HF 3558 Summary

• Converts the property tax refund program from a separate refund system to a refundable income tax credit under Minnesota income tax law, effective for taxable years beginning after December 31, 2021.

• Allows individuals to claim a credit against income tax equal to the property tax refund amount, with excess credits refundable if the credit exceeds tax liability.

• Maintains existing refund eligibility thresholds and maximum amounts for homeowners ($2,770) and renters (up to $2,150), with income-based calculation methods unchanged.

• Requires the property tax refund credit to be filed with the income tax return instead of as a separate claim, with automatic appropriation from the general fund for refunds exceeding tax liability.

• Repeals sections of law establishing separate refund payment procedures and appropriations while updating all statutory references from "claimant" to "taxpayer" throughout the property tax relief statutes.