Redevelopment area homestead credit established, and money appropriated.

HF 727 establishes a property tax credit for homeowners in designated redevelopment areas of Minnesota's second-class cities. It provides a credit equal to 70% of a property's net tax capacity multiplied by the city's capital debt tax rate, directly reducing property taxes for eligible homeowners. The credit is reimbursed to local governments in two installments annually by the state, funded through annual appropriations from the general fund. This policy applies to properties classified as 1a or 1b located in cities designated as redevelopment areas under federal law, effective for taxes payable in 2026.