MN SF4529

County assessors are prohibited from increasing the market value of residential property by more than 3 percent of the prior year's assessment value.

The 3 percent limitation does not apply in the year following a residential property sale, allowing assessments to reflect current fair market value.

Purchasers or their agents may request a property tax estimate from the county auditor based on the property's current fair market value during a sale.

If a sold residential property's estimated market value increases more than a specified percent over the prior year's assessment value, the county auditor must spread the increase across the net tax capacity of all residential properties over the following two tax years.

The provision is effective for assessment year 2023 and thereafter.