MN SF175

Authorizes cities to establish land-value taxation districts through ordinance, with districts defined by specific parcels or geographic areas within city boundaries.

Requires public hearing with notice published on city website and in official newspaper two weeks apart, with direct mail notice to property owners at least 10 days before hearing; ordinance may be adopted within 6 months after hearing conclusion by majority vote.

Mandates ordinance include evaluation of district's economic effects, including impact on redevelopment and investment, within no less than 15 years after district becomes effective.

Restricts tax reallocation to using uniform rates applied to one or more of four tax bases: net tax capacity, referendum market value, estimated market value excluding improvements, or estimated market value excluding improvements made after a specified date.

Requires cities to compile total district property taxes annually, allocate taxes among properties per ordinance terms, report revised amounts to county treasurer by April 30, and mail revised tax statements by April 30; allows property owners to separately appeal land valuations from improvement valuations.

Effective date for all provisions is taxes payable in 2024.