MN SF1166

Limits annual valuation increases on agricultural homestead, agricultural nonhomestead, residential homestead, and residential nonhomestead properties to 2 percent of the preceding year's assessed value, effective for assessment year 2023 and thereafter.

Allows county assessors to reassess residential property at current fair market value when the property is sold.

Exempts value increases due to property improvements from the 2 percent valuation cap limitation.

Caps property taxes on residential and agricultural properties at 1 percent of the current year assessment value for each parcel, effective for property taxes payable in 2024 and thereafter.

Requires county auditors to adjust tax capacity and local tax rates calculations to enforce the 1 percent property tax limit before spreading taxes.