SF4840

Purpose

To change how property tax notices and hearings work, and to introduce a reverse referendum concept for local government levies that increase. The bill would amend existing Minnesota tax statutes and add new provisions to improve transparency, public input, and information about proposed property taxes.

Main provisions and objectives

• Require advanced notice of proposed property taxes and public meetings:
  • County auditors must prepare and county treasurers must deliver a notice of proposed property taxes by Mail between November 10 and November 24 each year.
  • The notice must show proposed taxes for the next year, the current year taxes, and a detailed breakdown by taxing authority (cities, counties, school districts, regional libraries, fire protection, etc.).
  • Public meetings to discuss the budget and levy must be after November 24 and not before 6:00 p.m.; taxpayers must have a chance to speak.
  • The notice must include a website and a phone number for questions, and an address for mailed comments.
• Detailed tax information in the notice:
  • Market value (final values) used to compute next year’s taxes and current-year taxes.
  • Classification (homestead vs nonhomestead) and lines for each tax type (city, county, school levy, special taxing districts, and areawide districts).
  • Separate listing for certain levies that must be shown apart (e.g., lake improvement district, tax increments, areawide taxes).
  • A comparison showing actual taxes for the current year and proposed taxes for the next year, with the percentage change.
• Referendum rights (reverse referendum):
  • If a county or city’s proposed levy for next year is greater than its actual levy for the current year, voters may have the right to petition for a referendum on next year’s levy certification, provided the final levy is also greater than the current-year levy.
• Specific exemptions and exclusions:
  • Certain items are not included in the proposed/final taxes shown in the notice (e.g., special assessments, voter-approved bonds/leveys after the date of certification, levy limit increases approved by voters, disaster cleanup costs, tort judgments, and contamination taxes).
• Tenant notification for certain rental properties:
  • For class 4 residential property used as a residence for rentals of 30 days or more, the taxpayer must notify tenants by mailing or posting the notice (by November 27 or within three days of receipt, whichever is later).
• Reclassification and public accessibility:
  • If a property is listed as nonhomestead but qualifies for homestead, it can be reclassified to homestead for the next year.
  • If a taxing authority lacks a public website or phone line, the county will not list one for that authority.
• Metropolitan and regional taxing districts:
  • Definitions and inclusion of metro-area districts (Metropolitan Council, Metropolitan Airports Commission, Metropolitan Mosquito Control Commission) and regional rail authorities’ levies in the appropriate county levy.
• Supplemental information:
  • Governing bodies may include extra information about how state aid changes, inflation, population trends, and other factors affect property taxes and local services. This can be presented in tables, narrative, or graphics and may point to additional sources or comment opportunities.

Significant changes to existing law

• Adds a comprehensive, standardized notice of proposed property taxes with explicit content requirements and public input procedures.
• Introduces or formalizes a reverse referendum mechanism for next-year levies when they rise above current-year levels.
• Expands transparency by requiring district-by-district tax line items, separate reporting for certain levies, and clear statements about potential referendum rights.
• Requires tenant notification for certain rental properties and sets timelines for notices and meetings.
• Allows optional supplemental information about factors affecting taxes (inflation, population changes, state/federal actions, etc.).
• Explicitly lists exemptions from what must appear in the notice (e.g., voter-approved referenda after date, disaster costs, tort judgments, contamination taxes).

Additional notes on scope

• Applies to counties, cities, school districts, and certain special taxing districts, including Metropolitan Council, Metropolitan Airports Commission, and Metropolitan Mosquito Control Commission in the seven-county metropolitan area.
• Includes specific provisions for certain local entities (e.g., Minneapolis Park and Recreation, St. Paul Library Agency) to be displayed separately.
• Addresses how changes in levy levels relate to potential voter referendums and the timing of public hearings.

Relevant Terms - notice of proposed property taxes - reverse referendum - tax levy / levy certification - county auditor / county treasurer - November 10 to November 24 notice window - public meeting after November 24 (not before 6:00 p.m.) - market value (section 273.11) - homestead vs nonhomestead - actual tax vs proposed tax - tax increments / areawide tax (chapter 276A or 473F) - lake improvement district - special taxing districts - Metropolitan Council / Metropolitan Airports Commission / Metropolitan Mosquito Control Commission - Minneapolis Park and Recreation levy - St. Paul Library Agency levy - Ramsey County levies under section 134.07 - referendum rights (275.80) - senior citizens deferral (chapter 290B) - exclusions from taxes (special assessments, voter-approved after-date levies, disaster costs, tort judgments, contamination tax) - tenant notification (class 4 residential property)