Minnesota authorizes cities to create land-value taxation districts starting in 2026

Original title: Cities authorized to create land-value taxation districts.

Last action · April 3, 2025: Author added HusseinSponsors: Steve Elkins and 7 others

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What This Bill Proposed

Minnesota cities are newly authorized to establish s that reallocate collective property tax burdens within specific areas beginning with property taxes payable in 2026. Governing bodies must pass an ordinance, hold public hearings, and evaluate the economic effects of the district over at least 15 years. Property owners within these districts gain the right to appeal land valuations separately from improvements.

Why it matters

Property tax bills for individual parcels inside a newly created district may shift significantly depending on whether taxes are reallocated based on total land value rather than building improvements, altering tax obligations for property owners starting in 2026.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Property owners within a land-value taxation district

Property owners experience reallocated tax burdens, receive revised property tax statements by April 30, and gain the right to appeal land valuations separately from improvements.

Directly affected

Statutory or home rule charter cities

Cities gain the authority to create land-value taxation districts, hold public hearings, adopt ordinances, and reallocate property tax levies.

Directly affected

County treasurers

County treasurers receive revised property tax amounts from cities and must report initial and final distribution of net taxes to the commissioner of revenue by September 1.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is a land-value taxation district?

It is a district established by a city ordinance where the collective property tax of all parcels within the area is reallocated using uniform rates applied to specific tax bases, such as land value excluding improvements.

Can property owners appeal their property valuations in these districts?

Yes, property owners can appeal the valuation attributable to land separately from the valuation attributable to improvements upon the land.

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Where This Stands

This bill did not become law - Died at adjournment · introduced in the House.

Procedural history

4 actions

Apr 3, 2025House
Author added Hussein
Feb 26, 2025House
Authors added Moller and Kraft
Feb 13, 2025House
Authors added Smith and Sencer-Mura
Feb 10, 2025HouseIntroduced
Introduction and first reading, referred to Taxes

Version history

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