MN HF1297

Adds a new definition of "urban or suburban in character" to Minnesota Statutes, meaning areas with residential densities exceeding one unit per 2.5 acres or with governmental, institutional, commercial, or industrial development, excluding rural industrial development tied to agriculture, forestry, mining, or energy production.

Establishes procedures for municipalities to annex unincorporated territory by ordinance, requiring a resolution of consideration filed 90 days before enactment, comprehensive plan updates, and a detailed report on urban characteristics and service provisions.

Requires municipalities to complete updated comprehensive plans and service reports at least 30 days before a public hearing on proposed annexation, with copies sent to the Office of Administrative Hearings and the affected town, and made available for public inspection.

Sets property tax reimbursement requirements for annexed land, with municipalities making cash payments to towns over five years at declining percentages (90%, 80%, 60%, 40%, 20%) based on lost tax revenue.

Requires municipalities to reimburse towns for special assessments assigned to annexed property within 30 days and to pay debt attributable to annexed property over 2-8 years.