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SF3218 (Legislative Session 94 (2025-2026))

Commercial-industrial property state general levy reduction provision

Related bill: HF3045

AI Generated Summary

Purpose of the Bill

The bill aims to reduce the state general levy on commercial and industrial property in Minnesota. It focuses on adjusting tax rates to provide financial relief to businesses operating within the state by lowering the amount they are required to pay in property taxes.

Main Provisions

  • The bill proposes changes to the existing tax code by decreasing the state general levy specifically for commercial and industrial properties.
  • The levy amount for these properties will be reduced from $716,990,000 to $684,990,000 for taxes payable starting in 2026.
  • The state general levy for seasonal residential recreational property remains unchanged at $41,690,000 for taxes payable in 2020 and beyond.

Significant Changes to Existing Law

  • This bill amends the Minnesota Statutes section 275.025, subdivision 1, altering the specific numbers related to the state general levy for commercial and industrial property.
  • The amounts mentioned represent a significant financial adjustment aimed at reducing the tax burden on these classes of property.
  • The bill does not affect the current levy rates for seasonal residential recreational properties.

Additional Provisions

  • The bill allows the commissioner to adjust preliminary or final tax rates to correct errors or account for changes in the tax base from previous years.
  • Adjustments can occur due to erroneous reporting by local officials or miscalculations by the commissioner. However, corrections are mandated only if the total tax difference is $100,000 or more, giving the commissioner discretion in lesser cases.

Relevant Terms

state general levy, commercial property tax reduction, industrial property tax, Minnesota property tax law, tax base adjustments, tax rate correction, seasonal residential recreational property tax.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 01, 2025SenateFloorActionIntroduction and first reading
April 01, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends the state general levy for commercial-industrial property under section 275.025, subdivision 1.",
      "modified": [
        "The state general levy amount for commercial-industrial property for taxes payable has been reduced from 716,990,000 to 684,990,000 starting in 2026 and thereafter."
      ]
    },
    "citation": "275.025",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References tax treatment related to state general levies under section 469.177.",
      "modified": []
    },
    "citation": "469.177",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Indicates that the state general levy is not considered a levy of a governmental unit under chapters 276A.",
      "modified": []
    },
    "citation": "276A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Indicates that the state general levy is not considered a levy of a governmental unit under chapter 473F.",
      "modified": []
    },
    "citation": "473F",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References reporting requirements under section 270C.85, subdivision 2.",
      "modified": []
    },
    "citation": "270C.85",
    "subdivision": "subdivision 2"
  }
]

Sponsors