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HF 3727

Market value exclusion modified for veterans with a disability by increasing exclusion amount for totally and permanently disabled veterans.

2025-2026 Regular Session Introduced by Ben Bakeberg and 8 co-sponsors

Raises property tax relief for Minnesota veterans by increasing exempted homestead value: 70%+ from 150k to 225k; 100% permanent from 300k to 450k, starting 2027.

Author added Warwas
#disabilitiesandaccess #taxation-property #veteransandveteransaffairsdepartment
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WeVote Research Nonpartisan
Bill Summary · HF 3727

Summary of HF 3727 (2025-2026) – Minnesota

Purpose and intent

HF 3727 proposes to modify Minnesota’s market value exclusion for veterans with a service-connected disability by increasing the amount of market value that can be excluded from taxable property value. The change targets veterans with disabilities who qualify for the homestead valuation exclusion, expanding relief for those with 100% total and permanent disability and adjusting the 70%+ disability exclusion accordingly. The measure aims to ease property tax burdens for qualifying veterans, their surviving spouses, and primary family caregivers.

  • Effective date: Beginning with assessment year 2027.

Key provisions and changes

Scope of exclusion

  • The exclusion applies to the market value of a veteran’s property that serves as the veteran’s homestead, as certified by the U.S. Department of Veterans Affairs (VA), with:
    • Honorable discharge status.

Updated exclusion amounts (subdivision 34, paragraph (b))

  • For disability rating of 70% or more (but not 100%):
    • Excluded market value increased from $150,000 to $225,000.
  • For total (100%) and permanent disability:
    • Excluded market value increased from $300,000 to $450,000.

Survivors and caregivers provisions (selected highlights)

  • Spouse continuation: If a veteran with a qualifying disability dies and the surviving spouse holds title and resides there permanently, the exclusion can carry over to the spouse until remarriage or disposition of the property, under specific conditions and with timely applications (see paragraphs (c), (d), and (k)).
  • Spouse eligibility after service member’s death: If a service member dies on active duty from a service-connected cause, the surviving spouse may be entitled to the 100%/permanent disability exclusion until remarriage, sale, or disposal, subject to requirements.
  • Primary family caregiver: If the veteran did not own qualifying property, the caregiver’s homestead can qualify for the exclusion, to the extent allowed by the caregiver provisions.

Eligibility and administration

  • Application deadline: Property owners must apply by December 31 of the first assessment year in which the exclusion is sought.
  • Notification: Property owners with an accepted exclusion must notify the assessor of ownership or use changes (except as otherwise provided).
  • County certification: By July 1 of the year, county veterans service officers must certify each veteran’s disability rating and permanent address to the assessor.
  • Spousal continuation conditions: Several conditions govern continuation of the exclusion for surviving spouses, including ownership, residence, value comparisons, and remarriage or disposal.

Definitions and clarifications

  • Active service definition aligns with Minnesota statute.
  • “Own” means the name appears on the property deed.
  • “Primary family caregiver” is defined consistent with VA/38 U.S.C. provisions.
  • Other cross-references ensure consistency with related homestead exemptions and classifications.

Who is affected

  • Eligible veterans with service-connected disabilities who own qualifying Minnesota homesteads.
  • Veterans who are totally and permanently disabled (100% permanent) and their surviving spouses.
  • Primary family caregivers of eligible veterans (when the veteran did not own qualifying property).
  • Local assessors and county veterans service officers administering exemptions and certifications.

Procedural and timeline notes

  • Status: First Engrossment posted 02/24/2026; amended version posted 04/09/2026.
  • Next steps in the legislative process: Likely committee action in Taxes; potential floor consideration.
  • Effective date of the new exemption amounts: Assessment year 2027.
  • Administrative timelines: Annual certification by county veterans service officers by July 1; application deadline for the exclusion by December 31 of the first eligible assessment year.

Bottom-line impact

HF 3727 substantially increases the property tax relief available to veterans with 70%+ disability by raising the exclusion cap from $150,000 to $225,000 for 70%+ disabilities and from $300,000 to $450,000 for 100% permanent disabilities. The bill also clarifies and extends eligibility pathways for surviving spouses and primary family caregivers, with phased-in implementation starting in 2027.

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

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