MN HF1157

Eliminates the two-tier classification system for class 4d low-income rental housing, replacing it with a single 0.25 percent classification rate effective for taxes payable in 2022.

Previous law taxed the first $100,000 of each housing unit's value at 0.75 percent, with remaining value at 0.25 percent; new law applies 0.25 percent to all class 4d property value.

Class 4d property includes qualifying low-income rental housing certified by the Housing Finance Agency, with market value based on normal unrestricted rents.

Effective date is taxes payable in 2022.