Purpose of the Bill

This bill aims to modify eligibility criteria for certain tax programs and classifications in Minnesota, focusing specifically on amendments to the homestead classification process. It also updates the statutes related to income tax credits for property.

Main Provisions

1. Homestead Application Process:

   • Property owners must file a homestead application with the county assessor to gain homestead status for their property.
   • Applications must be signed by all owners who live in the property, or the qualifying relative, to be eligible for homestead classification.
   • Owners need to provide Social Security numbers or Individual Taxpayer Identification Numbers for both themselves and any occupying spouses.

2. Residency and Ownership Requirements:

   • A property owner's spouse cannot claim another homestead unless certain documentation is provided to prove eligibility.
   • Owners or spouses who fail to provide complete information may only receive partial homestead benefits, with the rest of the residence classified as nonhomestead residential.
   • If relatives occupy the property, their personal identification information must be included in the application.

3. Notification and Changes in Occupancy:

   • Property owners must notify the assessor within 30 days if there are changes in occupancy, sale, or transfer of the property to maintain homestead status.
   • If the homestead application is not filed by the end of the year, the property will be classified as nonhomestead for tax purposes the following year.

Significant Changes

• The bill clarifies that identification numbers from noncitizens who are undocumented or not lawfully present in the United States will not be accepted.
• It mandates more stringent reporting requirements for changes in property status and owner occupancy to avoid penalties and loss of homestead classification.

Relevant Terms

• Homestead classification
• County assessor
• Social Security number
• Individual Taxpayer Identification Number
• Noncitizen
• Undocumented
• Occupancy change