MN SF1167

Establishes a new senior citizen property tax credit for homeowners age 65 and older with household income not exceeding $96,000 who have owned and occupied their homestead for at least 5 years.

Credit amount equals the difference between current year net property tax and either the 2020 tax (for pre-2020 owners) or the year of application tax (for newer owners), capped at $500 annually.

Eligible properties include class 1a or 1b homesteads or the house, garage, and one acre of agricultural homesteads; credit continues until property is sold, all qualifying owners pass away, or homestead status is lost.

County auditors must certify tax reductions to the commissioner of revenue, who reimburses local taxing jurisdictions (other than school districts) in two equal installments on October 31 and December 26; school districts receive reimbursement through the Department of Education.

Appropriates sufficient funds from the general fund annually to cover all reimbursements and becomes effective for property taxes payable in 2025.