MN SF4261

Creates a new refundable income tax credit under Minnesota Statutes section 290.0696 for homeowners whose property taxes increase by more than $100 and at least 12 percent year-over-year.

Calculates the credit amount by subtracting the greater of $100 or 12 percent of the prior year's property taxes from the total increase, then multiplying the result by 60 percent, with a maximum credit of $1,000.

Allows the credit to be refundable, meaning if it exceeds the taxpayer's income tax liability, the commissioner shall refund the excess amount to the taxpayer.

Limits eligibility to property taxes on the same homestead occupied by the taxpayer on January 2 of both the base year and comparison year, and excludes increases attributable to homestead improvements made after the prior year's assessment date.

Repeals the existing additional property tax refund provision under Minnesota Statutes section 290A.04, subdivision 2h, and makes the new credit effective for taxable years beginning after December 31, 2023.