S.F. No. 4701 - Property Tax Classification Consolidation

• Consolidates and simplifies property tax classifications by eliminating the blind and disabled property tax class (1b) and replacing it with a refund system for homeowners with disabilities starting with taxes payable in 2026.

• Eliminates the state general levy on seasonal residential recreational property beginning with taxes payable in 2026, while increasing the general levy on commercial-industrial property from $716.99 million to $758.68 million.

• Repeals the aggregate resource preservation property tax law (class 2e) and establishes a new class 5(2) designation for land with commercial aggregate deposits that is not actively being mined.

• Modifies the definition of referendum market value and reclassifies various property types, including seasonal residential recreational properties and manufactured home parks, with effective dates beginning with taxes payable in 2026.

• Establishes a new property tax refund subdivision (2k) for homeowners with disabilities to replace the class 1b classification, and makes conforming technical changes throughout Minnesota property tax statutes.