SF3817

Purpose

This bill would make two targeted changes to Minnesota tax and property rules to provide financial relief for public safety officers. First, it would create a property tax exemption for a qualifying homestead owned and used by a public safety officer in the same city where they work or volunteer. Second, it would create an income tax subtraction (a reduction in taxable income) for certain income earned by public safety officers.

Main Provisions

• Property tax exemption for homestead property

  • Adds a new Subdivision 109 to Minnesota Statutes 2024 section 272.02.
  • The exemption Applies to property that is:
  • classified as class 1a under section 273.13 subdivision 22, and
  • owned and used as a homestead by a public safety officer who is employed or volunteers as a public safety officer in the same statutory or home rule charter city where the property is located.
  • Verification: The city must provide the information necessary to verify employment or volunteer status to the city assessor or county assessor.
  • Definition: “Public safety officer” means the term defined in section 299A.41 subdivision 4.

• Income tax subtraction for public safety officers

  • Adds a new Subdivision 290.0132 to Minnesota Statutes 2024 to create a subtraction (income tax deduction) for certain income earned by public safety officers.
  • The exact scope and rules of the subtraction are not fully detailed in the excerpt, but the intent is to reduce taxable income for eligible income earned by public safety officers.

Changes to Existing Law

• Property tax: Creates a new homestead property tax exemption for qualifying property owned and used by a public safety officer in the same city.
• Income tax: Creates a new subtraction from taxable income for certain income earned by public safety officers.
• Administrative/process change: Adds verification requirements where the city must provide employment/volunteer status information to assessors.

Definitions and Administrative Details

• Public safety officer: Defined by section 299A.41 subdivision 4 (used to determine eligibility for both the property tax exemption and the income subtraction).
• Property eligibility: Requires the property to be class 1a and used as a homestead in the same city where the officer works or volunteers.
• Verification: Local governments bear the responsibility to verify status and share necessary information with assessors.

Potential Impacts

• For public safety officers: Financial relief both as homeowners (through property tax exemption) and as earners (through the income subtraction).
• For local governments: New administrative duties to verify eligibility and report status to assessors.
• For homeowners in qualifying situations: Lower property taxes; reduced taxable income if they qualify for the subtraction.

Implementation Notes

• The excerpt does not specify an effective date or granular details of the income subtraction (e.g., what types of income qualify or caps). Those would be defined in the full bill text upon enactment.

Relevant Terms - homestead property - property tax exemption - class 1a property - section 273.13 subdivision 22 - public safety officer - employment or volunteer status - city assessor - county assessor - verification - Minnesota Statutes 2024 - section 299A.41 subdivision 4 - income tax subtraction - Subdivision 109 (to 272.02) - Subdivision 290.0132 (new income subtraction) - statutory city - home rule charter city