House Lawmakers Consider Property Tax Relief, Task Force

The House Taxes Committee heard proposals to create a property tax task force and increase the state property tax refund programs.

Property taxes increased by 6.4% statewide across all jurisdictions in 2026, the largest increase since 2008. As local governments face growing budget pressures, legislators say they are hearing more concerns from constituents about rising property tax bills.

In response, the House Taxes Committee heard several bills aimed at addressing those concerns. The measures were laid over for possible inclusion in the House omnibus tax bill.

Property tax task force bill

HF 3657, sponsored by Rep. Matt Norris (DFL-Blaine), would create a property tax task force to examine property tax burdens for homeowners in the changing economy.

During each biennium, lawmakers often adopt individual property tax exemptions or changes intended to help specific groups. While well intentioned, these changes can make the system more complicated. As those exemptions accumulate, the property tax burden can shift to other taxpayers, particularly homeowners.

Supporters, including the League, say a task force could take a broader look at the system and recommend the most effective tools to address those shifts.  

Bills expanding property tax refund programs

Several other bills focus on expanding existing state property tax refund programs.

HF 2715 (Rep. Brad Tabke, DFL-Shakopee), HF 4119 (Rep. Kari Rehrauer, DFL-Coon Rapids), and HF 3959 (Rep. John Huot, DFL-Rosemount) would increase the Homestead Credit Refund and “targeting,” which is a property tax refund program.

These programs provide direct property tax relief from the state to taxpayers without shifting the tax burden to other properties.

The homestead and renter’s credits provide income-based relief, where the targeted refund offers one-time assistance when property taxes increase significantly in one year.  

League support

The League testified in support of these measures and submitted letters to committee chairs.

The 19% average statewide increase in residential homestead value in 2023 continues to affect property taxes homeowners pay today, particularly in years when levies increase at higher-than-average rates.

Residential homestead values have also risen faster than commercial values in eight of the past nine years.

Watch a video of the League’s testimony on HF 3457.

What’s next?

Other property tax proposals to reduce market value or limit tax capacity have not yet been heard in committee or introduced as bills.

As the legislative session moves forward, lawmakers say it may be difficult to find enough funding for major expansions of the refund programs, making the task force proposal a more likely outcome.  

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