Bill > HF1342

This bill authorizes cities in Minnesota to create land-value taxation districts. The key provisions are: 1. Cities can establish land-value taxation districts by ordinance, which must describe the parcels included and the procedure for reallocating the collective property tax burden among those parcels. 2. The tax reallocation procedure 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. 3. The city must compile the total property taxes imposed on the district, allocate them among the properties according to the ordinance, and provide revised property tax statements to the property owners. 4. Property owners in the district can appeal the valuation of the land separately from the valuation of improvements. The effective date for these provisions is beginning with taxes payable in 2024.