Committee lays over bills expanding senior property tax deferral and increasing targeted property tax refunds

The Minnesota House Tax Committee on March 20 considered several property tax relief measures aimed at helping homeowners and seniors and laid the bills over for possible inclusion in the 2025 omnibus tax bill. Committee members also adopted an amendment to one bill and then laid that bill over in amended form.

Representative Wolgamott presented House File 2086 to expand the senior property tax deferral program. The bill would raise the household income eligibility from $96,000 to $110,000, reduce the minimum ownership-and-occupancy requirement from five years to two years, and — according to the author’s estimate — would have a revenue impact of about $40,000 in the 2026–27 biennium and $230,000 in the 2028–29 biennium. Matt Hilgert of the Association of Minnesota Counties testified in support and said the deferral “is a program that's very valued by our collective membership, county commissioners across the state,” noting it helps seniors remain in their homes.

Representative Tabke presented House File 2475 to expand and extend the homestead credit refund (often called the property tax refund). Nathan Jessen of the Minnesota Inter-County Association testified in support, saying the refund “provides direct property tax relief to Minnesotans without causing property tax shifts onto other homeowners.” The bill would reduce the co-pay portion of the property tax refund by 5% for households with incomes under $52,959, increasing refunds for eligible homeowners.

Representative Norris presented House File 2315, which would make permanent changes put in place in 2023 to the special targeting property tax refund: lowering the year‑over‑year property‑tax increase threshold from 12% to 6% for eligibility and keeping the enhanced maximum refund (previously increased from $1,000 to $2,500). Representative Norris moved and the committee adopted an A‑1 amendment to correct two statutory cross‑references (changing two statutory references from 12 to 6); the amendment was adopted by voice vote and the amended bill was laid over for possible inclusion in the omnibus tax bill. Anoka County Commissioner Julie Jepsen described the pressure on county budgets and noted rising levy needs tied to mandated programs and human services costs.

Members discussed outreach and uptake: several witnesses and members urged better public education so eligible homeowners learn about refunds and deferral options. No bill was voted into law at the hearing; the committee laid the proposals over for the omnibus tax package and recorded the A‑1 amendment adoption for HF2315.