HF4487

HF4487 (Legislative Session 94 (2025-2026))

Onetime property tax refund or credit provided, and money appropriated.

AI Generated Summary

Purpose

Provide a one-time refund or credit for property taxes payable in 2026. The refund is funded by a general fund appropriation and paid by the Minnesota Department of Revenue to eligible taxpayers who applied by the deadline.

Main Provisions

Onetime property tax refund for taxes payable in 2026:
- Eligible local property taxes include: residential homestead (including manufactured homes classified as 1a or 1b), residential nonhomestead (classified as 4b or 4bb), apartment property (4a), agricultural homestead and nonhomestead (2a), rural vacant land (2b), and managed forest land (2c).
- Eligible property taxes are the sum of eligible state general levy payments plus eligible local property taxes.
- Property taxes payable means the tax amount due in 2026 after certain deductions and excluding penalties, interest, special assessments, and other specified state credits.
Refund mechanics:
- A taxpayer who paid eligible property taxes may apply to the Commissioner of Revenue for a refund of a portion of those taxes.
- Application deadline: no later than September 15, 2026 (while the department may set the form and method, and must begin accepting applications by July 15, 2026).
- The refund is paid within four weeks after a valid application.
- Refund amount = refund percentage × the amount of eligible property taxes paid.
- The refund percentage is published by July 1, 2026 and is determined as: appropriation for refunds divided by total eligible property taxes payable in 2026.
Funding and administration:
- An appropriation of $4,000,000,000 from the general fund is provided for fiscal year 2027 for these refunds.
- If any of the appropriation remains unused on October 1, 2026, it may be used for property tax credits under a separate section.
- The commissioner of revenue may transfer necessary funds to the commissioner of education to make certain payments under the related section.
Unclaimed refunds:
- If eligible taxes were paid but no one applied for a refund, the amount must be paid as a property tax credit on the property for taxes payable in 2027 (per the related section).

Significant Changes to Existing Law

Establishes a new, onetime state-funded property tax refund program tied to 2026 taxes, with a separate funding mechanism and deadline structure.
Introduces a published refund percentage based on a large appropriation relative to total eligible property taxes, rather than a fixed per-property amount.
Creates an alternative path for unclaimed refunds by converting them into a credit on the property for the following year.

Practical Impact

Property owners who paid 2026 property taxes on eligible property types may receive a refund, reducing the 2026 tax burden.
The size of the refund depends on how much the Legislature allocates and the total eligible property taxes paid in 2026.
Unclaimed refunds aren’t lost; they become credits on 2027 property taxes.

Relevant terms - one-time property tax refund - eligible property taxes - eligible local property taxes - residential homestead - manufactured homes - residential nonhomestead - apartment property - agricultural homestead and nonhomestead - rural vacant land - managed forest land - state general levy payments - property taxes payable - refund percentage - appropriation - Department of Revenue - Commissioner of Revenue - property tax credits - fiscal year 2027 - unclaimed refunds - July 1, 2026 - July 15, 2026 - September 15, 2026

Bill text versions

Introduction PDF PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 18, 2026	House		Action	Introduction and first reading, referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 273.13 subdivision 22 to define residential homestead property classifications (1a and 1b) for eligible property taxes.",
      "modified": []
    },
    "citation": "273.13",
    "subdivision": "subdivision 22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 273.13 subdivision 25 to define residential nonhomestead and apartment property classifications (4a, 4b, 4bb) for eligible property taxes.",
      "modified": []
    },
    "citation": "273.13",
    "subdivision": "subdivision 25"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 273.13 subdivision 23 to define agricultural homestead/nonhomestead (2a) and rural land (2b) and managed forest land (2c) for eligible property taxes.",
      "modified": []
    },
    "citation": "273.13",
    "subdivision": "subdivision 23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 273.13 subdivision 24 related to utility real and personal property classified as commercial and industrial for eligible property taxes.",
      "modified": []
    },
    "citation": "273.13",
    "subdivision": "subdivision 24"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 275.025 subdivision 3 related to the state general levy for seasonal residential recreational property.",
      "modified": []
    },
    "citation": "275.025",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 275.025 subdivision 2 related to the state general levy for seasonal residential recreational property.",
      "modified": []
    },
    "citation": "275.025",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 290A.04 subdivision 2h regarding state tax credits that may apply to refunds.",
      "modified": []
    },
    "citation": "290A.04",
    "subdivision": "subdivision 2h"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 273.135 related to state property tax credits used in calculating refunds.",
      "modified": []
    },
    "citation": "273.135",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 273.1384 related to state property tax credits used in calculating refunds.",
      "modified": []
    },
    "citation": "273.1384",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 273.1391 related to state property tax credits used in calculating refunds.",
      "modified": []
    },
    "citation": "273.1391",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes section 273.42 subdivision 2 related to other state-paid property tax credits used in refunds.",
      "modified": []
    },
    "citation": "273.42",
    "subdivision": "subdivision 2"
  }
]