Taxes & Property Tax

Removes limits on how property tax adjustments can accumulate over time.

This bill eliminates the three-year limit on accumulating unused property tax index factors for counties and municipalities. Previously, local governments could only use unused index factors from the prior three years and were capped at either the three-year total or 10% (whichever was less). The bill removes these restrictions, allowing unlimited accumulation of unused index factors since 2024 for future property tax revenue increases.

Provides emergency funding for tax refunds to elderly and disabled residents.

This bill appropriates $425,000 from the general fund to the Department of Revenue to provide tax refunds to elderly persons and persons with disabilities for real property tax and sales tax under existing chapters 10-18A and 10-45A. Up to $20,000 of the appropriation may be used for administration. The bill includes standard appropriation language regarding voucher approval, warrant drawing, fund reversion by June 30, 2027, and declares an emergency for immediate effect.

Gives veterans and their surviving spouses refunds on past property taxes.

This bill allows qualifying disabled veterans and their unremarried surviving spouses to petition county commissioners for a refund of property taxes paid in the previous four years on property that would have qualified for the veteran disability tax exemption if they missed the application deadline. The bill adds this refund provision to existing law that already exempts these veterans from property taxes on their primary residence.