Limits annual increase in market value of residential properties to 3% of prior year's assessment value.

This bill amends Minnesota Statutes to limit the annual increase in market value of residential properties to no more than 3% of the prior year's assessment value. This limitation does not apply when residential property is sold. If the estimated market value of a sold residential property increases more than 3% over the prior year's assessment value, the county auditor must spread the increase across the net tax capacity of all residential properties over two years. This change takes effect for assessment year 2026 and thereafter.

Limits annual increase in market value of residential properties to 3% of prior year's assessment value.

This bill amends Minnesota Statutes to limit the annual increase in market value of residential properties to no more than 3% of the prior year's assessment value. This limitation does not apply when residential property is sold. If the estimated market value of a sold residential property increases more than 3% over the prior year's assessment value, the county auditor must spread the increase across the net tax capacity of all residential properties over two years. This change takes effect for assessment year 2026 and thereafter.