Minnesota 2025-2026 Regular Session

Minnesota House Bill HF161 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	1.1 A bill for an act
2		-	1.2 relating to taxation; property; authorizing cities to create land-value taxation
3		-	1.3 districts; proposing coding for new law in Minnesota Statutes, chapter 428A.
4		-	1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
5		-	1.5 Section 1. [428A.30] DEFINITIONS.
6		-	1.6 Subdivision 1.Scope.For purposes of sections 428A.30 to 428A.34, the terms defined
7		-	1.7in this section have the meanings given them, unless the context indicates otherwise.
8		-	1.8 Subd. 2.City."City" means a statutory or home rule charter city.
9		-	1.9 Subd. 3.District."District" means a land-value taxation district established under section
10		-	1.10428A.31.
11		-	1.11 Subd. 4.Ordinance."Ordinance" means the ordinance establishing a land-value taxation
12		-	1.12district under section 428A.31.
13		-	1.13 EFFECTIVE DATE.This section is effective beginning with property taxes payable
14		-	1.14in 2026.
15		-	1.15 Sec. 2. [428A.31] ESTABLISHMENT OF LAND-VALUE TAXATION DISTRICT.
16		-	1.16 Subdivision 1.Ordinance.(a) The governing body of a city may adopt an ordinance
17		-	1.17establishing a land-value taxation district. The ordinance must describe:
18		-	1.18 (1) the parcels of property constituting the district, either by specific identification of
19		-	1.19each parcel, or by defining a geographic area or areas within the city, and then within that
20		-	1Sec. 2.
21		-	REVISOR MS/VJ 25-0171401/13/25
	1	+	1.1 A resolution
	2	+	1.2 memorializing Congress to call a convention to propose amendments to the United
	3	+	1.3 States Constitution to impose fiscal constraints on the federal government, limit the
	4	+	1.4 power and jurisdiction of the federal government, and limit the terms of office for its
	5	+	1.5 officials and for members of Congress.
	6	+	1.6 WHEREAS, the founders of our Constitution empowered state legislators to be guardians
	7	+	1.7of liberty against future abuses of power by the federal government; and
	8	+	1.8 WHEREAS, the federal government has created a crushing national debt through improper
	9	+	1.9and imprudent spending; and
	10	+	1.10 WHEREAS, the federal government has invaded the legitimate roles of the states through
	11	+	1.11the manipulative process of federal mandates, most of which are unfunded to a great extent; and
	12	+	1.12 WHEREAS, the federal government has ceased to live under a proper interpretation of the
	13	+	1.13Constitution of the United States; and
	14	+	1.14 WHEREAS, it is the solemn duty of the states to protect the liberty of our people, particularly
	15	+	1.15for the generations to come, by proposing amendments to the Constitution of the United States
	16	+	1.16through a convention of the states under article V for the purpose of restraining these and related
	17	+	1.17abuses of power; NOW, THEREFORE,
	18	+	1.18 BE IT RESOLVED by the Legislature of the State of Minnesota, that pursuant to article V
	19	+	1.19of the Constitution of the United States, the Legislature of the state of Minnesota petitions the
	20	+	1.20Congress of the United States of America, at its session, to call a convention of the states limited
	21	+	1.21to proposing amendments to the Constitution of the United States that impose fiscal restraints on
	22	+	1.22the federal government, limit the power and jurisdiction of the federal government, and limit the
	23	+	1.23terms of office for its officials and for members of Congress.
	24	+	1.24 BE IT FURTHER RESOLVED, that this application constitutes a continuing application in
	25	+	1.25accordance with article V of the Constitution of the United States until the legislatures of at least
	26	+	1
	27	+	REVISOR CKM/KR 25-0192801/09/25
22	28		State of Minnesota
23	29		This Document can be made available
24	30		in alternative formats upon request
25	31		HOUSE OF REPRESENTATIVES
26	32		H. F. No. 161
27	33		NINETY-FOURTH SESSION
28		-	Authored by Elkins, Gomez and Jones02/10/2025
29		-	The bill was read for the first time and referred to the Committee on Taxes 2.1area or those areas, identifying the specific types of property, as defined under section
30		-	2.2273.13, to be included in the district; and
31		-	2.3 (2) the procedure for reallocating the collective property tax of all parcels within the
32		-	2.4district.
33		-	2.5 (b) In addition, the ordinance must provide an evaluation of the economic effects of the
34		-	2.6district, including the impact on redevelopment of and investment in the district, within a
35		-	2.7specified period of time, but not less than 15 years after the date the district becomes
36		-	2.8effective.
37		-	2.9 Subd. 2.Hearing; notice.Before adopting an ordinance, the governing body of the city
38		-	2.10must hold a public hearing on the question. Notice of the hearing must include the time and
39		-	2.11place of the hearing, a description of the parcels to be included in the district, a description
40		-	2.12of the procedure for reallocating the tax burden among the parcels, and the duration of the
41		-	2.13district. Each person owning property in the proposed district must be given the opportunity
42		-	2.14to be heard at the hearing. The governing body must publish notice of the hearing on the
43		-	2.15city's website and in at least two issues of the official newspaper of the city. The two
44		-	2.16publications must be two weeks apart and the hearing must be held at least three days after
45		-	2.17the last publication. Not less than ten days before the hearing, the governing body must mail
46		-	2.18notice to the owner of each parcel proposed to be included in the district. For the purpose
47		-	2.19of the mailed notice, owners are those shown on the records of the county auditor. Other
48		-	2.20records may be used to supply the necessary information. At the public hearing, a person
49		-	2.21affected by the proposed district may testify on any issues relevant to the proposed district.
50		-	2.22The governing body may adjourn the hearing from time to time and may adopt the ordinance
51		-	2.23establishing the district at any time within six months after the date of the conclusion of the
52		-	2.24hearing by a vote of the majority of the governing body of the city. Within 30 days after
53		-	2.25adoption of the ordinance, the governing body shall send a copy of the ordinance to the
54		-	2.26commissioner of revenue.
55		-	2.27 EFFECTIVE DATE.This section is effective beginning with property taxes payable
56		-	2.28in 2026.
57		-	2.29 Sec. 3. [428A.32] RESTRICTIONS ON TAX REALLOCATION PROCEDURE.
58		-	2.30 A tax reallocation procedure under section 428A.31, subdivision 1, paragraph (a), clause
59		-	2.31(2), must distribute taxes on taxable properties in the district by applying uniform rates to
60		-	2.32one or more of the following tax bases:
61		-	2.33 (1) the net tax capacity, as defined under section 273.13, subdivision 21b;
62		-	2Sec. 3.
63		-	REVISOR MS/VJ 25-0171401/13/25 3.1 (2) the referendum market value, as defined under section 126C.01, subdivision 3;
64		-	3.2 (3) a tax base consisting of each property's estimated market value excluding the market
65		-	3.3value attributable to improvements; or
66		-	3.4 (4) a tax base consisting of each property's estimated market value excluding the market
67		-	3.5value attributable to improvements made after a date specified in the ordinance.
68		-	3.6 EFFECTIVE DATE.This section is effective beginning with property taxes payable
69		-	3.7in 2026.
70		-	3.8 Sec. 4. [428A.33] TAXATION WITHIN DISTRICT.
71		-	3.9 Subdivision 1.Initial taxation within district.For each property taxes payable year, a
72		-	3.10city must compile the total property taxes imposed upon all properties within the district
73		-	3.11for each taxing jurisdiction after final property tax statements are issued under section
74		-	3.12276.04. For the purposes of this section, the areawide taxes under chapters 276A and 473F,
75		-	3.13and the state general levy under section 275.025, are considered to be taxing jurisdictions.
76		-	3.14 Subd. 2.Final taxation within district.A city must allocate the tax, as determined
77		-	3.15under subdivision 1, among all properties in the district according to the terms of the
78		-	3.16ordinance so the entire amount of tax payable to each taxing jurisdiction under subdivision
79		-	3.171 is allocated among the properties constituting the district. The city must report the revised
80		-	3.18property tax amounts for each parcel of property to the county treasurer by April 30 of the
81		-	3.19year the tax is payable. The city must mail revised property tax statements to all properties
82		-	3.20within the district by April 30 of the year the tax is payable. Taxpayers must make payments
83		-	3.21according to the dates specified in section 279.01 as if the property tax statements were
84		-	3.22mailed 21 days prior to May 15 of the year the taxes are payable.
85		-	3.23 Subd. 3.Report to commissioner of revenue.By September 1 of each year, the county
86		-	3.24treasurer must report the initial and final distribution of the net tax for each parcel of property
87		-	3.25in the district to the commissioner of revenue on a form prescribed by the commissioner of
88		-	3.26revenue.
89		-	3.27 EFFECTIVE DATE.This section is effective beginning with property taxes payable
90		-	3.28in 2026.
91		-	3.29 Sec. 5. [428A.34] APPEAL OF LAND VALUE.
92		-	3.30 The owner of any property included in a land-value taxation district under section
93		-	3.31428A.31 may appeal the valuation attributable to land separately from the valuation
94		-	3Sec. 5.
95		-	REVISOR MS/VJ 25-0171401/13/25 4.1attributable to improvements upon the land under sections 274.01 and 274.13 or chapter
96		-	4.2271.
97		-	4.3 EFFECTIVE DATE.This section is effective beginning with property taxes payable
98		-	4.4in 2026.
99		-	4Sec. 5.
100		-	REVISOR MS/VJ 25-0171401/13/25
	34	+	Authored by Quam; Hudson; Murphy; Anderson, P. H.; Jacob and others01/22/2025
	35	+	The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1two-thirds of the several states have made applications on the same subject. It supersedes all previous
	36	+	2.2applications by this legislature on the same subject.
	37	+	2.3 BE IT FURTHER RESOLVED that the Secretary of State of the State of Minnesota is directed
	38	+	2.4to prepare copies of this memorial and transmit them to the President and the Secretary of the United
	39	+	2.5States Senate, the Speaker and the Clerk of the United States House of Representatives, the presiding
	40	+	2.6officers of both houses of the legislatures of the other states of the Union, and to Minnesota's
	41	+	2.7Senators and Representatives in Congress.
	42	+	2
	43	+	REVISOR CKM/KR 25-0192801/09/25