Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF51 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property; allowing property tax abatement for land bank
3	3	1.3 property; amending Minnesota Statutes 2024, sections 469.1812, by adding a
4	4	1.4 subdivision; 469.1813, subdivisions 1, 6, by adding a subdivision.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 469.1812, is amended by adding a subdivision
7	7	1.7to read:
8	8	1.8 Subd. 2a.Land bank organization."Land bank organization" means an organization
9	9	1.9that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited
10	10	1.10property for future development, redevelopment, or disposal, and that is either:
11	11	1.11 (1) a nonprofit organization exempt from federal income taxation under section 501(c)(3)
12	12	1.12of the Internal Revenue Code whose governing board members are elected or appointed by
13	13	1.13the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of
14	14	1.14the state of Minnesota or its political subdivisions, or are elected or appointed officials of
15	15	1.15the state of Minnesota or any of its political subdivisions; or
16	16	1.16 (2) a limited liability company of which a nonprofit organization described in clause (1)
17	17	1.17is the sole member.
18	18	1.18 EFFECTIVE DATE.This section is effective the day following final enactment.
19	19	1.19 Sec. 2. Minnesota Statutes 2024, section 469.1813, subdivision 1, is amended to read:
20	20	1.20 Subdivision 1.Authority.The governing body of a political subdivision may grant a
21	21	1.21current or prospective abatement, by contract or otherwise, of the taxes imposed by the
22	22	1.22political subdivision on a parcel of property, which may include personal property and
23	23	1Sec. 2.
24	24	25-00087 as introduced11/19/24 REVISOR MS/RC
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 51NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: REST, Dibble, Frentz, Weber and Nelson)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading01/16/2025
31	31	Referred to Taxes 2.1machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise
32	32	2.2would apply, if:
33	33	2.3 (1) it expects the benefits to the political subdivision of the proposed abatement agreement
34	34	2.4to at least equal the costs to the political subdivision of the proposed agreement or intends
35	35	2.5the abatement to phase in a property tax increase, as provided in clause (2)(vii); and
36	36	2.6 (2) it finds that doing so is in the public interest because it will:
37	37	2.7 (i) increase or preserve tax base;
38	38	2.8 (ii) provide employment opportunities in the political subdivision;
39	39	2.9 (iii) provide or help acquire or construct public facilities;
40	40	2.10 (iv) help redevelop or renew blighted areas;
41	41	2.11 (v) help provide access to services for residents of the political subdivision;
42	42	2.12 (vi) finance or provide public infrastructure;
43	43	2.13 (vii) phase in a property tax increase on the parcel resulting from an increase of 50
44	44	2.14percent or more in one year on the estimated market value of the parcel, other than increase
45	45	2.15attributable to improvement of the parcel; or
46	46	2.16 (viii) stabilize the tax base through equalization of property tax revenues for a specified
47	47	2.17period of time with respect to a taxpayer whose real and personal property is subject to
48	48	2.18valuation under Minnesota Rules, chapter 8100.;
49	49	2.19 (ix) provide for the development of affordable housing to households at or below 80
50	50	2.20percent of area median income as estimated by the United States Department of Housing
51	51	2.21and Urban Development for the political subdivision in which the project is located; or
52	52	2.22 (x) allow the property to be held by a land bank organization for future development.
53	53	2.23 EFFECTIVE DATE.This section is effective the day following final enactment.
54	54	2.24 Sec. 3. Minnesota Statutes 2024, section 469.1813, subdivision 6, is amended to read:
55	55	2.25 Subd. 6.Duration limit.(a) A political subdivision may grant an abatement for a period
56	56	2.26no longer than 15 years, except as provided under paragraph paragraphs (b) and (c). The
57	57	2.27abatement period commences in the first year in which the abatement granted is either paid
58	58	2.28or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify
59	59	2.29in the abatement resolution a shorter duration. If the resolution does not specify a period of
60	60	2.30time, the abatement is for eight years. If an abatement has been granted to a parcel of property
61	61	2.31and the period of the abatement has expired, the political subdivision that granted the
62	62	2Sec. 3.
63	63	25-00087 as introduced11/19/24 REVISOR MS/RC 3.1abatement may not grant another abatement for eight years after the expiration of the first
64	64	3.2abatement. This prohibition does not apply to improvements added after and not subject to
65	65	3.3the first abatement. Economic abatement agreements for real and personal property subject
66	66	3.4to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and
67	67	3.5may be granted successively.
68	68	3.6 (b) A political subdivision proposing to abate taxes for a parcel may request, in writing,
69	69	3.7that the other political subdivisions in which the parcel is located grant an abatement for
70	70	3.8the property. If one of the other political subdivisions declines, in writing, to grant an
71	71	3.9abatement or if 90 days pass after receipt of the request to grant an abatement without a
72	72	3.10written response from one of the political subdivisions, the duration limit for an abatement
73	73	3.11for the parcel by the requesting political subdivision and any other participating political
74	74	3.12subdivision is increased to 20 years. If the political subdivision which declined to grant an
75	75	3.13abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by
76	76	3.14one year for each year that the declining political subdivision grants an abatement for the
77	77	3.15parcel during the period of the abatement granted by the requesting political subdivision.
78	78	3.16The duration limit may not be reduced below the limit under paragraph (a).
79	79	3.17 (c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for
80	80	3.18a period no longer than five years. This limit also applies if the resolution does not specify
81	81	3.19a period of time.
82	82	3.20 EFFECTIVE DATE.This section is effective for abatement resolutions approved after
83	83	3.21the day following final enactment.
84	84	3.22 Sec. 4. Minnesota Statutes 2024, section 469.1813, is amended by adding a subdivision
85	85	3.23to read:
86	86	3.24 Subd. 11.Repayment.A land bank organization receiving an abatement under
87	87	3.25subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land
88	88	3.26for which the abatement was granted is used for a purpose other than the purpose given by
89	89	3.27the land bank organization prior to redevelopment, as determined by the governing body
90	90	3.28of the political subdivision that granted the abatement. This subdivision applies immediately
91	91	3.29after the abatement under this section expires and land is subject to repayment under this
92	92	3.30subdivision for the same number of years that the abatement was granted. Interest under
93	93	3.31this section is payable at the rate determined in section 270C.40, subdivision 5.
94	94	3.32 EFFECTIVE DATE.This section is effective the day following final enactment.
95	95	3Sec. 4.
96	96	25-00087 as introduced11/19/24 REVISOR MS/RC