Bill > HF105

This bill authorizes cities in Minnesota to create land-value taxation districts. The key provisions are: 1. The bill defines terms like "city," "district," and "ordinance" related to the establishment of land-value taxation districts. 2. Cities can adopt an ordinance to establish a land-value taxation district, which must describe the parcels or geographic areas included and the procedure for reallocating the collective property tax of the parcels within the district. The ordinance must also provide for an evaluation of the economic effects of the district. 3. The bill outlines the requirements for holding a public hearing and providing notice before adopting the ordinance to establish a land-value taxation district. 4. The tax reallocation procedure within the district must distribute taxes based on one or more of the following tax bases: net tax capacity, referendum market value, estimated market value excluding the value of improvements, or estimated market value excluding the value of post-specified improvements. 5. The city must allocate the total property taxes imposed within the district among the properties in the district according to the ordinance, and the county treasurer must report the initial and final distribution of the net tax for each parcel to the Commissioner of Revenue. 6. Property owners in the land-value taxation district can appeal the valuation attributable to the land separately from the valuation of improvements. The bill aims to authorize cities in Minnesota to implement land-value taxation districts, which can reallocate property taxes based on the value of the land rather than the value of the improvements.