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SF2405 (Legislative Session 94 (2025-2026))

Housing and redevelopment authority levy limits modification

Related bill: HF1863

AI Generated Summary

This bill, S.F. No. 2405, concerns taxation and the authority of housing and redevelopment agencies in Minnesota to levy property taxes. It proposes an amendment to Minnesota Statutes 2024, section 469.033, subdivision 6, specifically modifying the levy limit for housing and redevelopment authorities.

Key Changes:

  • Taxing District Definition: The area served by a housing and redevelopment authority (HRA) remains a taxing district for the purpose of levying special benefit taxes.
  • Governing Body Approval: The HRA may levy property taxes within its district, but only with consent from the city's governing body.
  • Tax Collection & Use: The collected tax will be kept in a separate Housing and Redevelopment Project Fund and distributed similarly to city tax revenues, to be used solely for purposes outlined in state law (sections 469.001 to 469.047).
  • Levy Rate Increase:
    • Current maximum levy rate: 0.0185% of estimated market value.
    • Proposed new maximum levy rate: 0.037% of estimated market value.
  • Budget Submission Requirement: The HRA must submit an annual budget to the city under its budgeting procedures, or, if no procedures exist, by August 1 each year.
  • Initial Levy Certification Process: Section 275.067 applies to HRAs that have not previously certified a levy.

Implication:

This bill effectively doubles the maximum allowable levy rate for housing and redevelopment authorities, which could increase available funding for local housing and redevelopment projects. However, it retains the requirement for city approval before levying the tax.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading
March 12, 2025SenateFloorActionIntroduction and first reading
March 12, 2025HouseFloorActionReferred toTaxes
March 12, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies housing and redevelopment authority levy limits under section 469.033, subdivision 6.",
      "modified": [
        "Updates the maximum levy limit percentage from 0.0185 to 0.037 percent of estimated market value."
      ]
    },
    "citation": "469.033",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references requirements applying to housing and redevelopment authorities under section 275.067.",
      "modified": []
    },
    "citation": "275.067",
    "subdivision": ""
  }
]

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