MN SF3869

Establishes a new property tax credit for homestead properties (class 1a or 1b) located in second-class cities designated as federal redevelopment areas under the Public Works and Economic Development Act of 1965

Credit amount equals 70% of the property's net tax capacity multiplied by the city's capital debt tax rate for bonds issued under section 475.521

State general fund will reimburse local taxing jurisdictions for credit amounts in two equal installments on October 31 and December 26 each year, with an ongoing appropriation

Requires cities with eligible properties to separately certify their capital improvement bond levy amounts to the county auditor for calculating the credit

Effective beginning with taxes payable in 2027