Bill > HF1006

This bill modifies Minnesota's property tax abatement laws to provide new provisions for land bank organizations, which are nonprofit entities or limited liability companies that acquire and manage vacant, blighted, foreclosed, or tax-forfeited properties for future development. The bill expands the circumstances under which political subdivisions can grant property tax abatements by adding two new justifications: (1) providing development of affordable housing for households at or below 80 percent of area median income, and (2) allowing property to be held by a land bank organization for future development. The bill sets a five-year maximum duration for abatements related to these new purposes and includes a repayment requirement if the land is not used for its originally intended purpose after the abatement period. Specifically, if a land bank organization receives an abatement and subsequently uses the property differently than originally proposed, it must repay the abated taxes with interest at a rate determined by state law. The changes are designed to encourage property redevelopment, affordable housing creation, and strategic management of vacant or underutilized properties by local government entities and nonprofit organizations.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1006&ssn=0&y=2025