MN HF3895

City governing bodies may adopt ordinances establishing land-value taxation districts by identifying specific parcels or geographic areas and property types within the city.

Ordinances must describe the procedure for reallocating collective property taxes among district parcels and include an evaluation of economic effects within 15 years after the district becomes effective.

Cities must hold public hearings with notice published on the city website and in at least two newspaper issues, with notice mailed to property owners at least 10 days before the hearing; the ordinance may be adopted within six months after the hearing concludes.

Tax reallocation procedures must apply uniform rates to one or more tax bases: net tax capacity, referendum market value, estimated market value excluding improvements, or estimated market value excluding improvements made after a specified date.

Property owners in the district may appeal land valuations separately from improvement valuations through existing property tax appeal procedures; counties must report initial and final tax distributions to the commissioner of revenue by September 1 annually.