HF 13 Summary

• Referendum Equalization Levy: Increases market value thresholds from $567,000 to $650,000 for first tier and $290,000 to $320,000 for second tier, effective for fiscal year 2022 and later.

• Property Tax Relief: Establishes abatement program for properties damaged during May-June 2020 unrest in Minneapolis/St. Paul area, providing 50-100% tax relief based on damage severity; includes damaged properties in Alexandria and Minneapolis from specific fires.

• Student Loan Credit: Makes the Minnesota student loan credit refundable for taxable years beginning after December 31, 2020.

• Partnership Audit Rules: Creates new partnership-level audit procedures and reporting requirements for federal adjustments under section 289A.382, with options for partnerships to pay taxes at entity level rather than partner level.

• Sales Tax Exemptions and Lawful Gambling: Adds sales tax exemptions for fire-damaged property reconstruction and unrest-damaged property recovery; reduces lawful gambling tax rates for combined net receipts (from 9% to 8% base rate) effective after June 30, 2020.