Homestead market value exclusion modified.

HF 3608 modifies Minnesota's homestead property tax exclusion rules, affecting homeowners with primary residences valued under $517,200. It adjusts the exclusion percentage: 40% for homes $95,000 or less, and a sliding scale reducing the exclusion amount for homes between $95,000 and $517,200 (with no exclusion above $517,200). The bill specifically requires excluding accessory dwelling units (like in-law suites) from the valuation calculation when determining the exclusion amount. This change applies to properties classified as homestead (e.g., primary residences in classes 1a, 1b, or 2a with the house/garage). The law takes effect for property assessments starting in 2027.