MN HF5240

Limits annual market value increases for qualified homestead properties to the lesser of 3% or the Consumer Price Index for All Urban Consumers, effective assessment year 2025.

Applies to owner-occupied properties classified as class 1a, 1b, 2a (house, garage, and one acre only), or 4d(2) under Minnesota property tax law.

Allows homeowners to transfer the valuation cap to a new homestead property within three years of purchase, with a calculation averaging the new and previous property values if the new property is more expensive.

Valuation treatment expires if the property is sold, transferred, or the owner no longer qualifies for homestead status, returning the property to standard market value assessment.

Exempts value increases resulting from property improvements from the 3% cap limitation.