| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to government data practices; modifying data protection requirements in |
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| 3 | 3 | | 1.3 certain property tax proceedings; amending Minnesota Statutes 2024, sections |
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| 4 | 4 | | 1.4 13.51, subdivisions 2, 4; 271.06, subdivision 6; 278.05, subdivisions 3, 6. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 13.51, subdivision 2, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 2.Income property assessment data.The following data collected by political |
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| 8 | 8 | | 1.8subdivisions and the state from individuals or business entities concerning income properties |
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| 9 | 9 | | 1.9are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12: |
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| 10 | 10 | | 1.10 (a) detailed income and expense figures; |
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| 11 | 11 | | 1.11 (b) average vacancy factors rates; |
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| 12 | 12 | | 1.12 (c) verified net rentable areas or net usable areas, whichever is appropriate; |
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| 13 | 13 | | 1.13 (d) (c) anticipated income and expenses; |
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| 14 | 14 | | 1.14 (e) (d) projected vacancy factors rates; and |
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| 15 | 15 | | 1.15 (f) (e) lease information. |
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| 16 | 16 | | 1.16 Sec. 2. Minnesota Statutes 2024, section 13.51, subdivision 4, is amended to read: |
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| 17 | 17 | | 1.17 Subd. 4.Request for legal discovery of income property assessment data.Upon |
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| 18 | 18 | | 1.18request by a party to a responsible authority or designee for legal discovery of income |
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| 19 | 19 | | 1.19property assessment data, as defined in subdivision 2, the requesting party shall notify the |
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| 20 | 20 | | 1.20owner of record of the property. (a) Notwithstanding section 13.03, subdivision 6, a |
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| 21 | 21 | | 1.21responsible authority or designee must not deny a request for legal discovery of income |
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| 22 | 22 | | 1Sec. 2. |
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| 23 | 23 | | REVISOR VH/DD 25-0512303/26/25 |
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| 24 | 24 | | State of Minnesota |
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| 25 | 25 | | This Document can be made available |
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| 26 | 26 | | in alternative formats upon request |
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| 27 | 27 | | HOUSE OF REPRESENTATIVES |
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| 28 | 28 | | H. F. No. 2959 |
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| 29 | 29 | | NINETY-FOURTH SESSION |
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| 30 | 30 | | Authored by Scott04/01/2025 |
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| 31 | 31 | | The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law 2.1property assessment data classified by subdivision 2 that is made by a party in a legal |
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| 32 | 32 | | 2.2proceeding on the grounds that the data is classified as private or nonpublic data. |
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| 33 | 33 | | 2.3 (b) Subject to a protective order or other order issued by the court in the underlying legal |
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| 34 | 34 | | 2.4proceeding, a party receiving access to income property assessment data under paragraph |
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| 35 | 35 | | 2.5(a), as well as any person directly involved in the legal proceeding through which the data |
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| 36 | 36 | | 2.6was requested who properly receives income property assessment data from that party, must |
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| 37 | 37 | | 2.7not: |
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| 38 | 38 | | 2.8 (1) use the data for any purpose unrelated to the legal proceeding; or |
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| 39 | 39 | | 2.9 (2) disseminate the data to a person not directly involved in the legal proceeding. |
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| 40 | 40 | | 2.10 (c) A party in a Tax Court proceeding must not use, file, offer, or move to admit into |
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| 41 | 41 | | 2.11evidence any income property assessment data classified by subdivision 2 unless the Tax |
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| 42 | 42 | | 2.12Court first issues a protective order protecting the data from public disclosure, dissemination, |
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| 43 | 43 | | 2.13access, and use. |
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| 44 | 44 | | 2.14 Sec. 3. Minnesota Statutes 2024, section 271.06, subdivision 6, is amended to read: |
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| 45 | 45 | | 2.15 Subd. 6.Hearings; protective orders required; determination of issues; default.(a) |
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| 46 | 46 | | 2.16The Tax Court shall hear, consider, and determine without a jury every appeal de novo. A |
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| 47 | 47 | | 2.17Tax Court judge may empanel an advisory jury upon the judge's motion. The Tax Court |
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| 48 | 48 | | 2.18shall hold a public hearing in every case. The Tax Court must issue protective orders to |
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| 49 | 49 | | 2.19protect private or nonpublic income property assessment data classified by section 13.51, |
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| 50 | 50 | | 2.20subdivision 2, from public disclosure, dissemination, access, and use, and may review the |
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| 51 | 51 | | 2.21data at issue in camera. All such parties shall have an opportunity to offer evidence and |
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| 52 | 52 | | 2.22arguments at the hearing; provided, that the order of the commissioner or the appropriate |
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| 53 | 53 | | 2.23unit of government in every case shall be prima facie valid. When an appeal to the Tax |
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| 54 | 54 | | 2.24Court has been taken from an order or determination of the commissioner or from the |
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| 55 | 55 | | 2.25appropriate unit of government, the proceeding shall be an original proceeding in the nature |
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| 56 | 56 | | 2.26of a suit to set aside or modify the order or determination. In case no appellant shall appear |
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| 57 | 57 | | 2.27the Tax Court shall enter its order affirming the order of the commissioner of revenue or |
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| 58 | 58 | | 2.28the appropriate unit of government from which the appeal was taken. If the Department of |
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| 59 | 59 | | 2.29Revenue's sales ratio study is introduced in Tax Court as evidence, the sales ratio data from |
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| 60 | 60 | | 2.30the study shall be admissible as evidence only as provided in section 278.05, subdivision |
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| 61 | 61 | | 2.314. |
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| 62 | 62 | | 2Sec. 3. |
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| 63 | 63 | | REVISOR VH/DD 25-0512303/26/25 3.1 (b) The commissioner, the taxpayer, and any other party to an appeal to the Tax Court |
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| 64 | 64 | | 3.2may file all necessary notices, documents, and other necessary information with the Tax |
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| 65 | 65 | | 3.3Court in a manner approved by the Tax Court. |
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| 66 | 66 | | 3.4 Sec. 4. Minnesota Statutes 2024, section 278.05, subdivision 3, is amended to read: |
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| 67 | 67 | | 3.5 Subd. 3.Assessor's records; protective orders required; evidence.(a) Assessor's |
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| 68 | 68 | | 3.6records, including certificates of real estate value, assessor's field cards and property appraisal |
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| 69 | 69 | | 3.7cards shall be made available to the petitioner for inspection and copying and may be offered |
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| 70 | 70 | | 3.8at the trial subject to the applicable rules of evidence and rules governing pretrial discovery |
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| 71 | 71 | | 3.9and. Assessor's records shall not be excluded from discovery or admissible evidence on the |
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| 72 | 72 | | 3.10grounds that the documents and the information recorded thereon are confidential or classified |
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| 73 | 73 | | 3.11as private data on individuals or nonpublic data by section 13.51, subdivision 2. Evidence |
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| 74 | 74 | | 3.12of comparable sales of other property shall, within the discretion of the court, be admitted |
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| 75 | 75 | | 3.13at the trial. |
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| 76 | 76 | | 3.14 (b) The Tax Court must issue protective orders as required under section 271.06, |
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| 77 | 77 | | 3.15subdivision 6. |
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| 78 | 78 | | 3.16 (c) For purposes of this subdivision, "assessor's records" includes certificates of real |
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| 79 | 79 | | 3.17estate value, assessor's field cards and property appraisal cards, and any other data classified |
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| 80 | 80 | | 3.18by section 13.51, subdivision 2, regardless of whether the data: |
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| 81 | 81 | | 3.19 (1) relates to the property that is the subject of the property tax petition; or |
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| 82 | 82 | | 3.20 (2) is located within the assessor's file for the property that is the subject of the property |
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| 83 | 83 | | 3.21tax petition. |
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| 84 | 84 | | 3.22 Sec. 5. Minnesota Statutes 2024, section 278.05, subdivision 6, is amended to read: |
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| 85 | 85 | | 3.23 Subd. 6.Dismissal of petition; exclusion of certain evidence.(a) In cases where the |
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| 86 | 86 | | 3.24petitioner contests the valuation of income-producing property, the following information |
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| 87 | 87 | | 3.25must be provided to the county assessor no later than August 1 of the taxes payable year: |
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| 88 | 88 | | 3.26 (1) a year-end financial statement for the year prior to the assessment date; |
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| 89 | 89 | | 3.27 (2) a year-end financial statement for the year of the assessment date; |
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| 90 | 90 | | 3.28 (3) a rent roll on or near the assessment date listing the tenant name, lease start and end |
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| 91 | 91 | | 3.29dates, base rent, square footage leased and vacant space; |
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| 92 | 92 | | 3Sec. 5. |
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| 93 | 93 | | REVISOR VH/DD 25-0512303/26/25 4.1 (4) identification of all lease agreements not disclosed on a rent roll in the response to |
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| 94 | 94 | | 4.2clause (3), listing the tenant name, lease start and end dates, base rent, and square footage |
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| 95 | 95 | | 4.3leased; |
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| 96 | 96 | | 4.4 (5) net rentable square footage of the building or buildings; and |
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| 97 | 97 | | 4.5 (6) anticipated income and expenses in the form of a proposed budget for the year |
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| 98 | 98 | | 4.6subsequent to the year of the assessment date. |
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| 99 | 99 | | 4.7 (b) The information required to be provided to the county assessor under paragraph (a) |
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| 100 | 100 | | 4.8does not include leases. Failure to provide the information required in paragraph (a) If the |
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| 101 | 101 | | 4.9assessor has notified the petitioner in writing of a deficiency in the information provided |
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| 102 | 102 | | 4.10under paragraph (a), and the petitioner fails to correct the deficiency within 30 days of |
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| 103 | 103 | | 4.11receiving the notification, the deficiency shall result in the dismissal of the petition, unless |
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| 104 | 104 | | 4.12(1) the failure to provide it the information was due to the unavailability of the information |
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| 105 | 105 | | 4.13at the time that the information was due, or (2) the petitioner was not aware of or informed |
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| 106 | 106 | | 4.14of the requirement to provide the information. |
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| 107 | 107 | | 4.15If the petitioner proves that the requirements under clause (2) are met, the petitioner has an |
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| 108 | 108 | | 4.16additional 30 days to provide the information from the time the petitioner became aware of |
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| 109 | 109 | | 4.17or was informed of the requirement to provide the information, otherwise the petition shall |
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| 110 | 110 | | 4.18be dismissed. |
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| 111 | 111 | | 4.19 (c) If, after the August 1 deadline set in paragraph (a), a county assessor determines that |
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| 112 | 112 | | 4.20the actual leases in effect on the assessment date are necessary to properly evaluate the |
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| 113 | 113 | | 4.21income-producing property, then a county assessor may require that the petitioner submit |
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| 114 | 114 | | 4.22the leases. The petitioner must provide the requested information to the county assessor |
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| 115 | 115 | | 4.23within 60 days of a county assessor's request. The Tax Court shall hear and decide any |
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| 116 | 116 | | 4.24issues relating to subsequent information requests by a county assessor. Failure to provide |
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| 117 | 117 | | 4.25the information required in this paragraph shall be addressed under Rules of Civil Procedure, |
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| 118 | 118 | | 4.26rule 37. |
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| 119 | 119 | | 4.27 (d) Provided that the information as contained in paragraph (a) is timely submitted to |
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| 120 | 120 | | 4.28the county assessor, the county assessor shall furnish the petitioner at least five days before |
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| 121 | 121 | | 4.29the hearing under this chapter with the property's appraisal, if any, which will be presented |
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| 122 | 122 | | 4.30to the court at the hearing. The petitioner shall furnish to the county assessor at least five |
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| 123 | 123 | | 4.31days before the hearing under this chapter with the property's appraisal, if any, which will |
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| 124 | 124 | | 4.32be presented to the court at the hearing. An appraisal of the petitioner's property done by |
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| 125 | 125 | | 4.33or for the county shall not be admissible as evidence if the county assessor does not comply |
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| 126 | 126 | | 4Sec. 5. |
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| 127 | 127 | | REVISOR VH/DD 25-0512303/26/25 5.1with the provisions in this paragraph. The petition shall be dismissed if the petitioner does |
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| 128 | 128 | | 5.2not comply with the provisions in this paragraph. |
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| 129 | 129 | | 5Sec. 5. |
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| 130 | 130 | | REVISOR VH/DD 25-0512303/26/25 |
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