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HF 4906

Onetime special property tax refund provided, and money appropriated.

2025-2026 Regular Session Introduced by Greg Davids and 7 co-sponsors

A one-time $4,000,000,000 general fund refund for 2026 property taxes, issued in 2027 to eligible Minnesota property owners based on each owner’s share of total eligible taxes.

Author added Koznick
#appropriations #taxation-property
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WeVote Research Nonpartisan
Bill Summary · HF 4906

Summary of HF 4906 (2025-2026) — Onetime Special Property Tax Refund and Appropriation

Purpose and intent

HF 4906 proposes a one-time state-funded property tax refund for eligible property owners in Minnesota for taxes payable in 2026. The bill would provide a substantial, targeted rebate paid from a general fund appropriation in fiscal year 2027. The goal is to alleviate property tax burdens on owners of several classes of real property.

Key provisions and changes

  • Eligible properties (Section 1, Subd. 1(c)-(d))

    • The refund applies to property subject to 2026 taxes payable, including:
    • Residential homestead property (including manufactured homes) classified as 1a or 1b.
    • Residential nonhomestead property classified as 4b or 4bb.
    • Apartment property classified as 4a.
    • Agricultural homestead and agricultural nonhomestead property classified as 2au (and related subcategories).
    • Rural vacant land property classified as 2b.
    • Managed forest land classified as 2c.
    • “Property taxes payable” equals the sum of local net property taxes (per §273.1393) plus any state general tax (per §275.025) due on eligible property in 2026.

  • Refund mechanics (Section 1, Subd. 2)

    • An owner who paid more than $0 in 2026 property taxes on eligible properties may apply to the Minnesota Commissioner of Revenue for a refund.
    • Applications must be filed by September 15, 2026; the commissioner may set the form and method but must begin accepting applications by July 15, 2026.
    • Refunds must be issued by December 31, 2026 for valid applications.
    • Each eligible applicant’s refund equals:
    • The applicant’s refund share (defined as the applicant’s total property taxes payable on all eligible properties divided by the total taxes payable on all eligible properties of all applicants) multiplied by the total appropriation.

  • Appropriation (Section 1, Subd. 3)

    • A one-time appropriation of $4,000,000,000 from the general fund to the Commissioner of Revenue for refunds under this section, for fiscal year 2027.

Eligible audience and affected parties

  • Property owners with one or more of the listed eligible property types paying 2026 property taxes.
  • Local taxing jurisdictions and the Minnesota Department of Revenue, which would administer the program, determine eligibility, process applications, and issue refunds.

Procedural and timeline aspects

  • Application window opens no later than July 15, 2026; must be submitted by September 15, 2026.
  • Refunds to be paid by December 31, 2026 (for valid applications).
  • The program is explicitly one-time, tied to the 2026 tax year, funded by a single $4 billion appropriation in FY2027.

Potential impact and considerations

  • Provides immediate financial relief to property taxpayers across multiple property classes.
  • The formula-based refund (proportional to a total appropriation relative to each owner’s share of eligible taxes) means larger tax burdens may receive correspondingly larger refunds, subject to the overall $4B cap.
  • Administrative considerations include implementation of a streamlined application process, accurate classification of properties, and timely distribution of funds within the stated deadlines.

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

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