SF3550

Purpose

• The bill focuses on tax relief and government funding. It would (1) expand and adjust the special property tax refund for homeowners, (2) create an excise tax on certain social media platform businesses, (3) provide a one-time public safety aid to local and Tribal governments, and (4) require reporting and appropriations. It also proposes changes to how Minnesota law is written (codification) and where those changes appear in the statutes.

Main provisions

• Property tax refund enhancement (Section 1 amendment to 290A.04, subdivision 2h):
  • Allows an additional refund for a homeowner if their homestead’s gross property taxes increase by more than 12.8% from the prior year and the increase is at least $100.
  • The additional refund equals 60% of the amount by which the increase exceeds the larger of (a) 12.8% of the prior year’s property taxes or (b) $100.
  • The maximum total refund under this provision is $1,500.
  • For calculating the increase, “gross property taxes payable” is defined without counting any refunds under this subdivision.
  • Claimants must attach the required tax documents (e.g., the property tax statement) to the refund claim.
  • County officials must provide names and addresses of potentially eligible homeowners to notify them, electronically. The county may charge a reasonable fee to cover data preparation, and information must be used only to notify and assist homeowners with refunds, not for other purposes.
• Additional provisions (summarized from the bill’s stated scope):
  • Establishes an excise tax on certain social media platform businesses.
  • Creates a one-time public safety aid for local and Tribal governments.
  • Requires reporting related to these provisions.
  • Includes appropriations to fund the new provisions.
  • Proposes coding changes to Minnesota Statutes (new law in Chapter 295 in addition to amending 290A.04).

Changes to existing law

• Amends Minnesota Statutes 2024 section 290A.04, subdivision 2h, to add the “Additional refund” rules described above.
• Introduces new statutory provisions related to the social media platform excise tax and the one-time public safety aid, plus related reporting and funding.
• Includes proposed codification for new law (Chapter 295).

Implications and potential impact

• For homeowners:
  • Some homeowners whose property taxes rise significantly may receive an extra refund, up to $1,500, if their increase exceeds the threshold and is at least $100.
  • The calculation hinges on the amount the tax increase surpasses either a percentage of prior year’s taxes or $100, whichever is larger.
  • Homeowners must provide supporting tax documents, and counties will assist with identifying eligible applicants.
• For state and local government:
  • A new excise tax on some social media platforms could generate revenue to fund the new measures (including the one-time safety aid).
  • A one-time public safety aid is created to support local and Tribal governments.
• Administrative notes:
  • The bill specifies how data can be shared for notifying homeowners, with limits on use and a cost-recovery option for counties.

Possible implementation considerations

• Determining the precise threshold (12.8% vs. other possible reading) and ensuring consistent application across all counties.
• Handling and safeguarding homeowner data shared by counties.
• Timely provision of the new refund amounts and coordination with existing property tax refund processes.

Relevant Terms - Additional refund - Gross property taxes payable - Homestead - Property tax refund - Prior year - 12.8% threshold (interpreted from text as 12.8 percent) - $100 threshold - 60 percent of the increase - Greater of 12.8% of prior year’s taxes or $100 - Maximum refund $1,500 - Minnesota Statutes 2024 section 290A.04 subdivision 2h - Social media platform excise tax - One-time public safety aid - Local and Tribal governments - Reporting and appropriation - Coding for new law (Chapter 295) - Tax documents (property tax statement) - County data sharing (names and addresses)