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SF3260 (Legislative Session 94 (2025-2026))

Property tax market value exclusion for veterans with a disability modification; exclusion amounts increase annually with inflation authorization; surviving spouses benefit modification

Related bill: HF1756

AI Generated Summary

Purpose of the Bill

The bill aims to modify the current property tax benefits for veterans with disabilities in Minnesota. It seeks to provide greater tax relief by adjusting the market value exclusion amounts for veterans' homesteads and extends certain benefits to surviving spouses.

Main Provisions

  • Market Value Exclusion Adjustment: The property tax exclusion amounts for veterans with a disability are increased. Specifically, for veterans with a service-connected disability of 70% or more, a base exclusion amount is provided. For those with total (100%) and permanent disabilities, the exclusion is two times the base amount.

  • Annual Inflation Adjustment: Starting in 2027, the exclusion base amount will be adjusted annually for inflation based on government price indices.

  • Surviving Spouse Benefits: Surviving spouses of veterans can continue to benefit from the property tax exclusion under specific conditions, such as not remarrying and continuing to reside on the property. The bill also allows spouses of service members who died in active service to retain similar benefits.

  • Family Caregiver Eligibility: If a veteran with qualifying disabilities does not own a qualifying property, the veteran’s primary family caregiver’s homestead may be eligible for the exclusion.

  • Exclusion Application Process: Property owners must apply by December 31 of the first year for which they seek the exclusion, and they must notify assessors of any changes in property ownership or use.

Significant Changes to Existing Law

  • Increased Exclusion Amounts: The bill increases the baseline exclusion amounts for properties owned by veterans with disabilities, thereby aiming to lower their property tax burden.

  • Extension of Benefits to More Surviving Spouses: The bill expands and clarifies the conditions under which surviving spouses are eligible for ongoing tax benefits.

Relevant Terms: - Property Tax - Veterans with Disabilities - Market Value Exclusion - Surviving Spouses - Inflation Adjustment - Family Caregiver - Homestead

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionReferred toTaxes
April 23, 2025SenateFloorActionAuthor stricken
April 23, 2025SenateFloorActionAuthor stricken

Citations

 
[
  {
    "analysis": {
      "added": [
        "Specification for increases in exclusion amounts with inflation.",
        "Conditions for surviving spouses to maintain or transfer exclusion benefits."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the market value exclusion for veterans with a disability under section 273.13, subdivision 34.",
      "modified": [
        "Adjustment of exclusion base amount starting from assessment year 2026.",
        "Clarification on eligibility and application requirements for exclusion."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 34"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The term 'active service' is defined with reference to section 190.05 in this bill.",
      "modified": []
    },
    "citation": "190.05",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The term 'veteran' is referenced as defined in section 197.447 in the context of this bill.",
      "modified": []
    },
    "citation": "197.447",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The Program of Comprehensive Assistance for Family Caregivers is referenced under 38 U.S.C. § 1720G in this bill.",
      "modified": []
    },
    "citation": "38 U.S.C. § 1720G",
    "subdivision": ""
  }
]

Sponsors