The Senate Taxes Committee on Wednesday heard a bipartisan bill authored by District 21 Sen. Bill Weber (R-Luverne) to provide significant property tax relief for agricultural, business and resort properties.
This legislation, SF973, is a compilation of three provisions from last year’s Property Tax Subcommittee report, which was part of the 2022 Senate tax bill, and the Tax Conference Committee agreement.
Weber said in a press release that with a historic $17.6 billion surplus, "we really need to start giving this money back to the people." He added that this legislation seeks to provide property tax relief in a time of rapidly rising property values. By raising the first-tier valuation limit for agricultural homestead property to $3.5 million, he said, it will ensure smaller homesteads will be able to keep farming at that level.
Highlights of this proposal include:
* Increasing the minimum and maximum thresholds for the residential homestead market value exclusion by approximately 25%
* Setting the first-tier valuation limit for agricultural homestead property at $3.5 million for assessment year 2024
* Modifying the classification tier rates for class 1c homestead resort property
Additionally, this legislation would make changes to the state general tax levy. The statewide property tax would be reduced by $35 million beginning in 2024.
SF973 was laid over for possible inclusion in a larger taxes bill that will be introduced later in session.
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