HF4802

Purpose

• The bill aims to prevent increases in the assessed value (property value) for homesteads owned by people who are 65 years old or older, effectively capping how much their property value can rise for tax purposes.

Main Provisions

• Adds a new subdivision (273.121, subdivision 1) to Minnesota Statutes to establish the valuation limitation for eligible senior homesteads.
• Amends Minnesota Statutes 2024 section 273.11, subdivision 5, to ensure the valuation limit applies to the processes used by boards and officials that review and equalize property values. This includes the local board of review, the county board of equalization, the State Board of Equalization, and the commissioner of revenue.
• Clarifies that the valuation limitation operates notwithstanding other laws, meaning these authorities must apply the cap even if other valuation rules would normally apply.
• The bill also includes a related amendment to Minnesota Statutes 2024 section 276.04, subdivision 2, to align with the senior-homestead valuation limitation.

Significant Changes to Existing Law

• Creates a new statutory provision (273.121, subdivision 1) to establish the senior-homestead valuation cap.
• Expands which government bodies are bound by the valuation limit, extending protections to decisions by local, county, and state boards of review/equalization and the commissioner of revenue.
• Reinforces that the cap takes precedence over conflicting laws by using a “Notwithstanding any other provision of law” clause.
• Updates cross-referenced sections (including 276.04, subdivision 2) to reflect the new limitation.

Implementation and Scope

• Applies to homesteads owned by individuals aged 65 or older, with the intent of limiting annual increases in property value for tax purposes.
• Applies across relevant valuation/assessment processes handled by the local, county, and state levels as well as the revenue department.

Relevant Terms

• homestead
• property value / assessed value / valuation
• senior (age 65 or older)
• valuation limit / cap on increases
• boards of review and equalization
• local board of review
• county board of equalization
• State Board of Equalization
• commissioner of revenue
• Minnesota Statutes
• Notwithstanding