1.1 	A bill for an act
1.2 	relating to taxation; property; modifying provisions governing property taxes, 
1.3 	certain state aid programs, certain local taxes, tax increment financing, and various 
1.4 	other taxes and tax-related provisions; modifying local government aid calculation; 
1.5 	establishing soil and water conservation district aid; converting renter's property 
1.6 	tax refund into refundable individual income tax credit; establishing tourism 
1.7 	improvement special taxing districts; requiring reports; appropriating money;
1.8 	amending Minnesota Statutes 2022, sections 10A.31, subdivisions 1, 3; 13.46, 
1.9 	subdivision 2; 270B.12, subdivision 8; 270B.14, subdivision 1; 270C.445, 
1.10 	subdivisions 2, 3; 272.01, subdivision 2; 272.02, subdivisions 24, 73, 98, by adding 
1.11 	a subdivision; 273.11, subdivision 12; 273.13, subdivisions 25, 34, 35; 273.1341; 
1.12 	273.1392; 278.01, subdivision 1; 279.03, subdivision 1a; 282.261, subdivision 2; 
1.13 	289A.18, subdivision 5; 289A.38, subdivision 4; 289A.56, subdivision 6; 289A.60, 
1.14 	subdivisions 12, 13, 28; 290A.02; 290A.03, subdivisions 3, 6, 8, 12, 13, by adding 
1.15 	a subdivision; 290A.04, subdivisions 1, 2, 2h, 4, 5; 290A.05; 290A.07, subdivision 
1.16 	2a; 290A.08; 290A.09; 290A.091; 290A.13; 290A.19; 290A.25; 290B.03, 
1.17 	subdivision 1; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 297A.68, 
1.18 	subdivision 4; 298.015; 298.018, subdivisions 1, 1a; 298.28, subdivisions 5, 7a; 
1.19 	298.296, subdivision 4; 327C.02, subdivision 5; 462A.05, subdivision 24; 469.174, 
1.20 	subdivision 14, by adding a subdivision; 469.175, subdivision 6; 469.176, 
1.21 	subdivisions 3, 4; 469.1761, subdivision 1; 469.1763, subdivisions 2, 3, 4, 6; 
1.22 	469.1771, subdivisions 2, 2a, 3; 477A.011, subdivision 34, by adding subdivisions; 
1.23 	477A.0124, subdivision 2; 477A.013, subdivisions 8, 9; 477A.03, subdivisions 
1.24 	2a, 2b, by adding a subdivision; 477A.12, subdivisions 1, 3, by adding a 
1.25 	subdivision; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as 
1.26 	amended; Laws 2006, chapter 259, article 11, section 3, as amended; Laws 2008, 
1.27 	chapter 366, article 5, section 26, as amended; article 7, section 17; Laws 2014, 
1.28 	chapter 308, article 6, section 12, subdivision 2; proposing coding for new law in 
1.29 	Minnesota Statutes, chapters 290; 477A; proposing coding for new law as 
1.30 	Minnesota Statutes, chapter 428B; repealing Minnesota Statutes 2022, sections 
1.31 	290A.03, subdivisions 9, 11; 290A.04, subdivision 2a; 290A.23, subdivision 1; 
1.32 	477A.011, subdivisions 30a, 38, 42, 45; 477A.013, subdivision 13.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	PROPERTY TAXES

2.4 	Section 1. Minnesota Statutes 2022, section 272.01, subdivision 2, is amended to read:
2.5 		Subd. 2.Exempt property used by private entity for profit. (a) When any real or 
2.6 	personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased, 
2.7 	loaned, or otherwise made available and used by a private individual, association, or 
2.8 	corporation in connection with a business conducted for profit, there shall be imposed a 
2.9 	tax, for the privilege of so using or possessing such real or personal property, in the same 
2.10 	amount and to the same extent as though the lessee or user was the owner of such property.
2.11 	(b) The tax imposed by this subdivision shall not apply to:
2.12 	(1) property leased or used as a concession in or relative to the use in whole or part of 
2.13 	a public park, market, fairgrounds, port authority, economic development authority 
2.14 	established under chapter 469, municipal auditorium, municipal parking facility, municipal 
2.15 	museum, or municipal stadium;
2.16 	(2) except as provided in paragraph (c), property of an airport owned by a city, town, 
2.17 	county, or group thereof which that is:
2.18 	(i) leased to or used by any person or entity including a fixed base operator; and
2.19 	(ii) used as a hangar for the storage or, repair, or manufacture of aircraft or to provide 
2.20 	aviation goods, services, or facilities to the airport or general public;
2.21 	the exception from taxation provided in this clause does not apply to:
2.22 	(i) property located at an airport owned or operated by the Metropolitan Airports 
2.23 	Commission or by a city of over 50,000 population according to the most recent federal 
2.24 	census or such a city's airport authority; or
2.25 	(ii) hangars leased by a private individual, association, or corporation in connection with 
2.26 	a business conducted for profit other than an aviation-related business;
2.27 	(3) property constituting or used as a public pedestrian ramp or concourse in connection 
2.28 	with a public airport;
2.29 	(4) except as provided in paragraph (d), property constituting or used as a passenger 
2.30 	check-in area or ticket sale counter, boarding area, or luggage claim area in connection with 
2.31 	a public airport but not the airports owned or operated by the Metropolitan Airports 
3.1 	Commission or cities of over 50,000 population or an airport authority therein. Real estate 
3.2 	owned by a municipality in connection with the operation of a public airport and leased or 
3.3 	used for agricultural purposes is not exempt;
3.4 	(5) property leased, loaned, or otherwise made available to a private individual, 
3.5 	corporation, or association under a cooperative farming agreement made pursuant to section 
3.6 	97A.135; or
3.7 	(6) property leased, loaned, or otherwise made available to a private individual, 
3.8 	corporation, or association under section 272.68, subdivision 4.
3.9 	(c) The exception from taxation provided in paragraph (b), clause (2), does not apply 
3.10 	to:
3.11 	(1) property located at an airport owned or operated by:
3.12 	(i) the Metropolitan Airports Commission; or
3.13 	(ii) a city of over 50,000 population according to the most recent federal census or such 
3.14 	a city's airport authority, except that, when calculating the tax imposed by this subdivision 
3.15 	for property taxes payable in 2024 through 2035, the net tax capacity of such property is 
3.16 	reduced by 50 percent if it is owned or operated by a city of over 50,000 but under 150,000 
3.17 	in population according to the most recent federal census or by such a city's airport authority; 
3.18 	or
3.19 	(2) hangars leased by a private individual, association, or corporation in connection with 
3.20 	a business conducted for profit other than an aviation-related business.
3.21 	(d) The exception from taxation provided in paragraph (b), clause (4), does not apply 
3.22 	to:
3.23 	(1) the property described in paragraph (b), clause (4), at airports that are owned or 
3.24 	operated by:
3.25 	(i) the Metropolitan Airports Commission; or
3.26 	(ii) a city of over 50,000 population or an airport authority therein, except that, when 
3.27 	calculating the tax imposed by this subdivision for property taxes payable in 2024 through 
3.28 	2035, the net tax capacity of such property is reduced by 50 percent if it is owned or operated 
3.29 	by a city of over 50,000 but under 150,000 in population according to the most recent federal 
3.30 	census or by such a city's airport authority; or
3.31 	(2) real estate owned by a municipality in connection with the operation of a public 
3.32 	airport and leased or used for agricultural purposes.
4.1 	(c) (e) Taxes imposed by this subdivision are payable as in the case of personal property 
4.2 	taxes and shall be assessed to the lessees or users of real or personal property in the same 
4.3 	manner as taxes assessed to owners of real or personal property, except that such taxes shall 
4.4 	not become a lien against the property. When due, the taxes shall constitute a debt due from 
4.5 	the lessee or user to the state, township, city, county, and school district for which the taxes 
4.6 	were assessed and shall be collected in the same manner as personal property taxes. If 
4.7 	property subject to the tax imposed by this subdivision is leased or used jointly by two or 
4.8 	more persons, each lessee or user shall be jointly and severally liable for payment of the 
4.9 	tax.
4.10 	(d) (f) The tax on real property of the federal government, the state or any of its political 
4.11 	subdivisions that is leased, loaned, or otherwise made available to a private individual, 
4.12 	association, or corporation and becomes taxable under this subdivision or other provision 
4.13 	of law must be assessed and collected as a personal property assessment. The taxes do not 
4.14 	become a lien against the real property.

4.15 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
4.16 	in 2024.

4.17 	Sec. 2. Minnesota Statutes 2022, section 272.02, subdivision 24, is amended to read:
4.18 		Subd. 24.Solar energy generating systems. Personal property consisting of solar energy 
4.19 	generating systems, as defined in section 272.0295, is exempt. If the real property upon 
4.20 	which a solar energy generating system is located is used primarily for solar energy 
4.21 	production subject to the production tax under section 272.0295, the real property shall be 
4.22 	classified as class 3a. If the real property upon which a solar energy generating system is 
4.23 	located is not used primarily for solar energy production subject to the production tax under 
4.24 	section 272.0295, the real property shall be classified without regard to the system. If real 
4.25 	property contains more than one solar energy generating system that cannot be combined 
4.26 	with the nameplate capacity of another solar energy generating system for the purposes of 
4.27 	the production tax under section 272.0295, but is in aggregate over one megawatt, then the 
4.28 	real property upon which the systems are located shall be classified as class 3a.

4.29 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
4.30 	in 2024 and thereafter.

4.31 	Sec. 3. Minnesota Statutes 2022, section 272.02, subdivision 98, is amended to read:
4.32 		Subd. 98.Certain property owned by an Indian tribe. (a) Property is exempt that:
5.1 	(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable in 2013;
5.2 	(2) is located in a city of the first class with a population greater than 300,000 as of the 
5.3 	2010 federal census;
5.4 	(3) was on January 2, 2012, and is for the current assessment owned by a federally 
5.5 	recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; 
5.6 	and
5.7 	(4) is used exclusively for tribal purposes or institutions of purely public charity as 
5.8 	defined in subdivision 7.
5.9 	(b) For purposes of this subdivision, a "tribal purpose" means a public purpose as defined 
5.10 	in subdivision 8 and includes noncommercial tribal government activities. Property that 
5.11 	qualifies for the exemption under this subdivision is limited to no more than two contiguous 
5.12 	parcels and structures that do not exceed in the aggregate 20,000 square feet. Property 
5.13 	acquired for single-family housing, market-rate apartments, agriculture, or forestry does 
5.14 	not qualify for this exemption. The exemption created by This subdivision expires with 
5.15 	taxes payable in 2024 2034.
5.16 	(c) Property exempt under this section is exempt from the requirements of section 
5.17 	272.025. Upon the written request of an assessor, all books and records relating to the 
5.18 	ownership or use of the property which are reasonably necessary to verify that the property 
5.19 	qualifies for exemption shall be made available to the assessor.

5.20 	EFFECTIVE DATE. This section is effective for property taxes payable in 2023 and 
5.21 	thereafter.

5.22 	Sec. 4. Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to 
5.23 	read:
5.24 		Subd. 105.Elderly living facility. An elderly living facility is exempt from taxation if 
5.25 	it meets all of the following requirements:
5.26 	(1) the facility is located in a city of the first class with a population of fewer than 
5.27 	110,000;
5.28 	(2) the facility is owned and operated by a nonprofit organization with tax exempt status 
5.29 	under section 501(c)(3) of the Internal Revenue Code;
5.30 	(3) construction of the facility was completed between January 1, 1963, and January 1, 
5.31 	1964;
5.32 	(4) the facility is an assisted living facility licensed by the state of Minnesota;
6.1 	(5) residents of the facility must be (i) at least 55 years of age, or (ii) disabled; and
6.2 	(6) at least 30 percent of the units in the facility are occupied by persons whose annual 
6.3 	income does not exceed 50 percent of the median family income for the area.
6.4 	For assessment year 2022 only, an exemption application under this section must be filed 
6.5 	with the county assessor by June 15, 2023.

6.6 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2023.

6.7 	Sec. 5. Minnesota Statutes 2022, section 273.11, subdivision 12, is amended to read:
6.8 		Subd. 12.Community land trusts. (a) A community land trust, as defined under chapter 
6.9 	462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which 
6.10 	qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02, 
6.11 	subdivision 6, which has received funding from the Minnesota housing finance agency for 
6.12 	purposes of the community land trust program. The Minnesota Housing Finance Agency 
6.13 	shall set the criteria for community land trusts.
6.14 	(b) Before the community land trust can rent or sell a unit to an applicant, the community 
6.15 	land trust shall verify to the satisfaction of the administering agency or the city that the 
6.16 	family income of each person or family applying for a unit in the community land trust 
6.17 	building is within the income criteria provided in section 462A.30, subdivision 9. The 
6.18 	administering agency or the city shall verify to the satisfaction of the county assessor that 
6.19 	the occupant meets the income criteria under section 462A.30, subdivision 9. The property 
6.20 	tax benefits under paragraph (c) shall be granted only to property owned or rented by persons 
6.21 	or families within the qualifying income limits. The family income criteria and verification 
6.22 	is only necessary at the time of initial occupancy in the property.
6.23 	(c) A unit which is owned by the occupant and used as a homestead by the occupant 
6.24 	qualifies for homestead treatment as class 1a under section 273.13, subdivision 22, or class 
6.25 	4d if the requirements of section 273.13, subdivision 25, paragraph (e), clause (2), are met. 
6.26 	A unit which is rented by the occupant and used as a homestead by the occupant shall be 
6.27 	class 4a or 4b property, under section 273.13, subdivision 25, whichever is applicable. Any 
6.28 	remaining portion of the property not used for residential purposes shall be classified by 
6.29 	the assessor in the appropriate class based upon the use of that portion of the property owned 
6.30 	by the community land trust. The land upon which the building is located shall be assessed 
6.31 	at the same classification rate as the units within the building, provided that if the building 
6.32 	contains some units assessed as class 1a or class 4d and some units assessed as class 4a or 
7.1 	4b, the market value of the land will be assessed in the same proportions as the value of the 
7.2 	building.

7.3 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024 
7.4 	and thereafter.

7.5 	Sec. 6. Minnesota Statutes 2022, section 273.13, subdivision 25, is amended to read:
7.6 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
7.7 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
7.8 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
7.9 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
7.10 	under section 272.02, and contiguous property used for hospital purposes, without regard 
7.11 	to whether the property has been platted or subdivided. The market value of class 4a property 
7.12 	has a classification rate of 1.25 percent.
7.13 	(b) Class 4b includes:
7.14 	(1) residential real estate containing less than four units, including property rented as a 
7.15 	short-term rental property for more than 14 days in the preceding year, that does not qualify 
7.16 	as class 4bb, other than seasonal residential recreational property;
7.17 	(2) manufactured homes not classified under any other provision;
7.18 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
7.19 	classified under subdivision 23, paragraph (b) containing two or three units; and
7.20 	(4) unimproved property that is classified residential as determined under subdivision 
7.21 	33.
7.22 	For the purposes of this paragraph, "short-term rental property" means nonhomestead 
7.23 	residential real estate rented for periods of less than 30 consecutive days.
7.24 	The market value of class 4b property has a classification rate of 1.25 percent.
7.25 	(c) Class 4bb includes:
7.26 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
7.27 	residential recreational property;
7.28 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
7.29 	nonhomestead farm classified under subdivision 23, paragraph (b); and
7.30 	(3) a condominium-type storage unit having an individual property identification number 
7.31 	that is not used for a commercial purpose.
8.1 	Class 4bb property has the same classification rates as class 1a property under subdivision 
8.2 	22.
8.3 	Property that has been classified as seasonal residential recreational property at any time 
8.4 	during which it has been owned by the current owner or spouse of the current owner does 
8.5 	not qualify for class 4bb.
8.6 	(d) Class 4c property includes:
8.7 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
8.8 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
8.9 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
8.10 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
8.11 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
8.12 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
8.13 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
8.14 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
8.15 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
8.16 	under this clause regardless of the term of the rental agreement, as long as the use of the 
8.17 	camping pad does not exceed 250 days. In order for a property to be classified under this 
8.18 	clause, either (i) the business located on the property must provide recreational activities, 
8.19 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
8.20 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
8.21 	bookings by lodging guests during the year must be for periods of at least two consecutive 
8.22 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
8.23 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
8.24 	and must be located in a township or a city with a population of 2,500 or less located outside 
8.25 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
8.26 	of a state trail administered by the Department of Natural Resources. For purposes of item 
8.27 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
8.28 	property also includes commercial use real property used exclusively for recreational 
8.29 	purposes in conjunction with other class 4c property classified under this clause and devoted 
8.30 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
8.31 	two acres, provided the property is not devoted to commercial recreational use for more 
8.32 	than 250 days in the year preceding the year of assessment and is located within two miles 
8.33 	of the class 4c property with which it is used. In order for a property to qualify for 
8.34 	classification under this clause, the owner must submit a declaration to the assessor 
8.35 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
9.1 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
9.2 	share of the land on which they are located must be designated class 4c under this clause 
9.3 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
9.4 	the land on which they are located will be designated as class 3a. The owner of property 
9.5 	desiring designation as class 4c property under this clause must provide guest registers or 
9.6 	other records demonstrating that the units for which class 4c designation is sought were not 
9.7 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
9.8 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
9.9 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
9.10 	directly related to temporary and seasonal residential occupancy for recreation purposes 
9.11 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
9.12 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
9.13 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
9.14 	and fishing tackle;
9.15 	(2) qualified property used as a golf course if:
9.16 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
9.17 	but a membership fee may not be required in order to use the property for golfing, and its 
9.18 	green fees for golfing must be comparable to green fees typically charged by municipal 
9.19 	courses; and
9.20 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
9.21 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
9.22 	the golf course is classified as class 3a property;
9.23 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
9.24 	community service oriented organization and not used for residential purposes on either a 
9.25 	temporary or permanent basis, provided that:
9.26 	(i) the property is not used for a revenue-producing activity for more than six days in 
9.27 	the calendar year preceding the year of assessment; or
9.28 	(ii) the organization makes annual charitable contributions and donations at least equal 
9.29 	to the property's previous year's property taxes and the property is allowed to be used for 
9.30 	public and community meetings or events for no charge, as appropriate to the size of the 
9.31 	facility.
9.32 	For purposes of this clause:
10.1 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
10.2 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
10.3 	payment of taxes, assessments, fees, auditing costs, and utility payments;
10.4 	(B) "property taxes" excludes the state general tax;
10.5 	(C) a "nonprofit community service oriented organization" means any corporation, 
10.6 	society, association, foundation, or institution organized and operated exclusively for 
10.7 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
10.8 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
10.9 	Revenue Code; and
10.10 	(D) "revenue-producing activities" shall include but not be limited to property or that 
10.11 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
10.12 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
10.13 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
10.14 	insurance business, or office or other space leased or rented to a lessee who conducts a 
10.15 	for-profit enterprise on the premises.
10.16 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
10.17 	use of the property for social events open exclusively to members and their guests for periods 
10.18 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
10.19 	the organization shall not be considered a revenue-producing activity.
10.20 	The organization shall maintain records of its charitable contributions and donations 
10.21 	and of public meetings and events held on the property and make them available upon 
10.22 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
10.23 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
10.24 	current year's assessment. The commissioner shall prescribe a uniform application form 
10.25 	and instructions;
10.26 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
10.27 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
10.28 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
10.29 	miles of the border of a college campus;
10.30 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 
10.31 	manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as 
10.32 	defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 
10.33 	3a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision 
10.34 	2;
11.1 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
11.2 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
11.3 	located within the metropolitan area as defined in section 473.121, subdivision 2;
11.4 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
11.5 	section 272.01, subdivision 2, and the land on which it is located, provided that:
11.6 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
11.7 	Airports Commission, or group thereof; and
11.8 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
11.9 	premise, prohibits commercial activity performed at the hangar.
11.10 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
11.11 	filed by the new owner with the assessor of the county where the property is located within 
11.12 	60 days of the sale;
11.13 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
11.14 	272.01, subdivision 2, and the land on which it is located, provided that:
11.15 	(i) the land abuts a public airport; and
11.16 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
11.17 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
11.18 	hangar; and
11.19 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
11.20 	and that is also a place of lodging, if all of the following criteria are met:
11.21 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
11.22 	or fewer days;
11.23 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
11.24 	the basic room rate;
11.25 	(iii) meals are not provided to the general public except for special events on fewer than 
11.26 	seven days in the calendar year preceding the year of the assessment; and
11.27 	(iv) the owner is the operator of the property.
11.28 	The market value subject to the 4c classification under this clause is limited to five rental 
11.29 	units. Any rental units on the property in excess of five, must be valued and assessed as 
11.30 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
11.31 	be classified as class 1a property under subdivision 22;
12.1 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
12.2 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
12.3 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
12.4 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
12.5 	of its annual gross receipts from business conducted during four consecutive months. Gross 
12.6 	receipts from the sale of alcoholic beverages must be included in determining the property's 
12.7 	qualification under item (ii). The property's primary business must be as a restaurant and 
12.8 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
12.9 	Owners of real property desiring 4c classification under this clause must submit an annual 
12.10 	declaration to the assessor by February 1 of the current assessment year, based on the 
12.11 	property's relevant information for the preceding assessment year;
12.12 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
12.13 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
12.14 	and devoted to recreational use for marina services. The marina owner must annually provide 
12.15 	evidence to the assessor that it provides services, including lake or river access to the public 
12.16 	by means of an access ramp or other facility that is either located on the property of the 
12.17 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
12.18 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
12.19 	a marina for marina services, including but not limited to buildings used to provide food 
12.20 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
12.21 	as class 3a property; and
12.22 	(12) real and personal property devoted to noncommercial temporary and seasonal 
12.23 	residential occupancy for recreation purposes.
12.24 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
12.25 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
12.26 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
12.27 	under clause (5), item (i), have the same classification rate as class 4b property, the market 
12.28 	value of manufactured home parks assessed under clause (5), item (ii), have a classification 
12.29 	rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by 
12.30 	shareholders in the cooperative corporation or association and a classification rate of one 
12.31 	percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
12.32 	parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent, 
12.33 	(iii) commercial-use seasonal residential recreational property and marina recreational land 
12.34 	as described in clause (11), has a classification rate of one percent for the first $500,000 of 
12.35 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
13.1 	property described in clause (4) has a classification rate of one percent, (v) the market value 
13.2 	of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 
13.3 	(vi) that portion of the market value of property in clause (9) qualifying for class 4c property 
13.4 	has a classification rate of 1.25 percent, and (vii) property qualifying for classification under 
13.5 	clause (3) that is owned or operated by a congressionally chartered veterans organization 
13.6 	has a classification rate of one percent. The commissioner of veterans affairs must provide 
13.7 	a list of congressionally chartered veterans organizations to the commissioner of revenue 
13.8 	by June 30, 2017, and by January 1, 2018, and each year thereafter.
13.9 	(e) Class 4d property is includes:
13.10 	(1) qualifying low-income rental housing certified to the assessor by the Housing Finance 
13.11 	Agency under section 273.128, subdivision 3. If only a portion of the units in the building 
13.12 	qualify as low-income rental housing units as certified under section 273.128, subdivision 
13.13 	3, only the proportion of qualifying units to the total number of units in the building qualify 
13.14 	for class 4d(1). The remaining portion of the building shall be classified by the assessor 
13.15 	based upon its use. Class 4d(1) also includes the same proportion of land as the qualifying 
13.16 	low-income rental housing units are to the total units in the building. For all properties 
13.17 	qualifying as class 4d(1), the market value determined by the assessor must be based on the 
13.18 	normal approach to value using normal unrestricted rents.; and
13.19 	(2) a unit that is owned by the occupant and used as a homestead by the occupant, and 
13.20 	otherwise meets all the requirements for community land trust property under section 273.11, 
13.21 	subdivision 12, provided that by December 31 of each assessment year, the community land 
13.22 	trust certifies to the assessor that (i) the community land trust owns the real property on 
13.23 	which the unit is located, and (ii) the unit owner is a member in good standing of the 
13.24 	community land trust. For all units qualifying as class 4d(2), the market value determined 
13.25 	by the assessor must be based on the normal approach to value without regard to any 
13.26 	restrictions that apply because the unit is a community land trust property.
13.27 	(f) The first tier of market value of class 4d(1) property has a classification rate of 0.75 
13.28 	percent. The remaining value of class 4d(1) property has a classification rate of 0.25 percent. 
13.29 	For the purposes of this paragraph, the "first tier of market value of class 4d(1) property" 
13.30 	means the market value of each housing unit up to the first tier limit. For the purposes of 
13.31 	this paragraph, all class 4d property value must be assigned to individual housing units. The 
13.32 	first tier limit is $100,000 for assessment years 2022 and 2023. For subsequent assessment 
13.33 	years, the limit is adjusted each year by the average statewide change in estimated market 
13.34 	value of property classified as class 4a and 4d under this section for the previous assessment 
13.35 	year, excluding valuation change due to new construction, rounded to the nearest $1,000, 
14.1 	provided, however, that the limit may never be less than $100,000. Beginning with 
14.2 	assessment year 2015, the commissioner of revenue must certify the limit for each assessment 
14.3 	year by November 1 of the previous year. Class 4d(2) property has a classification rate of 
14.4 	0.75 percent.

14.5 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024 
14.6 	and thereafter.

14.7 	Sec. 7. Minnesota Statutes 2022, section 273.13, subdivision 34, is amended to read:
14.8 		Subd. 34.Homestead of veteran with a disability or family caregiver. (a) All or a 
14.9 	portion of the market value of property owned by a veteran and serving as the veteran's 
14.10 	homestead under this section is excluded in determining the property's taxable market value 
14.11 	if the veteran has a service-connected disability of 70 percent or more as certified by the 
14.12 	United States Department of Veterans Affairs. To qualify for exclusion under this subdivision, 
14.13 	the veteran must have been honorably discharged from the United States armed forces, as 
14.14 	indicated by United States Government Form DD214 or other official military discharge 
14.15 	papers.
14.16 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
14.17 	except as provided in clause (2); and
14.18 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
14.19 	excluded.
14.20 	(c) If a veteran with a disability qualifying for a valuation exclusion under paragraph 
14.21 	(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the 
14.22 	spouse holds the legal or beneficial title to the homestead and permanently resides there, 
14.23 	the exclusion shall carry over to the benefit of the veteran's spouse until such time as the 
14.24 	spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise 
14.25 	provided in paragraph (n). Qualification under this paragraph requires an application under 
14.26 	paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's 
14.27 	marital status, ownership of the property, or use of the property as a permanent residence.
14.28 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
14.29 	who dies due to a service-connected cause while serving honorably in active service, as 
14.30 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
14.31 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
14.32 	benefit described in paragraph (b), clause (2), until such time as the spouse remarries or 
15.1 	sells, transfers, or otherwise disposes of the property, except as otherwise provided in 
15.2 	paragraph (n).
15.3 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
15.4 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
15.5 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
15.6 	for under paragraph (b).
15.7 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
15.8 	of the house and garage and immediately surrounding one acre of land qualifies for the 
15.9 	valuation exclusion under this subdivision.
15.10 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
15.11 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
15.12 	paragraph (b).
15.13 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
15.14 	apply to the assessor by December 31 of the first assessment year for which the exclusion 
15.15 	is sought. Except as provided in paragraph (c), the owner of a property that has been accepted 
15.16 	for a valuation exclusion must notify the assessor if there is a change in ownership of the 
15.17 	property or in the use of the property as a homestead.
15.18 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
15.19 	paragraph (d) must be made any time within two years of the death of the service member.
15.20 	(j) For purposes of this subdivision:
15.21 	(1) "active service" has the meaning given in section 190.05;
15.22 	(2) "own" means that the person's name is present as an owner on the property deed;
15.23 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
15.24 	United States Department of Veterans Affairs for assistance as the primary provider of 
15.25 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
15.26 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
15.27 	(4) "veteran" has the meaning given the term in section 197.447.
15.28 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
15.29 	under paragraph (b), clause (2), before dying, or the exclusion under paragraph (b), clause 
15.30 	(2), did not exist at the time of the veterans death, the veteran's spouse is entitled to the 
15.31 	benefit under paragraph (b), clause (2), until the spouse remarries or sells, transfers, or 
15.32 	otherwise disposes of the property, except as otherwise provided in paragraph (n), if:
16.1 	(1) the spouse files a first-time application within two years of the death of the service 
16.2 	member or by June 1, 2019, whichever is later;
16.3 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
16.4 	homestead and permanently resides there;
16.5 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
16.6 	(4) the United States Department of Veterans Affairs certifies that:
16.7 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
16.8 	paragraph (b), clause (2); or
16.9 	(ii) the spouse has been awarded dependency and indemnity compensation.
16.10 	(l) The purpose of this provision of law providing a level of homestead property tax 
16.11 	relief for veterans with a disability, their primary family caregivers, and their surviving 
16.12 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
16.13 	those burdens most heavily.
16.14 	(m) By July 1, the county veterans service officer must certify the disability rating and 
16.15 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
16.16 	(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds 
16.17 	the legal or beneficial title to the property may continue to receive the exclusion for a 
16.18 	property other than the property for which the exclusion was initially granted until the spouse 
16.19 	remarries or sells, transfers, or otherwise disposes of the property, provided that:
16.20 	(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed 
16.21 	under this paragraph;
16.22 	(2) the spouse holds the legal or beneficial title to the property for which the continuation 
16.23 	of the exclusion is sought under this paragraph, and permanently resides there;
16.24 	(3) the estimated market value of the property for which the exclusion is sought under 
16.25 	this paragraph is less than or equal to the estimated market value of the property that first 
16.26 	received the exclusion, based on the value of each property on the date of the sale of the 
16.27 	property that first received the exclusion; and
16.28 	(4) the spouse has not previously received the benefit under this paragraph for a property 
16.29 	other than the property for which the exclusion is sought.
16.30 	(o) If a spouse had previously qualified under paragraph (c) or (d) and the exclusion 
16.31 	expired prior to taxes payable in 2020, the spouse may reapply under this section for the 
16.32 	exclusion under paragraph (c) or (d).

17.1 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

17.2 	Sec. 8. Minnesota Statutes 2022, section 273.13, subdivision 35, is amended to read:
17.3 		Subd. 35.Homestead market value exclusion. (a) Prior to determining a property's 
17.4 	net tax capacity under this section, property classified as 4d(2) under subdivision 25, 
17.5 	paragraph (e), clause (2), class 1a or 1b under subdivision 22, and the portion of property 
17.6 	classified as class 2a under subdivision 23 consisting of the house, garage, and surrounding 
17.7 	one acre of land, shall be eligible for a market value exclusion as determined under paragraph 
17.8 	(b).
17.9 	(b) For a homestead valued at $76,000 $80,300 or less, the exclusion is 40 percent of 
17.10 	market value. For a homestead valued between $76,000 $80,300 and $413,800 $437,100, 
17.11 	the exclusion is $30,400 $32,120 minus nine percent of the valuation over $76,000 $80,300. 
17.12 	For a homestead valued at $413,800 $437,100 or more, there is no valuation exclusion. The 
17.13 	valuation exclusion shall be rounded to the nearest whole dollar, and may not be less than 
17.14 	zero.
17.15 	(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior 
17.16 	to determining the amount of the valuation exclusion under this subdivision.
17.17 	(d) In the case of a property that is classified as part homestead and part nonhomestead, 
17.18 	(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion 
17.19 	of a property is classified as nonhomestead solely because not all the owners occupy the 
17.20 	property, not all the owners have qualifying relatives occupying the property, or solely 
17.21 	because not all the spouses of owners occupy the property, the exclusion amount shall be 
17.22 	initially computed as if that nonhomestead portion were also in the homestead class and 
17.23 	then prorated to the owner-occupant's percentage of ownership. For the purpose of this 
17.24 	section, when an owner-occupant's spouse does not occupy the property, the percentage of 
17.25 	ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.

17.26 	EFFECTIVE DATE. This section is effective for assessment year 2024 and thereafter.

17.27 	Sec. 9. Minnesota Statutes 2022, section 290A.03, subdivision 6, is amended to read:
17.28 		Subd. 6.Homestead. "Homestead" means the dwelling occupied as the claimant's 
17.29 	principal residence and so much of the land surrounding it, not exceeding ten acres, as is 
17.30 	reasonably necessary for use of the dwelling as a home and any other property used for 
17.31 	purposes of a homestead as defined in section 273.13, subdivision 22, except or section 
17.32 	273.13, subdivision 25, paragraph (e), clause (2). For agricultural land assessed as part of 
18.1 	a homestead pursuant to section 273.13, subdivision 23, "homestead" is limited to the house 
18.2 	and garage and immediately surrounding one acre of land. The homestead may be owned 
18.3 	or rented and may be a part of a multidwelling or multipurpose building and the land on 
18.4 	which it is built. A manufactured home, as defined in section 273.125, subdivision 8, or a 
18.5 	park trailer taxed as a manufactured home under section 168.012, subdivision 9, assessed 
18.6 	as personal property may be a dwelling for purposes of this subdivision.

18.7 	EFFECTIVE DATE. This section is effective for refund claims based on taxes payable 
18.8 	in 2025 and thereafter.

18.9 	Sec. 10. Minnesota Statutes 2022, section 290B.03, subdivision 1, is amended to read:
18.10 		Subdivision 1.Program qualifications. The qualifications for the senior citizens' 
18.11 	property tax deferral program are as follows:
18.12 	(1) the property must be owned and occupied as a homestead by a person 65 years of 
18.13 	age or older. In the case of a married couple, at least one of the spouses must be at least 65 
18.14 	years old at the time the first property tax deferral is granted, regardless of whether the 
18.15 	property is titled in the name of one spouse or both spouses, or titled in another way that 
18.16 	permits the property to have homestead status, and the other spouse must be at least 62 years 
18.17 	of age;
18.18 	(2) the total household income of the qualifying homeowners, as defined in section 
18.19 	290A.03, subdivision 5, for the calendar year preceding the year of the initial application 
18.20 	may not exceed $60,000 $96,000;
18.21 	(3) the homestead must have been owned and occupied as the homestead of at least one 
18.22 	of the qualifying homeowners for at least 15 five years prior to the year the initial application 
18.23 	is filed;
18.24 	(4) there are no state or federal tax liens or judgment liens on the homesteaded property;
18.25 	(5) there are no mortgages or other liens on the property that secure future advances, 
18.26 	except for those subject to credit limits that result in compliance with clause (6); and
18.27 	(6) the total unpaid balances of debts secured by mortgages and other liens on the 
18.28 	property, including unpaid and delinquent special assessments and interest and any delinquent 
18.29 	property taxes, penalties, and interest, but not including property taxes payable during the 
18.30 	year or debts secured by a residential PACE lien, as defined in section 216C.435, subdivision 
18.31 	10d, does not exceed 75 percent of the assessor's estimated market value for the year.

19.1 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
19.2 	payable in 2024 and thereafter.

19.3 	Sec. 11. Minnesota Statutes 2022, section 290B.04, subdivision 3, is amended to read:
19.4 		Subd. 3.Excess-income certification by taxpayer. A taxpayer whose initial application 
19.5 	has been approved under subdivision 2 shall notify the commissioner of revenue in writing 
19.6 	by July 1 if the taxpayer's household income for the preceding calendar year exceeded 
19.7 	$60,000 $96,000. The certification must state the homeowner's total household income for 
19.8 	the previous calendar year. No property taxes may be deferred under this chapter in any 
19.9 	year following the year in which a program participant filed or should have filed an 
19.10 	excess-income certification under this subdivision, unless the participant has filed a 
19.11 	resumption of eligibility certification as described in subdivision 4.

19.12 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
19.13 	payable in 2024 and thereafter.

19.14 	Sec. 12. Minnesota Statutes 2022, section 290B.04, subdivision 4, is amended to read:
19.15 		Subd. 4.Resumption of eligibility certification by taxpayer. A taxpayer who has 
19.16 	previously filed an excess-income certification under subdivision 3 may resume program 
19.17 	participation if the taxpayer's household income for a subsequent year is $60,000 $96,000
19.18 	or less. If the taxpayer chooses to resume program participation, the taxpayer must notify 
19.19 	the commissioner of revenue in writing by July 1 of the year following a calendar year in 
19.20 	which the taxpayer's household income is $60,000 $96,000 or less. The certification must 
19.21 	state the taxpayer's total household income for the previous calendar year. Once a taxpayer 
19.22 	resumes participation in the program under this subdivision, participation will continue until 
19.23 	the taxpayer files a subsequent excess-income certification under subdivision 3 or until 
19.24 	participation is terminated under section 290B.08, subdivision 1.

19.25 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
19.26 	payable in 2024 and thereafter.

19.27 	Sec. 13. Minnesota Statutes 2022, section 290B.05, subdivision 1, is amended to read:
19.28 		Subdivision 1.Determination by commissioner. The commissioner shall determine 
19.29 	each qualifying homeowner's "annual maximum property tax amount" following approval 
19.30 	of the homeowner's initial application and following the receipt of a resumption of eligibility 
19.31 	certification. The "annual maximum property tax amount" equals three percent of the 
19.32 	homeowner's total household income for the year preceding either the initial application or 
20.1 	the resumption of eligibility certification, whichever is applicable. Following approval of 
20.2 	the initial application, the commissioner shall determine the qualifying homeowner's 
20.3 	"maximum allowable deferral." No tax may be deferred relative to the appropriate assessment 
20.4 	year for any homeowner whose total household income for the previous year exceeds 
20.5 	$60,000 $96,000. No tax shall be deferred in any year in which the homeowner does not 
20.6 	meet the program qualifications in section 290B.03. The maximum allowable total deferral 
20.7 	is equal to 75 percent of the assessor's estimated market value for the year, less the balance 
20.8 	of any mortgage loans and other amounts secured by liens against the property at the time 
20.9 	of application, including any unpaid and delinquent special assessments and interest and 
20.10 	any delinquent property taxes, penalties, and interest, but not including property taxes 
20.11 	payable during the year.

20.12 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
20.13 	payable in 2024 and thereafter.

20.14 	Sec. 14. NORTHWEST MINNESOTA MULTI-COUNTY HOUSING AND 
20.15 	REDEVELOPMENT AUTHORITY; LEVY AUTHORITY.
 20.16 	Notwithstanding any law to the contrary, Laws 2008, chapter 366, article 5, section 33, 
20.17 	the effective date, as amended by Laws 2013, chapter 143, article 4, section 35, and Laws 
20.18 	2019, First Special Session chapter 6, article 4, section 31, is effective for taxes levied in 
20.19 	2008, payable in 2009, and is repealed effective for taxes levied in 2033, payable in 2034, 
20.20 	and thereafter.

20.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
20.22 	Northwest Minnesota Multi-County Housing and Redevelopment Authority and its chief 
20.23 	clerical officer comply with the requirements of Minnesota Statutes, section 645.021, 
20.24 	subdivisions 2 and 3.

20.25 	ARTICLE 2
20.26 	MINERALS TAXES

20.27 	Section 1. Minnesota Statutes 2022, section 272.02, subdivision 73, is amended to read:
20.28 		Subd. 73.Property subject to taconite production tax or net gross proceeds tax. (a) 
20.29 	Real and personal property described in section 298.25 is exempt to the extent the tax on 
20.30 	taconite and iron sulphides under section 298.24 is described in section 298.25 as being in 
20.31 	lieu of other taxes on such property. This exemption applies for taxes payable in each year 
20.32 	that the tax under section 298.24 is payable with respect to such property.
21.1 	(b) Deposits of mineral, metal, or energy resources the mining of which is subject to 
21.2 	taxation or the minimum payment under section 298.015 are exempt.

21.3 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

21.4 	Sec. 2. Minnesota Statutes 2022, section 273.1341, is amended to read:
21.5 	273.1341 TACONITE ASSISTANCE AREA.
21.6 	A "taconite assistance area" means the geographic area that falls within the boundaries 
21.7 	of a school district that contains:
21.8 	(1) a municipality in which the assessed valuation of unmined iron ore on May 1, 1941, 
21.9 	was not less than 40 percent of the assessed valuation of all real property; or
21.10 	(2) a municipality in which on January 1, 1977, or the applicable assessment date, there 
21.11 	is a taconite concentrating plant or where taconite is mined or quarried or where there is 
21.12 	located an electric generating plant which qualifies as a taconite facility.; or
21.13 	(3) a municipality:
21.14 	(i) that is located in a county that contains a school district described in clause (1) or 
21.15 	(2); and
21.16 	(ii) where active mining of materials subject to the tax under section 298.015, subdivision 
21.17 	1, is occurring.

21.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
21.19 	31, 2022.

21.20 	Sec. 3. Minnesota Statutes 2022, section 297A.68, subdivision 4, is amended to read:
21.21 		Subd. 4.Taconite, other ores, metals, or minerals; production materials. Mill liners, 
21.22 	grinding rods, and grinding balls that are substantially consumed in the production of taconite 
21.23 	or other ores, metals, or minerals are exempt when sold to or stored, used, or consumed by 
21.24 	persons taxed under the in-lieu or net gross proceeds provisions of chapter 298.

21.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.26 	Sec. 4. Minnesota Statutes 2022, section 298.015, is amended to read:
21.27 	298.015 NET GROSS PROCEEDS TAX ON MINING.
21.28 		Subdivision 1.Tax imposed. A person engaged in the business of mining shall pay to 
21.29 	the state of Minnesota for distribution as provided in section 298.018 a net gross proceeds 
22.1 	tax equal to two 0.4 percent of the net gross proceeds from mining in Minnesota. The tax 
22.2 	applies to all ores, metals, and minerals mined, extracted, produced, or refined within the 
22.3 	state of Minnesota except for sand, silica sand, gravel, building stone, crushed rock, 
22.4 	limestone, granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron 
22.5 	ore, and taconite concentrates. The tax is in addition to all other taxes provided for by law.
22.6 		Subd. 2.Net Gross proceeds. For purposes of this section, the term "net gross proceeds" 
22.7 	means the gross proceeds from mining, as defined in section 298.016, less the deductions 
22.8 	for purposes of determining taxable income under section 298.01, subdivision 3b, applied 
22.9 	to the mining, production, processing, beneficiation, smelting, or refining of metal or mineral 
22.10 	products. No other credits or deductions shall apply to this tax.
22.11 		Subd. 3.Minimum payment. A person who has obtained all required permits to mine 
22.12 	all ores and metals, except for sand, silica sand, gravel, building stone, crushed rock, 
22.13 	limestone, granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron 
22.14 	ore, and iron concentrates, is annually subject to the minimum payment under this 
22.15 	subdivision, unless the tax imposed on the individual under subdivision 1 in a given year 
22.16 	is greater than zero. The annual minimum payment under this subdivision is $2,000,000.

22.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
22.18 	31, 2022.

22.19 	Sec. 5. Minnesota Statutes 2022, section 298.018, subdivision 1, is amended to read:
22.20 		Subdivision 1.Within taconite assistance area. (a) The proceeds of the tax paid under 
22.21 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
22.22 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
22.23 	(1) except as provided under paragraph (b), five percent to the city or town within which 
22.24 	the minerals or energy resources are mined or extracted, or within which the concentrate 
22.25 	was produced. If the mining and concentration, or different steps in either process, are 
22.26 	carried on in more than one taxing district, the commissioner shall apportion equitably the 
22.27 	proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to 
22.28 	the operation of mining or extraction, and the remainder to the concentrating plant and to 
22.29 	the processes of concentration, and with respect to each thereof giving due consideration 
22.30 	to the relative extent of the respective operations performed in each taxing district;
22.31 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
22.32 	section 298.282, subdivisions 1 and 2, on the dates provided under this section;
23.1 	(3) ten percent to the school district within which the minerals or energy resources are 
23.2 	mined or extracted, or within which the concentrate was produced. If the mining and 
23.3 	concentration, or different steps in either process, are carried on in more than one school 
23.4 	district, distribution among the school districts must be based on the apportionment formula 
23.5 	prescribed in clause (1);
23.6 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
23.7 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
23.8 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
23.9 	district indexes as follows: for each school district, its pupil units determined under section 
23.10 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
23.11 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
23.12 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
23.13 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
23.14 	portion of the distribution which its index bears to the sum of the indices for all school 
23.15 	districts that receive the distributions;
23.16 	(5) 20 ten percent to the county within which the minerals or energy resources are mined 
23.17 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
23.18 	or different steps in either process, are carried on in more than one county, distribution 
23.19 	among the counties must be based on the apportionment formula prescribed in clause (1), 
23.20 	provided that any county receiving distributions under this clause shall pay one percent of 
23.21 	its proceeds to the Range Association of Municipalities and Schools;
23.22 	(6) 20 five percent to St. Louis County acting as the counties' fiscal agent to be distributed 
23.23 	as provided in sections 273.134 to 273.136;
23.24 	(7) five 20 percent to the commissioner of Iron Range resources and rehabilitation for 
23.25 	the purposes of section 298.22;
23.26 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
23.27 	(9) seven percent to the taconite environmental protection fund.; and
23.28 	(10) ten percent to the commissioner of Iron Range resources and rehabilitation for 
23.29 	capital improvements to Giants Ridge Recreation Area.
23.30 	(b) If the materials or energy resources are mined, extracted, or concentrated in School 
23.31 	District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead 
23.32 	be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes 
24.1 	must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township 
24.2 	must each receive ten percent of the amount.
24.3 	(c) For the first five years that distributions are made under this subdivision, ten percent 
24.4 	of the total proceeds distributed in each year must first be distributed pursuant to this 
24.5 	paragraph. The remaining 90 percent of the total proceeds distributed in each of those years 
24.6 	must be distributed as outlined in paragraph (a). Of the amount available under this paragraph, 
24.7 	the cities of Aurora, Babbitt, Ely, and Hoyt Lakes must each receive 20 percent. Of the 
24.8 	amount available under this paragraph, the city of Biwabik and Embarrass Township must 
24.9 	each receive ten percent.

24.10 	EFFECTIVE DATE. This section is effective for distributions beginning after December 
24.11 	31, 2022.

24.12 	Sec. 6. Minnesota Statutes 2022, section 298.018, subdivision 1a, is amended to read:
24.13 		Subd. 1a.Distribution date. The proceeds of the tax allocated under subdivision 1 shall 
24.14 	be distributed on December 15 each year. Any payment of proceeds received after December 
24.15 	15 shall be distributed on the next net gross proceeds tax distribution date.

24.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.17 	Sec. 7. Minnesota Statutes 2022, section 298.28, subdivision 5, is amended to read:
24.18 		Subd. 5.Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 
24.19 	and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 
24.20 	to be distributed, based upon certification by the commissioner of revenue, under paragraphs 
24.21 	(b) to (d).
24.22 	(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 
24.23 	is mined or quarried or in which the concentrate is produced, less any amount which is to 
24.24 	be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 
24.25 	2 is the basis for the distribution.
24.26 	(c) 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b) 
24.27 	shall be paid to a county that received a distribution under this section in 2000 because there 
24.28 	was located in the county an electric power plant owned by and providing the primary source 
24.29 	of power for a taxpayer mining and concentrating taconite in a different county.
24.30 	(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 
24.31 	per taxable ton for distributions beginning in 2024, shall be paid to the county from which 
24.32 	the taconite was mined, quarried or concentrated to be deposited in the county road and 
25.1 	bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 
25.2 	processes are carried on in more than one county, the commissioner shall follow the 
25.3 	apportionment formula prescribed in subdivision 2.

25.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.5 	Sec. 8. Minnesota Statutes 2022, section 298.28, subdivision 7a, is amended to read:
25.6 		Subd. 7a.Iron Range school consolidation and cooperatively operated school 
25.7 	account. (a) The following amounts must be allocated to the commissioner of Iron Range 
25.8 	resources and rehabilitation to be deposited in the Iron Range school consolidation and 
25.9 	cooperatively operated school account that is hereby created:
25.10 	(1)(i) for distributions beginning in 2015 through 2023, ten cents per taxable ton of the 
25.11 	tax imposed under section 298.24; and
25.12 	(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 
25.13 	under section 298.24;
25.14 	(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
25.15 	(3) any other amount as provided by law.
25.16 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
25.17 	and shall be made only to provide disbursements to assist school districts with the payment 
25.18 	of bonds that were issued for qualified school projects, or for any other school disbursement 
25.19 	as approved by the commissioner of Iron Range resources and rehabilitation after consultation 
25.20 	with the Iron Range Resources and Rehabilitation Board. For purposes of this section, 
25.21 	"qualified school projects" means school projects within the taconite assistance area as 
25.22 	defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; 
25.23 	and (2) approved by the commissioner of education pursuant to section 123B.71.
25.24 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
25.25 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
25.26 	any reduction in debt service equalization aid that the school district qualifies for in that 
25.27 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
25.28 	qualified for in fiscal year 2018.
25.29 	(d) No expenditure under this section shall be made unless approved by the commissioner 
25.30 	of Iron Range resources and rehabilitation after consultation with the Iron Range Resources 
25.31 	and Rehabilitation Board.

25.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.1 	Sec. 9. Minnesota Statutes 2022, section 298.296, subdivision 4, is amended to read:
26.2 		Subd. 4.Temporary loan authority. (a) After consultation with the advisory board, 
26.3 	the commissioner may use up to $7,500,000 from the corpus of the trust for loans, loan 
26.4 	guarantees, grants, or equity investments as provided in this subdivision. The money would 
26.5 	be available for loans for construction and equipping of facilities constituting (1) a value 
26.6 	added iron products plant, which may be either a new plant or a facility incorporated into 
26.7 	an existing plant that produces iron upgraded to a minimum of 75 percent iron content or 
26.8 	any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine or 
26.9 	minerals processing plant for any mineral subject to the net gross proceeds tax imposed 
26.10 	under section 298.015. A loan or loan guarantee under this paragraph may not exceed 
26.11 	$5,000,000 for any facility.
26.12 	(b) Additionally, the commissioner, after consultation with the advisory board, may use 
26.13 	up to $5,500,000 from the corpus of the trust for additional grants, loans, loan guarantees, 
26.14 	or equity investments for the purposes set forth in paragraph (a).
26.15 	(c) The commissioner, after consultation with the advisory board, may require that the 
26.16 	fund receive an equity percentage in any project to which it contributes under this section.

26.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.18 	Sec. 10. TRANSFER 2023 DISTRIBUTION ONLY.
 26.19 	The fund established under Minnesota Statutes, section 298.28, subdivision 7, shall 
26.20 	receive the excess balance remaining in the fund established under Minnesota Statutes, 
26.21 	section 298.28, subdivision 6, after the distribution of amounts required under Minnesota 
26.22 	Statutes, section 298.28, subdivision 6, for the 2023 distribution. The transfer amount under 
26.23 	this section must not exceed $6,000,000 and must be made within ten days of the August 
26.24 	2023 payment.

26.25 	EFFECTIVE DATE. This section is effective the day following final enactment and 
26.26 	applies only to the 2023 distribution.

27.1 	ARTICLE 3
27.2 	PROPERTY TAX AIDS, CREDITS, AND REFUNDS

27.3 	Section 1. Minnesota Statutes 2022, section 273.1392, is amended to read:
27.4 	273.1392 PAYMENT; SCHOOL DISTRICTS.
27.5 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
27.6 	conservation tax credits under section 273.119; disaster or emergency reimbursement under 
27.7 	sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387; 
27.8 	aids and credits under section 273.1398; enterprise zone property credit payments under 
27.9 	section 469.171; and metropolitan agricultural preserve reduction under section 473H.10; 
27.10 	and electric generation transition aid under section 477A.25 for school districts, shall be 
27.11 	certified to the Department of Education by the Department of Revenue. The amounts so 
27.12 	certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.

27.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

27.14 	Sec. 2. Minnesota Statutes 2022, section 290A.04, subdivision 2, is amended to read:
27.15 		Subd. 2.Homeowners; homestead credit refund. A claimant whose property taxes 
27.16 	payable are in excess of the percentage of the household income stated below shall pay an 
27.17 	amount equal to the percent of income shown for the appropriate household income level 
27.18 	along with the percent to be paid by the claimant of the remaining amount of property taxes 
27.19 	payable. The state refund equals the amount of property taxes payable that remain, up to 
27.20 	the state refund amount shown below.

27.2327.22
27.21
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
27.24
27.25	$0 to 1,739
$0 to 2,079
	1.0 percent
	15 percent
10 percent
	$
	2,770
3,310
	
27.26
27.27	1,740 to 3,459
2,080 to 4,139
	1.1 percent
	15 percent
10 percent
	$
	2,770
3,310
	
27.28
27.29	3,460 to 5,239
4,140 to 6,269
	1.2 percent
	15 percent
10 percent
	$
	2,770
3,310
	
27.30
27.31	5,240 to 6,989
6,270 to 8,369
	1.3 percent
	20 percent
15 percent
	$
	2,770
3,310
	
27.32
27.33	6,990 to 8,719
8,370 to 10,439
	1.4 percent
	20 percent
15 percent
	$
	2,770
3,310
	
27.34
27.35	8,720 to 12,219
10,440 to 14,619
	1.5 percent
	20 percent
15 percent
	$
	2,770
3,310
	
27.36
27.37	12,220 to 13,949
14,620 to 16,689
	1.6 percent
	20 percent
15 percent
	$
	2,770
3,310
	
28.1
28.2	13,950 to 15,709
16,690 to 18,799
	1.7 percent
	20 percent
15 percent
	$
	2,770
3,310
	
28.3
28.4	15,710 to 17,449
18,800 to 20,879
	1.8 percent
	20 percent
15 percent
	$
	2,770
3,310
	
28.5
28.6	17,450 to 19,179
20,880 to 22,949
	1.9 percent
	25 percent
20 percent
	$
	2,770
3,310
	
28.7
28.8	19,180 to 24,429
22,950 to 29,239
	2.0 percent
	25 percent
20 percent
	$
	2,770
3,310
	
28.928.10
	24,430 to 26,169
29,240 to 31,319
	2.0 percent
	30 percent
25 percent
	$
	2,770
3,310
	
28.11
28.12	26,170 to 29,669
31,320 to 35,509
	2.0 percent
	30 percent
25 percent
	$
	2,770
3,310
	
28.13
28.14	29,670 to 41,859
35,510 to 50,099
	2.0 percent
	35 percent
30 percent
	$
	2,770
3,310
	
28.15
28.16	41,860 to 61,049
50,100 to 73,059
	2.0 percent
	35 percent
30 percent
	$
	2,240
2,680
	
28.17
28.18	61,050 to 69,769
73,060 to 83,499
	2.0 percent
	40 percent
35 percent
	$
	1,960
2,350
	
28.19
28.20	69,770 to 78,499
83,500 to 93,939
	2.1 percent
	40 percent
35 percent
	$
	1,620
1,940
	
28.21
28.22	78,500 to 87,219
93,940 to 104,379
	2.2 percent
	40 percent
35 percent
	$
	1,450
1,740
	
28.23
28.24	87,220 to 95,939
104,380 to 114,819
	2.3 percent
	40 percent
35 percent
	$
	1,270
1,520
	
28.25
28.26	95,940 to 101,179
114,820 to 121,089
	2.4 percent
	45 percent
40 percent
	$
	1,070
1,280
	
28.27
28.28	101,180 to 104,689
121,090 to 125,289
	2.5 percent
	45 percent
40 percent
	$
	890
1,070
	
28.29
28.30	104,690 to 108,919
125,290 to 130,349
	2.5 percent
	50 percent
45 percent
	$
	730
870
	
28.31
28.32	108,920 to 113,149
130,350 to 135,409
	2.5 percent
	50 percent
45 percent
	$
	540
650
	
28.33 	The payment made to a claimant shall be the amount of the state refund calculated under 
28.34 	this subdivision. No payment is allowed if the claimant's household income is $113,150
28.35 	$135,410 or more.

28.36 	EFFECTIVE DATE. This section is effective for claims based on property taxes payable 
28.37 	in 2024 and following years.

28.38 	Sec. 3. Minnesota Statutes 2022, section 290A.04, subdivision 4, is amended to read:
28.39 		Subd. 4.Inflation adjustment.  The commissioner shall annually adjust the dollar 
28.40 	amounts of the income thresholds and the maximum refunds under subdivisions 2 and 2a 
29.1 	as provided in section 270C.22. The statutory year for subdivision 2 is 2023. The statutory 
29.2 	year for subdivision 2a is 2018.

29.3 	EFFECTIVE DATE. This section is effective for claims based on property taxes payable 
29.4 	in 2025 and thereafter.

29.5 	Sec. 4. Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision 
29.6 	to read:
29.7 		Subd. 3b.Population age 65 and over. "Population age 65 and over" means the 
29.8 	population age 65 and over established as of July 15 in an aid calculation year by the most 
29.9 	recent federal census, by a special census conducted under contract with the United States 
29.10 	Bureau of the Census, by a population estimate made by the Metropolitan Council, or by a 
29.11 	population estimate of the state demographer made pursuant to section 4A.02, whichever 
29.12 	is the most recent as to the stated date of the count or estimate for the preceding calendar 
29.13 	year and which has been certified to the commissioner of revenue on or before July 15 of 
29.14 	the aid calculation year. A revision to an estimate or count is effective for these purposes 
29.15 	only if certified to the commissioner on or before July 15 of the aid calculation year. Clerical 
29.16 	errors in the certification or use of estimates and counts established as of July 15 in the aid 
29.17 	calculation year are subject to correction within the time periods allowed under section 
29.18 	477A.014.

29.19 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
29.20 	and thereafter.

29.21 	Sec. 5. Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision 
29.22 	to read:
29.23 		Subd. 3c.Transformed population. "Transformed population" means the logarithm to 
29.24 	the base 10 of the population.

29.25 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
29.26 	and thereafter.

29.27 	Sec. 6. Minnesota Statutes 2022, section 477A.011, subdivision 34, is amended to read:
29.28 		Subd. 34.City revenue need. (a) For a city with a population equal to or greater than 
29.29 	10,000, "city revenue need" is 1.15 times the sum of (1) 4.59 8.572 times the pre-1940 
29.30 	housing percentage; plus (2) 0.622 times the percent of housing built between 1940 and 
29.31 	1970 11.494 times the city age index; plus (3) 169.415 times the jobs per capita 5.719 times 
30.1 	the commercial industrial utility percentage; plus (4) the sparsity adjustment 9.484 times 
30.2 	peak population decline; plus (5) 307.664 293.056.
30.3 	(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city 
30.4 	revenue need" is 1.15 times the sum of (1) 572.62 497.308; plus (2) 5.026 6.667 times the 
30.5 	pre-1940 housing percentage; minus plus (3) 53.768 times household size 9.215 times the 
30.6 	commercial industrial utility percentage; plus (4) 14.022 16.081 times peak population 
30.7 	decline; plus (5) the sparsity adjustment.
30.8 	(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1) 
30.9 	410 196.487; plus (2) 0.367 220.877 times the city's transformed population over 100; plus 
30.10 	(3) the sparsity adjustment. The city revenue need for a city under this paragraph shall not 
30.11 	exceed 630 plus the city's sparsity adjustment.
30.12 	(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue 
30.13 	need" equals (1) the transition factor times the city's revenue need calculated in paragraph 
30.14 	(b); plus (2) 630 the city's revenue need calculated under the formula in paragraph (c) times 
30.15 	the difference between one and the transition factor. For a city with a population of at least 
30.16 	10,000 but less than 11,000, the "city revenue need" equals (1) the transition factor times 
30.17 	the city's revenue need calculated in paragraph (a); plus (2) the city's revenue need calculated 
30.18 	under the formula in paragraph (b) times the difference between one and the transition 
30.19 	factor. For purposes of the first sentence of this paragraph "transition factor" is 0.2 percent 
30.20 	times the amount that the city's population exceeds the minimum threshold. For purposes 
30.21 	of the second sentence of this paragraph, "transition factor" is 0.1 percent times the amount 
30.22 	that the city's population exceeds the minimum threshold.
30.23 	(e) The city revenue need cannot be less than zero.
30.24 	(f) For calendar year 2015 2024 and subsequent years, the city revenue need for a city, 
30.25 	as determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price 
30.26 	deflator for government consumption expenditures and gross investment for state and local 
30.27 	governments as prepared by the United States Department of Commerce, for the most 
30.28 	recently available year to the 2013 2022 implicit price deflator for state and local government 
30.29 	purchases.

30.30 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
30.31 	and thereafter.

31.1 	Sec. 7. Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision 
31.2 	to read:
31.3 		Subd. 46.City age index. "City age index" means 100 times the ratio of (1) the population 
31.4 	age 65 and over within the city, to (2) the population of the city.

31.5 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
31.6 	and thereafter.

31.7 	Sec. 8. Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision 
31.8 	to read:
31.9 		Subd. 47.Commercial industrial utility percentage. The "commercial industrial utility 
31.10 	percentage" for a city is 100 times the ratio of (1) the sum of the estimated market values 
31.11 	of all real and personal property in the city classified as class 3 under section 273.13, 
31.12 	subdivision 24, to (2) the total market value of all taxable real and personal property in the 
31.13 	city. The market values are the amounts computed before any adjustments for fiscal 
31.14 	disparities under section 276A.06 or 473F.08. The market values used for this subdivision 
31.15 	are not equalized.

31.16 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
31.17 	and thereafter.

31.18 	Sec. 9. Minnesota Statutes 2022, section 477A.0124, subdivision 2, is amended to read:
31.19 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
31.20 	meanings given them.
31.21 	(b) "County program aid" means the sum of "county need aid," "county tax base 
31.22 	equalization aid," and "county transition aid."
31.23 	(c) "Age-adjusted population" means a county's population multiplied by the county age 
31.24 	index.
31.25 	(d) "County age index" means the percentage of the population age 65 and over within 
31.26 	the county divided by the percentage of the population age 65 and over within the state, 
31.27 	except that the age index for any county may not be greater than 1.8 nor less than 0.8.
31.28 	(e) "Population age 65 and over" means the population age 65 and over established as 
31.29 	of July 15 in an aid calculation year by the most recent federal census, by a special census 
31.30 	conducted under contract with the United States Bureau of the Census, by a population 
31.31 	estimate made by the Metropolitan Council, or by a population estimate of the state 
32.1 	demographer made pursuant to section 4A.02, whichever is the most recent as to the stated 
32.2 	date of the count or estimate for the preceding calendar year and which has been certified 
32.3 	to the commissioner of revenue on or before July 15 of the aid calculation year. A revision 
32.4 	to an estimate or count is effective for these purposes only if certified to the commissioner 
32.5 	on or before July 15 of the aid calculation year. Clerical errors in the certification or use of 
32.6 	estimates and counts established as of July 15 in the aid calculation year are subject to 
32.7 	correction within the time periods allowed under section 477A.014 has the meaning given 
32.8 	in section 477A.011, subdivision 3b.
32.9 	(f) "Part I crimes" means the three-year average annual number of Part I crimes reported 
32.10 	for each county by the Department of Public Safety for the most recent years available. By 
32.11 	July 1 of each year, the commissioner of public safety shall certify to the commissioner of 
32.12 	revenue the number of Part I crimes reported for each county for the three most recent 
32.13 	calendar years available.
32.14 	(g) "Households receiving Supplemental Nutrition Assistance Program (SNAP) benefits" 
32.15 	means the average monthly number of households receiving SNAP benefits for the three 
32.16 	most recent years for which data is available. By July 1 of each year, the commissioner of 
32.17 	human services must certify to the commissioner of revenue the average monthly number 
32.18 	of households in the state and in each county that receive SNAP benefits, for the three most 
32.19 	recent calendar years available.
32.20 	(h) "County net tax capacity" means the county's adjusted net tax capacity under section 
32.21 	273.1325.

32.22 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
32.23 	and thereafter.

32.24 	Sec. 10. Minnesota Statutes 2022, section 477A.013, subdivision 8, is amended to read:
32.25 		Subd. 8.City formula aid. (a) For aids payable in 2018 2024 and thereafter, the formula 
32.26 	aid for a city is equal to the product of (1) the difference between its unmet need and its 
32.27 	certified aid in the previous year and before any aid adjustment under subdivision 13, and 
32.28 	(2) the aid gap percentage.
32.29 	(b) The applicable aid gap percentage must be calculated by the Department of Revenue 
32.30 	so that the total of the aid under subdivision 9 equals the total amount available for aid under 
32.31 	section 477A.03. The aid gap percentage must be the same for all cities subject to paragraph 
32.32 	(a). Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be 
32.33 	the most recently available data as of January 1 in the year in which the aid is calculated.

33.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
33.2 	and thereafter.

33.3 	Sec. 11. Minnesota Statutes 2022, section 477A.013, subdivision 9, is amended to read:
33.4 		Subd. 9.City aid distribution. (a) In calendar year 2018 2024 and thereafter, if a city's 
33.5 	certified aid before any aid adjustment under subdivision 13 for the previous year is less 
33.6 	than its current unmet need, the city shall receive an aid distribution equal to the sum of (1) 
33.7 	its certified aid in the previous year before any aid adjustment under subdivision 13, and 
33.8 	(2) the city formula aid under subdivision 8, and (3) its aid adjustment under subdivision 
33.9 	13.
33.10 	(b) For aids payable in 2020 only, no city's aid amount before any adjustment under 
33.11 	subdivision 13 may be less than its pay 2019 certified aid amount, less any aid adjustment 
33.12 	under subdivision 13 for that year. For aids payable in 2020 2024 and thereafter, if a city's 
33.13 	certified aid before any aid adjustment under subdivision 13 for the previous year is equal 
33.14 	to or greater than its current unmet need, the total aid for a city is equal to the greater of (1) 
33.15 	its unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was 
33.16 	certified to receive in the previous year minus the sum of (i) any adjustment under subdivision 
33.17 	13 that was paid in the previous year but has expired, and (ii) the lesser of (i) $10 multiplied 
33.18 	by its population, or (ii) five percent of its net levy in the year prior to the aid distribution. 
33.19 	No city may have a total aid amount less than $0.

33.20 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
33.21 	and thereafter.

33.22 	Sec. 12. Minnesota Statutes 2022, section 477A.03, subdivision 2a, is amended to read:
33.23 		Subd. 2a.Cities. For aids payable in 2016 and 2017, the total aid paid under section 
33.24 	477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and 2019, the total aid 
33.25 	paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable in 2020, the 
33.26 	total aid paid under section 477A.013, subdivision 9, is $560,398,012. For aids payable in 
33.27 	2021 and thereafter through 2023, the total aid payable under section 477A.013, subdivision 
33.28 	9, is $564,398,012. For aids payable in 2024 and thereafter, the total aid payable under 
33.29 	section 477A.013, subdivision 9, is $664,398,012, multiplied by the inflation adjustment 
33.30 	under subdivision 6.

33.31 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
33.32 	and thereafter.

34.1 	Sec. 13. Minnesota Statutes 2022, section 477A.03, subdivision 2b, is amended to read:
34.2 		Subd. 2b.Counties. (a) For aids payable in 2018 and 2019, the total aid payable under 
34.3 	section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be allocated 
34.4 	as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2020, 
34.5 	the total aid payable under section 477A.0124, subdivision 3, is $116,795,000, of which 
34.6 	$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section 
34.7 	6. For aids payable in 2021 through 2024 2023, the total aid payable under section 
34.8 	477A.0124, subdivision 3, is $118,795,000, of which $3,000,000 shall be allocated as 
34.9 	required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2024, the 
34.10 	total aid payable under section 477A.0124, subdivision 3, is $163,679,459, of which 
34.11 	$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section 
34.12 	6. For aids payable in 2025 and thereafter, the total aid payable under section 477A.0124, 
34.13 	subdivision 3, is $115,795,000 $160,679,459, multiplied by the inflation adjustment under 
34.14 	subdivision 6. On or before the first installment date provided in section 477A.015, paragraph 
34.15 	(a), $500,000 of this appropriation shall be transferred each year by the commissioner of 
34.16 	revenue to the Board of Public Defense for the payment of services under section 611.27. 
34.17 	Any transferred amounts not expended or encumbered in a fiscal year shall be certified by 
34.18 	the Board of Public Defense to the commissioner of revenue on or before October 1 and 
34.19 	shall be included in the next certification of county need aid.
34.20 	(b) For aids payable in 2018 and 2019, the total aid under section 477A.0124, subdivision 
34.21 	4, is $130,873,444. For aids payable in 2020, the total aid under section 477A.0124, 
34.22 	subdivision 4, is $143,873,444. For aids payable in 2021 and thereafter through 2023, the 
34.23 	total aid under section 477A.0124, subdivision 4, is $145,873,444. For aids payable in 2024 
34.24 	and thereafter, the total aid under section 477A.0124, subdivision 4, is $200,988,985, 
34.25 	multiplied by the inflation adjustment under subdivision 6. The commissioner of revenue 
34.26 	shall transfer to the Legislative Budget Office $207,000 annually for the cost of preparation 
34.27 	of local impact notes as required by section 3.987, and other local government activities. 
34.28 	The commissioner of revenue shall transfer to the commissioner of education $7,000 annually 
34.29 	for the cost of preparation of local impact notes for school districts as required by section 
34.30 	3.987. The commissioner of revenue shall deduct the amounts transferred under this 
34.31 	paragraph from the appropriation under this paragraph. The amounts transferred are 
34.32 	appropriated to the Legislative Coordinating Commission and the commissioner of education 
34.33 	respectively.

34.34 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
34.35 	and thereafter.

35.1 	Sec. 14. Minnesota Statutes 2022, section 477A.03, is amended by adding a subdivision 
35.2 	to read:
35.3 		Subd. 6.Inflation adjustment. In 2025 and thereafter, the amounts paid under 
35.4 	subdivisions 2a and 2b must be increased by an amount equal to one plus the sum of (1) 
35.5 	the percentage increase in the implicit price deflator for government expenditures and gross 
35.6 	investment for state and local government purchases as prepared by the United States 
35.7 	Department of Commerce for the 12-month period ending March 31 of the previous calendar 
35.8 	year, and (2) the percentage increase in total city population for the most recently available 
35.9 	years as of January 15 of the current year. The percentage increase in this subdivision must 
35.10 	not be less than 2.5 percent or greater than five percent.

35.11 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
35.12 	and thereafter.

35.13 	Sec. 15. Minnesota Statutes 2022, section 477A.12, subdivision 1, is amended to read:
35.14 		Subdivision 1.Types of land; payments.  The following amounts are annually 
35.15 	appropriated to the commissioner of natural resources from the general fund for transfer to 
35.16 	the commissioner of revenue. The commissioner of revenue shall pay the transferred funds 
35.17 	to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage 
35.18 	as of July 1 of each year prior to the payment year, are:
35.19 	(1) $5.133 multiplied by the total number of acres of acquired natural resources land or, 
35.20 	at the county's option three-fourths of one percent of the appraised value of all acquired 
35.21 	natural resources land in the county, whichever is greater;
35.22 	(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the 
35.23 	county's option, three-fourths of one percent of the appraised value of all transportation 
35.24 	wetland in the county, whichever is greater;
35.25 	(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at 
35.26 	the county's option, three-fourths of one percent of the appraised value of all wildlife 
35.27 	management land in the county, whichever is greater;
35.28 	(4) 50 percent of the dollar amount as determined under clause (1), multiplied by the 
35.29 	number of acres of military refuge land in the county;
35.30 	(5) $2 $3, multiplied by the number of acres of county-administered other natural 
35.31 	resources land in the county;
36.1 	(6) $5.133, multiplied by the total number of acres of land utilization project land in the 
36.2 	county;
36.3 	(7) $2 $3, multiplied by the number of acres of commissioner-administered other natural 
36.4 	resources land in the county; and
36.5 	(8) $0.18, multiplied by the total number of acres in the county eligible for payment 
36.6 	under clauses (1) to (7), provided that the total number of acres in the county eligible for 
36.7 	payment under clauses (1) to (7) is equal to or greater than 25 percent of the total acreage 
36.8 	in the county;
36.9 	(9) $0.08, multiplied by the total number of acres in the county eligible for payment 
36.10 	under clauses (1) to (7), provided that the total number of acres in the county eligible for 
36.11 	payment under clauses (1) to (7) is equal to or greater than ten percent, but less than 25 
36.12 	percent of the total acreage in the county; and
36.13 	(10) without regard to acreage, and notwithstanding the rules adopted under section 
36.14 	84A.55, $300,000 for local assessments under section 84A.55, subdivision 9, that shall be 
36.15 	divided and distributed to the counties containing state-owned lands within a conservation 
36.16 	area in proportion to each county's percentage of the total annual ditch assessments.

36.17 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

36.18 	Sec. 16. Minnesota Statutes 2022, section 477A.12, subdivision 3, is amended to read:
36.19 		Subd. 3.Determination of appraised value. For the purposes of this section, the 
36.20 	appraised value of acquired natural resources land is the purchase price until the next six-year 
36.21 	appraisal required under this subdivision. The appraised value of acquired natural resources 
36.22 	land received as a donation is the value determined for the commissioner of natural resources 
36.23 	by a licensed appraiser, or the county assessor's estimated market value if no appraisal is 
36.24 	done. The appraised value must be determined by the county assessor every six years, except 
36.25 	that the appraised value shall not be less than the most recent appraised value. All reappraisals 
36.26 	shall be done in the same year as county assessors are required to assess exempt land under 
36.27 	section 273.18.

36.28 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

36.29 	Sec. 17. Minnesota Statutes 2022, section 477A.12, is amended by adding a subdivision 
36.30 	to read:
36.31 		Subd. 4.Adjustment. The commissioner shall annually adjust the amounts in subdivision 
36.32 	1, clauses (1) to (10), as provided in section 270C.22, subdivision 1, except as provided in 
37.1 	this subdivision. To determine the dollar amounts for payments in calendar year 2025, the 
37.2 	commissioner shall determine the percentage change in the index for the 12-month period 
37.3 	ending on August 31, 2024, and increase each of the unrounded dollar amounts in section 
37.4 	477A.12, subdivision 1, by that percentage change. For each subsequent year, the 
37.5 	commissioner shall increase the dollar amounts by the percentage change in the index from 
37.6 	August 31 of the year preceding the statutory year, to August 31 of the year preceding the 
37.7 	taxable year. The commissioner shall round the amounts as adjusted to the nearest tenth of 
37.8 	a cent.

37.9 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

37.10 	Sec. 18. [477A.23] SOIL AND WATER CONSERVATION DISTRICT AID.
37.11 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
37.12 	meanings given:
37.13 	(1) "adjusted population" means the cube root of the district's population, according to 
37.14 	the most recent federal decennial census;
37.15 	(2) "nonpublic lands" means "real property" as defined by section 272.03 that is not 
37.16 	owned by the federal government, the state, or a local government unit; and
37.17 	(3) "soil and water conservation district" means a district created by chapter 103C, and 
37.18 	that is implementing the duties under that chapter as determined by the Board of Water and 
37.19 	Soil Resources as of the board's certification to the commissioner of revenue required by 
37.20 	subdivision 4.
37.21 		Subd. 2.Purpose. The purpose of this section is to provide ongoing financial support 
37.22 	to soil and water conservation districts to aid in the execution of chapter 103C and other 
37.23 	duties and services prescribed by statute.
37.24 		Subd. 3.Distribution. The Board of Water and Soil Resources must calculate the amount 
37.25 	of aid to be distributed to the certified soil and water conservation districts from the 
37.26 	appropriation in subdivision 7 as follows:
37.27 	(1) 70 percent of the appropriation must be distributed equally among the districts;
37.28 	(2) 20 percent of the appropriation must be distributed proportionally among the districts 
37.29 	according to the amount of nonpublic land located in a district as compared to the amount 
37.30 	of nonpublic land in the state; and
38.1 	(3) ten percent of the appropriation must be distributed proportionally among the districts 
38.2 	based on the adjusted population of each district, divided by the sum of the adjusted 
38.3 	population for all districts.
38.4 		Subd. 4.Certification to commissioner. On or before June 1 each year, the Board of 
38.5 	Water and Soil Resources must certify to the commissioner of revenue the soil and water 
38.6 	conservation districts that will receive a payment under this section and the amount of each 
38.7 	payment.
38.8 		Subd. 5.Use of proceeds. (a) Notwithstanding section 103C.401, subdivision 2, a soil 
38.9 	and water conservation district that receives a distribution under this section must use the 
38.10 	proceeds to implement chapter 103C and other duties and services as prescribed by statute.
38.11 	(b) The board of each soil and water conservation district must establish, by resolution, 
38.12 	annual guidelines for using payments received under this section. Current year guidelines 
38.13 	and guidelines from the year immediately prior must be posted on the district's website.
38.14 	(c) A soil and water conservation district that receives a payment under this section may 
38.15 	use the proceeds directly or may appropriate any portion of the payment to a governmental 
38.16 	unit with which the district has a cooperative agreement under section 103C.231. Any 
38.17 	payment received under this section and appropriated by the district must be used as required 
38.18 	under this subdivision.
38.19 		Subd. 6.Payments. The commissioner of revenue must distribute soil and water 
38.20 	conservation district aid in the same manner and at the same times as aid payments provided 
38.21 	under section 477A.015.
38.22 		Subd. 7.Appropriation. $16,000,000 is annually appropriated from the general fund 
38.23 	to the commissioner of revenue to make the payments required under this section.
38.24 		Subd. 8.Aid amount corrections. If there is a clerical error made in calculating an aid 
38.25 	payment under this section, the Board of Water and Soil Resources shall recertify the correct 
38.26 	amounts to the commissioner of revenue and communicate the error and the corrected 
38.27 	amount to the affected soil and water conservation district as soon as practical after the error 
38.28 	is discovered.

38.29 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2023 and 
38.30 	thereafter.

39.1 	Sec. 19. [477A.25] ELECTRIC GENERATION TRANSITION AID.
39.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
39.3 	the meanings given.
39.4 	(b) "Electric generating unit" means a single generating unit at an electric generating 
39.5 	plant powered by coal, nuclear, or natural gas.
39.6 	(c) "Electric generation property" means taxable property of an electric generating plant 
39.7 	owned by a public utility, as defined in section 216B.02, subdivision 4, that is powered by 
39.8 	coal, nuclear, or natural gas and located in an eligible taxing jurisdiction.
39.9 	(d) "Eligible taxing jurisdiction" means a county, home rule charter or statutory city, 
39.10 	town, or school district.
39.11 	(e) "Unit base year" means the assessment year in which the assessed value of electric 
39.12 	generation property is reduced due to the retirement of the electric generating unit.
39.13 	(f) "Unit differential" means (1) the tax capacity of electric generation property in the 
39.14 	assessment year preceding the unit base year, minus (2) the tax capacity of electric generation 
39.15 	property in the unit base year. The unit differential may not be less than zero. The unit 
39.16 	differential equals zero if the tax capacity of electric generation property in the eligible 
39.17 	taxing jurisdiction in the assessment year preceding the unit base year is less than four 
39.18 	percent of the total net tax capacity of the eligible taxing jurisdiction in the assessment year 
39.19 	preceding the aid calculation year, as adjusted under section 473F.08, subdivision 2, or 
39.20 	276A.06, subdivision 2, as applicable, except that, in an eligible taxing jurisdiction with 
39.21 	multiple electric generating units, only the unit differential calculated upon the first retirement 
39.22 	of an electric generating unit in that jurisdiction following the effective date of this section 
39.23 	is subject to the reduction under this sentence.
39.24 		Subd. 2.Required notification. Notwithstanding the requirements of Minnesota Rules, 
39.25 	chapter 8100, a public utility must notify the commissioner when the public utility expects 
39.26 	to retire an electric generating unit and remove that unit from the property tax base. The 
39.27 	notification must be in the form and manner determined by the commissioner, include 
39.28 	information required by the commissioner to calculate transition aid under this section, and 
39.29 	be filed together with the reports required under section 273.371.
39.30 		Subd. 3.Unit transition amount. (a) The initial unit transition amount equals the product 
39.31 	of (1) the unit differential, times (2) the jurisdiction's tax rate for taxes payable in the unit 
39.32 	base year.
40.1 	(b) The unit transition amount for the year following the unit base year, or in the year 
40.2 	as provided under subdivision 6, equals the initial unit transition amount. Unit transition 
40.3 	amounts in subsequent years must be reduced each year by an amount equal to five percent 
40.4 	of the initial unit transition amount. If the unit transition amount attributable to any unit is 
40.5 	less than $5,000 in any year, the unit transition amount for that unit equals zero.
40.6 		Subd. 4.Electric generation transition aid. Electric generation transition aid for an 
40.7 	eligible taxing jurisdiction equals the sum of the unit transition amounts for that jurisdiction.
40.8 		Subd. 5.Aid elimination. (a) Notwithstanding subdivision 4, beginning for aid in the 
40.9 	year after the year in which the jurisdiction first qualified for aid, aid for an eligible taxing 
40.10 	jurisdiction equals zero if the commissioner determines that the eligible taxing jurisdiction's 
40.11 	total net tax capacity in the assessment year preceding the aid calculation year is greater 
40.12 	than the product of:
40.13 	(1) 90 percent of the jurisdiction's total net tax capacity in the assessment year preceding 
40.14 	the aid calculation year in which the jurisdiction first qualified for aid under this section; 
40.15 	times
40.16 	(2) the greater of one or the ratio of (i) the statewide total net tax capacity of real and 
40.17 	personal property in the assessment year preceding the aid calculation year to (ii) the 
40.18 	statewide total net tax capacity of real and personal property in the assessment year preceding 
40.19 	the aid calculation year in which the jurisdiction first qualified for aid under this section.
40.20 	(b) For the purposes of this subdivision, "net tax capacity" means net tax capacity as 
40.21 	adjusted under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable.
40.22 	(c) If aid to a jurisdiction attributable to a previous unit retirement has been eliminated 
40.23 	under this subdivision, the jurisdiction may qualify for aid under this section for subsequent 
40.24 	unit retirements.
40.25 	(d) The requirements of this subdivision do not apply to the aid attributable to prior unit 
40.26 	retirements qualifying under subdivision 7.
40.27 		Subd. 6.Commissioner's duties; payment schedule. (a) The commissioner of revenue 
40.28 	shall compute the amount of electric generation transition aid payable to each jurisdiction 
40.29 	under this section. On or before August 1 of each year, the commissioner shall certify the 
40.30 	amount of aid computed for aids payable in the following year for each jurisdiction. The 
40.31 	commissioner shall pay aid to each jurisdiction other than school districts annually at the 
40.32 	times provided in section 477A.015. Aids to school districts must be certified to the 
40.33 	commissioner of education and paid under section 273.1392.
41.1 	(b) The commissioner of revenue may require counties to provide any data that the 
41.2 	commissioner deems necessary to administer this section.
41.3 		Subd. 7.Aid for prior unit retirements. An electric generating unit with a unit base 
41.4 	year after 2016 but before 2023 must be counted for the purpose of calculating aid under 
41.5 	this section. For a unit eligible to be counted under this subdivision and for the purpose of 
41.6 	the schedule of amounts under subdivision 3, paragraph (b), the unit base year is 2023.
41.7 		Subd. 8.Appropriation. An amount sufficient to make the aid payments required by 
41.8 	this section to eligible taxing jurisdictions other than school districts is annually appropriated 
41.9 	from the general fund to the commissioner of revenue. An amount sufficient to make the 
41.10 	aid payments required by this section for school districts is annually appropriated from the 
41.11 	general fund to the commissioner of education.

41.12 	EFFECTIVE DATE. This section is effective for aids payable in 2024 and thereafter.

41.13 	Sec. 20. [477A.31] MAHNOMEN PROPERTY TAX REIMBURSEMENT AID.
41.14 		Subdivision 1.Aid appropriation. (a) The commissioner of revenue shall make 
41.15 	reimbursement aid payments to compensate for the loss of property tax revenue related to 
41.16 	the trust conversion application of the Shooting Star Casino. The commissioner shall pay 
41.17 	the county of Mahnomen, $900,000; the city of Mahnomen, $320,000; and Independent 
41.18 	School District No. 432, Mahnomen, $140,000.
41.19 	(b) The payments shall be made annually on July 20.
41.20 		Subd. 2.Appropriation. An amount sufficient to pay reimbursement aid under this 
41.21 	section is annually appropriated from the general fund to the commissioner of revenue.

41.22 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
41.23 	and thereafter.

41.24 	Sec. 21. Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter 
41.25 	154, article 1, section 4, and Laws 2013, chapter 143, article 2, section 33, is amended to 
41.26 	read:
41.27 	Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT, 
41.28 	PROPERTY TAX REIMBURSEMENT.
 41.29 		Subdivision 1. Aid appropriation. (a) $1,200,000 is appropriated annually from the 
41.30 	general fund to the commissioner of revenue to be used to make payments to compensate 
41.31 	for the loss of property tax revenue related to the trust conversion application of the Shooting 
42.1 	Star Casino. The commissioner shall pay the county of Mahnomen, $900,000; the city of 
42.2 	Mahnomen, $160,000; and Independent School District No. 432, Mahnomen, $140,000. 
42.3 	The payments shall be made on July 20, of 2013 and each subsequent year.
42.4 	(b) This section expires after aids payable year 2023.

42.5 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
42.6 	and thereafter.

42.7 	Sec. 22. STUDY OF STATE-OWNED LAKESHORE.
 42.8 	No later than January 31, 2024, the commissioner of revenue, in consultation with the 
42.9 	Department of Natural Resources and counties, must produce a report on valuation methods 
42.10 	used to value the acreage and shoreline areas within all commissioner-administered and 
42.11 	county-administered other natural resources land, as defined in Minnesota Statutes, section 
42.12 	477A.11, subdivision 4. The report must comply with the requirements of Minnesota Statutes, 
42.13 	sections 3.195 and 3.197. The report must include, by county, the most recent assessed 
42.14 	value and acreage, and the assessed value and acreage for the two most recent assessments, 
42.15 	as required under Minnesota Statutes, section 273.18, paragraph (b), aggregated by parcels 
42.16 	containing shoreline and by parcels not containing shoreline area. Counties must report to 
42.17 	the commissioner of revenue any necessary data by September 30, 2023. The commissioner 
42.18 	must provide a copy of the report to the chairs and ranking minority members of the 
42.19 	legislative committees with jurisdiction over taxes and property taxation by January 31, 
42.20 	2024.

42.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

42.22 	Sec. 23. 2021 AID PENALTY FORGIVENESS; CITY OF ECHO.
 42.23 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Echo 
42.24 	must receive its aid payment for calendar year 2021 under Minnesota Statutes, section 
42.25 	477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, 
42.26 	and its small city assistance payment for calendar year 2021 under Minnesota Statutes, 
42.27 	section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision 
42.28 	3, paragraph (c), provided that the state auditor certifies to the commissioner of revenue 
42.29 	that it received the annual financial reporting form for 2020 from the city by June 1, 2023. 
42.30 	The commissioner of revenue must make a payment of $46,060 to the city by June 30, 2023.

42.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.1 	Sec. 24. 2021 AID PENALTY FORGIVENESS; CITY OF MORTON.
 43.2 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Morton 
43.3 	must receive its aid payment for calendar year 2021 under Minnesota Statutes, section 
43.4 	477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, 
43.5 	and its small city assistance payment for calendar year 2021 under Minnesota Statutes, 
43.6 	section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision 
43.7 	3, paragraph (c), provided that the state auditor certifies to the commissioner of revenue 
43.8 	that it received the annual financial reporting form for 2020 from the city by June 1, 2023. 
43.9 	The commissioner of revenue must make a payment of $79,476 to the city by June 30, 2023.

43.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.11 	Sec. 25. REPEALER.
 43.12 	Minnesota Statutes 2022, sections 477A.011, subdivisions 30a, 38, 42, and 45; and 
43.13 	477A.013, subdivision 13, are repealed.

43.14 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
43.15 	and thereafter.

43.16 	ARTICLE 4
43.17 	RENTER'S CREDIT

43.18 	Section 1. Minnesota Statutes 2022, section 10A.31, subdivision 1, is amended to read:
43.19 		Subdivision 1.Designation. An individual resident of this state who files an income tax 
43.20 	return or a renter and, homeowner property tax refund return, or simplified renter's credit 
43.21 	return under section 290.0693 with the commissioner of revenue may designate on their 
43.22 	original return that $5 be paid from the general fund of the state into the state elections 
43.23 	campaign account. If a husband and wife spouses file a joint return, each spouse may 
43.24 	designate that $5 be paid. No individual is allowed to designate $5 more than once in any 
43.25 	year. The taxpayer may designate that the amount be paid into the account of a political 
43.26 	party or into the general account.

43.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
43.28 	31, 2023.

43.29 	Sec. 2. Minnesota Statutes 2022, section 10A.31, subdivision 3, is amended to read:
43.30 		Subd. 3.Form. The commissioner of revenue must provide on the first page of the 
43.31 	income tax form and the renter and, homeowner property tax refund return, and simplified 
44.1 	renter's credit return under section 290.0693 a space for the individual to indicate a wish to 
44.2 	pay $5 ($10 if filing a joint return) from the general fund of the state to finance election 
44.3 	campaigns. The form must also contain language prepared by the commissioner that permits 
44.4 	the individual to direct the state to pay the $5 (or $10 if filing a joint return) to: (1) one of 
44.5 	the major political parties; (2) any minor political party that qualifies under subdivision 3a; 
44.6 	or (3) all qualifying candidates as provided by subdivision 7. The renter and homeowner 
44.7 	property tax refund return must include instructions that the individual filing the return may 
44.8 	designate $5 on the return only if the individual has not designated $5 on the income tax 
44.9 	return or simplified renter's credit return under section 290.0693.

44.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
44.11 	31, 2023.

44.12 	Sec. 3. Minnesota Statutes 2022, section 13.46, subdivision 2, is amended to read:
44.13 		Subd. 2.General. (a) Data on individuals collected, maintained, used, or disseminated 
44.14 	by the welfare system are private data on individuals, and shall not be disclosed except:
44.15 	(1) according to section 13.05;
44.16 	(2) according to court order;
44.17 	(3) according to a statute specifically authorizing access to the private data;
44.18 	(4) to an agent of the welfare system and an investigator acting on behalf of a county, 
44.19 	the state, or the federal government, including a law enforcement person or attorney in the 
44.20 	investigation or prosecution of a criminal, civil, or administrative proceeding relating to the 
44.21 	administration of a program;
44.22 	(5) to personnel of the welfare system who require the data to verify an individual's 
44.23 	identity; determine eligibility, amount of assistance, and the need to provide services to an 
44.24 	individual or family across programs; coordinate services for an individual or family; 
44.25 	evaluate the effectiveness of programs; assess parental contribution amounts; and investigate 
44.26 	suspected fraud;
44.27 	(6) to administer federal funds or programs;
44.28 	(7) between personnel of the welfare system working in the same program;
44.29 	(8) to the Department of Revenue to assess parental contribution amounts for purposes 
44.30 	of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs 
44.31 	and to identify individuals who may benefit from these programs. The following information 
44.32 	may be disclosed under this paragraph: an individual's and their dependent's names, dates 
45.1 	of birth, Social Security numbers, income, addresses, and other data as required, upon 
45.2 	request by the Department of Revenue. Disclosures by the commissioner of revenue to the 
45.3 	commissioner of human services for the purposes described in this clause are governed by 
45.4 	section 270B.14, subdivision 1. Tax refund or tax credit programs include, but are not limited 
45.5 	to, the dependent care credit under section 290.067, the Minnesota working family credit 
45.6 	under section 290.0671, the property tax refund and rental credit under section 290A.04, 
45.7 	and the Minnesota education credit under section 290.0674;
45.8 	(9) between the Department of Human Services, the Department of Employment and 
45.9 	Economic Development, and when applicable, the Department of Education, for the following 
45.10 	purposes:
45.11 	(i) to monitor the eligibility of the data subject for unemployment benefits, for any 
45.12 	employment or training program administered, supervised, or certified by that agency;
45.13 	(ii) to administer any rehabilitation program or child care assistance program, whether 
45.14 	alone or in conjunction with the welfare system;
45.15 	(iii) to monitor and evaluate the Minnesota family investment program or the child care 
45.16 	assistance program by exchanging data on recipients and former recipients of Supplemental 
45.17 	Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D, 
45.18 	256J, or 256K, child care assistance under chapter 119B, medical programs under chapter 
45.19 	256B or 256L, or a medical program formerly codified under chapter 256D; and
45.20 	(iv) to analyze public assistance employment services and program utilization, cost, 
45.21 	effectiveness, and outcomes as implemented under the authority established in Title II, 
45.22 	Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999. 
45.23 	Health records governed by sections 144.291 to 144.298 and "protected health information" 
45.24 	as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code 
45.25 	of Federal Regulations, title 45, parts 160-164, including health care claims utilization 
45.26 	information, must not be exchanged under this clause;
45.27 	(10) to appropriate parties in connection with an emergency if knowledge of the 
45.28 	information is necessary to protect the health or safety of the individual or other individuals 
45.29 	or persons;
45.30 	(11) data maintained by residential programs as defined in section 245A.02 may be 
45.31 	disclosed to the protection and advocacy system established in this state according to Part 
45.32 	C of Public Law 98-527 to protect the legal and human rights of persons with developmental 
45.33 	disabilities or other related conditions who live in residential facilities for these persons if 
45.34 	the protection and advocacy system receives a complaint by or on behalf of that person and 
46.1 	the person does not have a legal guardian or the state or a designee of the state is the legal 
46.2 	guardian of the person;
46.3 	(12) to the county medical examiner or the county coroner for identifying or locating 
46.4 	relatives or friends of a deceased person;
46.5 	(13) data on a child support obligor who makes payments to the public agency may be 
46.6 	disclosed to the Minnesota Office of Higher Education to the extent necessary to determine 
46.7 	eligibility under section 136A.121, subdivision 2, clause (5);
46.8 	(14) participant Social Security numbers and names collected by the telephone assistance 
46.9 	program may be disclosed to the Department of Revenue to conduct an electronic data 
46.10 	match with the property tax refund database to determine eligibility under section 237.70, 
46.11 	subdivision 4a;
46.12 	(15) the current address of a Minnesota family investment program participant may be 
46.13 	disclosed to law enforcement officers who provide the name of the participant and notify 
46.14 	the agency that:
46.15 	(i) the participant:
46.16 	(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after 
46.17 	conviction, for a crime or attempt to commit a crime that is a felony under the laws of the 
46.18 	jurisdiction from which the individual is fleeing; or
46.19 	(B) is violating a condition of probation or parole imposed under state or federal law;
46.20 	(ii) the location or apprehension of the felon is within the law enforcement officer's 
46.21 	official duties; and
46.22 	(iii) the request is made in writing and in the proper exercise of those duties;
46.23 	(16) the current address of a recipient of general assistance may be disclosed to probation 
46.24 	officers and corrections agents who are supervising the recipient and to law enforcement 
46.25 	officers who are investigating the recipient in connection with a felony level offense;
46.26 	(17) information obtained from a SNAP applicant or recipient households may be 
46.27 	disclosed to local, state, or federal law enforcement officials, upon their written request, for 
46.28 	the purpose of investigating an alleged violation of the Food and Nutrition Act, according 
46.29 	to Code of Federal Regulations, title 7, section 272.1(c);
46.30 	(18) the address, Social Security number, and, if available, photograph of any member 
46.31 	of a household receiving SNAP benefits shall be made available, on request, to a local, state, 
47.1 	or federal law enforcement officer if the officer furnishes the agency with the name of the 
47.2 	member and notifies the agency that:
47.3 	(i) the member:
47.4 	(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a 
47.5 	crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
47.6 	(B) is violating a condition of probation or parole imposed under state or federal law; 
47.7 	or
47.8 	(C) has information that is necessary for the officer to conduct an official duty related 
47.9 	to conduct described in subitem (A) or (B);
47.10 	(ii) locating or apprehending the member is within the officer's official duties; and
47.11 	(iii) the request is made in writing and in the proper exercise of the officer's official duty;
47.12 	(19) the current address of a recipient of Minnesota family investment program, general 
47.13 	assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing, 
47.14 	provide the name of the recipient and notify the agency that the recipient is a person required 
47.15 	to register under section 243.166, but is not residing at the address at which the recipient is 
47.16 	registered under section 243.166;
47.17 	(20) certain information regarding child support obligors who are in arrears may be 
47.18 	made public according to section 518A.74;
47.19 	(21) data on child support payments made by a child support obligor and data on the 
47.20 	distribution of those payments excluding identifying information on obligees may be 
47.21 	disclosed to all obligees to whom the obligor owes support, and data on the enforcement 
47.22 	actions undertaken by the public authority, the status of those actions, and data on the income 
47.23 	of the obligor or obligee may be disclosed to the other party;
47.24 	(22) data in the work reporting system may be disclosed under section 256.998, 
47.25 	subdivision 7;
47.26 	(23) to the Department of Education for the purpose of matching Department of Education 
47.27 	student data with public assistance data to determine students eligible for free and 
47.28 	reduced-price meals, meal supplements, and free milk according to United States Code, 
47.29 	title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state 
47.30 	funds that are distributed based on income of the student's family; and to verify receipt of 
47.31 	energy assistance for the telephone assistance plan;
48.1 	(24) the current address and telephone number of program recipients and emergency 
48.2 	contacts may be released to the commissioner of health or a community health board as 
48.3 	defined in section 145A.02, subdivision 5, when the commissioner or community health 
48.4 	board has reason to believe that a program recipient is a disease case, carrier, suspect case, 
48.5 	or at risk of illness, and the data are necessary to locate the person;
48.6 	(25) to other state agencies, statewide systems, and political subdivisions of this state, 
48.7 	including the attorney general, and agencies of other states, interstate information networks, 
48.8 	federal agencies, and other entities as required by federal regulation or law for the 
48.9 	administration of the child support enforcement program;
48.10 	(26) to personnel of public assistance programs as defined in section 256.741, for access 
48.11 	to the child support system database for the purpose of administration, including monitoring 
48.12 	and evaluation of those public assistance programs;
48.13 	(27) to monitor and evaluate the Minnesota family investment program by exchanging 
48.14 	data between the Departments of Human Services and Education, on recipients and former 
48.15 	recipients of SNAP benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child 
48.16 	care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a 
48.17 	medical program formerly codified under chapter 256D;
48.18 	(28) to evaluate child support program performance and to identify and prevent fraud 
48.19 	in the child support program by exchanging data between the Department of Human Services, 
48.20 	Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b), 
48.21 	without regard to the limitation of use in paragraph (c), Department of Health, Department 
48.22 	of Employment and Economic Development, and other state agencies as is reasonably 
48.23 	necessary to perform these functions;
48.24 	(29) counties and the Department of Human Services operating child care assistance 
48.25 	programs under chapter 119B may disseminate data on program participants, applicants, 
48.26 	and providers to the commissioner of education;
48.27 	(30) child support data on the child, the parents, and relatives of the child may be 
48.28 	disclosed to agencies administering programs under titles IV-B and IV-E of the Social 
48.29 	Security Act, as authorized by federal law;
48.30 	(31) to a health care provider governed by sections 144.291 to 144.298, to the extent 
48.31 	necessary to coordinate services;
49.1 	(32) to the chief administrative officer of a school to coordinate services for a student 
49.2 	and family; data that may be disclosed under this clause are limited to name, date of birth, 
49.3 	gender, and address;
49.4 	(33) to county correctional agencies to the extent necessary to coordinate services and 
49.5 	diversion programs; data that may be disclosed under this clause are limited to name, client 
49.6 	demographics, program, case status, and county worker information; or
49.7 	(34) between the Department of Human Services and the Metropolitan Council for the 
49.8 	following purposes:
49.9 	(i) to coordinate special transportation service provided under section 473.386 with 
49.10 	services for people with disabilities and elderly individuals funded by or through the 
49.11 	Department of Human Services; and
49.12 	(ii) to provide for reimbursement of special transportation service provided under section 
49.13 	473.386.
49.14 	The data that may be shared under this clause are limited to the individual's first, last, and 
49.15 	middle names; date of birth; residential address; and program eligibility status with expiration 
49.16 	date for the purposes of informing the other party of program eligibility.
49.17 	(b) Information on persons who have been treated for drug or alcohol abuse may only 
49.18 	be disclosed according to the requirements of Code of Federal Regulations, title 42, sections 
49.19 	2.1 to 2.67.
49.20 	(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), 
49.21 	(17), or (18), or paragraph (b), are investigative data and are confidential or protected 
49.22 	nonpublic while the investigation is active. The data are private after the investigation 
49.23 	becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
49.24 	(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are 
49.25 	not subject to the access provisions of subdivision 10, paragraph (b).
49.26 	For the purposes of this subdivision, a request will be deemed to be made in writing if 
49.27 	made through a computer interface system.

49.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
49.29 	31, 2023.

49.30 	Sec. 4. Minnesota Statutes 2022, section 270B.12, subdivision 8, is amended to read:
49.31 		Subd. 8.County assessors; homestead classification and renter renter's credit. The 
49.32 	commissioner may disclose names and Social Security numbers of individuals who have 
50.1 	applied for both homestead classification under section 273.13 and a property tax refund 
50.2 	as a renter under chapter 290A renter's credit under section 290.0693 for the purpose of and 
50.3 	to the extent necessary to administer section 290A.25.

50.4 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
50.5 	and following years.

50.6 	Sec. 5. Minnesota Statutes 2022, section 270B.14, subdivision 1, is amended to read:
50.7 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
50.8 	the commissioner of human services, the commissioner shall disclose return information 
50.9 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
50.10 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
50.11 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
50.12 	employment, income, and property of a person owing or alleged to be owing an obligation 
50.13 	of child support.
50.14 	(c) The commissioner of human services may request data only for the purposes of 
50.15 	carrying out the child support enforcement program and to assist in the location of parents 
50.16 	who have, or appear to have, deserted their children. Data received may be used only as set 
50.17 	forth in section 256.978.
50.18 	(d) The commissioner shall provide the records and information necessary to administer 
50.19 	the supplemental housing allowance to the commissioner of human services.
50.20 	(e) At the request of the commissioner of human services, the commissioner of revenue 
50.21 	shall electronically match the Social Security numbers and names of participants in the 
50.22 	telephone assistance plan operated under sections 237.69 to 237.71, with those of property 
50.23 	tax refund filers under chapter 290A or renter's credit filers under section 290.0693, and 
50.24 	determine whether each participant's household income is within the eligibility standards 
50.25 	for the telephone assistance plan.
50.26 	(f) The commissioner may provide records and information collected under sections 
50.27 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
50.28 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
50.29 	102-234. Upon the written agreement by the United States Department of Health and Human 
50.30 	Services to maintain the confidentiality of the data, the commissioner may provide records 
50.31 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
50.32 	Medicaid Services section of the United States Department of Health and Human Services 
50.33 	for purposes of meeting federal reporting requirements.
51.1 	(g) The commissioner may provide records and information to the commissioner of 
51.2 	human services as necessary to administer the early refund of refundable tax credits.
51.3 	(h) The commissioner may disclose information to the commissioner of human services 
51.4 	as necessary for income verification for eligibility and premium payment under the 
51.5 	MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical 
51.6 	assistance program under chapter 256B.
51.7 	(i) The commissioner may disclose information to the commissioner of human services 
51.8 	necessary to verify whether applicants or recipients for the Minnesota family investment 
51.9 	program, general assistance, the Supplemental Nutrition Assistance Program (SNAP), 
51.10 	Minnesota supplemental aid program, and child care assistance have claimed refundable 
51.11 	tax credits under chapter 290 and the property tax refund under chapter 290A, and the 
51.12 	amounts of the credits.
51.13 	(j) The commissioner may disclose information to the commissioner of human services 
51.14 	necessary to verify income for purposes of calculating parental contribution amounts under 
51.15 	section 252.27, subdivision 2a.

51.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
51.17 	31, 2023.

51.18 	Sec. 6. Minnesota Statutes 2022, section 270C.445, subdivision 2, is amended to read:
51.19 		Subd. 2.Definitions. (a) For purposes of this section and sections 270C.4451 to 
51.20 	270C.447, the following terms have the meanings given.
51.21 	(b) "Advertise" means to solicit business through any means or medium.
51.22 	(c) "Client" means a person for whom a tax preparer performs or agrees to perform tax 
51.23 	preparation services.
51.24 	(d) "Facilitate" means to individually or in conjunction or cooperation with another 
51.25 	person:
51.26 	(1) accept an application for a refund anticipation loan;
51.27 	(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any 
51.28 	other means, of a refund anticipation loan; or
51.29 	(3) offer, arrange, process, provide, or in any other manner act to allow the making of, 
51.30 	a refund anticipation loan.
52.1 	(e) "Refund anticipation check" means a negotiable instrument provided to a client by 
52.2 	the tax preparer or another person, which is issued from the proceeds of a taxpayer's federal 
52.3 	or state income tax refund or both and represents the net of the refund minus the tax 
52.4 	preparation fee and any other fees. A refund anticipation check includes a refund transfer.
52.5 	(f) "Refund anticipation loan" means a loan or any other extension of credit, whether 
52.6 	provided by the tax preparer or another entity such as a financial institution, in anticipation 
52.7 	of, and whose payment is secured by, a client's federal or state income tax refund or both.
52.8 	(g) "Tax preparation services" means services provided for compensation to a client to:
52.9 	(1) assist with preparing or filing a return;
52.10 	(2) assume final responsibility for completed work on a return on which preliminary 
52.11 	work has been done by another;
52.12 	(3) sign or include on a return the preparer tax identification number required under 
52.13 	section 6109(a)(4) of the Internal Revenue Code; or
52.14 	(4) facilitate the provision of a refund anticipation loan or a refund anticipation check.
52.15 	(h) "Tax preparer" or "preparer" means a person providing tax preparation services 
52.16 	except:
52.17 	(1) an employee who prepares their employer's return;
52.18 	(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the 
52.19 	fiduciary estate, testator, trustor, grantor, or beneficiaries of them;
52.20 	(3) nonprofit organizations providing tax preparation services under the Internal Revenue 
52.21 	Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly 
52.22 	Program;
52.23 	(4) a person who merely furnishes typing, reproducing, or other mechanical assistance;
52.24 	(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently 
52.25 	registered with the commissioner; and
52.26 	(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph 
52.27 	(c), that provides all of the sales tax functions for a retailer not maintaining a place of 
52.28 	business in this state as described in section 297A.66.
52.29 	(i) Except as otherwise provided, "return" means:
52.30 	(1) a return as defined in section 270C.01, subdivision 8;
52.31 	(2) a claim for refund of an overpayment;
53.1 	(3) a claim filed pursuant to chapter 290A; and
53.2 	(4) a claim for a credit filed under section 290.0677, subdivision 1.; and
53.3 	(5) a simplified renter's credit filing under section 290.0693, subdivision 12.

53.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
53.5 	31, 2023.

53.6 	Sec. 7. Minnesota Statutes 2022, section 270C.445, subdivision 3, is amended to read:
53.7 		Subd. 3.Standards of conduct. No tax preparer shall:
53.8 	(1) without good cause fail to promptly, diligently, and without unreasonable delay 
53.9 	complete a client's return;
53.10 	(2) obtain the signature of a client to a return or authorizing document that contains 
53.11 	blank spaces to be filled in after it has been signed;
53.12 	(3) fail to sign a client's return when compensation for services rendered has been made;
53.13 	(4) fail to provide on a client's return the preparer tax identification number when required 
53.14 	under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
53.15 	(5) fail or refuse to give a client a copy of any document requiring the client's signature 
53.16 	within a reasonable time after the client signs the document;
53.17 	(6) fail to retain for at least four years a copy of a client's returns;
53.18 	(7) fail to maintain a confidential relationship with clients or former clients;
53.19 	(8) fail to take commercially reasonable measures to safeguard a client's nonpublic 
53.20 	personal information;
53.21 	(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or 
53.22 	indirectly, any false, deceptive, or misleading statement or representation relating to or in 
53.23 	connection with the offering or provision of tax preparation services;
53.24 	(10) require a client to enter into a loan arrangement in order to complete a client's return;
53.25 	(11) claim credits or deductions on a client's return for which the tax preparer knows or 
53.26 	reasonably should know the client does not qualify;
53.27 	(12) report a household income on a client's claim filed under chapter 290A that the tax 
53.28 	preparer knows or reasonably should know is not accurate;
53.29 	(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision 
53.30 	13, 20, 20a, 26, or 28;
54.1 	(14) whether or not acting as a taxpayer representative, fail to conform to the standards 
54.2 	of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
54.3 	(15) whether or not acting as a taxpayer representative, engage in any conduct that is 
54.4 	incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
54.5 	(16) whether or not acting as a taxpayer representative, engage in any conduct that is 
54.6 	disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
54.7 	(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated 
54.8 	refund for tax preparation services;
54.9 	(18) under any circumstances, withhold or fail to return to a client a document provided 
54.10 	by the client for use in preparing the client's return;
54.11 	(19) take control or ownership of a client's refund by any means, including:
54.12 	(i) directly or indirectly endorsing or otherwise negotiating a check or other refund 
54.13 	instrument, including an electronic version of a check;
54.14 	(ii) directing an electronic or direct deposit of the refund into an account unless the 
54.15 	client's name is on the account; and
54.16 	(iii) establishing or using an account in the preparer's name to receive a client's refund 
54.17 	through a direct deposit or any other instrument unless the client's name is also on the 
54.18 	account, except that a taxpayer may assign the portion of a refund representing the Minnesota 
54.19 	education credit available under section 290.0674 to a bank account without the client's 
54.20 	name, as provided under section 290.0679;
54.21 	(20) fail to act in the best interests of the client;
54.22 	(21) fail to safeguard and account for any money handled for the client;
54.23 	(22) fail to disclose all material facts of which the preparer has knowledge which might 
54.24 	reasonably affect the client's rights and interests;
54.25 	(23) violate any provision of section 332.37;
54.26 	(24) include any of the following in any document provided or signed in connection 
54.27 	with the provision of tax preparation services:
54.28 	(i) a hold harmless clause;
54.29 	(ii) a confession of judgment or a power of attorney to confess judgment against the 
54.30 	client or appear as the client in any judicial proceeding;
55.1 	(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against 
55.2 	a debtor;
55.3 	(iv) an assignment of or an order for payment of wages or other compensation for 
55.4 	services;
55.5 	(v) a provision in which the client agrees not to assert any claim or defense otherwise 
55.6 	available;
55.7 	(vi) a waiver of any provision of this section or a release of any obligation required to 
55.8 	be performed on the part of the tax preparer; or
55.9 	(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on 
55.10 	a class basis; or
55.11 	(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all 
55.12 	disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a 
55.13 	form that may be retained by the client.; or
55.14 	(26) report a household income on a client's claim filed under section 290.0693, 
55.15 	subdivision 12, that the tax preparer knows or reasonably should know is not accurate.

55.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
55.17 	31, 2023.

55.18 	Sec. 8. Minnesota Statutes 2022, section 289A.18, subdivision 5, is amended to read:
55.19 		Subd. 5.Property tax refund claims. A claim for a refund based on property taxes 
55.20 	payable must be filed with the commissioner on or before August 15 of the year in which 
55.21 	the property taxes are due and payable. Any claim for refund based on rent paid must be 
55.22 	filed on or before August 15 of the year following the year in which the rent was paid.

55.23 	EFFECTIVE DATE. This section is effective for property taxes payable in 2025 and 
55.24 	thereafter.

55.25 	Sec. 9. Minnesota Statutes 2022, section 289A.38, subdivision 4, is amended to read:
55.26 		Subd. 4.Property tax refund. For purposes of computing the limitation under this 
55.27 	section, the due date of the property tax refund return as provided for in chapter 290A is 
55.28 	the due date for an income tax return covering the year in which the rent was paid or the 
55.29 	year preceding the year in which the property taxes are payable.

55.30 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
55.31 	and following years.

56.1 	Sec. 10. Minnesota Statutes 2022, section 289A.56, subdivision 6, is amended to read:
56.2 		Subd. 6.Property tax refunds under chapter 290A. (a) When a renter is owed a 
56.3 	property tax refund, an unpaid refund bears interest after August 14, or 60 days after the 
56.4 	refund claim was made, whichever is later, until the date the refund is paid.
56.5 	(b) When any other a claimant is owed a property tax refund under chapter 290A, the 
56.6 	unpaid refund bears interest after September 29, or 60 days after the refund claim was made, 
56.7 	whichever is later, until the date the refund is paid.

56.8 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
56.9 	and following years.

56.10 	Sec. 11. Minnesota Statutes 2022, section 289A.60, subdivision 12, is amended to read:
56.11 		Subd. 12.Penalties relating to property tax refunds. (a) If it is determined that a 
56.12 	property tax refund claim is excessive and was negligently prepared, a claimant is liable 
56.13 	for a penalty of ten percent of the disallowed claim. If the claim has been paid, the amount 
56.14 	disallowed must be recovered by assessment and collection.
56.15 	(b) An owner who without reasonable cause fails to give a certificate of rent constituting 
56.16 	property tax paid to a renter, as required by section sections 290.0693, subdivision 4, and
56.17 	290A.19, paragraph (a), is liable to the commissioner for a penalty of $100 for each failure.
56.18 	(c) If the owner or managing agent knowingly gives rent certificates that report total 
56.19 	rent constituting property taxes in excess of the amount of actual rent constituting property 
56.20 	taxes paid on the rented part of a property, the owner or managing agent is liable for a 
56.21 	penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An 
56.22 	overstatement of rent constituting property taxes is presumed to be knowingly made if it 
56.23 	exceeds by ten percent or more the actual rent constituting property taxes.

56.24 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
56.25 	and following years.

56.26 	Sec. 12. Minnesota Statutes 2022, section 289A.60, subdivision 13, is amended to read:
56.27 		Subd. 13.Penalties for tax preparers. (a) If an understatement of liability with respect 
56.28 	to a return or claim for refund is due to a reckless disregard of laws and rules or willful 
56.29 	attempt in any manner to understate the liability for a tax by a person who is a tax preparer 
56.30 	with respect to the return or claim, the person shall pay to the commissioner a penalty of 
56.31 	$500. If a part of a claim filed under section 290.0677, subdivision 1,; 290.0693; or chapter 
56.32 	290A is excessive due to a reckless disregard or willful attempt in any manner to overstate 
57.1 	the claim allowed by a person who is a tax preparer, the tax preparer shall pay to the 
57.2 	commissioner a penalty of $500 with respect to the claim. These penalties may not be 
57.3 	assessed against the employer of a tax preparer unless the employer was actively involved 
57.4 	in the reckless disregard or willful attempt to understate the liability for a tax or to overstate 
57.5 	the claim for refund. These penalties are income tax liabilities and may be assessed at any 
57.6 	time as provided in section 289A.38, subdivision 5.
57.7 	(b) A civil action in the name of the state of Minnesota may be commenced to enjoin 
57.8 	any person who is a tax preparer doing business in this state as provided in section 270C.447.
57.9 	(c) The commissioner may terminate or suspend a tax preparer's authority to transmit 
57.10 	returns electronically to the state, if the commissioner determines that the tax preparer has 
57.11 	engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision 
57.12 	or has been convicted under section 289A.63.
57.13 	(d) For purposes of this subdivision, the term "understatement of liability" means an 
57.14 	understatement of the net amount payable with respect to a tax imposed by state tax law, 
57.15 	or an overstatement of the net amount creditable or refundable with respect to a tax. The 
57.16 	determination of whether or not there is an understatement of liability must be made without 
57.17 	regard to any administrative or judicial action involving the taxpayer. For purposes of this 
57.18 	subdivision, the amount determined for underpayment of estimated tax under either section 
57.19 	289A.25 or 289A.26 is not considered an understatement of liability.
57.20 	(e) For purposes of this subdivision, the term "overstatement of claim" means an 
57.21 	overstatement of the net amount refundable with respect to a claim filed under section 
57.22 	290.0677, subdivision 1, 290.0693, subdivision 12, or chapter 290A. The determination of 
57.23 	whether or not there is an overstatement of a claim must be made without regard to 
57.24 	administrative or judicial action involving the claimant.
57.25 	(f) For purposes of this section, the term "tax preparer" or "preparer" has the meaning 
57.26 	given in section 270C.445, subdivision 2, paragraph (h).

57.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
57.28 	31, 2023.

57.29 	Sec. 13. Minnesota Statutes 2022, section 289A.60, subdivision 28, is amended to read:
57.30 		Subd. 28.Preparer identification number. (a) Each of the following that is prepared 
57.31 	by a tax preparer must include the tax preparer's tax identification number:
57.32 	(1) a tax return required to be filed under this chapter;
58.1 	(2) a claim filed under section 290.0677, subdivision 1, 290.0693, subdivision 12, or 
58.2 	chapter 290A; and
58.3 	(3) a claim for refund of an overpayment.
58.4 	(b) A tax preparer is not required to include their preparer tax identification number on 
58.5 	a filing if the number is not required in the forms or filing requirements provided by the 
58.6 	commissioner.
58.7 	(c) A tax preparer who fails to include the preparer tax identification number as required 
58.8 	by this section is subject to a penalty of $50 for each failure.
58.9 	(d) A tax preparer who fails to include the preparer tax identification number as required 
58.10 	by this section, and who is required to have a valid preparer tax identification number issued 
58.11 	under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to 
58.12 	a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is 
58.13 	not subject to the penalty in paragraph (c).
58.14 	(e) For the purposes of this subdivision, "tax preparer" has the meaning given in section 
58.15 	270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means 
58.16 	the number the tax preparer is required to use federally under section 6109(a)(4) of the 
58.17 	Internal Revenue Code.

58.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
58.19 	31, 2023.

58.20 	Sec. 14. [290.0693] RENTER'S CREDIT.
58.21 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
58.22 	the meanings given.
58.23 	(b) "Dependent" means any individual who is considered a dependent under sections 
58.24 	151 and 152 of the Internal Revenue Code.
58.25 	(c) "Disability" has the meaning given in section 290A.03, subdivision 10.
58.26 	(d) "Exemption amount" means the exemption amount under section 290.0121, 
58.27 	subdivision 1, paragraph (b).
58.28 	(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a 
58.29 	homestead, exclusive of charges for any medical services furnished by the landlord as a 
58.30 	part of the rental agreement, whether expressly set out in the rental agreement or not. The 
58.31 	gross rent of a resident of a nursing home or intermediate care facility is $600 per month. 
58.32 	The gross rent of a resident of an adult foster care home is $930 per month. The commissioner 
59.1 	shall annually adjust the amounts in this paragraph as provided in section 270C.22. The 
59.2 	statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's 
59.3 	length and the commissioner determines that the gross rent charged was excessive, the 
59.4 	commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
59.5 	(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
59.6 	(g) "Household" has the meaning given in section 290A.03, subdivision 4.
59.7 	(h) "Household income" means all income received by all persons of a household in a 
59.8 	taxable year while members of the household, other than income of a dependent.
59.9 	(i) "Income" means adjusted gross income, minus:
59.10 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
59.11 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
59.12 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
59.13 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
59.14 	(5) for the taxpayer's fifth dependent, the exemption amount; and
59.15 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
59.16 	before the close of the taxable year, the exemption amount.
59.17 	(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid 
59.18 	in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable 
59.19 	year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the 
59.20 	taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim 
59.21 	for a credit under this section by the claimant. If an individual occupies a homestead with 
59.22 	another person or persons not related to the individual as the individual's spouse or as 
59.23 	dependents, and the other person or persons are residing at the homestead under a rental or 
59.24 	lease agreement with the individual, the amount of rent constituting property tax for the 
59.25 	individual equals that portion not covered by the rental agreement.
59.26 		Subd. 2.Credit allowed; refundable. (a) An individual is allowed a credit against the 
59.27 	tax due under this chapter equal to the amount that rent constituting property taxes exceeds 
59.28 	the percentage of the household income of the claimant specified in subdivision 3 in the 
59.29 	taxable year in which the rent was paid as specified in that subdivision.
59.30 	(b) If the amount of credit which a taxpayer is eligible to receive under this section 
59.31 	exceeds the taxpayer's liability for tax under this chapter, the commissioner shall refund the 
59.32 	excess to the taxpayer.
60.1 		Subd. 3.Renters.  (a) A taxpayer whose rent constituting property taxes exceeds the 
60.2 	percentage of the household income stated below must pay an amount equal to the percent 
60.3 	of income shown for the appropriate household income level along with the percent paid 
60.4 	by claimant of the remaining amount of rent constituting property taxes. The credit under 
60.5 	subdivision 2 equals the amount of rent constituting property taxes that remain, up to the 
60.6 	maximum credit amount shown below.

60.860.7
	Household Income
	Percent of Income
	Percent paid by 
claimant
	Maximum Credit
	
60.9	$0 to 6,479
	1.0 percent
	5 percent
	$
	2,640
	
60.10	6,480 to 8,609
	1.0 percent
	10 percent
	$
	2,640
	
60.11	8,610 to 10,759
	1.1 percent
	10 percent
	$
	2,570
	
60.12	10,760 to 15,089
	1.2 percent
	10 percent
	$
	2,510
	
60.13	15,090 to 19,399
	1.3 percent
	15 percent
	$
	2,430
	
60.14	19,400 to 21,539
	1.4 percent
	15 percent
	$
	2,370
	
60.15	21,540 to 23,679
	1.4 percent
	20 percent
	$
	2,310
	
60.16	23,680 to 28,009
	1.5 percent
	20 percent
	$
	2,240
	
60.17	28,010 to 30,159
	1.6 percent
	20 percent
	$
	2,180
	
60.18	30,160 to 32,309
	1.7 percent
	25 percent
	$
	2,180
	
60.19	32,310 to 36,629
	1.8 percent
	25 percent
	$
	2,180
	
60.20	36,630 to 38,769
	1.9 percent
	30 percent
	$
	2,180
	
60.21	38,770 to 45,229
	2.0 percent
	30 percent
	$
	2,180
	
60.22	45,230 to 51,689
	2.0 percent
	35 percent
	$
	2,180
	
60.23	51,690 to 60,319
	2.0 percent
	40 percent
	$
	2,180
	
60.24	60,320 to 62,459
	2.0 percent
	45 percent
	$
	1,980
	
60.25	62,460 to 64,619
	2.0 percent
	45 percent
	$
	1,780
	
60.26	64,620 to 66,789
	2.0 percent
	45 percent
	$
	1,510
	
60.27	66,790 to 68,929
	2.0 percent
	50 percent
	$
	1,320
	
60.28	68,930 to 71,089
	2.0 percent
	50 percent
	$
	1,190
	
60.29	71,090 to 73,239
	2.0 percent
	50 percent
	$
	660
	
60.30	73,240 to 75,389
	2.0 percent
	50 percent
	$
	260
	
60.31 	The credit is the amount calculated under this subdivision. No credit is allowed if the 
60.32 	taxpayer's household income is $75,389 or more.
60.33 	(b) The commissioner must annually adjust the dollar amounts of the income thresholds 
60.34 	and the maximum refunds in paragraph (a), as provided in section 270C.22. The statutory 
60.35 	year is 2024.
61.1 	(c) The commissioner shall construct and make available to taxpayers a comprehensive 
61.2 	table showing the rent constituting property taxes to be paid and refund allowed at various 
61.3 	levels of income and assessment. The table shall follow the schedule of income percentages, 
61.4 	maximums, and other provisions specified in paragraph (a), except that the commissioner 
61.5 	may graduate the transition between income brackets. All refunds shall be computed in 
61.6 	accordance with tables prepared and issued by the commissioner.
61.7 		Subd. 4.Owner or managing agent to furnish rent certificate. (a) The owner or 
61.8 	managing agent of any property for which rent is paid for occupancy as a homestead must 
61.9 	furnish a certificate of rent paid to a person who is a renter on December 31, in the form 
61.10 	prescribed by the commissioner. If the renter moves before December 31, the owner or 
61.11 	managing agent may give the certificate to the renter at the time of moving, or mail the 
61.12 	certificate to the forwarding address if an address has been provided by the renter. The 
61.13 	certificate must be made available to the renter before February 1 of the year following the 
61.14 	year in which the rent was paid. The owner or managing agent must retain a duplicate of 
61.15 	each certificate or an equivalent record showing the same information for a period of four 
61.16 	years. The duplicate or other record must be made available to the commissioner upon 
61.17 	request.
61.18 	(b) The commissioner may require the owner or managing agent, through a simple 
61.19 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
61.20 	rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe 
61.21 	the content, format, and manner of the form pursuant to section 270C.30. The commissioner 
61.22 	may require the Social Security number, individual taxpayer identification number, federal 
61.23 	employer identification number, or Minnesota taxpayer identification number of the owner 
61.24 	or managing agent who is required to furnish a certificate of rent paid under this paragraph. 
61.25 	Before implementation, the commissioner, after consulting with representatives of owners 
61.26 	or managing agents, shall develop an implementation and administration plan for the 
61.27 	requirements of this paragraph that attempts to minimize financial burdens, administration 
61.28 	and compliance costs, and takes into consideration existing systems of owners and managing 
61.29 	agents.
61.30 		Subd. 5.Eligibility; residency. (a) A taxpayer is eligible for the credit under this section 
61.31 	if the taxpayer is an individual, other than a dependent, as defined under sections 151 and 
61.32 	152 of the Internal Revenue Code, disregarding section 152(b)(3) of the Internal Revenue 
61.33 	Code, who filed for a credit and who was a resident of this state during the taxable year for 
61.34 	which the credit was claimed.
62.1 	(b) In the case of a credit for rent constituting property taxes of a part-year Minnesota 
62.2 	resident, the household income and rent constituting property taxes reflected in this 
62.3 	computation shall be for the period of Minnesota residency only. Any rental expenses paid 
62.4 	that may be reflected in arriving at federal adjusted gross income cannot be utilized for this 
62.5 	computation.
62.6 	(c) When two individuals of a household are able to meet the qualifications to claim a 
62.7 	credit under this section, the individuals may determine among them as to which individual 
62.8 	may claim the credit. If the individuals are unable to agree, the matter shall be referred to 
62.9 	the commissioner of revenue whose decision shall be final.
62.10 	(d) To claim a credit under this section, the taxpayer must have resided in a rented or 
62.11 	leased unit on which ad valorem taxes or payments made in lieu of ad valorem taxes, 
62.12 	including payments of special assessments imposed in lieu of ad valorem taxes, are payable 
62.13 	at some time during the taxable year for which the taxpayer claimed the credit.
62.14 		Subd. 6.Residents of nursing homes, intermediate care facilities, long-term care 
62.15 	facilities, or facilities accepting housing support payments. (a) A taxpayer must not claim 
62.16 	a credit under this section if the taxpayer is a resident of a nursing home, intermediate care 
62.17 	facility, long-term residential facility, or a facility that accepts housing support payments 
62.18 	whose rent constituting property taxes is paid pursuant to the Supplemental Security Income 
62.19 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
62.20 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
62.21 	of the Social Security Act, or the housing support program under chapter 256I.
62.22 	(b) If only a portion of the rent constituting property taxes is paid by these programs, 
62.23 	the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction, 
62.24 	the numerator of which is adjusted gross income, reduced by the total amount of income 
62.25 	from the above sources other than vendor payments under the medical assistance program 
62.26 	and the denominator of which is adjusted gross income, plus vendor payments under the 
62.27 	medical assistance program, to determine the allowable credit.
62.28 	(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing 
62.29 	home, intermediate care facility, long-term residential facility, or facility for which the rent 
62.30 	was paid for the claimant by the housing support program for only a portion of the taxable 
62.31 	year covered by the claim, the taxpayer may compute rent constituting property taxes by 
62.32 	disregarding the rent constituting property taxes from the nursing home or facility and may 
62.33 	use only that amount of rent constituting property taxes or property taxes payable relating 
63.1 	to that portion of the year when the taxpayer was not in the facility. The taxpayer's household 
63.2 	income is the income for the entire taxable year covered by the claim.
63.3 		Subd. 7.Credit for unmarried taxpayers residing in the same household. If a 
63.4 	homestead is occupied by two or more renters who are not married to each other, the rent 
63.5 	shall be deemed to be paid equally by each renter, and separate claims shall be filed by each 
63.6 	renter. The income of each renter shall be each renter's household income for purposes of 
63.7 	computing the amount of credit to be allowed.
63.8 		Subd. 8.One claimant per household. Only one taxpayer per household per year is 
63.9 	entitled to claim a credit under this section. In the case of a married taxpayer filing a separate 
63.10 	return, only one spouse may claim the credit under this section. The credit amount for the 
63.11 	spouse that claims the credit must be calculated based on household income and not solely 
63.12 	on the income of the spouse.
63.13 		Subd. 9.Proof of claim. (a) Every taxpayer claiming a credit under this section shall 
63.14 	supply to the commissioner of revenue, in support of the claim, proof of eligibility under 
63.15 	this section, including but not limited to amount of rent paid, name and address of owner 
63.16 	or managing agent of property rented, changes in household membership, and household 
63.17 	income.
63.18 	(b) Taxpayers with a disability shall submit proof of disability in the form and manner 
63.19 	as the commissioner prescribes. The department may require examination and certification 
63.20 	by the taxpayer's physician or by a physician designated by the commissioner. The cost of 
63.21 	any examination shall be borne by the taxpayer, unless the examination proves the disability, 
63.22 	in which case the cost of the examination shall be borne by the commissioner.
63.23 	(c) A determination of disability of a taxpayer by the Social Security Administration 
63.24 	under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of 
63.25 	disability.
63.26 		Subd. 10.No relief allowed in certain cases. No claim for a credit under this section 
63.27 	shall be allowed if the commissioner determines that the claimant received tenancy to the 
63.28 	homestead primarily for the purpose of receiving a credit under this section and not for bona 
63.29 	fide residence purposes.
63.30 		Subd. 11.Appropriation. The amount necessary to pay the refunds under this section 
63.31 	is appropriated from the general fund to the commissioner.
63.32 		Subd. 12.Simplified filing for individuals without an income tax liability. The 
63.33 	commissioner of revenue must establish a simplified filing process through which a taxpayer 
64.1 	who did not file an individual income tax return due to a lack of a requirement to file an 
64.2 	individual income tax return may file a return to claim the credit under this section. The 
64.3 	filing process and forms may be in the form or manner determined by the commissioner, 
64.4 	but must be designed to reduce the complexity of the filing process and the time needed to 
64.5 	file for individuals without an income tax liability.

64.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
64.7 	31, 2023.

64.8 	Sec. 15. Minnesota Statutes 2022, section 290A.02, is amended to read:
64.9 	290A.02 PURPOSE.
64.10 	The purpose of this chapter is to provide property tax relief to certain persons who own 
64.11 	or rent their homesteads.

64.12 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
64.13 	and following years.

64.14 	Sec. 16. Minnesota Statutes 2022, section 290A.03, subdivision 3, is amended to read:
64.15 		Subd. 3.Income. (a) "Income" means the sum of the following:
64.16 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
64.17 	(2) the sum of the following amounts to the extent not included in clause (1):
64.18 	(i) all nontaxable income;
64.19 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
64.20 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
64.21 	carryover allowed under section 469(b) of the Internal Revenue Code;
64.22 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
64.23 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
64.24 	Code;
64.25 	(iv) cash public assistance and relief;
64.26 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
64.27 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
64.28 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
64.29 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
64.30 	gross income in the years when the payments were made;
65.1 	(vi) interest received from the federal or a state government or any instrumentality or 
65.2 	political subdivision thereof;
65.3 	(vii) workers' compensation;
65.4 	(viii) nontaxable strike benefits;
65.5 	(ix) the gross amounts of payments received in the nature of disability income or sick 
65.6 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
65.7 	or otherwise;
65.8 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
65.9 	1986, as amended through December 31, 1995;
65.10 	(xi) contributions made by the claimant to an individual retirement account, including 
65.11 	a qualified voluntary employee contribution; simplified employee pension plan; 
65.12 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
65.13 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
65.14 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
65.15 	the claimant and spouse;
65.16 	(xii) to the extent not included in federal adjusted gross income, distributions received 
65.17 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
65.18 	(xiii) nontaxable scholarship or fellowship grants;
65.19 	(xiv) alimony received to the extent not included in the recipient's income;
65.20 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
65.21 	Code;
65.22 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
65.23 	Code; and
65.24 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
65.25 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
65.26 	In the case of an individual who files an income tax return on a fiscal year basis, the 
65.27 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
65.28 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
65.29 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
65.30 	or carryforward allowed for the year.
65.31 	(b) "Income" does not include:
66.1 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
66.2 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
66.3 	or spouse and which funding payments were not excluded from federal adjusted gross 
66.4 	income in the years when the payments were made;
66.5 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
66.6 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
66.7 	the retirement base amount reduced by the amount of contributions excluded from federal 
66.8 	adjusted gross income, but not less than zero;
66.9 	(4) surplus food or other relief in kind supplied by a governmental agency;
66.10 	(5) relief granted under this chapter;
66.11 	(6) child support payments received under a temporary or final decree of dissolution or 
66.12 	legal separation;
66.13 	(7) restitution payments received by eligible individuals and excludable interest as 
66.14 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
66.15 	Public Law 107-16;
66.16 	(8) alimony paid; or
66.17 	(9) veterans disability compensation paid under title 38 of the United States Code.
66.18 	(c) The sum of the following amounts may be subtracted from income:
66.19 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
66.20 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
66.21 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
66.22 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
66.23 	(5) for the claimant's fifth dependent, the exemption amount; and
66.24 	(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or 
66.25 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
66.26 	amount.
66.27 	(d) For purposes of this subdivision, the following terms have the meanings given:
66.28 	(1) "exemption amount" means the exemption amount under section 290.0121, 
66.29 	subdivision 1, paragraph (b), for the taxable year for which the income is reported;
67.1 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
67.2 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
67.3 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
67.4 	to whether the claimant or spouse claimed a deduction; and
67.5 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
67.6 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

67.7 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
67.8 	and following years.

67.9 	Sec. 17. Minnesota Statutes 2022, section 290A.03, subdivision 6, is amended to read:
67.10 		Subd. 6.Homestead. "Homestead" means the dwelling occupied as the claimant's 
67.11 	principal residence and so much of the land surrounding it, not exceeding ten acres, as is 
67.12 	reasonably necessary for use of the dwelling as a home and any other property used for 
67.13 	purposes of a homestead as defined in section 273.13, subdivision 22, except for agricultural 
67.14 	land assessed as part of a homestead pursuant to section 273.13, subdivision 23, "homestead" 
67.15 	is limited to the house and garage and immediately surrounding one acre of land. The 
67.16 	homestead may be owned or rented and may be as a part of a multidwelling or multipurpose 
67.17 	building and the land on which it is built. A manufactured home, as defined in section 
67.18 	273.125, subdivision 8, or a park trailer taxed as a manufactured home under section 168.012, 
67.19 	subdivision 9, assessed as personal property may be a dwelling for purposes of this 
67.20 	subdivision.

67.21 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
67.22 	and following years.

67.23 	Sec. 18. Minnesota Statutes 2022, section 290A.03, subdivision 8, is amended to read:
67.24 		Subd. 8.Claimant. (a) "Claimant" means a person, other than a dependent, as defined 
67.25 	under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3) 
67.26 	of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a 
67.27 	resident of this state as provided in chapter 290 during the calendar year for which the claim 
67.28 	for relief was filed.
67.29 	(b) In the case of a claim relating to rent constituting property taxes, the claimant shall 
67.30 	have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu 
67.31 	of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem 
67.32 	taxes, are payable at some time during the calendar year covered by the claim.
68.1 	(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility, 
68.2 	long-term residential facility, or a facility that accepts housing support payments whose 
68.3 	rent constituting property taxes is paid pursuant to the Supplemental Security Income 
68.4 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
68.5 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
68.6 	of the Social Security Act, or the housing support program under chapter 256I.
68.7 	If only a portion of the rent constituting property taxes is paid by these programs, the 
68.8 	resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant 
68.9 	to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as 
68.10 	defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income 
68.11 	from the above sources other than vendor payments under the medical assistance program 
68.12 	and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b), 
68.13 	plus vendor payments under the medical assistance program, to determine the allowable 
68.14 	refund pursuant to this chapter.
68.15 	(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home, 
68.16 	intermediate care facility, long-term residential facility, or facility for which the rent was 
68.17 	paid for the claimant by the housing support program for only a portion of the calendar year 
68.18 	covered by the claim, the claimant may compute rent constituting property taxes by 
68.19 	disregarding the rent constituting property taxes from the nursing home or facility and use 
68.20 	only that amount of rent constituting property taxes or property taxes payable relating to 
68.21 	that portion of the year when the claimant was not in the facility. The claimant's household 
68.22 	income is the income for the entire calendar year covered by the claim.
68.23 	(e) In the case of a claim for rent constituting property taxes of a part-year Minnesota 
68.24 	resident, the income and rent reflected in this computation shall be for the period of 
68.25 	Minnesota residency only. Any rental expenses paid which may be reflected in arriving at 
68.26 	federal adjusted gross income cannot be utilized for this computation. When two individuals 
68.27 	of a household are able to meet the qualifications for a claimant, they may determine among 
68.28 	them as to who the claimant shall be. If they are unable to agree, the matter shall be referred 
68.29 	to the commissioner of revenue whose decision shall be final. If a homestead property owner 
68.30 	was a part-year Minnesota resident, the income reflected in the computation made pursuant 
68.31 	to section 290A.04 shall be for the entire calendar year, including income not assignable to 
68.32 	Minnesota.
68.33 	(f) If a homestead is occupied by two or more renters, who are not married to each other, 
68.34 	the rent shall be deemed to be paid equally by each, and separate claims shall be filed by 
69.1 	each. The income of each shall be each renter's household income for purposes of computing 
69.2 	the amount of credit to be allowed.

69.3 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
69.4 	and following years.

69.5 	Sec. 19. Minnesota Statutes 2022, section 290A.03, subdivision 12, is amended to read:
69.6 		Subd. 12.Gross rent. (a) "Gross rent" means rent paid for the right of occupancy, at 
69.7 	arm's length, of a site on which a homestead, exclusive of charges for any medical services 
69.8 	furnished by the landlord as a part of the rental agreement, whether expressly set out in the 
69.9 	rental agreement or not which is a manufactured home is located.
69.10 	(b) The gross rent of a resident of a nursing home or intermediate care facility is $500 
69.11 	per month. The gross rent of a resident of an adult foster care home is $780 per month. The 
69.12 	commissioner shall annually adjust the amounts in this paragraph as provided in section 
69.13 	270C.22. The statutory year is 2018.
69.14 	(c) (b) If the landlord and tenant have not dealt with each other at arm's length and the 
69.15 	commissioner determines that the gross rent charged was excessive, the commissioner may 
69.16 	adjust the gross rent to a reasonable amount for purposes of this chapter.
69.17 	(d) (c) Any amount paid by a claimant residing in property assessed pursuant to section 
69.18 	273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be excluded from 
69.19 	gross rent for purposes of this chapter. However, property taxes imputed to the homestead 
69.20 	of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead 
69.21 	treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6 shall be included within the 
69.22 	term "property taxes payable" as defined in subdivision 13, to the extent allowed, 
69.23 	notwithstanding the fact that ownership is not in the name of the claimant.

69.24 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
69.25 	and following years.

69.26 	Sec. 20. Minnesota Statutes 2022, section 290A.03, subdivision 13, is amended to read:
69.27 		Subd. 13.Property taxes payable. "Property taxes payable" means the property tax 
69.28 	exclusive of special assessments, penalties, and interest payable on a claimant's homestead 
69.29 	after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 
69.30 	and any other state paid property tax credits in any calendar year, and after any refund 
69.31 	claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 
69.32 	year that the property tax is payable. In the case of a claimant who makes ground lease 
70.1 	payments, "property taxes payable" includes the amount of the payments directly attributable 
70.2 	to the property taxes assessed against the parcel on which the house is located. Regardless 
70.3 	of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes 
70.4 	payable" must be apportioned or reduced for the use of a portion of the claimant's homestead 
70.5 	for a business purpose if the claimant deducts any business depreciation expenses for the 
70.6 	use of a portion of the homestead or deducts expenses under section 280A of the Internal 
70.7 	Revenue Code for a business operated in the claimant's homestead. For homesteads which 
70.8 	are manufactured homes as defined in section 273.125, subdivision 8, including manufactured 
70.9 	homes located in a manufactured home community owned by a cooperative organized under 
70.10 	chapter 308A or 308B, and park trailers taxed as manufactured homes under section 168.012, 
70.11 	subdivision 9, "property taxes payable" shall also include 17 percent of the gross rent paid 
70.12 	in the preceding year for the site on which the homestead is located. When a homestead is 
70.13 	owned by two or more persons as joint tenants or tenants in common, such tenants shall 
70.14 	determine between them which tenant may claim the property taxes payable on the 
70.15 	homestead. If they are unable to agree, the matter shall be referred to the commissioner of 
70.16 	revenue whose decision shall be final. Property taxes are considered payable in the year 
70.17 	prescribed by law for payment of the taxes.
70.18 	In the case of a claim relating to "property taxes payable," the claimant must have owned 
70.19 	and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 
70.20 	property must have been classified as homestead property pursuant to section 273.124, on 
70.21 	or before December 15 of the assessment year to which the "property taxes payable" relate; 
70.22 	or (ii) the claimant must provide documentation from the local assessor that application for 
70.23 	homestead classification has been made on or before December 15 of the year in which the 
70.24 	"property taxes payable" were payable and that the assessor has approved the application.

70.25 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
70.26 	and following years.

70.27 	Sec. 21. Minnesota Statutes 2022, section 290A.03, is amended by adding a subdivision 
70.28 	to read:
70.29 		Subd. 16.Manufactured home. "Manufactured home" means homesteads that are 
70.30 	manufactured homes as defined in section 273.125, subdivision 8, including manufactured 
70.31 	homes located in a manufactured home community owned by a cooperative organized under 
70.32 	chapter 308A or 308B, and park trailers taxed as manufactured homes under section 168.012, 
70.33 	subdivision 9.

71.1 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
71.2 	and following years.

71.3 	Sec. 22. Minnesota Statutes 2022, section 290A.04, subdivision 1, is amended to read:
71.4 		Subdivision 1.Refund. A refund shall be allowed each claimant in the amount that 
71.5 	property taxes payable or rent constituting property taxes exceed the percentage of the 
71.6 	household income of the claimant specified in subdivision 2 or 2a in the year for which the 
71.7 	taxes were levied or in the year in which the rent was paid as specified in subdivision 2 or 
71.8 	2a. If the amount of property taxes payable or rent constituting property taxes is equal to 
71.9 	or less than the percentage of the household income of the claimant specified in subdivision 
71.10 	2 or 2a in the year for which the taxes were levied or in the year in which the rent was paid, 
71.11 	the claimant shall not be eligible for a state refund pursuant to this section.

71.12 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
71.13 	and following years.

71.14 	Sec. 23. Minnesota Statutes 2022, section 290A.04, subdivision 2h, is amended to read:
71.15 		Subd. 2h.Additional refund. (a) If the gross property taxes payable on a homestead 
71.16 	increase more than 12 percent over the property taxes payable in the prior year on the same 
71.17 	property that is owned and occupied by the same owner on January 2 of both years, and the 
71.18 	amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed 
71.19 	an additional refund equal to 60 percent of the amount of the increase over the greater of 
71.20 	12 percent of the prior year's property taxes payable or $100. This subdivision shall not 
71.21 	apply to any increase in the gross property taxes payable attributable to improvements made 
71.22 	to the homestead after the assessment date for the prior year's taxes. This subdivision shall 
71.23 	not apply to any increase in the gross property taxes payable attributable to the termination 
71.24 	of valuation exclusions under section 273.11, subdivision 16.
71.25 	The maximum refund allowed under this subdivision is $1,000.
71.26 	(b) For purposes of this subdivision "gross property taxes payable" means property taxes 
71.27 	payable determined without regard to the refund allowed under this subdivision.
71.28 	(c) In addition to the other proofs required by this chapter, each claimant under this 
71.29 	subdivision shall file with the property tax refund return a copy of the property tax statement 
71.30 	for taxes payable in the preceding year or other documents required by the commissioner.
71.31 	(d) Upon request, the appropriate county official shall make available the names and 
71.32 	addresses of the property taxpayers who may be eligible for the additional property tax 
72.1 	refund under this section. The information shall be provided on a magnetic computer disk
72.2 	electronically. The county may recover its costs by charging the person requesting the 
72.3 	information the reasonable cost for preparing the data. The information may not be used 
72.4 	for any purpose other than for notifying the homeowner of potential eligibility and assisting 
72.5 	the homeowner, without charge, in preparing a refund claim.

72.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

72.7 	Sec. 24. Minnesota Statutes 2022, section 290A.04, subdivision 5, is amended to read:
72.8 		Subd. 5.Combined renter and homeowner refund Homeowner refund and renter's 
72.9 	credit. In the case of a claimant who is entitled to a refund in a calendar year for claims 
72.10 	based both on rent constituting property taxes and property taxes payable, the refund 
72.11 	allowable equals the sum of the refunds allowable. A claimant is allowed to make a claim 
72.12 	for refund under this chapter in addition to any credit the claimant is eligible for under 
72.13 	section 290.0693.

72.14 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
72.15 	and following years.

72.16 	Sec. 25. Minnesota Statutes 2022, section 290A.05, is amended to read:
72.17 	290A.05 COMBINED HOUSEHOLD INCOME; RENTAL AGREEMENTS AND 
72.18 	REDUCTION OF PROPERTY TAXES PAYABLE.
72.19 	(a) If a person occupies a homestead with another person not related to the person as 
72.20 	the person's spouse, excluding dependents, roomers or boarders on contract, and has property 
72.21 	tax payable with respect to the homestead, the household income of the claimant or claimants 
72.22 	for the purpose of computing the refund allowed by section 290A.04 shall include the total 
72.23 	income received by the other persons residing in the homestead. For purposes of this section, 
72.24 	"dependent" includes a parent of the claimant or spouse who lives in the claimant's homestead 
72.25 	and does not have an ownership interest in the homestead.
72.26 	(b) If a person occupies a homestead with another person or persons not related to the 
72.27 	person as the person's spouse or as dependents, the property tax payable or rent constituting 
72.28 	property tax shall be reduced as follows.
72.29 	If and the other person or persons are residing at the homestead under a rental or lease 
72.30 	agreement with the homeowner, the amount of property tax payable or rent constituting 
72.31 	property tax shall be equals that portion not covered by the rental agreement.

73.1 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
73.2 	and property taxes payable in 2024, and following years.

73.3 	Sec. 26. Minnesota Statutes 2022, section 290A.07, subdivision 2a, is amended to read:
73.4 		Subd. 2a.Time of payment to renter or manufactured home homeowner. A claimant 
73.5 	who is a renter or a homeowner who occupies a manufactured home, as defined in section 
73.6 	273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured home under 
73.7 	section 168.012, subdivision 9, shall receive full payment after August 1 and before August 
73.8 	15 or 60 days after receipt of the application, whichever is later.

73.9 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
73.10 	and following years.

73.11 	Sec. 27. Minnesota Statutes 2022, section 290A.08, is amended to read:
73.12 	290A.08 ONE CLAIMANT PER HOUSEHOLD.
73.13 	Only one claimant per household per year is entitled to relief under this chapter. Payment 
73.14 	of the claim for relief may be made payable to the spouses as one claimant. The 
73.15 	commissioner, upon written request, may issue separate checks, to the spouses for one-half 
73.16 	of the relief provided the original check has not been issued or has been returned. Individuals 
73.17 	related as spouses who were married during the year may elect to file a joint claim which 
73.18 	shall include each spouse's income, rent constituting property taxes, and property taxes 
73.19 	payable. Spouses who were married for the entire year and were domiciled in the same 
73.20 	household for the entire year must file a joint claim. The maximum dollar amount allowable 
73.21 	for a joint claim shall not exceed the amount that one person could receive.

73.22 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
73.23 	and following years.

73.24 	Sec. 28. Minnesota Statutes 2022, section 290A.09, is amended to read:
73.25 	290A.09 PROOF OF CLAIM.
73.26 	(a) Every claimant shall supply to the commissioner of revenue, in support of the claim, 
73.27 	proof of eligibility under this chapter, including but not limited to amount of rent paid or
73.28 	property taxes accrued, name and address of owner or managing agent of property rented,
73.29 	changes in homestead, household membership, household income, size and nature of property 
73.30 	claimed as a homestead.
74.1 	(b) For manufactured homes, every claimant shall supply to the commissioner of revenue 
74.2 	the name and address of the owner or managing agent of the property rented.
74.3 	(c) Persons with a disability filing claims shall submit proof of disability in the form 
74.4 	and manner as the commissioner may prescribe. The department may require examination 
74.5 	and certification by the claimant's physician or by a physician designated by the 
74.6 	commissioner. The cost of any examination shall be borne by the claimant, unless the 
74.7 	examination proves the disability, in which case the cost of the examination shall be borne 
74.8 	by the commissioner.
74.9 	(d) A determination of disability of a claimant by the Social Security Administration 
74.10 	under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of 
74.11 	disability.

74.12 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
74.13 	and following years.

74.14 	Sec. 29. Minnesota Statutes 2022, section 290A.091, is amended to read:
74.15 	290A.091 CLAIMS OF TENANTS IN LEASEHOLD COOPERATIVES.
74.16 	The cooperative manager of a leasehold cooperative shall furnish a statement to each 
74.17 	tenant by March 31 of the year in which the property tax is payable showing each unit's 
74.18 	share of the gross property tax and each unit's share of any property tax credits. Each tenant 
74.19 	may apply for a property tax refund under this chapter as a homeowner based on each 
74.20 	tenant's share of property taxes. The tenant may not include any rent constituting property 
74.21 	taxes paid on that unit claim the renter's credit under section 290.0693. For the purposes of 
74.22 	this section, a leasehold cooperative is formed on the day that leasehold cooperative status 
74.23 	is granted by the appropriate county official.

74.24 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
74.25 	and following years.

74.26 	Sec. 30. Minnesota Statutes 2022, section 290A.13, is amended to read:
74.27 	290A.13 NO RELIEF ALLOWED IN CERTAIN CASES.
74.28 	No claim for relief under this chapter shall be allowed if the commissioner determines 
74.29 	that the claimant received title or tenancy to the homestead primarily for the purpose of 
74.30 	receiving benefits under this chapter and not for bona fide residence purposes.

74.31 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
74.32 	and following years.

75.1 	Sec. 31. Minnesota Statutes 2022, section 290A.19, is amended to read:
75.2 	290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
75.3 	(a) The park owner or managing agent of any of a property for which rent is paid for 
75.4 	occupancy as a homestead must furnish a certificate of rent paid to a person who is a renter 
75.5 	on December 31, in the form prescribed by the commissioner. If the renter moves before 
75.6 	December 31, the park owner or managing agent may give the certificate to the renter at 
75.7 	the time of moving, or mail the certificate to the forwarding address if an address has been 
75.8 	provided by the renter. The certificate must be made available to the renter before February 
75.9 	1 of the year following the year in which the rent was paid. The park owner or managing 
75.10 	agent must retain a duplicate of each certificate or an equivalent record showing the same 
75.11 	information for a period of three years. The duplicate or other record must be made available 
75.12 	to the commissioner upon request.
75.13 	(b) The commissioner may require the park owner or managing agent, through a simple 
75.14 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
75.15 	rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe 
75.16 	the content, format, and manner of the form pursuant to section 270C.30. The commissioner 
75.17 	may require the Social Security number, individual taxpayer identification number, federal 
75.18 	employer identification number, or Minnesota taxpayer identification number of the park 
75.19 	owner who is required to furnish a certificate of rent paid under this paragraph. Prior to 
75.20 	implementation, the commissioner, after consulting with representatives of park owners or 
75.21 	managing agents, shall develop an implementation and administration plan for the 
75.22 	requirements of this paragraph that attempts to minimize financial burdens, administration 
75.23 	and compliance costs, and takes into consideration existing systems of park owners and 
75.24 	managing agents.
75.25 	(c) For the purposes of this section, "owner" includes "park owner" means a park owner 
75.26 	as defined under section 327C.015, subdivision 9, and "property" includes a lot as defined 
75.27 	under section 327C.015, subdivision 6.

75.28 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
75.29 	and following years.

75.30 	Sec. 32. Minnesota Statutes 2022, section 290A.25, is amended to read:
75.31 	290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.
75.32 	Annually, the commissioner of revenue shall furnish a list to the county assessor 
75.33 	containing the names and Social Security numbers of persons who have applied for both 
76.1 	homestead classification under section 273.13 and a property tax refund as a renter under 
76.2 	this chapter renter's credit under section 290.0693.
76.3 	Within 90 days of the notification, the county assessor shall investigate to determine if 
76.4 	the homestead classification was improperly claimed. If the property owner does not qualify, 
76.5 	the county assessor shall notify the county auditor who will determine the amount of 
76.6 	homestead benefits that has been improperly allowed. For the purpose of this section, 
76.7 	"homestead benefits" has the meaning given in section 273.124, subdivision 13b. The county 
76.8 	auditor shall send a notice to persons who owned the affected property at the time the 
76.9 	homestead application related to the improper homestead was filed, demanding 
76.10 	reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead 
76.11 	benefits. The person notified may appeal the county's determination with the Minnesota 
76.12 	Tax Court within 60 days of the date of the notice from the county as provided in section 
76.13 	273.124, subdivision 13b.
76.14 	If the amount of homestead benefits and penalty is not paid within 60 days, and if no 
76.15 	appeal has been filed, the county auditor shall certify the amount of taxes and penalty to 
76.16 	the county treasurer. The county treasurer will add interest to the unpaid homestead benefits 
76.17 	and penalty amounts at the rate provided for delinquent personal property taxes for the 
76.18 	period beginning 60 days after demand for payment was made until payment. If the person 
76.19 	notified is the current owner of the property, the treasurer may add the total amount of 
76.20 	benefits, penalty, interest, and costs to the real estate taxes otherwise payable on the property 
76.21 	in the following year. If the person notified is not the current owner of the property, the 
76.22 	treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A, 
76.23 	or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce 
76.24 	payment of the benefits, penalty, interest, and costs, as if those amounts were delinquent 
76.25 	tax obligations of the person who owned the property at the time the application related to 
76.26 	the improperly allowed homestead was filed. The treasurer may relieve a prior owner of 
76.27 	personal liability for the benefits, penalty, interest, and costs, and instead extend those 
76.28 	amounts on the tax lists against the property for taxes payable in the following year to the 
76.29 	extent that the current owner agrees in writing.
76.30 	Any amount of homestead benefits recovered by the county from the property owner 
76.31 	shall be distributed to the county, city or town, and school district where the property is 
76.32 	located in the same proportion that each taxing district's levy was to the total of the three 
76.33 	taxing districts' levy for the current year. Any amount recovered attributable to taconite 
76.34 	homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the 
76.35 	taconite property tax relief account. Any amount recovered that is attributable to supplemental 
77.1 	homestead credit is to be transmitted to the commissioner of revenue for deposit in the 
77.2 	general fund of the state treasury. The total amount of penalty collected must be deposited 
77.3 	in the county general fund.

77.4 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
77.5 	and following years.

77.6 	Sec. 33. Minnesota Statutes 2022, section 327C.02, subdivision 5, is amended to read:
77.7 		Subd. 5.Written notice required. A prospective resident, before being asked to sign 
77.8 	a rental agreement, must be given the following notice printed verbatim in boldface type 
77.9 	of a minimum size of ten points. The notice must be provided with the park residency 
77.10 	application. The notice must be posted in a conspicuous and public location in the park:
77.11 	"IMPORTANT NOTICE
77.12 	State law provides special rules for the owners, residents, and prospective residents of 
77.13 	manufactured home parks.
77.14 	You may keep your home in the park as long as the park is in operation and you meet 
77.15 	your financial obligations, obey state and local laws which apply to the park, obey reasonable 
77.16 	park rules, do not substantially annoy or endanger the other residents or substantially 
77.17 	endanger park personnel and do not substantially damage the park premises. You may not 
77.18 	be evicted or have your rent increased or your services cut for complaining to the park owner 
77.19 	or to a governmental official.
77.20 	If you receive an eviction notice and do not leave the park, the park owner may take you 
77.21 	to court. If you lose in court, a sheriff may remove you and your home from the park within 
77.22 	seven days. Or, the court may require you to leave the park within seven days but give you 
77.23 	60 days to sell the home within the park.
77.24 	If you receive an eviction notice for a new or amended rule and the court finds the rule 
77.25 	to be reasonable and not a substantial modification of your original agreement, the court 
77.26 	will not order you to leave but will order you to comply with the rule within ten days. If 
77.27 	you do not comply within the time given or if you violate the rule at a later time, you will 
77.28 	be subject to eviction.
77.29 	All park rules and policies must be reasonable. Your rent may not be increased more 
77.30 	than twice a year. Changes made in park rules after you become a park resident will not 
77.31 	apply to you if they substantially change your original agreement.
77.32 	The park may not charge you an entrance fee.
78.1 	The park may require a security deposit, but the deposit must not amount to more than 
78.2 	two months rent.
78.3 	You have a right to sell the home in the park. But the sale is not final until the park 
78.4 	owner approves the buyer as a new resident, and you must advise in writing anyone who 
78.5 	wants to buy your home that the sale is subject to final approval by the park owner.
78.6 	The park must provide to you, in writing, the procedures and criteria used to evaluate a 
78.7 	prospective resident. If your application is denied, you can request, in writing, the reason 
78.8 	why.
78.9 	You must also disclose in writing certain safety information about your home to anyone 
78.10 	who wants to buy it in the park. You must give this information to the buyer before the sale, 
78.11 	in writing, on the form that is attached to this notice. You must completely and accurately 
78.12 	fill out the form and you and the buyer should each keep a copy.
78.13 	Your rental agreement and the park rules contain important information about your rights 
78.14 	and duties. Read them carefully and keep a copy.
78.15 	You must be given a copy of the shelter or evacuation plan for the park. This document 
78.16 	contains information on where to seek shelter in times of severe weather conditions. You 
78.17 	should carefully review the plan and keep a copy.
78.18 	By February 1 of each year, the park must give you a certificate of rent constituting 
78.19 	property taxes paid as required by Minnesota Statutes, section sections 290.0693, subdivision 
78.20 	4, and290A.19.
78.21 	For further information concerning your rights, consult a private attorney. The state law 
78.22 	governing the rental of lots in manufactured home parks may also be enforced by the 
78.23 	Minnesota Attorney General."

78.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

78.25 	Sec. 34. Minnesota Statutes 2022, section 462A.05, subdivision 24, is amended to read:
78.26 		Subd. 24.Housing for elderly, persons with physical or developmental disabilities, 
78.27 	and single parent families. (a) It may engage in housing programs for low- and 
78.28 	moderate-income elderly, persons with physical or developmental disabilities, or single 
78.29 	parent families in the case of home sharing programs, as defined by the agency, to provide 
78.30 	grants or loans, with or without interest, for:
78.31 	(1) accessibility improvements to residences occupied by elderly persons;
79.1 	(2) housing sponsors, as defined by the agency, of home sharing programs to match 
79.2 	existing homeowners with prospective tenants who will contribute either rent or services 
79.3 	to the homeowner, where either the homeowner or the prospective tenant is elderly, a person 
79.4 	with physical or developmental disabilities, or the head of a single parent family;
79.5 	(3) the construction of or conversion of existing buildings into structures for occupancy 
79.6 	by the elderly that contain from three to 12 private sleeping rooms with shared cooking 
79.7 	facilities and common space; and
79.8 	(4) housing sponsors, as defined by the agency, to demonstrate the potential for home 
79.9 	equity conversion in Minnesota for the elderly, in both rural and urban areas, and to determine 
79.10 	the need in those equity conversions for consumer safeguards.
79.11 	(b) In making the grants or loans, the agency shall determine the terms and conditions 
79.12 	of repayment and the appropriate security, if any, should repayment be required. The agency 
79.13 	may provide technical assistance to sponsors of home sharing programs or may contract or 
79.14 	delegate the provision of the technical assistance in accordance with section 462A.07, 
79.15 	subdivision 12.
79.16 	(c) Housing sponsors who receive funding through these programs shall provide 
79.17 	homeowners and tenants participating in a home sharing program with information regarding 
79.18 	their rights and obligations as they relate to federal and state tax law including, but not 
79.19 	limited to, taxable rental income, homestead classification under chapter 273, the renter's 
79.20 	credit under section 290.0693, and the property tax refund act under chapter 290A.

79.21 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
79.22 	and following years.

79.23 	Sec. 35. REPEALER.
 79.24 	Minnesota Statutes 2022, sections 290A.03, subdivisions 9 and 11; 290A.04, subdivision 
79.25 	2a; and 290A.23, subdivision 1, are repealed.

79.26 	EFFECTIVE DATE. This section is effective for claims based on rent paid in 2024 
79.27 	and following years.

80.1 	ARTICLE 5
80.2 	TAX INCREMENT FINANCING

80.3 	Section 1. Minnesota Statutes 2022, section 469.174, subdivision 14, is amended to read:
80.4 		Subd. 14.Administrative expenses. (a) "Administrative expenses" or "administrative 
80.5 	costs" means alldocumented expenditures of an authority other than or municipality, 
80.6 	including but not limited to:
80.7 	(1) amounts paid for services provided by bond counsel, fiscal consultants, and economic 
80.8 	development consultants;
80.9 	(2) allocated expenses and staff time of the authority or municipality for administering 
80.10 	a project, including but not limited to preparing the tax increment financing plan, negotiating 
80.11 	and preparing agreements, accounting for segregated funds of the district, preparing and 
80.12 	submitting required reporting for the district, and reviewing and monitoring compliance 
80.13 	with sections 469.174 to 469.1794;
80.14 	(3) amounts paid to publish annual disclosures and provide notices under section 469.175;
80.15 	(4) amounts to provide for the usual and customary maintenance and operation of 
80.16 	properties purchased with tax increments, including necessary reserves for repairs and the 
80.17 	cost of any insurance;
80.18 	(5) amounts allocated or paid to prepare a development action response plan for a soils 
80.19 	condition district or hazardous substance subdistrict; and
80.20 	(6) amounts used to pay bonds, interfund loans, or other financial obligations to the 
80.21 	extent those obligations were used to finance costs described in clauses (1) to (5).
80.22 	(b) Administrative expenses and administrative costs do not include:
80.23 	(1) amounts paid for the purchase of land and buildings;
80.24 	(2) amounts paid to contractors or others providing materials and services, including 
80.25 	architectural and engineering services, directly connected with the physical development 
80.26 	of the real property in the project, including architectural and engineering services and 
80.27 	materials and services for demolition, soil correction, and the construction or installation 
80.28 	of public improvements;
80.29 	(3) relocation benefits paid to or services provided for persons residing or businesses 
80.30 	located in the project;
80.31 	(4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount 
80.32 	bonds issued pursuant to section 469.178; or
81.1 	(5) (4) amounts paid for property taxes or payments in lieu of taxes; and
81.2 	(5) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount 
81.3 	bonds issued pursuant to section 469.178 or other financial obligations to the extent those 
81.4 	obligations were used to finance costs described in clauses (1) to (3) (4).
81.5 	For districts for which the requests for certifications were made before August 1, 1979, 
81.6 	or after June 30, 1982, "administrative expenses" includes amounts paid for services provided 
81.7 	by bond counsel, fiscal consultants, and planning or economic development consultants.
81.8 	This definition does not apply to administrative expenses or administrative costs referenced 
81.9 	under section 469.176, subdivision 4h.

81.10 	EFFECTIVE DATE. This section is effective the day following final enactment and 
81.11 	applies to all districts, regardless of when the request for certification was made.

81.12 	Sec. 2. Minnesota Statutes 2022, section 469.174, is amended by adding a subdivision to 
81.13 	read:
81.14 		Subd. 30.Pay-as-you-go contract and note. "Pay-as-you-go contract and note" means 
81.15 	a written note or contractual obligation under which all of the following apply:
81.16 	(1) the note or contractual obligation evidences an authority's commitment to reimburse 
81.17 	a developer, property owner, or note holder for the payment of costs of activities, including 
81.18 	any interest on unreimbursed costs;
81.19 	(2) the reimbursement is made from tax increment revenues identified in the note or 
81.20 	contractual obligation as received by a municipality or authority as taxes are paid; and
81.21 	(3) the risk that available tax increments may be insufficient to fully reimburse the costs 
81.22 	is borne by the developer, property owner, or note holder.

81.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

81.24 	Sec. 3. Minnesota Statutes 2022, section 469.175, subdivision 6, is amended to read:
81.25 		Subd. 6.Annual financial reporting. (a) The state auditor shall develop a uniform 
81.26 	system of accounting and financial reporting for tax increment financing districts. The 
81.27 	system of accounting and financial reporting shall, as nearly as possible:
81.28 	(1) provide for full disclosure of the sources and uses of tax increments of the district;
81.29 	(2) permit comparison and reconciliation with the affected local government's accounts 
81.30 	and financial reports;
82.1 	(3) permit auditing of the funds expended on behalf of a district, including a single 
82.2 	district that is part of a multidistrict project or that is funded in part or whole through the 
82.3 	use of a development account funded with tax increments from other districts or with other 
82.4 	public money;
82.5 	(4) be consistent with generally accepted accounting principles.
82.6 	(b) The authority must annually submit to the state auditor a financial report in compliance 
82.7 	with paragraph (a). Copies of the report must also be provided to the county auditor and to 
82.8 	the governing body of the municipality, if the authority is not the municipality. To the extent 
82.9 	necessary to permit compliance with the requirement of financial reporting, the county and 
82.10 	any other appropriate local government unit or private entity must provide the necessary 
82.11 	records or information to the authority or the state auditor as provided by the system of 
82.12 	accounting and financial reporting developed pursuant to paragraph (a). The authority must 
82.13 	submit the annual report for a year on or before August 1 of the next year.
82.14 	(c) The annual financial report must also include the following items:
82.15 	(1) the original net tax capacity of the district and any subdistrict under section 469.177, 
82.16 	subdivision 1;
82.17 	(2) the net tax capacity for the reporting period of the district and any subdistrict;
82.18 	(3) the captured net tax capacity of the district;
82.19 	(4) any fiscal disparity deduction from the captured net tax capacity under section 
82.20 	469.177, subdivision 3;
82.21 	(5) the captured net tax capacity retained for tax increment financing under section 
82.22 	469.177, subdivision 2, paragraph (b), clause (1);
82.23 	(6) any captured net tax capacity distributed among affected taxing districts under section 
82.24 	469.177, subdivision 2, paragraph (b), clause (2);
82.25 	(7) the type of district;
82.26 	(8) the date the municipality approved the tax increment financing plan and the date of 
82.27 	approval of any modification of the tax increment financing plan, the approval of which 
82.28 	requires notice, discussion, a public hearing, and findings under subdivision 4, paragraph 
82.29 	(a);
82.30 	(9) the date the authority first requested certification of the original net tax capacity of 
82.31 	the district and the date of the request for certification regarding any parcel added to the 
82.32 	district;
83.1 	(10) the date the county auditor first certified the original net tax capacity of the district 
83.2 	and the date of certification of the original net tax capacity of any parcel added to the district;
83.3 	(11) the month and year in which the authority has received or anticipates it will receive 
83.4 	the first increment from the district;
83.5 	(12) the date the district must be decertified;
83.6 	(13) for the reporting period and prior years of the district, the actual amount received 
83.7 	from, at least, the following categories:
83.8 	(i) tax increments paid by the captured net tax capacity retained for tax increment 
83.9 	financing under section 469.177, subdivision 2, paragraph (b), clause (1), but excluding any 
83.10 	excess taxes;
83.11 	(ii) tax increments that are interest or other investment earnings on or from tax increments;
83.12 	(iii) tax increments that are proceeds from the sale or lease of property, tangible or 
83.13 	intangible, purchased by the authority with tax increments;
83.14 	(iv) tax increments that are repayments of loans or other advances made by the authority 
83.15 	with tax increments;
83.16 	(v) bond proceeds; and
83.17 	(vi) the agricultural homestead market value credit paid to the authority under section 
83.18 	273.1384;
83.19 	(14) for the reporting period and for the prior years of the district, the actual amount 
83.20 	expended for, at least, the following categories:
83.21 	(i) acquisition of land and buildings through condemnation or purchase;
83.22 	(ii) site improvements or preparation costs;
83.23 	(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or other 
83.24 	similar public improvements;
83.25 	(iv) administrative costs, including the allocated cost of the authority; and
83.26 	(v) for housing districts, construction of affordable housing;
83.27 	(15) the amount of any payments for activities and improvements located outside of the 
83.28 	district that are paid for or financed with tax increments;
83.29 	(16) the amount of payments of principal and interest that are made during the reporting 
83.30 	period on any nondefeased:
84.1 	(i) general obligation tax increment financing bonds; and
84.2 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
84.3 	(17) the principal amount, at the end of the reporting period, of any nondefeased:
84.4 	(i) general obligation tax increment financing bonds; and
84.5 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
84.6 	(18) the amount of principal and interest payments that are due for the current calendar 
84.7 	year on any nondefeased:
84.8 	(i) general obligation tax increment financing bonds; and
84.9 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
84.10 	(19) if the fiscal disparities contribution under chapter 276A or 473F for the district is 
84.11 	computed under section 469.177, subdivision 3, paragraph (a), the amount of total increased 
84.12 	property taxes to be paid from outside the tax increment financing district; and
84.13 	(20) any additional information the state auditor may require.
84.14 	(d) The reporting requirements imposed by this subdivision apply to districts certified 
84.15 	before, on, and after August 1, 1979.

84.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

84.17 	Sec. 4. Minnesota Statutes 2022, section 469.176, subdivision 3, is amended to read:
84.18 		Subd. 3.Limitation on administrative expenses. (a) For districts for which certification 
84.19 	was requested before August 1, 2001, no tax increment shall be used to pay any 
84.20 	administrative expenses for a project which exceed ten percent of the total estimated tax 
84.21 	increment expenditures authorized by the tax increment financing plan or ten percent of the 
84.22 	total tax increment expenditures for the project net of any amounts returned to the county 
84.23 	auditor as excess increment; as returned increment under section 469.1763, subdivision 4, 
84.24 	paragraph (g); or as remedies under section 469.1771, subdivision 2, whichever is less.
84.25 	(b) For districts for which certification was requested after July 31, 2001, no tax increment 
84.26 	may be used to pay any administrative expenses for a project which exceed ten percent of 
84.27 	total estimated tax increment expenditures authorized by the tax increment financing plan 
84.28 	or ten percent of the total tax increments, as defined in section 469.174, subdivision 25, 
84.29 	clause (1), from received for the district net of any amounts returned to the county auditor 
84.30 	as excess increment; as returned increment under section 469.1763, subdivision 4, paragraph 
84.31 	(g); or as remedies under section 469.1771, subdivision 2, whichever is less.
85.1 	(c) Increments used to pay the county's administrative expenses under subdivision 4h 
85.2 	are not subject to the percentage limits in this subdivision.
85.3 	(d) Increments defined under section 469.174, subdivision 25, clause (2), used for 
85.4 	administrative expenses described under section 469.174, subdivision 14, paragraph (a), 
85.5 	clause (4), are not subject to the percentage limits in this subdivision.

85.6 	EFFECTIVE DATE. This section is effective the day following final enactment and 
85.7 	applies to all districts, regardless of when the request for certification was made.

85.8 	Sec. 5. Minnesota Statutes 2022, section 469.176, subdivision 4, is amended to read:
85.9 		Subd. 4.Limitation on use of tax increment; general rule. All revenues derived from 
85.10 	tax increment shall be used in accordance with the tax increment financing plan. The revenues 
85.11 	shall be used solely for the following purposes: (1) to pay the principal of and interest on 
85.12 	bonds issued to finance a project; (2) by a rural development financing authority for the 
85.13 	purposes stated in section 469.142,; by a port authority or municipality exercising the powers 
85.14 	of a port authority to finance or otherwise pay the cost of redevelopment pursuant to sections 
85.15 	469.048 to 469.068,; by an economic development authority to finance or otherwise pay 
85.16 	the cost of redevelopment pursuant to sections 469.090 to 469.108,; by a housing and 
85.17 	redevelopment authority or economic development authority to finance or otherwise pay 
85.18 	public redevelopment costs pursuant to sections 469.001 to 469.047,; by a municipality or 
85.19 	economic development authority to finance or otherwise pay the capital and administration 
85.20 	costs of a development district pursuant to sections 469.124 to 469.133,; by a municipality 
85.21 	or authority to finance or otherwise pay the costs of developing and implementing a 
85.22 	development action response plan,; by a municipality or redevelopment agency to finance 
85.23 	or otherwise pay premiums for insurance or other security guaranteeing the payment when 
85.24 	due of principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to 
85.25 	469.165, or both, or to accumulate and maintain a reserve securing the payment when due 
85.26 	of the principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to 
85.27 	469.165, or both, which revenues in the reserve shall not exceed, subsequent to the fifth 
85.28 	anniversary of the date of issue of the first bond issue secured by the reserve, an amount 
85.29 	equal to 20 percent of the aggregate principal amount of the outstanding and nondefeased 
85.30 	bonds secured by the reserve; and (3) to pay administrative expenses.

85.31 	EFFECTIVE DATE. This section is effective the day following final enactment and 
85.32 	applies to all districts, regardless of when the request for certification was made.

86.1 	Sec. 6. Minnesota Statutes 2022, section 469.1761, subdivision 1, is amended to read:
86.2 		Subdivision 1.Requirement imposed. (a) In order for a tax increment financing district 
86.3 	to qualify as a housing district:
86.4 	(1) the income limitations provided in this section must be satisfied if the district is 
86.5 	located either in a metropolitan county as defined by section 473.121, subdivision 4, or in 
86.6 	a city with a population greater than 50,000; and
86.7 	(2) no more than 20 percent of the square footage of buildings that receive assistance 
86.8 	from tax increments may consist of commercial, retail, or other nonresidential uses.
86.9 	(b) The requirements imposed by this section apply to property receiving assistance 
86.10 	financed with tax increments, including interest reduction, land transfers at less than the 
86.11 	authority's cost of acquisition, utility service or connections, roads, parking facilities, or 
86.12 	other subsidies. The provisions of this section do not apply to districts located in a targeted 
86.13 	area as defined in section 462C.02, subdivision 9, clause (e).
86.14 	(c) For purposes of the requirements of paragraph (a), the authority may elect to treat 
86.15 	an addition to an existing structure as a separate building if:
86.16 	(1) construction of the addition begins more than three years after construction of the 
86.17 	existing structure was completed; and
86.18 	(2) for an addition that does not meet the requirements of paragraph (a), clause (2), if it 
86.19 	is treated as a separate building, the addition was not contemplated by the tax increment 
86.20 	financing plan which includes the existing structure.

86.21 	Sec. 7. Minnesota Statutes 2022, section 469.1763, subdivision 2, is amended to read:
86.22 		Subd. 2.Expenditures outside district. (a) For each tax increment financing district, 
86.23 	an amount equal to at least 75 percent of the total revenue derived from tax increments paid 
86.24 	by properties in the district must be expended on activities in the district or to pay bonds, 
86.25 	to the extent that the proceeds of the bonds were used to finance activities in the district or 
86.26 	to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 
86.27 	than redevelopment districts for which the request for certification was made after June 30, 
86.28 	1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 
86.29 	more than 25 percent of the total revenue derived from tax increments paid by properties 
86.30 	in the district may be expended, through a development fund or otherwise, on activities 
86.31 	outside of the district but within the defined geographic area of the project except to pay, 
86.32 	or secure payment of, debt service on credit enhanced bonds. For districts, other than 
86.33 	redevelopment districts for which the request for certification was made after June 30, 1995, 
87.1 	the pooling percentage for purposes of the preceding sentence is 20 percent. The revenues 
87.2 	derived from tax increments paid by properties in the district that are expended on costs 
87.3 	under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating 
87.4 	the percentages that must be expended within and without the district.
87.5 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
87.6 	subdivision 11, is an activity in the district.
87.7 	(c) All administrative expenses are considered to be expenditures for activities outside 
87.8 	of the district, except that if the only expenses for activities outside of the district under this 
87.9 	subdivision are for the purposes described in paragraph (d), administrative expenses will 
87.10 	be considered as expenditures for activities in the district.
87.11 	(d) The authority may elect, in the tax increment financing plan for the district, to increase 
87.12 	by up to ten percentage points the permitted amount of expenditures for activities located 
87.13 	outside the geographic area of the district under paragraph (a). As permitted by section 
87.14 	469.176, subdivision 4k, the expenditures, including the permitted expenditures under 
87.15 	paragraph (a), need not be made within the geographic area of the project. Expenditures 
87.16 	that meet the requirements of this paragraph are legally permitted expenditures of the district, 
87.17 	notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 
87.18 	under this paragraph, the expenditures must:
87.19 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
87.20 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
87.21 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 
87.22 	Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 
87.23 	Revenue Code; and
87.24 	(3) be used to:
87.25 	(i) acquire and prepare the site of the housing;
87.26 	(ii) acquire, construct, or rehabilitate the housing; or
87.27 	(iii) make public improvements directly related to the housing; or
87.28 	(4) be used to develop housing:
87.29 	(i) if the market value of the housing does not exceed the lesser of:
87.30 	(A) 150 percent of the average market value of single-family homes in that municipality; 
87.31 	or
88.1 	(B) $200,000 for municipalities located in the metropolitan area, as defined in section 
88.2 	473.121, or $125,000 for all other municipalities; and
88.3 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 
88.4 	of existing structures, site preparation, and pollution abatement on one or more parcels, if 
88.5 	the parcel contains a residence containing one to four family dwelling units that has been 
88.6 	vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 
88.7 	7, but without regard to whether the residence is the owner's principal residence, and only 
88.8 	after the redemption period has expired; or
88.9 	(5) to assist owner-occupied housing that meets the requirements of section 469.1761, 
88.10 	subdivision 2.
88.11 	(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
88.12 	Increments may continue to be expended under this authority after that date, if they are used 
88.13 	to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 
88.14 	December 31, 2016, is considered to be the last date of the five-year period after certification 
88.15 	under that provision.
88.16 	(f) For purposes of determining whether the minimum percentage of expenditures for 
88.17 	activities in the district and maximum percentages of expenditures allowed on activities 
88.18 	outside the district have been met under this subdivision, any amounts returned to the county 
88.19 	auditor as excess increment, as returned increment under subdivision 4, paragraph (g), or 
88.20 	as remedies under section 469.1771, subdivision 2, shall first be subtracted from the total 
88.21 	revenues derived from tax increments paid by properties in the district. Any other amounts 
88.22 	returned to the county auditor for purposes other than a remedy under section 469.1771, 
88.23 	subdivision 3, are considered to be expenditures for activities in the district.

88.24 	EFFECTIVE DATE. This section is effective the day following final enactment and 
88.25 	applies to all districts with a request for certification date after April 30, 1990, except that 
88.26 	paragraph (f) shall apply to districts decertifying after December 31, 2023.

88.27 	Sec. 8. Minnesota Statutes 2022, section 469.1763, subdivision 3, is amended to read:
88.28 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments paid by properties 
88.29 	in the district that are considered to have been expended on an activity within the district 
88.30 	under will instead be considered to have been expended on an activity outside the district 
88.31 	for purposes of subdivision 2 only if one of the following occurs unless:
88.32 	(1) before or within five years after certification of the district, the revenues are actually 
88.33 	paid to a third party with respect to the activity;
89.1 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
89.2 	sold to a third party before or within five years after certification of the district, the revenues 
89.3 	are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 
89.4 	reasonably expected to be spent before the end of the later of (i) the five-year period, or (ii) 
89.5 	a reasonable temporary period within the meaning of the use of that term under section 
89.6 	148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 
89.7 	or replacement fund;
89.8 	(3) binding contracts with a third party are entered into for performance of the activity 
89.9 	before or within five years after certification of the district and the revenues are spent under 
89.10 	the contractual obligation;
89.11 	(4) costs with respect to the activity are paid before or within five years after certification 
89.12 	of the district and the revenues are spent to reimburse a party for payment of the costs, 
89.13 	including interest on unreimbursed costs; or
89.14 	(5) expenditures are made revenues are spent for housing purposes as permitted described
89.15 	by subdivision 2, paragraphs paragraph (b) and (d), or for public infrastructure purposes 
89.16 	within a zone as permitted by subdivision 2, paragraph (e).
89.17 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 
89.18 	original refunded bonds meet the requirements of paragraph (a), clause (2).
89.19 	(c) For a redevelopment district or a renewal and renovation district certified after June 
89.20 	30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 
89.21 	extended to ten years after certification of the district. For a redevelopment district certified 
89.22 	after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 
89.23 	(a) are extended to eight years after certification of the district. This extension is provided 
89.24 	primarily to accommodate delays in development activities due to unanticipated economic 
89.25 	circumstances.
89.26 	(d) For a redevelopment district that was certified after December 31, 2017, and before 
89.27 	June 30, 2020, the five-year periods described in paragraph (a) are extended to eight years 
89.28 	after certification of the district.

89.29 	EFFECTIVE DATE. This section is effective the day following final enactment and 
89.30 	applies to all districts with a request for certification date after April 30, 1990.

89.31 	Sec. 9. Minnesota Statutes 2022, section 469.1763, subdivision 4, is amended to read:
89.32 		Subd. 4.Use of revenues for decertification. (a) In each year beginning with the sixth 
89.33 	year following certification of the district, or beginning with the ninth year following 
90.1 	certification of the district for districts whose five-year rule is extended to eight years under 
90.2 	subdivision 3, paragraph (d), if the applicable in-district percent of the revenues derived 
90.3 	from tax increments paid by properties in the district exceeds the amount of expenditures 
90.4 	that have been made for costs permitted under subdivision 3, an amount equal to the 
90.5 	difference between the in-district percent of the revenues derived from tax increments paid 
90.6 	by properties in the district and the amount of expenditures that have been made for costs 
90.7 	permitted under subdivision 3 must be used and only used to pay or defease the following 
90.8 	or be set aside to pay the following:
90.9 	(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
90.10 	(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
90.11 	(3) credit enhanced bonds to which the revenues derived from tax increments are pledged, 
90.12 	but only to the extent that revenues of the district for which the credit enhanced bonds were 
90.13 	issued are insufficient to pay the bonds and to the extent that the increments from the 
90.14 	applicable pooling percent share for the district are insufficient; or
90.15 	(4) the amount provided by the tax increment financing plan to be paid under subdivision 
90.16 	2, paragraphs (b), (d), and (e).
90.17 	(b) The (a) Beginning with the sixth year following certification of the district, or 
90.18 	beginning with the year following the extended period for districts whose five-year period 
90.19 	is extended under subdivision 3, paragraphs (c) and (d), a district must be decertified and 
90.20 	the pledge of tax increment discharged when the outstanding bonds have been defeased and
90.21 	when sufficient money has been set aside to pay, based on the product of the applicable 
90.22 	in-district percentage multiplied by the increment to becumulative revenues derived from 
90.23 	tax increments paid by properties in the district that have been collected through the end of 
90.24 	the calendar year, equals or exceeds an amount sufficient to pay the following amounts:
90.25 	(1) contractualany costs and obligations as defineddescribed in subdivision 3, paragraph
90.26 	paragraphs (a), clauses (3) and (4); and (b), excluding those under a qualifying pay-as-you-go 
90.27 	contract and note;
90.28 	(2) the amount specified in the tax increment financing plan for activities qualifying 
90.29 	under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds 
90.30 	qualifying under paragraph (a), clause (1); and
90.31 	(3) the additional expenditures permitted by the tax increment financing plan for housing 
90.32 	activities under an election under subdivision 2, paragraph (d), that have not been funded 
90.33 	with the proceeds of bonds qualifying under paragraph (a), clause (1).
91.1 	(2) any accrued interest on the costs and obligations in clause (1), payable in accordance 
91.2 	with the terms thereof; and
91.3 	(3) any administrative expenses falling within the exception in subdivision 2, paragraph 
91.4 	(c).
91.5 	(b) For districts with an outstanding qualifying pay-as-you-go contract and note, the 
91.6 	required decertification under paragraph (a) is deferred until the end of the remaining term 
91.7 	of the last outstanding qualifying pay-as-you-go contract and note, and the applicable 
91.8 	in-district percentage of cumulative revenues derived from tax increments paid by properties 
91.9 	in the district are sufficient to pay the obligations identified in subdivision 3, paragraphs 
91.10 	(a) and (b), provided that the deferral shall not exceed the district's duration limit under 
91.11 	section 469.176. During the deferral, beginning at the time paragraph (a) would otherwise 
91.12 	require decertification, the authority must annually either:
91.13 	(1) remove from the district, by the end of the year, all parcels that will no longer have 
91.14 	their tax increment revenue pledged or subject to a qualifying pay-as-you-go contract and 
91.15 	note or other costs and obligations described in subdivision 3, paragraphs (a) and (b), after 
91.16 	the end of the year; or
91.17 	(2) use the applicable in-district percentage of revenues derived from tax increments 
91.18 	paid by those parcels to prepay an outstanding qualifying pay-as-you-go contract and note 
91.19 	of the district or other costs and obligations described in subdivision 3, paragraphs (a) and 
91.20 	(b), or to accumulate and use revenues derived from tax increments paid by those parcels 
91.21 	as permitted under paragraph (i).
91.22 	The authority must remove any parcels as required by this paragraph by modification 
91.23 	of the tax increment financing plan and notify the county auditor of the removed parcels by 
91.24 	the end of the same calendar year. Notwithstanding section 469.175, subdivision 4, 
91.25 	paragraphs (b), clause (1), and (e), the notice, discussion, public hearing, and findings 
91.26 	required for approval of the original plan are not required for such a modification.
91.27 	(c) Notwithstanding paragraph (a) or (b), if tax increment was pledged prior to August 
91.28 	1, 2023, to a bond other than a pay-as-you-go contract and note or interfund loan, and the 
91.29 	proceeds of the bond were used solely or in part to pay authorized costs for activities outside 
91.30 	the district, the requirement to decertify under paragraph (a) or remove parcels under 
91.31 	paragraph (b) shall not apply prior to the bond being fully paid or defeased.
91.32 	(d) For purposes of this subdivision, "applicable in-district percentage" means the 
91.33 	percentage of tax increment revenue that is restricted for expenditures within the district, 
91.34 	as determined under subdivision 2, paragraphs (a) and (d), for the district.
92.1 	(e) For purposes of this subdivision, "qualifying pay-as-you-go contract and note" means 
92.2 	a pay-as-you-go contract and note that is considered to be for activities within the district 
92.3 	under subdivision 3, paragraph (a).
92.4 	(f) For purposes of this subdivision, the reference in paragraph (a) to cumulative revenues 
92.5 	derived from tax increments paid by properties in the district through the end of the calendar 
92.6 	year shall include any final settlement distributions made in the following January. For 
92.7 	purposes of the calculation in paragraph (a), any amounts returned to the county auditor as 
92.8 	excess increment or as remedies under section 469.1771, subdivision 2, shall first be 
92.9 	subtracted from the cumulative revenues derived from tax increments paid by properties in 
92.10 	the district.
92.11 	(g) The timing and implementation of a decertification pursuant to paragraphs (a) and 
92.12 	(b) shall be subject to the following:
92.13 	(1) when a decertification is required under paragraph (a) and not deferred under 
92.14 	paragraph (b), the authority must, as soon as practical and no later than the final settlement 
92.15 	distribution date of January 25 as identified in section 276.111 for the property taxes payable 
92.16 	in the calendar year identified in paragraph (a), make the decertification by resolution 
92.17 	effective for the end of the calendar year identified in paragraph (a), and communicate the 
92.18 	decertification to the county auditor;
92.19 	(2) when a decertification is deferred under paragraph (b), the authority must, by 
92.20 	December 31 of the year in which the last qualifying pay-as-you-go contract and note reaches 
92.21 	termination, make the decertification by resolution effective for the end of that calendar 
92.22 	year and communicate the decertification to the county auditor;
92.23 	(3) if the county auditor is unable to prevent tax increments from being calculated for 
92.24 	taxes payable in the year following the year for which the decertification is made effective, 
92.25 	the county auditor may redistribute the tax increments in the same manner as excess 
92.26 	increments under section 469.176, subdivision 2, paragraph (c), clause (4), without first 
92.27 	distributing them to the authority; and
92.28 	(4) if tax increments are distributed to an authority for a taxes payable year after the year 
92.29 	for which the decertification was required to be effective, the authority must return the 
92.30 	amount of the distributions to the county auditor for redistribution in the same manner as 
92.31 	excess increments under section 469.176, subdivision 2, paragraph (c), clause (4).
92.32 	(h) The provisions of this subdivision do not apply to a housing district.
93.1 	(i) Notwithstanding anything to the contrary in paragraph (a) or (b), if an authority has 
93.2 	made the election in the tax increment financing plan for the district under subdivision 2, 
93.3 	paragraph (d), then the requirement to decertify under paragraph (a) or remove parcels under 
93.4 	paragraph (b) shall not apply prior to such time that the accumulated revenues derived from 
93.5 	tax increments paid by properties in the district that are eligible to be expended for housing 
93.6 	purposes described under subdivision 2, paragraph (d),  equals the lesser of the amount the 
93.7 	authority is permitted to expend for housing purposes described under subdivision 2, 
93.8 	paragraph (d), or the amount authorized for such purposes in the tax increment financing 
93.9 	plan. Increment revenues collected after the district would have decertified under paragraph 
93.10 	(a) or from parcels which otherwise would be subject to removal under paragraph (b), absent 
93.11 	the exception of this paragraph, shall be used solely for housing purposes as described in 
93.12 	subdivision 2, paragraph (d).

93.13 	EFFECTIVE DATE. This section is effective the day following final enactment and 
93.14 	applies to all districts with a request for certification after April 30, 1990, except that the 
93.15 	requirements under paragraph (b) to remove parcels or use revenues from such parcels as 
93.16 	prescribed in paragraph (b) apply only to districts for which the request for certification 
93.17 	was made after the day following final enactment.

93.18 	Sec. 10. Minnesota Statutes 2022, section 469.1763, subdivision 6, is amended to read:
93.19 		Subd. 6.Pooling permitted for deficits. (a) This subdivision applies only to districts 
93.20 	for which the request for certification was made before August 1, 2001, and without regard 
93.21 	to whether the request for certification was made prior to August 1, 1979.
93.22 	(b) The municipality for the district may transfer available increments from another tax 
93.23 	increment financing district located in the municipality, if the transfer is necessary to 
93.24 	eliminate a deficit in the district to which the increments are transferred. The municipality 
93.25 	may transfer increments as provided by this subdivision without regard to whether the 
93.26 	transfer or expenditure is authorized by the tax increment financing plan for the district 
93.27 	from which the transfer is made. A deficit in the district for purposes of this subdivision 
93.28 	means the lesser of the following two amounts:
93.29 	(1)(i) the amount due during the calendar year to pay preexisting obligations of the 
93.30 	district; minus the sum of
93.31 	(ii) (i) the total increments collected or to be collected from properties located within 
93.32 	the district that are available for the calendar year including amounts collected in prior years 
93.33 	that are currently available; plus
94.1 	(iii) (ii) total increments from properties located in other districts in the municipality 
94.2 	including amounts collected in prior years that are available to be used to meet the district's 
94.3 	obligations under this section, excluding this subdivision, or other provisions of law; or
94.4 	(2) the reduction in increments collected from properties located in the district for the 
94.5 	calendar year as a result of the changes in classification rates in Laws 1997, chapter 231, 
94.6 	article 1; Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243, and Laws 2001, 
94.7 	First Special Session chapter 5, or the elimination of the general education tax levy under 
94.8 	Laws 2001, First Special Session chapter 5.
94.9 	The authority may compute the deficit amount under clause (1) only (without regard to 
94.10 	the limit under clause (2)) if the authority makes an irrevocable commitment, by resolution, 
94.11 	to use increments from the district to which increments are to be transferred and any 
94.12 	transferred increments are only used to pay preexisting obligations and administrative 
94.13 	expenses for the district that are required to be paid under section 469.176, subdivision 4h, 
94.14 	paragraph (a).
94.15 	(c) A preexisting obligation means:
94.16 	(1) bonds issued and sold before August 1, 2001, or bonds issued pursuant to a binding 
94.17 	contract requiring the issuance of bonds entered into before July 1, 2001, and bonds issued 
94.18 	to refund such bonds or to reimburse expenditures made in conjunction with a signed 
94.19 	contractual agreement entered into before August 1, 2001, to the extent that the bonds are 
94.20 	secured by a pledge of increments from the tax increment financing district; and
94.21 	(2) binding contracts entered into before August 1, 2001, to the extent that the contracts 
94.22 	require payments secured by a pledge of increments from the tax increment financing district.
94.23 	(d) The municipality may require a development authority, other than a seaway port 
94.24 	authority, to transfer available increments including amounts collected in prior years that 
94.25 	are currently available for any of its tax increment financing districts in the municipality to 
94.26 	make up an insufficiency in another district in the municipality, regardless of whether the 
94.27 	district was established by the development authority or another development authority. 
94.28 	This authority applies notwithstanding any law to the contrary, but applies only to a 
94.29 	development authority that:
94.30 	(1) was established by the municipality; or
94.31 	(2) the governing body of which is appointed, in whole or part, by the municipality or 
94.32 	an officer of the municipality or which consists, in whole or part, of members of the 
94.33 	governing body of the municipality. The municipality may use this authority only after it 
95.1 	has first used all available increments of the receiving development authority to eliminate 
95.2 	the insufficiency and exercised any permitted action under section 469.1792, subdivision 
95.3 	3, for preexisting districts of the receiving development authority to eliminate the 
95.4 	insufficiency.
95.5 	(e) The authority under this subdivision to spend tax increments outside of the area of 
95.6 	the district from which the tax increments were collected:
95.7 	(1) is an exception to the restrictions under section 469.176, subdivisions 4b, 4c, 4d, 4e, 
95.8 	4i, and 4j; the expenditure limits under section 469.176, subdivision 1c; and the other 
95.9 	provisions of this section; and the percentage restrictions under subdivision 2 must be 
95.10 	calculated after deducting increments spent under this subdivision from the total increments 
95.11 	for the district; and
95.12 	(2) applies notwithstanding the provisions of the Tax Increment Financing Act in effect 
95.13 	for districts for which the request for certification was made before June 30, 1982, or any 
95.14 	other law to the contrary.
95.15 	(f) If a preexisting obligation requires the development authority to pay an amount that 
95.16 	is limited to the increment from the district or a specific development within the district and 
95.17 	if the obligation requires paying a higher amount to the extent that increments are available, 
95.18 	the municipality may determine that the amount due under the preexisting obligation equals 
95.19 	the higher amount and may authorize the transfer of increments under this subdivision to 
95.20 	pay up to the higher amount. The existence of a guarantee of obligations by the individual 
95.21 	or entity that would receive the payment under this paragraph is disregarded in the 
95.22 	determination of eligibility to pool under this subdivision. The authority to transfer increments 
95.23 	under this paragraph may only be used to the extent that the payment of all other preexisting 
95.24 	obligations in the municipality due during the calendar year have been satisfied.
95.25 	(g) For transfers of increments made in calendar year 2005 and later, the reduction in 
95.26 	increments as a result of the elimination of the general education tax levy for purposes of 
95.27 	paragraph (b), clause (2), for a taxes payable year equals the general education tax rate for 
95.28 	the school district under Minnesota Statutes 2000, section 273.1382, subdivision 1, for taxes 
95.29 	payable in 2001, multiplied by the captured tax capacity of the district for the current taxes 
95.30 	payable year.

95.31 	EFFECTIVE DATE. This section is effective the day following final enactment and 
95.32 	applies only to districts for which the request for certification was made before August 1, 
95.33 	2001, and without regard to whether the request for certification was made prior to August 
95.34 	1, 1979.

96.1 	Sec. 11. Minnesota Statutes 2022, section 469.1771, subdivision 2, is amended to read:
96.2 		Subd. 2.Collection of increment. If an authority includes or retains a parcel of property 
96.3 	in a tax increment financing district that does not qualify for inclusion or retention within 
96.4 	the district, the authority must pay to the county auditor an amount of money equal to the 
96.5 	increment collected from the property for the year or years. The property must be eliminated 
96.6 	from the original and captured tax capacity of the district effective for the current property 
96.7 	tax assessment year. This subdivision does not apply to a failure to decertify a district at 
96.8 	the end of the duration limit specified in the tax increment financing plan.

96.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

96.10 	Sec. 12. Minnesota Statutes 2022, section 469.1771, subdivision 2a, is amended to read:
96.11 		Subd. 2a.Suspension of distribution of tax increment. (a) If an authority fails to make 
96.12 	a disclosure or to submit a report containing the information required by section 469.175, 
96.13 	subdivisions 5 and 6, regarding a tax increment financing district within the time provided 
96.14 	in section 469.175, subdivisions 5 and 6, the state auditor shall mail to the authority a written 
96.15 	notice that it or the municipality has failed to make the required disclosure or to submit a 
96.16 	required report with respect to a particular district. The state auditor shall mail the notice 
96.17 	on or before the third Tuesday of August of the year in which the disclosure or report was 
96.18 	required to be made or submitted. The notice must describe the consequences of failing to 
96.19 	disclose or submit a report as provided in paragraph (b). If the state auditor has not received 
96.20 	a copy of a disclosure or a report described in this paragraph on or before the first day of 
96.21 	October of the year in which the disclosure or report was required to be made or submitted, 
96.22 	the state auditor shall mail a written notice to the county auditor to hold the distribution of 
96.23 	tax increment from a particular district.
96.24 	(b) Upon receiving written notice from the state auditor to hold the distribution of tax 
96.25 	increment, the county auditor shall hold: all tax increment that otherwise would be distributed 
96.26 	after receipt of the notice, until further notified under paragraph (c).
96.27 	(1) 100 percent of the amount of tax increment that otherwise would be distributed, if 
96.28 	the distribution is made after the first day of October but during the year in which the 
96.29 	disclosure or report was required to be made or submitted; or
96.30 	(2) 100 percent of the amount of tax increment that otherwise would be distributed, if 
96.31 	the distribution is made after December 31 of the year in which the disclosure or report was 
96.32 	required to be made or submitted.
97.1 	(c) Upon receiving the copy of the disclosure and all of the reports described in paragraph 
97.2 	(a) with respect to a district regarding which the state auditor has mailed to the county 
97.3 	auditor a written notice to hold distribution of tax increment, the state auditor shall mail to 
97.4 	the county auditor a written notice lifting the hold and authorizing the county auditor to 
97.5 	distribute to the authority or municipality any tax increment that the county auditor had held 
97.6 	pursuant to paragraph (b). The state auditor shall mail the written notice required by this 
97.7 	paragraph within five working days after receiving the last outstanding item. The county 
97.8 	auditor shall distribute the tax increment to the authority or municipality within 15 working 
97.9 	days after receiving the written notice required by this paragraph.
97.10 	(d) Notwithstanding any law to the contrary, any interest that accrues on tax increment 
97.11 	while it is being held by the county auditor pursuant to paragraph (b) is not tax increment 
97.12 	and may be retained by the county.
97.13 	(e) For purposes of sections 469.176, subdivisions 1a to 1g, and 469.177, subdivision 
97.14 	11, tax increment being held by the county auditor pursuant to paragraph (b) is considered 
97.15 	distributed to or received by the authority or municipality as of the time that it would have 
97.16 	been distributed or received but for paragraph (b).

97.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

97.18 	Sec. 13. Minnesota Statutes 2022, section 469.1771, subdivision 3, is amended to read:
97.19 		Subd. 3.Expenditure of increment. If an authority expends revenues derived from tax 
97.20 	increments, including the proceeds of tax increment bonds, (1) for a purpose that is not a 
97.21 	permitted project under section 469.176 sections 469.174 to 469.1794, (2) for a purpose 
97.22 	that is not permitted under section 469.176 sections 469.174 to 469.1794 for the district 
97.23 	from which the increment was received, or (3) on activities outside of the geographic area 
97.24 	in which the revenues may be expended under this chapter, the authority must pay to the 
97.25 	county auditor an amount equal to the expenditures made in violation of the law.

97.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

97.27 	Sec. 14. Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter 
97.28 	143, article 9, section 11, and Laws 2019, First Special Session chapter 6, article 7, section 
97.29 	2, is amended to read:
97.30 	Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.
 97.31 	(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 
97.32 	activities must be undertaken within a five-year period from the date of certification of a 
98.1 	tax increment financing district, are increased to a 21-year26-year period for the Port 
98.2 	Authority of the City of Bloomington's Tax Increment Financing District No. 1-I, 
98.3 	Bloomington Central Station. The requirements of Minnesota Statutes, section 469.1763, 
98.4 	subdivision 4, apply to the district in each year beginning with the 27th year following 
98.5 	certification of the district.
98.6 	(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other 
98.7 	law to the contrary, the city of Bloomington and its port authority may extend the duration 
98.8 	limits of the district for a period through December 31, 2039.
98.9 	(c) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other 
98.10 	law to the contrary, the city of Bloomington and its port authority may extend the duration 
98.11 	limits of undeveloped parcels within District No. 1-I for a period through December 31, 
98.12 	2049.  For the purposes of this paragraph, "undeveloped parcels" means any parcel that does 
98.13 	not have a building on it as of the effective date of this section.
98.14 	(c)(d) Effective for taxes payable in 2014, tax increment for the district must be computed 
98.15 	using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section 
98.16 	469.177, subdivision 1a.

98.17 	EFFECTIVE DATE. This section is effective upon compliance by the city of 
98.18 	Bloomington, Hennepin County, and Independent School District No. 271 with the 
98.19 	requirements of Minnesota Statutes, section 469.1782, subdivision 2.

98.20 	Sec. 15. Laws 2014, chapter 308, article 6, section 12, subdivision 2, is amended to read:
98.21 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
98.22 	financing plan for a district, the rules under this section apply to a redevelopment district, 
98.23 	renewal and renovation district, soil condition district, or soil deficiency district established 
98.24 	by the city or a development authority of the city in the project area.
98.25 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
98.26 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
98.27 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
98.28 	are characterized by one or more of the following conditions:
98.29 	(1) peat or other soils with geotechnical deficiencies that impair development of 
98.30 	commercial buildings or infrastructure;
98.31 	(2) soils or terrain that require substantial filling in order to permit the development of 
98.32 	commercial buildings or infrastructure;
99.1 	(3) landfills, dumps, or similar deposits of municipal or private waste;
99.2 	(4) quarries or similar resource extraction sites;
99.3 	(5) floodway; and
99.4 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
99.5 	subdivision 10.
99.6 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
99.7 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
99.8 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
99.9 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
99.10 	parcel.
99.11 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
99.12 	extended to eight 12 years for any district,; the five-year rule under Minnesota Statutes, 
99.13 	section 469.175, subdivision 4, paragraph (f), is extended to nine years for any district; and 
99.14 	Minnesota Statutes, section 469.1763, subdivision 4, does not apply to any district.
99.15 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
99.16 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
99.17 	increments paid by properties in any district, measured over the life of the district, may be 
99.18 	expended on activities outside the district but within the project area.
99.19 	(f) For a soil deficiency district:
99.20 	(1) increments may be collected through 20 years after the receipt by the authority of 
99.21 	the first increment from the district;
99.22 	(2) increments may be used only to:
99.23 	(i) acquire parcels on which the improvements described in item (ii) will occur;
99.24 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
99.25 	cost of installing public improvements directly caused by the deficiencies; and
99.26 	(iii) pay for the administrative expenses of the authority allocable to the district; and
99.27 	(3) any parcel acquired with increments from the district must be sold at no less than 
99.28 	their fair market value.
99.29 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
99.30 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
99.31 	Statutes, section 469.176, subdivision 4j.
100.1 	(h) The authority to approve tax increment financing plans to establish tax increment 
100.2 	financing districts under this section expires June 30, 2020.

100.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
100.4 	city of Savage and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
100.5 	subdivisions 2 and 3.

100.6 	Sec. 16. CITY OF CHATFIELD; TAX INCREMENT FINANCING AUTHORITY; 
100.7 	ECONOMIC DEVELOPMENT AUTHORIZATION.
 100.8 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 4c, paragraph (b), or 
100.9 	any other law to the contrary, the city of Chatfield, or its economic development authority, 
100.10 	may establish an economic development district to construct a multilevel hotel on Mill 
100.11 	Creek Road and Division Street NW, south of Trunk Highway 30, in the city of Chatfield, 
100.12 	Olmsted County, provided that the first floor of the hotel not exceed 15,000 square feet. 
100.13 	For purposes of this section, "first floor" means the floor at street level where the public is 
100.14 	permitted to enter and exit.

100.15 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
100.16 	city of Chatfield and its chief clerical officer comply with the requirements of Minnesota 
100.17 	Statutes, section 645.021, subdivisions 2 and 3.

100.18 	Sec. 17. CITY OF DULUTH; TAX INCREMENT FINANCING AUTHORITY.
 100.19 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
100.20 	city of Duluth or its economic development authority may establish one or more 
100.21 	redevelopment districts located wholly within the city of Duluth, St. Louis County, 
100.22 	Minnesota, limited to the area bordered on the northeast by Slip 3 and the Pier B Resort 
100.23 	property line extended northwest to Interstate Highway 35, on the southeast by the Duluth 
100.24 	Harbor, on the southwest by the Compass Minerals property line extended northwest to 
100.25 	Interstate Highway 35, and on the northwest by Interstate Highway 35, together with adjacent 
100.26 	roads and rights-of-way.
100.27 		Subd. 2.Special rules. For any tax increment financing district established under this 
100.28 	section, the following special rules apply:
100.29 	(1) the district is deemed to meet all the requirements of Minnesota Statutes, section 
100.30 	469.174, subdivision 10;
101.1 	(2) expenditures incurred in connection with the development of the property described 
101.2 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
101.3 	subdivision 4j; and
101.4 	(3) eligible expenditures include without limitation seawalls and pier facings adjacent 
101.5 	to the boundaries of such district.

101.6 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
101.7 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
101.8 	subdivisions 2 and 3.

101.9 	Sec. 18. CITY OF DULUTH; TAX INCREMENT FINANCING DURATION 
101.10 	EXTENSION.
 101.11 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law 
101.12 	to the contrary, the city of Duluth or its economic development authority may extend the 
101.13 	duration limit of a district established under section 1 by ten years.

101.14 	EFFECTIVE DATE. This section is effective upon compliance by the city of Duluth, 
101.15 	St. Louis County, and Independent School District No. 709 with the requirements of 
101.16 	Minnesota Statutes, section 469.1782, subdivision 2.

101.17 	Sec. 19. CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; 
101.18 	SPECIAL RULES.
 101.19 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
101.20 	economic development authority of the city of Duluth or the city of Duluth may establish 
101.21 	one or more redevelopment districts located wholly within the area of the city of Duluth, 
101.22 	St. Louis County, Minnesota, limited to the area classified as the Medical Regional Exchange 
101.23 	District and East 1st Street Corridor as bounded by: East 6th Street from North 3rd Avenue 
101.24 	East to North 7th Avenue East; North 7th Avenue East from East 6th Street to East 3rd 
101.25 	Street; East 3rd Street from North 7th Avenue East to North 12th Avenue East; North 12th 
101.26 	Avenue East from East 3rd Street straight through the Duluth Rose Garden to the Lake 
101.27 	Superior Waterfront; the Lake Superior waterfront from the Duluth Rose Garden at North 
101.28 	12th Avenue East to Lake Place Park at North 3rd Avenue East; North 3rd Avenue East 
101.29 	from Lake Place Park at the Lake Superior waterfront to East Superior Street; East Superior 
101.30 	Street from North 3rd Avenue East to North Lake Avenue; North Lake Avenue from East 
101.31 	Superior Street to East 2nd Street; East 2nd Street from North Lake Avenue to North 3rd 
101.32 	Avenue East; North 3rd Avenue East from East 2nd Street to East 6th Street.
102.1 		Subd. 2.Special rules. If the city or authority establishes a redevelopment tax increment 
102.2 	financing district under this section, the requirements, definitions, limitations, or restrictions 
102.3 	in the following statutes do not apply: Minnesota Statutes, sections 469.174, subdivision 
102.4 	10; and 469.176, subdivisions 4j, 4l, and 5; 469.1763, subdivisions 2, 3, and 4.
102.5 		Subd. 3.Expiration. The provisions of subdivision 2 expire for increment expended 
102.6 	after December 31, 2051. After that date, the provisions of Minnesota Statutes, section 
102.7 	469.1763, subdivision 4, apply to any remaining unspent or unobligated increment.

102.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
102.9 	city of Duluth and its chief clerical officer comply with the requirements of Minnesota 
102.10 	Statutes, section 645.021, subdivisions 2 and 3.

102.11 	Sec. 20. CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT; 
102.12 	SPECIAL RULES.
 102.13 		Subdivision 1.Transfer of increment. Notwithstanding Minnesota Statutes, section 
102.14 	469.176, subdivision 4j, the city of Fridley, or its economic development authority, may 
102.15 	transfer tax increment accumulated from Fridley Tax Increment Financing District No. 20 
102.16 	to the Fridley Housing and Redevelopment Authority for the purposes authorized in 
102.17 	subdivision 2. Only increment allowed to be expended outside of the district pursuant to 
102.18 	Minnesota Statutes, section 469.1763, subdivision 2, may be transferred under this section.
102.19 		Subd. 2.Allowable use. Tax increment transferred under subdivision 1 must be used 
102.20 	only to:
102.21 	(1) make grants, loans, and loan guarantees for the development, rehabilitation, or 
102.22 	financing of housing; or
102.23 	(2) match other funds from federal, state, or private resources for housing projects.
102.24 		Subd. 3.Annual financial reporting. Tax increment transferred under this section is 
102.25 	subject to the annual reporting requirements under Minnesota Statutes, section 469.175, 
102.26 	subdivision 6.
102.27 		Subd. 4.Legislative reports. By February 1, 2024, and February 1, 2026, the city of 
102.28 	Fridley must issue a report to the chairs and ranking minority members of the legislative 
102.29 	committees with jurisdiction over taxes and property taxes. Each report must include detailed 
102.30 	information relating to each program financed with increment transferred under this section.
102.31 		Subd. 5.Expiration. The authority to make transfers under subdivision 1 expires 
102.32 	December 31, 2026.

103.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
103.2 	city of Fridley and its chief clerical officer comply with the requirements of Minnesota 
103.3 	Statutes, section 645.021, subdivisions 2 and 3.

103.4 	Sec. 21. CITY OF LAFAYETTE; SMALL CITY DESIGNATION.
 103.5 	For the purposes of Minnesota Statutes, section 469.176, subdivision 4c, the city of 
103.6 	Lafayette is a small city.

103.7 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
103.8 	city of Lafayette and its chief clerical officer comply with Minnesota Statutes, section 
103.9 	645.021, subdivisions 2 and 3.

103.10 	Sec. 22. CITY OF NICOLLET; SMALL CITY DESIGNATION.
 103.11 	For the purposes of Minnesota Statutes, section 469.176, subdivision 4c, the city of 
103.12 	Nicollet is a small city.

103.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
103.14 	city of Nicollet and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
103.15 	subdivisions 2 and 3.

103.16 	Sec. 23. CITY OF PLYMOUTH; TAX INCREMENT FINANCING AUTHORITY.
 103.17 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
103.18 	city of Plymouth may establish one or more redevelopment districts located wholly within 
103.19 	the city of Plymouth, Hennepin County, Minnesota, limited to the following parcels identified 
103.20 	by tax identification numbers: 34-119-22-44-0002, 03-118-22-12-0002, 03-118-22-11-0007, 
103.21 	02-118-22-22-0005, and 03-118-22-14-0032, together with adjacent roads and rights of 
103.22 	way.
103.23 		Subd. 2.Special rules. If the city establishes a tax increment financing district under 
103.24 	this section, the following special rules apply:
103.25 	(1) the district is deemed to meet all the requirements of Minnesota Statutes, section 
103.26 	469.174, subdivision 10;
103.27 	(2) the five-year rule period under Minnesota Statutes, section 469.1763, subdivision 3, 
103.28 	is extended to ten years and the six-year rule under Minnesota Statutes, section 469.1763, 
103.29 	subdivision 4, applies to the district in each year beginning with the 11th year following 
103.30 	certification of the district;
104.1 	(3) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district; 
104.2 	and
104.3 	(4) not more than 75 percent of increments generated from the district may be expended 
104.4 	on improvements to Chankahda Trail, formerly known as Hennepin County Road 47, outside 
104.5 	the project area, and all such expenditures are deemed expended on activities within the 
104.6 	district for the purposes of Minnesota Statutes, section 469.1763.
104.7 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
104.8 	a tax increment financing district under this section expires December 31, 2030.

104.9 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
104.10 	city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section 
104.11 	645.021, subdivisions 2 and 3.

104.12 	Sec. 24. CITY OF SHAKOPEE; TAX INCREMENT FINANCING DISTRICT.
 104.13 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
104.14 	the meanings given.
104.15 	(b) "City" means the city of Shakopee.
104.16 	(c) "Project area" means the following parcels, identified by parcel identification number: 
104.17 	279160102, 279160110, 279170020, and 279160120.
104.18 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
104.19 	of a portion of the project area in which the city finds by resolution that the following 
104.20 	conditions exist:
104.21 	(1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in 
104.22 	the district require substantial filling, grading, or other physical preparation for use; and
104.23 	(2) the estimated cost of the physical preparation under clause (1), excluding costs 
104.24 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
104.25 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, other 
104.26 	than clauses (8) to (10), and 430.01, exceeds the fair market value of the land before 
104.27 	completion of the preparation.
104.28 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
104.29 	financing plan for a district, the rules under this section apply to a redevelopment district, 
104.30 	renewal and renovation district, soil condition district, or soil deficiency district established 
104.31 	by the city or a development authority of the city in the project area. The city, or a 
105.1 	development authority acting on its behalf, may establish one or more soil deficiency districts 
105.2 	within the project area.
105.3 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
105.4 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
105.5 	least 70 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
105.6 	are characterized by one or more of the following conditions:
105.7 	(1) peat or other soils with geotechnical deficiencies that impair development of 
105.8 	residential or commercial buildings or infrastructure;
105.9 	(2) soils or terrain that requires substantial filling in order to permit the development of 
105.10 	residential or commercial buildings or infrastructure;
105.11 	(3) landfills, dumps, or similar deposits of municipal or private waste;
105.12 	(4) quarries or similar resource extraction sites;
105.13 	(5) floodways; and
105.14 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
105.15 	subdivision 10.
105.16 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
105.17 	relevant condition if at least 60 percent of the area of the parcel contains the relevant 
105.18 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
105.19 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
105.20 	parcel.
105.21 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
105.22 	extended to ten years for any district, and the period under Minnesota Statutes, section 
105.23 	469.1763, subdivision 4, is extended to 11 years.
105.24 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
105.25 	subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax 
105.26 	increments paid by properties in any district, measured over the life of the district, may be 
105.27 	expended on activities outside the district but within the project area.
105.28 	(f) For a soil deficiency district:
105.29 	(1) increments may be collected through 20 years after the receipt by the authority of 
105.30 	the first increment from the district; and
105.31 	(2) except as otherwise provided in this subdivision, increments may be used only to:
106.1 	(i) acquire parcels on which the improvements described in item (ii) will occur;
106.2 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
106.3 	cost of installing public improvements directly caused by the deficiencies; and
106.4 	(iii) pay for the administrative expenses of the authority allocable to the district.
106.5 	(g) The authority to approve tax increment financing plans to establish tax increment 
106.6 	financing districts under this section expires December 31, 2026.

106.7 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
106.8 	city of Shakopee and its chief clerical officer comply with the requirements of Minnesota 
106.9 	Statutes, section 645.021, subdivisions 2 and 3.

106.10 	Sec. 25. CITY OF SPICER; SMALL CITY DESIGNATION.
 106.11 	For the purposes of Minnesota Statutes, section 469.176, subdivision 4c, the city of 
106.12 	Spicer is a small city.

106.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
106.14 	city of Spicer and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
106.15 	subdivisions 2 and 3.

106.16 	Sec. 26. CITY OF WEST SAINT PAUL; TAX INCREMENT FINANCING 
106.17 	AUTHORITY.
 106.18 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
106.19 	economic development authority of the city of West Saint Paul or the city of West Saint 
106.20 	Paul may establish one or more redevelopment tax increment financing districts consisting 
106.21 	of the parcels in the city of West Saint Paul, Dakota County, Minnesota, currently identified 
106.22 	with the following parcel identification numbers: 42-83680-01-011, 42-11561-00-010, 
106.23 	42-11561-01-010, 42-11560-01-021, 42-11561-00-020, 42-11560-01-022, as the same may 
106.24 	be replatted or reconfigured, together with adjacent roads and rights-of-way.
106.25 		Subd. 2.Special rules. If the city or authority establishes one or more tax increment 
106.26 	financing districts under this section, the following special rules apply:
106.27 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
106.28 	469.174, subdivision 10; and
106.29 	(2) expenditures incurred in connection with the development of the property described 
106.30 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
106.31 	subdivision 4j.

107.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
107.2 	city of West Saint Paul and its chief clerical officer comply with Minnesota Statutes, section 
107.3 	645.021, subdivisions 2 and 3.

107.4 	Sec. 27. CITY OF WOODBURY; TAX INCREMENT FINANCING DISTRICT 
107.5 	NO. 13; EXPENDITURES ALLOWED; DURATION EXTENSION.
 107.6 	(a) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, or any other 
107.7 	law to the contrary, the city of Woodbury may expend increments generated from Tax 
107.8 	Increment Financing District No. 13 for the maintenance, and facility and infrastructure 
107.9 	upgrades to Central Park. All such expenditures are deemed expended on activities within 
107.10 	the district.
107.11 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the city of 
107.12 	Woodbury may elect to extend the duration of Tax Increment Financing District No. 13 by 
107.13 	five years.

107.14 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
107.15 	city of Woodbury and its chief clerical officer comply with the requirements of Minnesota 
107.16 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
107.17 	by the city of Woodbury, Washington County, and Independent School District No. 833 
107.18 	with the requirements of Minnesota Statutes, section 469.1782, subdivision 2.

107.19 	ARTICLE 6
107.20 	LOCAL TAXES

107.21 	Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
107.22 	chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, 
107.23 	First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, 
107.24 	section 2, Laws 2014, chapter 308, article 3, section 21, and Laws 2017, First Special Session 
107.25 	chapter 1, article 5, section 1, is amended to read:
107.26 		Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, 
107.27 	ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 
107.28 	impose an additional sales tax of up to one and three-quarter percent on sales transactions 
107.29 	which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). 
107.30 	The imposition of this tax shall not be subject to voter referendum under either state law or 
107.31 	city charter provisions. When the city council determines that the taxes imposed under this 
107.32 	paragraph at a rate of three-quarters of one percent and other sources of revenue produce 
107.33 	revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus 
108.1 	issuance and discount costs, issued for capital improvements at the Duluth Entertainment 
108.2 	and Convention Center, which include a new arena, the rate of tax under this subdivision 
108.3 	must be reduced by three-quarters of one percent.
108.4 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 
108.5 	477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of 
108.6 	Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 
108.7 	on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, 
108.8 	subdivision 3, clause (c). This tax expires when the city council determines that the tax 
108.9 	imposed under this paragraph, along with the tax imposed under section 22, paragraph (b), 
108.10 	has produced revenues sufficient to pay the debt service on bonds in a principal amount of 
108.11 	no more than $18,000,000 $54,000,000, plus issuance and discount costs, to finance capital 
108.12 	improvements to public facilities to support tourism and recreational activities in that portion 
108.13 	of the city west of 14th Avenue West and the area south of and including Skyline Parkway, 
108.14 	and capital improvements to parks-based public athletic facilities to support sports tourism.
108.15 	(c) The city of Duluth may sell and issue up to $18,000,000 $54,000,000 in general 
108.16 	obligation bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay 
108.17 	for the costs of issuance and any premiums. The proceeds may be used to finance capital 
108.18 	improvements to public facilities that support tourism and recreational activities in the 
108.19 	portion of the city west of 14th Avenue West and the area south of and including Skyline 
108.20 	Parkway and capital improvements to parks-based public athletic facilities to support sports 
108.21 	tourism, as described in paragraph (b). The issuance of the bonds is subject to the provisions 
108.22 	of Minnesota Statutes, chapter 475, except no election shall be required unless required by 
108.23 	the city charter. The bonds shall not be included in computing net debt. The revenues from 
108.24 	the taxes that the city of Duluth may impose under paragraph (b) and under section 22, 
108.25 	paragraph (b), may be pledged to pay principal of and interest on such bonds.

108.26 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
108.27 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
108.28 	subdivisions 2 and 3.

108.29 	Sec. 2. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 
108.30 	8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, Laws 2014, 
109.1 	chapter 308, article 3, section 22, and Laws 2017, First Special Session chapter 1, article 
109.2 	5, section 2, is amended to read:
109.3 	Sec. 2. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
 109.4 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, 
109.5 	or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an 
109.6 	additional tax of one percent upon the gross receipts from the sale of lodging for periods of 
109.7 	less than 30 days in hotels and motels located in the city. The tax shall be collected in the 
109.8 	same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. 
109.9 	The imposition of this tax shall not be subject to voter referendum under either state law or 
109.10 	city charter provisions.
109.11 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 
109.12 	477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of 
109.13 	Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 
109.14 	on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and 
109.15 	motels located in the city. This tax expires when the city council first determines that the 
109.16 	tax imposed under this paragraph, along with the tax imposed under section 21, paragraph 
109.17 	(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount 
109.18 	of no more than $18,000,000 $54,000,000, plus issuance and discount costs, to finance 
109.19 	capital improvements to public facilities to support tourism and recreational activities in 
109.20 	that portion of the city west of 14th Avenue West and the area south of and including Skyline 
109.21 	Parkway, and capital improvements to parks-based public athletic facilities to support sports 
109.22 	tourism.

109.23 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
109.24 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
109.25 	subdivisions 2 and 3.

109.26 	Sec. 3. Laws 2008, chapter 366, article 7, section 17, is amended to read:
109.27 	Sec. 17. COOK COUNTY; LODGING AND ADMISSIONS TAXES TAX.
 109.28 		Subdivision 1.Lodging tax. Notwithstanding Minnesota Statutes, section 477A.016, 
109.29 	or any other provision of law, ordinance, or city charter, the Board of Commissioners of 
109.30 	Cook County may impose, by ordinance, a tax of up to one percent on the gross receipts 
109.31 	subject to the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition 
110.1 	to any tax imposed under Minnesota Statutes, section 469.190, and the total tax imposed 
110.2 	under that section and this provision must not exceed four percent.
110.3 		Subd. 2.Admissions and recreation tax. Notwithstanding Minnesota Statutes, section 
110.4 	477A.016, or any other provision of law, ordinance, or city charter, the Board of 
110.5 	Commissioners of Cook County may impose, by ordinance, a tax of up to three percent on 
110.6 	admissions to entertainment and recreational facilities and rental of recreation equipment.
110.7 		Subd. 3.Use of taxes. The taxes tax imposed in subdivisions subdivision 1 and 2 must 
110.8 	be used to fund a new Cook County Event and Visitors Bureau as established by the Board 
110.9 	of Commissioners of Cook County. The Board of Commissioners of Cook County must 
110.10 	annually review the budget of the Cook County Event and Visitors Bureau. The event and 
110.11 	visitors bureau may not receive revenues raised from the taxes tax imposed in subdivisions
110.12 	subdivision 1 and 2 until the board of commissioners approves the annual budget.
110.13 		Subd. 4.Termination. The taxes tax imposed in subdivisions subdivision 1 and 2
110.14 	terminate 15 terminates 30 years after they are it is first imposed.

110.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

110.16 	ARTICLE 7
110.17 	MISCELLANEOUS

110.18 	Section 1. Minnesota Statutes 2022, section 278.01, subdivision 1, is amended to read:
110.19 		Subdivision 1.Determination of validity. (a) Any person having personal property, or 
110.20 	any estate, right, title, or interest in or lien upon any parcel of land, who claims that such 
110.21 	property has been partially, unfairly, or unequally assessed in comparison with other property 
110.22 	in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, 
110.23 	the portion of the county excluding the first class city, or that the parcel has been assessed 
110.24 	at a valuation greater than its real or actual value, or that the tax levied against the same is 
110.25 	illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so 
110.26 	levied, may have the validity of the claim, defense, or objection determined by the district 
110.27 	court of the county in which the tax is levied or by the Tax Court by personally serving one 
110.28 	copy of a petition for such determination upon the county auditor, one copy on the county 
110.29 	attorney, one copy on the county treasurer, and three copies on the county assessor. The 
110.30 	county assessor shall immediately forward one copy of the petition to the appropriate 
110.31 	governmental authority in a home rule charter or statutory city or town in which the property 
110.32 	is located if that city or town employs its own certified assessor. A copy of the petition shall 
110.33 	also be forwarded by the assessor to the school board of the school district in which the 
111.1 	property is located. The county auditor may waive personal service of a petition by: (i) 
111.2 	agreeing to accept service through an alternative service method; (ii) designating an 
111.3 	alternative service method on its website; or (iii) acknowledging receipt of a petition served 
111.4 	through an alternative service method. An alternative service method includes but is not 
111.5 	limited to service by email or by an electronic upload to a website designated by the county. 
111.6 	Service may be made by any person, including a party to the action.
111.7 	(b) In counties where the office of county treasurer has been combined with the office 
111.8 	of county auditor, the county may elect to require the petitioner to serve the number of 
111.9 	copies as determined by the county. Within 30 days after a petition is served and filed, the 
111.10 	county auditor must provide a copy of the petition, if a copy has not already been provided, 
111.11 	to the county assessor, county treasurer, and the county attorney. The county assessor shall 
111.12 	immediately forward one copy of the petition to the appropriate governmental authority in 
111.13 	a home rule charter or statutory city or town in which the property is located if that city or 
111.14 	town employs its own certified assessor. On or before the first day of July, the county auditor 
111.15 	must send a list of petitioned properties, including to the school board of the school district 
111.16 	in which the property is located. The list must include the name of the petitioner, the 
111.17 	identification number of the property, and the estimated market value, shall be sent on or 
111.18 	before the first day of July by the county auditor/treasurer to the school board of the school 
111.19 	district in which the property is located of the property.
111.20 	(c) For all counties, the petitioner must file the copies with a copy of the petition and
111.21 	proof of service, of the petition in the office of the court administrator of the district court 
111.22 	on or before April 30 of the year in which the tax becomes payable. A petition for 
111.23 	determination under this section may be transferred by the district court to the Tax Court. 
111.24 	An appeal may also be taken to the Tax Court under chapter 271 at any time following 
111.25 	receipt of the valuation notice that county assessors or city assessors having the powers of 
111.26 	a county assessor are required by section 273.121 to send to persons whose property is to 
111.27 	be included on the assessment roll that year, but prior to May 1 of the year in which the 
111.28 	taxes are payable.

111.29 	Sec. 2. Minnesota Statutes 2022, section 279.03, subdivision 1a, is amended to read:
111.30 		Subd. 1a.Rate. (a) Except as provided in paragraph paragraphs (b) and (c), interest on 
111.31 	delinquent property taxes, penalties, and costs unpaid on or after January 1 is payable at the 
111.32 	per annum rate determined in section 270C.40, subdivision 5. If the rate so determined is 
111.33 	less than ten percent, the rate of interest is ten percent. The maximum per annum rate is 14 
112.1 	percent if the rate specified under section 270C.40, subdivision 5, exceeds 14 percent. The 
112.2 	rate is subject to change on January 1 of each year.
112.3 	(b) If a person is the owner of one or more parcels of property on which taxes are 
112.4 	delinquent, and the delinquent taxes are more than 25 percent of the prior year's school 
112.5 	district levy, interest on the delinquent property taxes, penalties, and costs unpaid is payable 
112.6 	at twice the rate determined under paragraph (a) for the year.
112.7 	(c) A county board, by resolution, may establish an interest rate lower than the interest 
112.8 	rate determined under paragraph (a).

112.9 	EFFECTIVE DATE. This section is effective for property taxes, penalties, and costs 
112.10 	determined to be delinquent on or after January 1, 2024.

112.11 	Sec. 3. Minnesota Statutes 2022, section 282.261, subdivision 2, is amended to read:
112.12 		Subd. 2.Interest rate. (a) Except as provided under paragraph (b), the unpaid balance 
112.13 	on any repurchase contract approved by the county board is subject to interest at the rate 
112.14 	determined in section 279.03, subdivision 1a. The interest rate is subject to change each 
112.15 	year on the unpaid balance in the manner provided for rate changes in section 279.03, 
112.16 	subdivision 1a.
112.17 	(b) A county board, by resolution, or a county auditor, if delegated the responsibility to 
112.18 	administer tax-forfeited land assigned to the county board as provided under section 282.135, 
112.19 	may establish an interest rate lower than the interest rate determined under paragraph (a).

112.20 	EFFECTIVE DATE. This section is effective January 1, 2024.

112.21 	Sec. 4. [428B.01] DEFINITIONS.
112.22 		Subdivision 1.Applicability. As used in sections 428B.01 to 428B.09, the terms in this 
112.23 	section have the meanings given them.
112.24 		Subd. 2.Activity. "Activity" means but is not limited to all of the following:
112.25 	(1) promotion of tourism within the district;
112.26 	(2) promotion of business activity, including but not limited to tourism, of businesses 
112.27 	subject to the service charge within the tourism improvement district;
112.28 	(3) marketing, sales, and economic development; and
113.1 	(4) other services provided for the purpose of conferring benefits upon businesses located 
113.2 	in the tourism improvement district that are subject to the tourism improvement district 
113.3 	service charge.
113.4 		Subd. 3.Business. "Business" means a lodging business as defined by municipal 
113.5 	ordinance.
113.6 		Subd. 4.Business owner. "Business owner" means a person recognized by a municipality 
113.7 	as the owner of a business.
113.8 		Subd. 5.City. "City" means a home rule charter or statutory city.
113.9 		Subd. 6.Clerk. "Clerk" means the chief clerical officer of the municipality.
113.10 		Subd. 7.Governing body. "Governing body" means, with respect to a city, a city council 
113.11 	or other governing body of a city. With respect to a town, governing body means a town 
113.12 	board or other governing body of a town. With respect to a county, governing body means 
113.13 	a board of commissioners or other governing body of a county.
113.14 		Subd. 8.Impacted business owners. "Impacted business owners" means a majority of 
113.15 	business owners located within a proposed or established tourism improvement district.
113.16 		Subd. 9.Municipality. "Municipality" means a county, city, or town.
113.17 		Subd. 10.Tourism improvement association. "Tourism improvement association" 
113.18 	means a new or existing and tax-exempt nonprofit corporation, entity, or agency charged 
113.19 	with promoting tourism within the tourism improvement district and that is under contract 
113.20 	with the municipality to administer the tourism improvement district and implement the 
113.21 	activities and improvements listed in the municipality's ordinance.
113.22 		Subd. 11.Tourism improvement district. "Tourism improvement district" means a 
113.23 	tourism improvement district established under this chapter.

113.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.25 	Sec. 5. [428B.02] ESTABLISHMENT OF TOURISM IMPROVEMENT DISTRICT.
113.26 		Subdivision 1.Ordinance. (a) Upon a petition by impacted business owners, a governing 
113.27 	body of a municipality may adopt an ordinance establishing a tourism improvement district 
113.28 	after holding a public hearing on the district. The ordinance must include:
113.29 	(1) a map that identifies the tourism improvement district boundaries in sufficient detail 
113.30 	to allow a business owner to determine whether a business is located within the tourism 
113.31 	improvement district boundaries;
114.1 	(2) the name of the tourism improvement association designated to administer the tourism 
114.2 	improvement district and implement the approved activities and improvements;
114.3 	(3) a list of the proposed activities and improvements in the tourism improvement district;
114.4 	(4) the time and manner of collecting the service charge and any interest and penalties 
114.5 	for nonpayment;
114.6 	(5) the rate, method, and basis of the service charge with intent, and penalties on 
114.7 	delinquent payments for the district, including the portion dedicated to covering expenses 
114.8 	listed in subdivision 4, paragraph (b); and
114.9 	(6) the number of years the service charge will be in effect.
114.10 	(b) If the boundaries of a proposed tourism improvement district overlap with the 
114.11 	boundaries of an existing special service district, the tourism improvement district ordinance 
114.12 	may list measures to avoid any impediments on the ability of the special service district to 
114.13 	continue to provide its services to benefit its property owners.
114.14 		Subd. 2.Notice. A municipality must provide notice of the hearing by publication in at 
114.15 	least two issues of the official newspaper of the municipality. The two publications must 
114.16 	be two weeks apart and the municipality must hold the hearing at least three days after the 
114.17 	last publication. Not less than ten days before the hearing, the municipality must mail, or 
114.18 	deliver by electronic means, notice to the business owner of each business subject to the 
114.19 	proposed service charge by the tourism improvement district. The notice must include:
114.20 	(1) a map showing the boundaries of the proposed district;
114.21 	(2) the time and place of the hearing;
114.22 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
114.23 	hearing regarding the proposed service charge; and
114.24 	(4) a brief description of the proposed activities, improvements, and service charge.
114.25 		Subd. 3.Business owner determination. A business must provide ownership information 
114.26 	to the municipality. A municipality has no obligation to obtain other information regarding 
114.27 	the ownership of businesses, and its determination of ownership shall be final for the purposes 
114.28 	of this chapter. If this chapter requires the signature of a business owner, the signature of 
114.29 	the authorized representative of a business owner is sufficient.
114.30 		Subd. 4.Service charges; relationship to services. (a) A municipality may impose a 
114.31 	service charge on a business pursuant to this chapter for the purpose of providing activities 
114.32 	and improvements that will provide benefits to a business that is located within the tourism 
115.1 	improvement district and subject to the tourism improvement district service charge. Each 
115.2 	business paying a service charge within a district must benefit directly or indirectly from 
115.3 	improvements provided by a tourism improvement association, provided, however, the 
115.4 	business need not benefit equally. Service charges must be based on a percent of gross 
115.5 	business revenue, a fixed dollar amount per transaction, or any other reasonable method 
115.6 	based upon benefit and approved by the municipality.
115.7 	(b) Service charges may be used to cover the costs of collections, as well as other 
115.8 	administrative costs associated with operating, forming, or maintaining the district.
115.9 		Subd. 5.Public hearing. At the hearing regarding the adoption of the ordinance 
115.10 	establishing a tourism improvement district, business owners and persons affected by the 
115.11 	proposed district may testify on issues relevant to the proposed district. The hearing may 
115.12 	be adjourned from time to time. The ordinance establishing the district may be adopted at 
115.13 	any time within six months after the date of the conclusion of the hearing by a vote of the 
115.14 	majority of the governing body of the municipality.
115.15 		Subd. 6.Appeal to district court. Within 45 days after the adoption of the ordinance 
115.16 	establishing a tourism improvement district, a person aggrieved, who is not precluded by 
115.17 	failure to object before or at the hearing, may appeal to the district court by serving a notice 
115.18 	on the clerk of the municipality or governing body. The validity of the tourism improvement 
115.19 	district and the service charge imposed under this chapter shall not be contested in an action 
115.20 	or proceeding unless the action or proceeding is commenced within 45 days after the adoption 
115.21 	of the ordinance establishing a tourism improvement district. The petitioner must file notice 
115.22 	with the court administrator of the district court within ten days after its service. The clerk 
115.23 	of the municipality must provide the petitioner with a certified copy of the findings and 
115.24 	determination of the governing body. The court may affirm the action objected to or, if the 
115.25 	petitioner's objections have merit, modify or cancel it. If the petitioner does not prevail on 
115.26 	the appeal, the costs incurred shall be charged to the petitioner by the court and judgment 
115.27 	entered for them. All objections shall be deemed waived unless presented on appeal.
115.28 		Subd. 7.Notice to the commissioner of revenue. Within 30 days of adoption of the 
115.29 	ordinance, the governing body must send a copy of the ordinance to the commissioner of 
115.30 	revenue.

115.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

116.1 	Sec. 6. [428B.03] SERVICE CHARGE AUTHORITY; NOTICE; HEARING 
116.2 	REQUIREMENT.
116.3 		Subdivision 1.Authority. A municipality may impose service charges authorized under 
116.4 	section 428B.02, subdivision 4, to finance an activity or improvement in the tourism 
116.5 	improvement district that is provided by the municipality if the activity or improvement is 
116.6 	provided in the tourism improvement district at an increased level of service. The service 
116.7 	charges may be imposed in the amount needed to pay for the increased level of service 
116.8 	provided by the activity or improvement.
116.9 		Subd. 2.Annual hearing requirement; notice. Beginning one year after the 
116.10 	establishment of the tourism improvement district, the municipality must hold an annual 
116.11 	public hearing regarding continuation of the service charges in the tourism improvement 
116.12 	district. The municipality must provide notice of the hearing by publication in the official 
116.13 	newspaper at least seven days before the hearing. The municipality must mail, or deliver 
116.14 	by electronic means, notice of the hearing to business owners subject to the service charge 
116.15 	at least seven days before the hearing. At the hearing, a person affected by the proposed 
116.16 	district may testify on issues relevant to the proposed district. Within six months of the 
116.17 	hearing, the municipality may adopt a resolution to continue imposing service charges within 
116.18 	the district not exceeding the amount or rate expressed in the notice. For purposes of this 
116.19 	section, the notice must include:
116.20 	(1) a map showing the boundaries of the district;
116.21 	(2) the time and place of the hearing;
116.22 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
116.23 	hearing regarding the proposed service charge;
116.24 	(4) a brief description of the proposed activities and improvements;
116.25 	(5) the estimated annual amount of proposed expenditures for activities and 
116.26 	improvements;
116.27 	(6) the rate of the service charge for the district during the year and the nature and 
116.28 	character of the proposed activities and improvements for the district during the year in 
116.29 	which service charges are collected;
116.30 	(7) the number of years the service charge will be in effect; and
116.31 	(8) a statement that the petition requirement of section 428B.07 has either been met or 
116.32 	does not apply to the proposed service charge.

117.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

117.2 	Sec. 7. [428B.04] MODIFICATION OF ORDINANCE.
117.3 		Subdivision 1.Adoption of ordinance; request for modification. Upon written request 
117.4 	of the tourism improvement association, the governing body of a municipality may adopt 
117.5 	an ordinance to modify the district after conducting a public hearing on the proposed 
117.6 	modifications. If the modification includes a change to the rate, method, and basis of 
117.7 	imposing the service charge or the expansion of the tourism improvement district's geographic 
117.8 	boundaries, a petition as described in section 428B.07 must be submitted by impacted 
117.9 	business owners to initiate proceedings for modification.
117.10 		Subd. 2.Notice of modification. A municipality must provide notice of the hearing by 
117.11 	publication in at least two issues of the municipality's official newspaper. The two 
117.12 	publications must be two weeks apart and the municipality must hold a hearing at least three 
117.13 	days after the last publication. Not less than ten days before the hearing, the municipality 
117.14 	must mail, or deliver by electronic means, notice to the business owner of each business 
117.15 	subject to the service charge by the tourism improvement district. The notice must include:
117.16 	(1) a map showing the boundaries of the district and any proposed changes to the 
117.17 	boundaries of the district;
117.18 	(2) the time and place of the hearing;
117.19 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
117.20 	hearing regarding the proposed service charge; and
117.21 	(4) a brief description of the proposed modification to the ordinance.
117.22 		Subd. 3.Hearing on modification. At the hearing regarding modification to the 
117.23 	ordinance, business owners and persons affected by the proposed modification may testify 
117.24 	on issues relevant to the proposed modification. Within six months after the conclusion of 
117.25 	the hearing, the municipality may adopt the ordinance modifying the district by a vote of 
117.26 	the majority of the governing body in accordance with the request for modification by the 
117.27 	tourism improvement association and as described in the notice.
117.28 		Subd. 4.Objection. If the modification of the ordinance includes the expansion of the 
117.29 	tourism improvement district's geographic boundaries, the ordinance modifying the district 
117.30 	may be adopted after following the notice and veto requirements in section 428B.08; 
117.31 	however, a successful objection will be determined based on a majority of business owners 
117.32 	who will pay the service charge in the expanded area of the district. For all other 
118.1 	modifications, the ordinance modifying the district may be adopted following the notice 
118.2 	and veto requirements in section 428B.08.

118.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.4 	Sec. 8. [428B.05] COLLECTION OF SERVICE CHARGES; PENALTIES.
118.5 	The service charges imposed under this chapter may be collected by the municipality, 
118.6 	tourism improvement association, or other designated agency or entity. Collection of the 
118.7 	service charges must be made at the time and in the manner set forth in the ordinance. The 
118.8 	entity collecting the service charges may charge interest and penalties on delinquent payments 
118.9 	for service charges imposed under this chapter as set forth in the municipality's ordinance.

118.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.11 	Sec. 9. [428B.06] TOURISM IMPROVEMENT ASSOCIATION.
118.12 		Subdivision 1.Composition and duties. The tourism improvement association must 
118.13 	be designated in the municipality's ordinance. The tourism improvement association shall 
118.14 	appoint a governing board or committee composed of a majority of business owners who 
118.15 	pay the tourism improvement district service charge, or the representatives of those business 
118.16 	owners. The governing board or committee must manage the funds raised by the tourism 
118.17 	improvement district and fulfill the obligations of the tourism improvement district. A 
118.18 	tourism improvement association has full discretion to select the specific activities and 
118.19 	improvements that are funded with tourism improvement district service charges within the 
118.20 	authorized activities and improvements described in the ordinance.
118.21 		Subd. 2.Annual report. The tourism improvement association must submit to the 
118.22 	municipality an annual report for each year in which a service charge is imposed. The report 
118.23 	must include a financial statement of revenue raised by the district. The municipality may 
118.24 	also, as part of the enabling ordinance, require the submission of other relevant information 
118.25 	related to the association.

118.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.27 	Sec. 10. [428B.07] PETITION REQUIRED.
118.28 	A municipality may not establish a tourism improvement district under section 428B.02 
118.29 	unless impacted business owners file a petition requesting a public hearing on the proposed 
118.30 	action with the clerk of the municipality.

118.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.1 	Sec. 11. [428B.08] VETO POWER OF OWNERS.
119.2 		Subdivision 1.Notice of right to file objections. The effective date of an ordinance or 
119.3 	resolution adopted under this chapter must be at least 45 days after it is adopted by the 
119.4 	municipality. Within five days after the municipality adopts the ordinance or resolution, 
119.5 	the municipality must mail a summary of the ordinance or resolution to each business owner 
119.6 	subject to the service charge within the tourism improvement district in the same manner 
119.7 	that notice is mailed, or delivered by electronic means, under section 428B.02. The mailing 
119.8 	must include a notice that business owners subject to the service charge have the right to 
119.9 	veto, by a simple majority, the ordinance or resolution by filing the required number of 
119.10 	objections with the clerk of the municipality before the effective date of the ordinance or 
119.11 	resolution and include notice that a copy of the ordinance or resolution is available for public 
119.12 	inspection with the clerk of the municipality.
119.13 		Subd. 2.Requirements for veto. If impacted business owners file an objection to the 
119.14 	ordinance or resolution before the effective date of the ordinance or resolution, the ordinance 
119.15 	or resolution does not become effective.

119.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.17 	Sec. 12. [428B.09] DISESTABLISHMENT.
119.18 		Subdivision 1.Procedure for disestablishment. An ordinance adopted under this chapter 
119.19 	must provide a 30-day period each year in which business owners subject to the service 
119.20 	charge may request disestablishment of the district. Beginning one year after establishment 
119.21 	of the tourism improvement district, an annual 30-day period of disestablishment begins 
119.22 	with the anniversary of the date of establishment. Upon submission of a petition from 
119.23 	impacted business owners, the municipality may disestablish a tourism improvement district 
119.24 	by adopting an ordinance after holding a public hearing on the disestablishment. Prior to 
119.25 	the hearing, the municipality must publish notice of the hearing on disestablishment in at 
119.26 	least two issues of the municipality's official newspaper. The two publications must be two 
119.27 	weeks apart and the municipality must hold the hearing at least three days after the last 
119.28 	publication. Not less than ten days before the hearing, the municipality must mail, or deliver 
119.29 	by electronic means, notice to the business owner of each business subject to the service 
119.30 	charge. The notice must include:
119.31 	(1) the time and place of the hearing;
119.32 	(2) a statement that all interested persons will be given an opportunity to be heard at the 
119.33 	hearing regarding disestablishment;
120.1 	(3) the reason for disestablishment; and
120.2 	(4) a proposal to dispose of any assets acquired with the revenues of the service charge 
120.3 	imposed under the tourism improvement district.
120.4 		Subd. 2.Objection. An ordinance disestablishing the tourism improvement district 
120.5 	becomes effective following the notice and veto requirements in section 428B.08.
120.6 		Subd. 3.Refund to business owners. (a) Upon the disestablishment of a tourism 
120.7 	improvement district, any remaining revenues derived from the service charge, or any 
120.8 	revenues derived from the sale of assets acquired with the service charge revenues, shall 
120.9 	be refunded to business owners located and operating within the tourism improvement 
120.10 	district in which service charges were imposed by applying the same method and basis that 
120.11 	was used to calculate the service charges levied in the fiscal year in which the district is 
120.12 	disestablished.
120.13 	(b) If the disestablishment occurs before the service charge is imposed for the fiscal 
120.14 	year, the method and basis that was used to calculate the service charge imposed in the 
120.15 	immediate prior fiscal year shall be used to calculate the amount of a refund, if any.

120.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

120.17 	Sec. 13. [428B.10] COORDINATION OF DISTRICTS.
120.18 	If a county establishes a tourism improvement district in a city or town under this chapter, 
120.19 	a city or town may not establish a tourism improvement district in the part of the city or 
120.20 	town located in the county-established district. If a city or town establishes a tourism 
120.21 	improvement district under this chapter, a county may not establish a tourism improvement 
120.22 	district in the part of the city or town located in the city- or town-established district.

120.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

120.24 	Sec. 14. CITY OF VIRGINIA; NET DEBT LIMIT EXEMPTION.
 120.25 	The city of Virginia may finance the construction of a public safety building in the city 
120.26 	of Virginia by obtaining a loan from the United States Department of Agriculture secured 
120.27 	by its general obligation pledge. Any bonds issued relating to this construction project or 
120.28 	repayment of the loan must not be included in the computation of the city's limit on net debt 
120.29 	under Minnesota Statutes, section 475.53, subdivision 1.

120.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

121.1 	Sec. 15. RAMSEY COUNTY; EXTENDING REDEMPTION PERIODS OF 
121.2 	PROPERTIES IN TARGETED COMMUNITIES.
 121.3 	The period of redemption under Minnesota Statutes, chapter 281, shall be three years 
121.4 	for all lands in Ramsey County that are, or previously were, located in a targeted community 
121.5 	as defined in Minnesota Statutes, section 469.201, subdivision 10, and that are sold to the 
121.6 	state in a tax judgment sale as a result of delinquency in paying taxes for taxes payable year 
121.7 	2023 or later.

121.8 	EFFECTIVE DATE. This section is effective the day after the governing body of 
121.9 	Ramsey County and its chief clerical officer comply with the requirements of Minnesota 
121.10 	Statutes, section 645.021, subdivisions 2 and 3, but any compliance with these requirements 
121.11 	must be completed no later than December 31, 2023.

APPENDIX 

Repealed Minnesota Statutes: DIVH1377-1 

290A.03 DEFINITIONS.Subd. 9.Disabled claimant. 
"Disabled claimant" means any claimant who has a disability. 

Subd. 11.Rent constituting property taxes. 
"Rent constituting property taxes" means 17 percent of the gross rent actually paid in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any calendar year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the calendar year, and which rent constitutes the basis, in the succeeding calendar year of a claim for relief under this chapter by the claimant. 

290A.04 REFUND ALLOWABLE.Subd. 2a.Renters. 
A claimant whose rent constituting property taxes exceeds the percentage of the household income stated below must pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of rent constituting property taxes. The state refund equals the amount of rent constituting property taxes that remain, up to the maximum state refund amount shown below. 

	Household Income	Percent of Income	Percent Paid byClaimant	Maximum StateRefund	
	$0 to 5,269	1.0 percent	5 percent	$	2,150	
	5,270 to 6,999	1.0 percent	10 percent	$	2,150	
	7,000 to 8,749	1.1 percent	10 percent	$	2,090	
	8,750 to 12,269	1.2 percent	10 percent	$	2,040	
	12,270 to 15,779	1.3 percent	15 percent	$	1,980	
	15,780 to 17,519	1.4 percent	15 percent	$	1,930	
	17,520 to 19,259	1.4 percent	20 percent	$	1,880	
	19,260 to 22,779	1.5 percent	20 percent	$	1,820	
	22,780 to 24,529	1.6 percent	20 percent	$	1,770	
	24,530 to 26,279	1.7 percent	25 percent	$	1,770	
	26,280 to 29,789	1.8 percent	25 percent	$	1,770	
	29,790 to 31,529	1.9 percent	30 percent	$	1,770	
	31,530 to 36,789	2.0 percent	30 percent	$	1,770	
	36,790 to 42,039	2.0 percent	35 percent	$	1,770	
	42,040 to 49,059	2.0 percent	40 percent	$	1,770	
	49,060 to 50,799	2.0 percent	45 percent	$	1,610	
	50,800 to 52,559	2.0 percent	45 percent	$	1,450	
	52,560 to 54,319	2.0 percent	45 percent	$	1,230	
	54,320 to 56,059	2.0 percent	50 percent	$	1,070	
	56,060 to 57,819	2.0 percent	50 percent	$	970	
	57,820 to 59,569	2.0 percent	50 percent	$	540	
	59,570 to 61,319	2.0 percent	50 percent	$	210	

The payment made to a claimant is the amount of the state refund calculated under this subdivision. No payment is allowed if the claimant's household income is $61,320 or more. 

290A.23 APPROPRIATION.Subdivision 1.Renters credit. 
There is appropriated from the general fund in the state treasury to the commissioner of revenue the amount necessary to make the payments required under section 290A.04, subdivision 2a. 

477A.011 DEFINITIONS.Subd. 30a.Percent of housing built between 1940 and 1970. 
"Percent of housing built between 1940 and 1970" is equal to 100 times the most recent count by the United States Bureau of the Census of all housing units in the city built after 1939 but before 1970, divided by the total number of all housing units in the city. Housing units includes both occupied and vacant housing units as defined by the federal census. 

Subd. 38.Household size. 
"Household size" means the average number of persons per household in the jurisdiction as most recently estimated and reported by the state demographer and Metropolitan Council as of July 15 of the aid calculation year. A revision to an estimate or enumeration is effective for these purposes only if it is certified to the commissioner on or before July 15 of the aid calculation year. Clerical errors in the certification or use of estimates and counts established as of July 15 in the aid calculation year are subject to correction within the time periods allowed under section 477A.014. 

Subd. 42.Jobs per capita in the city. 
 "Jobs per capita in the city" means (1) the average annual number of employees in the city based on the data from the Quarterly Census of Employment and Wages, as reported by the Department of Employment and Economic Development, for the most recent calendar year available November 1 of every odd-numbered year, divided by (2) the city's population for the same calendar year as the employment data. The commissioner of the Department of Employment and Economic Development shall certify to the city the average annual number of employees for each city by January 1 of every even-numbered year beginning with January 1, 2014. A city may challenge an estimate under this paragraph by filing its specific objection, including the names of employers that it feels may have misreported data, in writing with the commissioner by December 1 of every odd-numbered year. The commissioner shall make every reasonable effort to address the specific objection and adjust the data as necessary. The commissioner shall certify the estimates of the annual employment to the commissioner of revenue by January 1 of all even-numbered years, including any estimates still under objection. 

Subd. 45.Sparsity adjustment. 
For a city with a population of 10,000 or more, the sparsity adjustment is 100 for any city with an average population density less than 150 per square mile, according to the most recent federal census. For a city with a population less than 10,000, the sparsity adjustment is 200 for any city with an average population density less than 30 per square mile, according to the most recent federal census. The sparsity adjustment is zero for all other cities. 

477A.013 MUNICIPAL GOVERNMENT DISTRIBUTIONS.Subd. 13.Certified aid adjustments. 
(a) A city that received an aid base increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in 2014 through 2018. 

(b) A city that received an aid base increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9 increased by an amount equal to $160,000 for aids payable in 2014 and thereafter. 

(c) A city that received a temporary aid increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision 9 increased by an amount equal to $1,000,000 for aids payable in 2014 only.