MN HF540

Home rule or statutory cities may designate up to 30 percent of qualifying commercial-industrial properties as business retention zones and reduce their estimated market value by a percentage to be determined.

Qualifying properties must be businesses existing in the city for a specified number of years, classified as 1c, and have experienced a property tax increase of a specified percent or greater between two consecutive calendar years beginning in 2018 or later.

Applications must be submitted to the city clerk by April 30 of the assessment year, and cities must hold a public hearing with at least 30 days' notice before approving or denying the designation.

Value reductions may not include improvements existing at the time the reduction is granted or during the reduction period.

Valuation reductions may be granted for a period no longer than 15 years, with the period commencing in the first year the property receives designation; the bill is effective beginning with assessment year 2022.