

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This section is effective beginning with assessment year 2026.

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Sec. 3.

Minnesota Statutes 2024, section 273.121, subdivision 1, is amended to read:

Subdivision 1.

Notice.

Any county assessor or city assessor having the powers of a

county assessor, valuing or classifying taxable real property shall in each year notify those

persons whose property is to be included on the assessment roll that year if the person's

address is known to the assessor, otherwise the occupant of the property. The notice shall

be in writing and shall be sent by ordinary mail at least ten days before the meeting of the

local board of appeal and equalization under section
274.01
or the review process established

under section
274.13, subdivision 1c
. Upon written request by the owner of the property,

the assessor may send the notice in electronic form or by electronic mail instead of on paper

or by ordinary mail. It shall contain: (1) the market value for the current and prior assessment;

(2)
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any value reduction resulting from the limitation under section 273.11, subdivision 24;

(3)
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the market value subject to taxation after subtracting the amount of any qualifying

improvements for the current assessment;
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(3)
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(4)
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the classification of the property for the

current and prior assessment;
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(4)
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(5)
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the assessor's office address; and
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(5)
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(6)
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the dates,

places, and times set for the meetings of the local board of appeal and equalization, the

review process established under section
274.13, subdivision 1c
, and the county board of

appeal and equalization. If the classification of the property has changed between the current

and prior assessments, a specific note to that effect shall be prominently listed on the

statement. The commissioner of revenue shall specify the form of the notice. The assessor

shall attach to the assessment roll a statement that the notices required by this section have

been mailed. Any assessor who is not provided sufficient funds from the assessor's governing

body to provide such notices, may make application to the commissioner of revenue to

finance such notices. The commissioner of revenue shall conduct an investigation and, if

satisfied that the assessor does not have the necessary funds, issue a certification to the

commissioner of management and budget of the amount necessary to provide such notices.

The commissioner of management and budget shall issue a payment for such amount and

shall deduct such amount from any state payment to such county or municipality. The

necessary funds to make such payments are hereby appropriated. Failure to receive the

notice shall in no way affect the validity of the assessment, the resulting tax, the procedures

of any board of review or equalization, or the enforcement of delinquent taxes by statutory

means.

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EFFECTIVE DATE.

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This section is effective beginning with assessment year 2026.

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Sec. 4.

Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of

the tax statements. The commissioner of revenue shall prescribe the form of the property

tax statement and its contents. The tax statement must not state or imply that property tax

credits are paid by the state of Minnesota. The statement must contain a tabulated statement

of the dollar amount due to each taxing authority and the amount of the state tax from the

parcel of real property for which a particular tax statement is prepared. The dollar amounts

attributable to the county, the state tax, the voter approved school tax, the other local school

tax, the township or municipality, and the total of the metropolitan special taxing districts

as defined in section
275.065, subdivision 3
, paragraph (i), must be separately stated. The

amounts due all other special taxing districts, if any, may be aggregated except that any

levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,

Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly

under the appropriate county's levy. If the county levy under this paragraph includes an

amount for a lake improvement district as defined under sections
103B.501
to
103B.581
,

the amount attributable for that purpose must be separately stated from the remaining county

levy amount. In the case of Ramsey County, if the county levy under this paragraph includes

an amount for public library service under section
134.07
, the amount attributable for that

purpose may be separated from the remaining county levy amount. The amount of the tax

on homesteads qualifying under the senior citizens' property tax deferral program under

chapter 290B is the total amount of property tax before subtraction of the deferred property

tax amount. The amount of the tax on contamination value imposed under sections
270.91

to
270.98
, if any, must also be separately stated. The dollar amounts, including the dollar

amount of any special assessments, may be rounded to the nearest even whole dollar. For

purposes of this section whole odd-numbered dollars may be adjusted to the next higher

even-numbered dollar.

(b) The property tax statements for manufactured homes and sectional structures taxed

as personal property shall contain the same information that is required on the tax statements

for real property.

(c) Real and personal property tax statements must contain the following information

in the order given in this paragraph. The information must contain the current year tax

information in the right column with the corresponding information for the previous year

in a column on the left:

(1) the property's estimated market value under section
273.11, subdivision 1
;

(2) the property's homestead market value exclusion under section
273.13
, subdivision

35
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, and any reduction due to section 273.11, subdivision 24
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;

(3) the property's taxable market value under section
272.03, subdivision 15
;

(4) the property's gross tax, before credits;

(5) for agricultural properties, the credits under sections
273.1384 and 273.1387
;

(6) any credits received under sections
273.119
;
273.1234
or
273.1235
;
273.135
;

273.1391
;
273.1398, subdivision 4
;
469.171
; and
473H.10
, except that the amount of credit

received under section
273.135
must be separately stated and identified as "taconite tax

relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county

agrees, a taxing district may include a notice with the property tax statement notifying

taxpayers when the taxing district will begin its budget deliberations for the current year,

and encouraging taxpayers to attend the hearings. If the county allows notices to be included

in the envelope containing the property tax statement, and if more than one taxing district

relative to a given property decides to include a notice with the tax statement, the county

treasurer or auditor must coordinate the process and may combine the information on a

single announcement.

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EFFECTIVE DATE.

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This section is effective beginning with assessment year 2026.

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