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SF2808 (Legislative Session 94 (2025-2026))

Renter's credit expansion to provide parity with the homestead credit refund provision

Related bill: HF2499

AI Generated Summary

Purpose of the Bill

The bill aims to expand the renters' credit in Minnesota, ensuring it has parity with the existing homestead credit refund. This means both renters and homeowners can have more equitable support when it comes to property taxes.

Main Provisions

  • Renters Credit Adjustment: The bill adjusts the percentage of household income that renters must pay in property taxes before receiving a credit. This adjustment is designed to align more closely with the benefits provided under the homestead credit refund.

  • Income Thresholds and Credits: The credit available varies based on household income, with the bill specifying different income brackets and the associated credits. Lower-income renters could receive higher credits relative to their income, compared to those with higher incomes.

  • Annual Adjustments: The commissioner is required to adjust the income thresholds and maximum refunds every year to keep up with inflation and economic changes.

  • Comprehensive Calculation Tables: The bill mandates the creation of comprehensive tables by the commissioner. These tables show the refunds available at various income and property tax levels, making the system clearer and easier for taxpayers to understand.

Significant Changes to Existing Law

  • Increased Access for Renters: By expanding the renters' credit and aligning it more closely with the homeowners' system, the bill increases financial support for tenants, ensuring they have similar relief regarding property taxes.

  • Income-Based Adjustments: The initiative emphasizes tailoring the tax credits based on income levels, offering targeted relief to lower-income households.

Relevant Terms

  • Renters credit
  • Homestead credit refund
  • Property taxes
  • Household income
  • Income brackets
  • Tax credits
  • Inflation adjustment

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Details annual income threshold adjustments by the commissioner based on section 270C.22."
      ],
      "removed": [],
      "summary": "This bill modifies the renters credit eligibility and calculation under Minnesota Statutes section 290.0693, subdivision 3.",
      "modified": [
        "Adjusts income brackets and corresponding renters credit calculations to increase parity with the homestead credit refund."
      ]
    },
    "citation": "290.0693",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 270C.22 is referenced to establish guidelines for adjusting income thresholds and maximum refunds.",
      "modified": [
        "Sets a framework for adjustments to be made annually to income thresholds and maximum refunds."
      ]
    },
    "citation": "270C.22",
    "subdivision": ""
  }
]

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