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HF 805

Property tax refund program established for child care providers that rent a child care facility, report required, and money appropriated.

2025-2026 Regular Session Introduced by Mary Clardy and 8 co-sponsors

Provides a targeted property tax refund to rental-based child care providers to reduce operating costs and support affordable child care.

Author added Hanson, J.
#children-childcareandfacilities #taxation-property
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WeVote Research Nonpartisan
Bill Summary · HF 805

Summary of HF 805 (2025-2026) – Minnesota

Overview

HF 805 proposes establishing a property tax refund program specifically for child care providers that rent a child care facility. The bill aims to ease operating costs for rental-based providers by offering a targeted refund of property taxes. A follow-on reporting requirement and an appropriation are included, detailing how funds would be allocated and tracked.

Purpose and Intent

  • Provide financial relief to child care providers who rent the facilities in which they operate.
  • Mitigate the ongoing property tax burden that renters indirectly bear, by offering a refundable credit or refund tied to property taxes paid on rented facilities.
  • Support the affordability and stability of child care by reducing one major operating expense for rental-based providers.

Key Provisions (as described by the bill title and action history)

  • Establishment of a Property Tax Refund Program: Creates a targeted program for refunding property taxes to eligible child care providers that rent their facilities.
  • Eligibility and Scope: The program is limited to child care providers who are renting the property, rather than owning it. Specific eligibility criteria (e.g., type of provider, occupancy, license status, income thresholds) would be defined in the bill text.
  • Reporting Requirement: The bill requires reporting related to the program. This likely includes annual reporting on eligible participants, total refunds issued, and program costs, enabling oversight and accountability.
  • Appropriation: An appropriation is included to fund the refund program. The bill would specify the amount authorized for the program and any fund sources, as well as spending controls and sunset provisions if applicable.
  • Administration and Compliance: The bill would designate or authorize an agency to administer the program, determine eligibility, process refunds, and ensure compliance with reporting requirements.

Who Would Be Affected

  • Primary Beneficiaries: Rental-based child care providers (operators who lease or rent facilities) who meet eligibility criteria set forth in the bill.
  • Other Stakeholders: Property owners (landlords) hosting child care operations, local governments for potential tax and revenue implications, and state administrative agencies responsible for program administration and auditing.

Procedural and Timeline Aspects

  • Introduction and Referral: Introduced and referred to the House Taxes committee (as of the initial action history).
  • Sponsor and Co-Sponsors: Primary sponsor and a broad set of co-sponsors from various districts, indicating bipartisan interest.
  • Next Steps (typical for such bills): Committee hearings to discuss eligibility, funding, and administration; potential amendments; floor votes; and eventual movement to the Senate for companion consideration (if applicable) and gubernatorial action.
  • Reporting Timeline: The bill requires reporting, with potential annual reporting cycles tied to the fiscal year and funding periods.

Potential Impacts and Considerations

  • Budgetary Impact: Requires an appropriation; the size of the refund program would affect state expenditures and potentially require revenue adjustments or funding offsets.
  • Tax Policy Implications: Shifts some property tax relief to a targeted group, which may influence perceptions of fairness among non-rental providers and property owners.
  • Administrative Burden: Implementation would necessitate a clear standard for eligibility, verification of rent arrangements, and an efficient refund processing system, along with annual reporting requirements.
  • Economic Impact: By reducing overhead for rental-based child care providers, the measure could support waitlist reductions, service stability, and potentially improve the overall quality and availability of child care.

If you’d like, I can tailor this into a one-page briefing for policymakers or extract specific fiscal notes once the bill text and fiscal impact statements are available.

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

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