SF417

SF417 (Legislative Session 94 (2025-2026))

Senior citizen credit establishment

AI Generated Summary

SF No. 417 is a legislative bill proposing the creation of a "senior citizen credit" for property taxes in Minnesota. To be eligible for this credit, the following criteria must be met:

The property must be classified as residential (1a or 1b) or part of an agricultural homestead, including the house, garage, and surrounding one acre.
The property owner must be 65 years or older.
The total household income must not exceed $96,000 for the year before applying.
The property must have been owned and occupied by the senior citizen for at least five years before applying.
The property owners should not be part of the senior citizens property tax deferral program.

Owners can apply for the credit by March 1 of the year before the taxes are due, providing required details such as names, addresses, Social Security numbers, previous year's income, and a copy of the current property tax statement. The credit continues annually until the property is sold, transferred, or no longer qualifies.

The credit amount will be the difference between the current property tax and the tax from a base year (2020), capped at $500. The county auditor calculates the tax reductions and certifies them to the state revenue commissioner, who then ensures local jurisdictions and school districts are reimbursed accordingly.

Funds for these reimbursements come from the state general fund, with specific appropriations assigned to the commissioners of revenue and education to manage the payments to various taxing jurisdictions.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
January 20, 2025	Senate	Floor	Action	Introduction and first reading
January 20, 2025	House	Floor	Action	Introduction and first reading
January 20, 2025	Senate	Floor	Action	Referred to	Taxes
January 20, 2025	House	Floor	Action	Referred to	Taxes
January 22, 2025	House	Floor	Action	Author added
January 22, 2025	Senate	Floor	Action	Author added
March 26, 2025	Senate	Floor	Action	Author stricken

Citations

[
  {
    "analysis": {
      "added": [
        "Allows for adjustments to be made for senior citizen credits."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references adjustments in tax levies impacting municipalities and other local taxing authorities as defined in section 275.065, subdivision 3.",
      "modified": [
        "Clarifies process for levy adjustments related to senior citizen credits."
      ]
    },
    "citation": "275.065",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "New timelines for credit issuance to accommodate senior citizen credits."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends section 276.04, subdivision 2 regarding the timing and allocation of property tax credits.",
      "modified": [
        "Alters payment schedules to reflect changes brought by the senior citizen credit."
      ]
    },
    "citation": "276.04",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Additional reporting requirements for implementing senior citizen credits."
      ],
      "removed": [
        ""
      ],
      "summary": "Section references adjustments and data reporting procedures under section 270C.85, subdivision 2.",
      "modified": [
        "Updates to reflect senior citizen credit adjustments."
      ]
    },
    "citation": "270C.85",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Mechanisms to apply senior citizen credit in tax calculations."
      ],
      "removed": [
        ""
      ],
      "summary": "References provisions for reducing property tax net payable amounts in section 273.1393.",
      "modified": [
        "Details changes on how local jurisdictions handle tax reductions."
      ]
    },
    "citation": "273.1393",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Specific processes for education-related reimbursements due to senior credits."
      ],
      "removed": [
        ""
      ],
      "summary": "Details interactions with the commissioner of education for reimbursement processes as outlined in section 273.1392.",
      "modified": [
        "Aligns reimbursement processes with new tax credit."
      ]
    },
    "citation": "273.1392",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Incorporates attributes of properties eligible for senior credit."
      ],
      "removed": [
        ""
      ],
      "summary": "This section underlines the property classifications for eligibility in section 273.13, subdivision 22.",
      "modified": [
        "Clarifies eligible property types for new credit."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 22"
  },
  {
    "analysis": {
      "added": [
        "Extends eligibility of credit to certain agricultural properties."
      ],
      "removed": [
        ""
      ],
      "summary": "Defines further classifications of properties, focusing on agricultural homesteads as per section 273.13, subdivision 23.",
      "modified": [
        "Expands classification details to include senior citizen credit."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 23"
  },
  {
    "analysis": {
      "added": [
        "Aligns income definitions for determining credit eligibility."
      ],
      "removed": [
        ""
      ],
      "summary": "Utilizes household income definitions for eligibility found in section 290A.03, subdivision 5.",
      "modified": [
        "Adapts definitions to account for new credit qualification."
      ]
    },
    "citation": "290A.03",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [
        "Excludes properties already under a separate tax deferral program."
      ],
      "removed": [
        ""
      ],
      "summary": "Notes exclusion criteria, referencing the senior citizens property tax deferral program under chapter 290B.",
      "modified": [
        "Specifies conditions where senior credit is not applicable."
      ]
    },
    "citation": "290B",
    "subdivision": ""
  }
]