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SF2504 (Legislative Session 94 (2025-2026))

Senior citizens' property tax deferral program modification

Related bill: HF2086

AI Generated Summary

This bill proposes modifications to Minnesota's Senior Citizens Property Tax Deferral Program, which allows eligible seniors to defer a portion of their property taxes. The key changes to the program include:

  1. Income Limit Increase:

    • The maximum qualifying household income increases from $96,000 to $110,000.

  2. Reduced Ownership Requirement:

    • The requirement that the homestead be owned and occupied for at least five years before applying is reduced to two years.

  3. Eligibility Criteria:

    • At least one homeowner must be 65 or older, and if married, the other spouse must be at least 62.
    • The homestead must be free of state or federal tax liens or judgment liens.
    • Mortgage and lien balances must not exceed 75% of the property’s assessed market value.

These changes aim to make the program more accessible for senior homeowners in Minnesota.

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": [
        "Previous household income cap of $96,000."
      ],
      "summary": "The bill modifies the qualifications for the senior citizens property tax deferral program under section 290B.03.",
      "modified": [
        "Total household income threshold increased from $96,000 to $110,000.",
        "Homestead ownership requirement reduced from five years to two years prior to application."
      ]
    },
    "citation": "290B.03",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references the definition of household income for tax deferral qualifications.",
      "modified": []
    },
    "citation": "290A.03",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill proposes modifications to the existing subdivisions related to the execution and administration of the tax deferral program.",
      "modified": [
        "Further clarified rules for deferral and penalties."
      ]
    },
    "citation": "290B.04",
    "subdivision": "subdivisions 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies criteria within the subdivision for tax deferments.",
      "modified": []
    },
    "citation": "290B.04",
    "subdivision": "subdivisions 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifications are made related to the appeal process of the senior citizens property tax deferral program.",
      "modified": [
        "Amends previous rules for filing appeals regarding deferrals."
      ]
    },
    "citation": "290B.05",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Citation referenced for the definition of residential PACE lien affecting the calculation of property liens.",
      "modified": []
    },
    "citation": "216C.435",
    "subdivision": "subdivision 10d"
  }
]

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