Residential properties valuation increase limitation provision and tax rate modifications

This bill limits annual increases in the assessed value of residential properties to 2% (except for improvements) and caps property taxes at 1% of the current assessment value. It directly affects residential property owners in Minnesota, including those with homestead and nonhomestead classifications. Key provisions include a 2% annual valuation cap for 2025 assessments and a 1% tax rate adjustment for 2026 tax payments. The changes apply to all residential properties classified under Minnesota's property tax system. The bill takes effect for 2025 property valuations and 2026 tax bills.