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HF 2045

General subtraction amount increased, and combined cap on the subtractions for qualified small business property and qualified farm property increased.

2025-2026 Regular Session Introduced by Greg Davids and 1 co-sponsor

HF 2045 raises the general property tax subtraction and the QSBC/QFP combined cap, expanding relief for small business and farm properties in Minnesota.

Author added Harder
#agricultureandagriculturedepartment #taxation #taxation-property
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WeVote Research Nonpartisan
Bill Summary · HF 2045

Summary of HF 2045 (Minnesota)

Overview

HF 2045 proposes to increase two related components of Minnesota’s property tax system governing subtractions:
- the general subtraction amount, and
- the combined cap on subtractions for two targeted property categories: qualified small business property (QSBC) and qualified farm property (QFP).

The bill’s stated intent is to provide greater property tax relief by expanding the amount that may be subtracted and by raising the limit on how much can be subtracted when QSBC and QFP are combined.

Key Provisions (as indicated by the title)

  • Increase the general subtraction amount. This would allow a larger subtraction against property tax (or related tax calculation) for eligible property or entities covered by the general subtraction provision.
  • Increase the combined cap for subtractions related to QSBC and QFP. The bill treats these two categories with a single, combined cap, and raises that cap to allow greater total subtractions across QSBC and QFP properties.

Note: The precise dollar amounts, definitions, eligibility criteria, and calculation methodology are not provided in the summary text you supplied. The full bill text would specify the exact changes to statutory language.

Affected Parties

  • Owners of qualified small business property (QSBC) and qualified farm property (QFP) in Minnesota.
  • Local taxing jurisdictions and the state fiscal system may be indirectly affected due to changes in how much tax is subtracted from property tax calculations.
  • Farmers and small business operators who own farm or qualifying business property.

Procedural and Timeline Details

  • Introduced: March 10, 2025.
  • Legislative actions:
    • March 10, 2025: Introduction and first reading; referred to Taxes.
    • March 11, 2025: Author added (Harder).
  • Related legislation: SF 2253 is the companion bill.

Fiscal and Policy Considerations

  • The bill would likely reduce net property taxes for eligible QSBC and QFP properties by increasing the subtraction amount and cap, with potential implications for state and local revenue.
  • The exact fiscal impact would depend on the specific new amounts and caps enacted in the final text.
  • No sunset or phase-in details are available in the provided information; the full bill would indicate any effective dates and transition rules.

Next Steps for Interested Readers

  • Review the full bill text to see the exact dollar amounts, definitions of QSBC and QFP, eligibility rules, calculation methods, and effective dates.
  • Compare HF 2045 with its companion SF 2253 to understand differences between the House and Senate proposals.
  • Monitor committee actions in the House Taxes Committee for amendments or changes.

Compiled from official sources — confirm details with the bill’s official record.

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