Ten-year homestead property tax exemption establishment

A bill for an act

relating to taxation; property; establishing a ten-year homestead property tax

exemption; amending Minnesota Statutes 2024, section 272.02, by adding a

subdivision.

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

Section 1.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision

to read:

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Subd. 109.

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Ten-year homestead exemption.

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(a) Beginning with assessment year 2027,

and each assessment year thereafter, property classified as class 1a or 1b under section

273.13, subdivision 22, is exempt if:

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(1) the property was owned and occupied as a homestead by the same owner for at least

ten continuous years prior to the year an initial application is filed; and

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(2) there are no unpaid and delinquent property taxes or special assessments, including

penalties and interest, due at the time the application is filed.

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(b) Each taxpayer seeking an exemption under this subdivision must apply to the county

assessor. The commissioner of revenue must prescribe the application and the application

must include: (1) the name, address, and Social Security number or individual taxpayer

identification number of the owner or owners; (2) a copy of the property tax statement for

the current payable year for the homesteaded property; and (3) the initial year of ownership

and occupancy as a homestead. The assessor must verify that the property was owned and

used as a homestead by the same owner for at least ten continuous years prior to the year

the initial application is filed and that there exists no unpaid and delinquent property taxes

or special assessments, including penalties and interest, due at the time the application is

filed. The assessor may request additional information and documentation from the applicant

to determine eligibility for the exemption.

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(c) The exemption under this subdivision must be removed beginning with the next

assessment year if the owner sells, transfers, or otherwise disposes of the property, or the

owner no longer occupies the property as a homestead. The owner of the property must

notify the assessor within 30 days if there is a change in the ownership of the property or a

change in the use of the property as a permanent residence.

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EFFECTIVE DATE.

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This section is effective beginning with assessment year 2027.

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