S.F. No. 138 Summary

• Amends Minnesota Statutes section 273.13, subdivision 34, to modify the spousal homestead property tax exclusion benefit for surviving spouses of disabled veterans with 100% disability ratings.

• Allows spouses who no longer own the initial property to transfer the exclusion to a different property of equal or lesser market value, provided they have not previously used this benefit and still meet residency requirements.

• Permits spouses whose exclusions expired before taxes payable in 2020 to reapply for the exclusion under existing spousal benefit provisions.

• Establishes a refund program for property taxes overpaid during tax years 2020-2023 on eligible properties, with counties processing applications and the Commissioner of Revenue distributing funds from a fiscal year 2024 general fund appropriation.

• Effective retroactively from assessment year 2019 for the statutory changes and effective upon enactment for the refund provisions.