1.1 	A bill for an act
1.2 	relating to taxation; modifying individual income taxes, corporate franchise taxes, 
1.3 	property taxes, local government aids, minerals taxes, sales and use taxes, gross 
1.4 	receipts taxes, excise taxes, and other tax-related provisions; modifying income 
1.5 	tax credits and subtractions; expanding the child tax credit and providing for a 
1.6 	minimum credit; providing for nonconformity to certain worker classification 
1.7 	rules; providing for disclosure of certain corporate franchise tax information; 
1.8 	providing for direct free filing; requiring a corporate tax base erosion study; 
1.9 	modifying property tax exemptions, credits, classifications, and abatements; 
1.10 	adjusting local government aid calculations and payments and forgiving local 
1.11 	government aid penalties; providing for an advance homestead credit for seniors; 
1.12 	providing for transfers and distributions of proceeds of minerals taxes; providing 
1.13 	for issuance of revenue bonds; providing for an amusement device gross receipts 
1.14 	tax in lieu of the sales and use tax; providing sales and use tax construction 
1.15 	exemptions; repealing the tax on illegal marijuana and controlled substances; 
1.16 	providing special tax increment financing authority; authorizing cities and counties 
1.17 	to impose local sales and use taxes for certain projects; establishing a local sales 
1.18 	tax equalization distribution; providing for state auditor oversight of local sales 
1.19 	and use taxes; modifying certain special local taxes; providing for taxpayer 
1.20 	assistance and outreach grants; providing aid for various uses; providing for the 
1.21 	establishment of land valuation districts; making technical changes; requiring 
1.22 	reports; transferring money; appropriating money;amending Minnesota Statutes 
1.23 	2022, sections 10A.02, subdivision 11b; 10A.322, subdivision 4; 116U.27, 
1.24 	subdivision 2; 123B.53, subdivision 1; 123B.71, subdivision 8; 270C.21; 270C.445, 
1.25 	subdivision 6; 272.02, subdivisions 7, 19, by adding subdivisions; 273.13, 
1.26 	subdivision 22; 273.135, subdivision 2; 273.1393; 273.38; 273.41; 275.065, by 
1.27 	adding a subdivision; 276.04, subdivision 2, as amended, by adding a subdivision; 
1.28 	276A.01, subdivision 17; 276A.06, subdivision 8; 289A.08, subdivision 1; 289A.12, 
1.29 	subdivision 18; 290.0132, by adding a subdivision; 290.0683, subdivision 3; 
1.30 	290.92, by adding a subdivision; 290A.03, by adding subdivisions; 295.53, 
1.31 	subdivision 4a; 297A.68, subdivisions 3a, 45; 297A.99, subdivision 3, by adding 
1.32 	a subdivision; 297I.20, subdivision 4; 298.17; 298.28, subdivision 8; 298.282, 
1.33 	subdivision 1; 298.292, subdivision 2; 375.192, subdivision 2; 446A.086, 
1.34 	subdivision 1; 469.104; 469.1812, by adding a subdivision; 469.1813, subdivisions 
1.35 	1, 6, by adding a subdivision; 469.190, subdivisions 1, 7; 474A.091, subdivisions 
1.36 	2, 2a; 609.902, subdivision 4; Minnesota Statutes 2023 Supplement, sections 
1.37 	41B.0391, subdivision 4; 123B.71, subdivision 12; 126C.40, subdivision 6; 273.13, 
1.38 	subdivision 25; 273.1392; 275.065, subdivision 3; 290.01, subdivision 19; 
2.1 	290.0132, subdivision 34; 290.0134, subdivision 20; 290.06, subdivision 23; 
2.2 	290.0661, subdivisions 1, 8, by adding a subdivision; 290.0671, subdivision 1a; 
2.3 	290.0693, subdivisions 1, 6, 8; 290.0695, subdivision 2; 290A.03, subdivisions 3, 
2.4 	13; 297A.61, subdivision 3; 297A.99, subdivision 1; 297H.13, subdivision 2; 
2.5 	298.018, subdivision 1; 298.28, subdivisions 7a, 16; 477A.30, subdivisions 4, 5, 
2.6 	6, 7; 477A.35, subdivision 6; Laws 1986, chapter 396, section 5, as amended; 
2.7 	Laws 1986, chapter 400, section 44, as amended; Laws 2010, chapter 389, article 
2.8 	7, section 22, as amended; Laws 2014, chapter 308, article 6, section 9, as amended; 
2.9 	Laws 2017, First Special Session chapter 1, article 6, section 22; Laws 2023, 
2.10 	chapter 1, sections 22; 28; proposing coding for new law in Minnesota Statutes, 
2.11 	chapters 270B; 273; 289A; 290A; 295; 297A; 428A; repealing Minnesota Statutes 
2.12 	2022, sections 13.4967, subdivision 5; 297D.02; 297D.03; 297D.05; 297D.09, 
2.13 	subdivisions 1, 2; 297D.12; 297D.13; Minnesota Statutes 2023 Supplement, sections 
2.14 	297A.99, subdivision 3a; 297D.01; 297D.04; 297D.06; 297D.07; 297D.08; 
2.15 	297D.085; 297D.09, subdivision 1a; 297D.10; 297D.11; 477A.30, subdivision 8; 
2.16 	Laws 2023, chapter 64, article 15, section 24.
2.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.18 	ARTICLE 1
2.19 	INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

2.20 	Section 1. Minnesota Statutes 2022, section 10A.02, subdivision 11b, is amended to read:
2.21 		Subd. 11b.Data privacy related to electronic reporting system. (a) The board may 
2.22 	develop and maintain systems to enable treasurers to enter and store electronic records 
2.23 	online for the purpose of complying with this chapter. Data entered into such systems by 
2.24 	treasurers or their authorized agents is not government data under chapter 13 and may not 
2.25 	be accessed or used by the board for any purpose without the treasurer's written consent. 
2.26 	Data from such systems that has been submitted to the board as a filed report is government 
2.27 	data under chapter 13.
2.28 	(b) For purposes of administering the refund under section 290.06, subdivision 23, the 
2.29 	board may access or use the following data entered and stored in an electronic reporting 
2.30 	system and share the data with the commissioner of revenue: (1) the amount of the 
2.31 	contribution; (2) the name and address of the person requesting the refund; (3) any unique 
2.32 	identifier for the contribution; (4) the name and campaign identification number of the party 
2.33 	or candidate that received the contribution; and (5) the date on which the contribution was 
2.34 	received. Data accessed, used, or maintained by the board under this paragraph is private 
2.35 	data on individuals, as defined in section 13.02, subdivision 12.

2.36 	EFFECTIVE DATE. This section is effective January 1, 2026.

3.1 	Sec. 2. Minnesota Statutes 2022, section 10A.322, subdivision 4, is amended to read:
3.2 		Subd. 4.Refund receipt forms receipts; penalty. (a) The board must make available 
3.3 	to a political party on request and to any candidate for whom an agreement under this section 
3.4 	is effective, a supply of official electronic refund receipt forms receipts that state in boldface 
3.5 	type that:
3.6 	(1) a contributor who is given a receipt form is eligible to claim a refund as provided in 
3.7 	section 290.06, subdivision 23; and
3.8 	(2) if the contribution is to a candidate, that the candidate has signed an agreement to 
3.9 	limit campaign expenditures as provided in this section.
3.10 	The forms must provide duplicate copies of the receipt to be attached to the contributor's 
3.11 	claim. An electronic receipt must only be issued for a contribution of $10 or more. Each 
3.12 	receipt must include a unique receipt validation number that allows the commissioner of 
3.13 	revenue to verify the information on the receipt with the Campaign Finance Board. A 
3.14 	political party or candidate may provide a printed copy of the electronic receipt to the 
3.15 	contributor.
3.16 	(b) At least once a week, the board must provide the commissioner of revenue a receipt 
3.17 	validation report. For each contribution reported to the board during the week, the report 
3.18 	must include:
3.19 	(1) the date and amount of the contribution;
3.20 	(2) the name and address of the contributor;
3.21 	(3) the name and campaign identification number of the party or candidate that received 
3.22 	the contribution; and
3.23 	(4) the receipt validation number assigned to the contribution.
3.24 	(b) (c) The willful issuance of an official refund receipt form or a facsimile of one to 
3.25 	any of the candidate's contributors by a candidate or treasurer of a candidate who did not 
3.26 	sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed 
3.27 	by the board.
3.28 	(c) (d) The willful issuance of an official refund receipt form or a facsimile to an 
3.29 	individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to 
3.30 	a civil penalty of up to $3,000 imposed by the board.
3.31 	(d) (e) A violation of paragraph (b) (c) or (c) (d) is a misdemeanor.
4.1 	(f) A receipt validation report and a receipt validation number prepared pursuant to this 
4.2 	section are private data on individuals, as defined in section 13.02, subdivision 12.

4.3 	EFFECTIVE DATE. This section is effective for contributions made after December 
4.4 	31, 2025.

4.5 	Sec. 3. Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 4, is amended 
4.6 	to read:
4.7 		Subd. 4.Authority duties. (a) The authority shall:
4.8 	(1) approve and certify or recertify beginning farmers as eligible for the program under 
4.9 	this section;
4.10 	(2) approve and certify or recertify owners of agricultural assets as eligible for the tax 
4.11 	credit under subdivision 2 subject to the allocation limits in paragraph (c);
4.12 	(3) provide necessary and reasonable assistance and support to beginning farmers for 
4.13 	qualification and participation in financial management programs approved by the authority;
4.14 	(4) refer beginning farmers to agencies and organizations that may provide additional 
4.15 	pertinent information and assistance; and
4.16 	(5) notwithstanding section 41B.211, the Rural Finance Authority must share information 
4.17 	with the commissioner of revenue to the extent necessary to administer provisions under 
4.18 	this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority 
4.19 	must annually notify the commissioner of revenue of approval and certification or 
4.20 	recertification of beginning farmers and owners of agricultural assets under this section. 
4.21 	For credits under subdivision 2, the notification must include the amount of credit approved 
4.22 	by the authority and stated on the credit certificate.
4.23 	(b) The certification of a beginning farmer or an owner of agricultural assets under this 
4.24 	section is valid for the year of the certification and the two following years, after which 
4.25 	time the beginning farmer or owner of agricultural assets must apply to the authority for 
4.26 	recertification.
4.27 	(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority 
4.28 	must not allocate more than $6,500,000 for taxable years beginning after December 31, 
4.29 	2022, and before January 1, 2024, and $4,000,000 foreach taxable years beginning after 
4.30 	December 31, 2023 year. The authority must allocate credits on a first-come, first-served 
4.31 	basis beginning on January 1 of each year, except that recertifications for the second and 
4.32 	third years of credits under subdivision 2, paragraph (a), clauses (1) and (2), have first 
5.1 	priority. Any amount authorized but not allocated for taxable years ending before January 
5.2 	1, 2023, is canceled and is not allocated for future taxable years. For taxable years beginning 
5.3 	after December 31, 2022, Any amount authorized but not allocated in any taxable year does 
5.4 	not cancel and is added to the allocation for the next taxable year. For each taxable year, 
5.5 	50 percent of newly allocated credits must be allocated to emerging farmers. Any portion 
5.6 	of a taxable year's newly allocated credits that is reserved for emerging farmers that is not 
5.7 	allocated by September 30 May 31 of the taxable year is available for allocation to other 
5.8 	credit allocations beginning on October June 1.

5.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
5.10 	31, 2023.

5.11 	Sec. 4. [270B.163] DISCLOSURE OF CERTAIN CORPORATE FRANCHISE TAX 
5.12 	INFORMATION.
5.13 	(a) Except as otherwise provided in this section, within one month from the first day of 
5.14 	the third calendar year following the calendar year in which a taxpayer's taxable year ends, 
5.15 	the commissioner must make the following information available on a website:
5.16 	(1) a corporation's corporate franchise tax return required under section 289A.18, 
5.17 	subdivision 1, and any amended or adjusted returns;
5.18 	(2) all corporate franchise tax forms relating to the calculation of income, apportionment, 
5.19 	and calculation of tax; and
5.20 	(3) the corporation's identity for state corporate franchise tax purposes.
5.21 	(b) This section does not authorize the commissioner to disclose a corporation's federal 
5.22 	return or federal return information.
5.23 	(c) This section applies to a corporation required to file a return under section 289A.08, 
5.24 	subdivision 3, that has $250,000,000 or more in aggregate gross sales or receipts in a taxable 
5.25 	year as determined by the original or most recent amended or adjusted return, including a 
5.26 	unitary business under section 290.17, subdivision 4.
5.27 	(d) Compliance with this section by the commissioner is not a violation of this chapter.

5.28 	EFFECTIVE DATE. This section is effective for information required to be made 
5.29 	available in calendar years beginning after December 31, 2024.

6.1 	Sec. 5. Minnesota Statutes 2022, section 289A.08, subdivision 1, is amended to read:
6.2 		Subdivision 1.Generally; individuals. (a) A taxpayer must file a return for each taxable 
6.3 	year the taxpayer is required to file a return under section 6012 of the Internal Revenue 
6.4 	Code or meets the requirements under paragraph (d) to file a return, except that:
6.5 	(1) an individual who is not a Minnesota resident for any part of the year is not required 
6.6 	to file a Minnesota income tax return if the individual's gross income derived from Minnesota 
6.7 	sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the 
6.8 	filing requirements for a single individual who is a full year resident of Minnesota;
6.9 	(2) an individual who is a Minnesota resident is not required to file a Minnesota income 
6.10 	tax return if the individual's gross income derived from Minnesota sources as determined 
6.11 	under section 290.17, less the subtractions allowed under section 290.0132, subdivisions 
6.12 	12 and 15, is less than the filing requirements for a single individual who is a full-year 
6.13 	resident of Minnesota.
6.14 	(b) The decedent's final income tax return, and other income tax returns for prior years 
6.15 	where the decedent had gross income in excess of the minimum amount at which an 
6.16 	individual is required to file and did not file, must be filed by the decedent's personal 
6.17 	representative, if any. If there is no personal representative, the return or returns must be 
6.18 	filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property 
6.19 	of the decedent.
6.20 	(c) The term "gross income," as it is used in this section, has the same meaning given it 
6.21 	in section 290.01, subdivision 20.
6.22 	(d) The commissioner of revenue must annually determine the gross income levels at 
6.23 	which individuals are required to file a return for each taxable year based on the amounts 
6.24 	allowed as a deduction under section 290.0123.
6.25 	(e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return 
6.26 	for each taxable year that the taxpayer has made an election to receive advance payments 
6.27 	of the child tax credit under section 290.0661, subdivision 8.

6.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.29 	31, 2024.

6.30 	Sec. 6. [289A.081] DIRECT FREE FILING OF INDIVIDUAL RETURNS.
6.31 	(a) The commissioner must establish an electronic filing system through which taxpayers 
6.32 	may directly file an electronic individual income tax return free of charge. The commissioner 
7.1 	may contract with a software vendor to develop the filing system required under this section, 
7.2 	but the vendor must not offer paid tax preparation services for Minnesota individual income 
7.3 	taxpayers for tax years that the system is active, and the filing system must be made available 
7.4 	on the Department of Revenue website.
7.5 	(b) To the extent feasible, the commissioner must coordinate the state filing system 
7.6 	under this section with federal direct file options.
7.7 	(c) For taxable years beginning after December 31, 2024, the filing system established 
7.8 	under this section must include the ability to file a sufficient number of tax forms that the 
7.9 	commissioner estimates at least 70 percent of resident individual income tax returns could 
7.10 	be filed using the system.

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

7.12 	Sec. 7. Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision 
7.13 	to read:
7.14 		Subd. 36.Discharges of indebtedness; coerced debt. The amount of discharge of 
7.15 	indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.

7.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.17 	31, 2023.

7.18 	Sec. 8. Minnesota Statutes 2023 Supplement, section 290.06, subdivision 23, is amended 
7.19 	to read:
7.20 		Subd. 23.Refund of contributions to political parties and candidates. (a) A taxpayer 
7.21 	may claim a refund equal to the amount of the taxpayer's contributions made in the calendar 
7.22 	year to candidates and to a political party. The maximum total refund per calendar year for 
7.23 	an individual must not exceed $75 and for a married couple, filing jointly, must not exceed 
7.24 	$150. The commissioner must not issue a refund, whether in one payment or in aggregate, 
7.25 	to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. A 
7.26 	refund of a contribution is allowed only if the taxpayer files:
7.27 	(1) a form required by the commissioner and attaches to the form a copy of an official 
7.28 	refund receipt form issued by the candidate or party and signed by the candidate, the treasurer 
7.29 	of the candidate's principal campaign committee, or the chair or treasurer of the party unit, 
7.30 	after the contribution was received. The receipt forms must be numbered, and the data on 
7.31 	the receipt that are not public must be made available to the campaign finance and public 
7.32 	disclosure board upon its request; or
8.1 	(2) a claim using the electronic filing system authorized in paragraph (i).
8.2 	The form or claim must include one or more unique receipt validation numbers from receipts 
8.3 	issued pursuant to section 10A.322, subdivision 4.
8.4 	(b) A claim must be filed with the commissioner no sooner than January 1 of the calendar 
8.5 	year in which the contribution was made and no later than April 15 of the calendar year 
8.6 	following the calendar year in which the contribution was made. A taxpayer may file only 
8.7 	one claim per calendar year. A claim must be for a minimum of $10. Amounts paid by the 
8.8 	commissioner after June 15 of the calendar year following the calendar year in which the 
8.9 	contribution was made must include interest at the rate specified in section 270C.405.
8.10 	(b) (c) No refund is allowed under this subdivision for a contribution to a candidate 
8.11 	unless the candidate:
8.12 	(1) has signed an agreement to limit campaign expenditures as provided in section 
8.13 	10A.322;
8.14 	(2) is seeking an office for which voluntary spending limits are specified in section 
8.15 	10A.25; and
8.16 	(3) has designated a principal campaign committee.
8.17 	This subdivision does not limit the campaign expenditures of a candidate who does not 
8.18 	sign an agreement but accepts a contribution for which the contributor improperly claims 
8.19 	a refund.
8.20 	(c) (d) For purposes of this subdivision, "political party" means a major political party 
8.21 	as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion 
8.22 	on the income tax or property tax refund form under section 10A.31, subdivision 3a.
8.23 	A "major party" or "minor party" includes the aggregate of that party's organization 
8.24 	within each house of the legislature, the state party organization, and the party organization 
8.25 	within congressional districts, counties, legislative districts, municipalities, and precincts.
8.26 	"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a 
8.27 	candidate for judicial office.
8.28 	"Contribution" means a gift of money.
8.29 	(d) (e) The commissioner shall make copies of the form available to the public and 
8.30 	candidates upon request.
8.31 	(e) (f) The following data collected or maintained by the commissioner under this 
8.32 	subdivision are private: the identities of individuals claiming a refund, the identities of 
9.1 	candidates to whom those individuals have made contributions, and the amount of each 
9.2 	contribution.
9.3 	(f) (g) The commissioner shall report to the campaign finance and public disclosure 
9.4 	board by each August 1 a summary showing the total number and aggregate amount of 
9.5 	political contribution refunds made on behalf of each candidate and each political party. 
9.6 	These data are public.
9.7 	(g) (h) The amount necessary to pay claims for the refund provided in this section is 
9.8 	appropriated from the general fund to the commissioner of revenue.
9.9 	(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, 
9.10 	the commissioner may accept the number on the official receipt as documentation that a 
9.11 	contribution was made rather than the actual receipt as required by paragraph (a) (i) The 
9.12 	commissioner must establish an electronic filing system by which refunds are claimed.

9.13 	EFFECTIVE DATE. This section is effective for contributions made after December 
9.14 	31, 2025.

9.15 	Sec. 9. Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 1, is amended 
9.16 	to read:
9.17 		Subdivision 1.Definitions. For the purposes of this section, "qualifying child" has the 
9.18 	meaning given in section 32(c) of the Internal Revenue Code, except:
9.19 	(1) excluding individuals who attained the age of 18 19 or greater in the taxable year; 
9.20 	and
9.21 	(2) section 32(m) of the Internal Revenue Code does not apply.

9.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.23 	31, 2023.

9.24 	Sec. 10. Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 8, is amended 
9.25 	to read:
9.26 		Subd. 8.Advance payment of credits. (a) The commissioner of revenue may must
9.27 	establish a process to allow taxpayers to elect to receive one or more advance payments of 
9.28 	the credit under this section. The amount of advance payments must be based on the taxpayer 
9.29 	and commissioner's estimate of the amount of credits for which the taxpayer would be 
9.30 	eligible in the taxable year beginning in the calendar year in which the payments were made. 
10.1 	The commissioner must not distribute advance payments to a taxpayer who does not elect 
10.2 	to receive advance payments.
10.3 	(b) The amount of a taxpayer's credit under this section for the taxable year is reduced 
10.4 	by the amount of advance payments received by the taxpayer in the calendar year during 
10.5 	which the taxable year began. If a taxpayer's advance payments exceeded the credit the 
10.6 	taxpayer was eligible to receive for the taxable year, the taxpayer's liability for tax is increased 
10.7 	by the difference between the amount of advance payments received and the credit amount.

10.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.9 	31, 2024.

10.10 	Sec. 11. Minnesota Statutes 2023 Supplement, section 290.0661, is amended by adding 
10.11 	a subdivision to read:
10.12 		Subd. 9.Minimum credit. (a) An eligible taxpayer is allowed the greater of the credit 
10.13 	allowed under subdivision 2 or the minimum credit described in this subdivision. A taxpayer 
10.14 	is eligible for the minimum credit under this subdivision if:
10.15 	(1) the taxpayer received an advance payment of the credit under subdivision 8; and
10.16 	(2) the taxpayer's income was low enough to qualify for the credit under subdivision 2 
10.17 	in the preceding taxable year.
10.18 	(b) The credit allowed under this subdivision is equal to 50 percent of the credit received 
10.19 	under subdivision 2 in the prior taxable year, unless paragraph (c) applies.
10.20 	(c) If a taxpayer is claiming fewer qualifying children in the current taxable year than 
10.21 	in the prior taxable year, the minimum credit allowed under this subdivision is equal to 50 
10.22 	percent of credit received under this section in the prior taxable year multiplied by a fraction 
10.23 	in which:
10.24 	(1) the numerator is the number of qualifying children in the current taxable year; and
10.25 	(2) the denominator is the number of qualifying children in the prior taxable year.

10.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.27 	31, 2024.

10.28 	Sec. 12. Minnesota Statutes 2023 Supplement, section 290.0671, subdivision 1a, is amended 
10.29 	to read:
10.30 		Subd. 1a.Definitions. For purposes of this section, "qualifying older child" means a 
10.31 	qualifying child, as defined in section 32(c) of the Internal Revenue Code, that attained at 
11.1 	least the age of 18 19 in the taxable year. For the purposes of determining a qualifying older 
11.2 	child, section 32(m) of the Internal Revenue Code does not apply.

11.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
11.4 	31, 2023.

11.5 	Sec. 13. Minnesota Statutes 2022, section 290.0683, subdivision 3, is amended to read:
11.6 		Subd. 3.Allocation. (a) To qualify for the credit, a taxpayer must contribute to the 
11.7 	Minnesota housing tax credit contribution account. A taxpayer may indicate that a 
11.8 	contribution is intended for a specific qualified project. A taxpayer is prohibited from 
11.9 	contributing to certain projects as provided in section 462A.40, subdivision 3.
11.10 	(b) The aggregate amount of tax credits allowed to all eligible contributors is limited to 
11.11 	$9,900,000 annually. If the entire amount is not allocated for 2023, any remaining amount 
11.12 	is available for allocation for 2024.
11.13 	(c) Within 30 days after a taxpayer contributes to the account, the agency must file with 
11.14 	the contributing taxpayer a credit certificate statement or return any amounts to the taxpayer 
11.15 	as provided in this paragraph. The agency must send a copy of the credit certificate to the 
11.16 	commissioner. If there are insufficient credits to match the contribution, the agency must 
11.17 	not issue a credit certificate for the amount of the contribution for which there are insufficient 
11.18 	credits, and must return that amount to the taxpayer before issuing any credit certificate.
11.19 	(d) The credit certificate must state the dollar amount of the contribution made by the 
11.20 	taxpayer and the date the payment was received by the account, and indicate if the 
11.21 	contribution was intended for a specific qualified project.

11.22 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
11.23 	after December 31, 2022.

11.24 	Sec. 14. Minnesota Statutes 2022, section 290.92, is amended by adding a subdivision to 
11.25 	read:
11.26 		Subd. 32.Nonconformity to certain worker classification rules. For purposes of 
11.27 	employee classification under this section, "Internal Revenue Code" does not include section 
11.28 	530 of Public Law 95-600, as amended.

11.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
11.30 	31, 2024.

12.1 	Sec. 15. Minnesota Statutes 2023 Supplement, section 290A.03, subdivision 3, is amended 
12.2 	to read:
12.3 		Subd. 3.Income. (a) "Income" means the sum of the following:
12.4 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
12.5 	(2) the sum of the following amounts to the extent not included in clause (1):
12.6 	(i) all nontaxable income;
12.7 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
12.8 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
12.9 	carryover allowed under section 469(b) of the Internal Revenue Code;
12.10 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
12.11 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
12.12 	Code;
12.13 	(iv) cash public assistance and relief;
12.14 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
12.15 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
12.16 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
12.17 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
12.18 	gross income in the years when the payments were made;
12.19 	(vi) interest received from the federal or a state government or any instrumentality or 
12.20 	political subdivision thereof;
12.21 	(vii) workers' compensation;
12.22 	(viii) nontaxable strike benefits;
12.23 	(ix) the gross amounts of payments received in the nature of disability income or sick 
12.24 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
12.25 	or otherwise;
12.26 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
12.27 	1986, as amended through December 31, 1995;
12.28 	(xi) contributions made by the claimant to an individual retirement account, including 
12.29 	a qualified voluntary employee contribution; simplified employee pension plan; 
12.30 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
12.31 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
13.1 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
13.2 	the claimant and spouse;
13.3 	(xii) to the extent not included in federal adjusted gross income, distributions received 
13.4 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
13.5 	(xiii) nontaxable scholarship or fellowship grants;
13.6 	(xiv) alimony received to the extent not included in the recipient's income;
13.7 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
13.8 	Code;
13.9 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
13.10 	Code; and
13.11 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
13.12 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
13.13 	In the case of an individual who files an income tax return on a fiscal year basis, the 
13.14 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
13.15 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
13.16 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
13.17 	or carryforward allowed for the year.
13.18 	(b) "Income" does not include:
13.19 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
13.20 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
13.21 	or spouse and which funding payments were not excluded from federal adjusted gross 
13.22 	income in the years when the payments were made;
13.23 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
13.24 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
13.25 	the retirement base amount reduced by the amount of contributions excluded from federal 
13.26 	adjusted gross income, but not less than zero;
13.27 	(4) surplus food or other relief in kind supplied by a governmental agency;
13.28 	(5) relief granted under this chapter;
13.29 	(6) child support payments received under a temporary or final decree of dissolution or 
13.30 	legal separation;
14.1 	(7) restitution payments received by eligible individuals and excludable interest as 
14.2 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
14.3 	Public Law 107-16;
14.4 	(8) alimony paid; or
14.5 	(9) veterans disability compensation paid under title 38 of the United States Code; or
14.6 	(10) to the extent included in federal adjusted gross income, the amount of discharge of 
14.7 	indebtedness awarded to the claimant under section 332.74, subdivision 3.
14.8 	(c) The sum of the following amounts may be subtracted from income:
14.9 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
14.10 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
14.11 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
14.12 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
14.13 	(5) for the claimant's fifth dependent, the exemption amount; and
14.14 	(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or 
14.15 	before December 31 of the year for which the taxes were levied, the exemption amount.
14.16 	(d) For purposes of this subdivision, the following terms have the meanings given:
14.17 	(1) "exemption amount" means the exemption amount under section 290.0121, 
14.18 	subdivision 1, paragraph (b), for the taxable year for which the income is reported;
14.19 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
14.20 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
14.21 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
14.22 	to whether the claimant or spouse claimed a deduction; and
14.23 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
14.24 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

14.25 	EFFECTIVE DATE. This section is effective for property taxes payable in 2025 and 
14.26 	thereafter.

14.27 	Sec. 16. CORPORATE TAX BASE EROSION STUDY.
 14.28 	By February 1, 2025, the commissioner of revenue must provide a report to the chairs 
14.29 	and ranking minority members of the legislative committees with jurisdiction over taxes 
14.30 	on the extent of corporate tax base erosion in Minnesota; the legislative options for addressing 
15.1 	that erosion, including worldwide combined reporting; and the litigation risks that may arise 
15.2 	by adopting various approaches to address corporate tax base erosion. The report must 
15.3 	comply with Minnesota Statutes, sections 3.195 and 3.197, and specifically include a 
15.4 	discussion of:
15.5 	(1) the types of international corporate structures and resulting transactions among 
15.6 	commonly controlled businesses that reduce the amount of income that would otherwise 
15.7 	be apportionable to Minnesota under the corporate franchise tax, the effect of which is 
15.8 	commonly referred to as "corporate tax base erosion";
15.9 	(2) the most reliable published analyses of corporate tax base erosion that could be used 
15.10 	to estimate the revenue impact of that erosion on corporate franchise tax collections in 
15.11 	Minnesota, including how Minnesota's share of aggregate domestic shifted profits may be 
15.12 	calculated;
15.13 	(3) the extent to which the state's current treatment of income under section 951A of the 
15.14 	Internal Revenue Code addresses corporate tax base erosion and the limitations of this 
15.15 	approach;
15.16 	(4) other options that exist for modifying the state's corporate franchise tax to address 
15.17 	corporate tax base erosion, including the imposition of worldwide combined reporting;
15.18 	(5) for worldwide combined reporting:
15.19 	(i) how the increased amount of income estimated to be apportioned to Minnesota under 
15.20 	a combined reporting system would be equal to the amount of Minnesota's share of shifted 
15.21 	profits described in clause (2);
15.22 	(ii) the administrative impact of worldwide combined reporting on taxpayers and the 
15.23 	Department of Revenue relative to current law; and
15.24 	(iii) recommendations for administrative changes to the corporate franchise tax to address 
15.25 	the impacts described in item (ii);
15.26 	(6) recommendations for any other modifications to current law needed to administer 
15.27 	the options described in clause (4);
15.28 	(7) the risk of litigation, including federal constitutional claims, under the options 
15.29 	described in clause (4) and recommendations to mitigate those risks; and
15.30 	(8) any other topic the commissioner deems necessary to properly inform legislators on 
15.31 	this subject.

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

16.1 	Sec. 17. APPROPRIATION; POLITICAL CONTRIBUTION REFUND 
16.2 	ELECTRONIC FILING SYSTEM.
 16.3 	$147,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
16.4 	of revenue to establish and implement an electronic filing system for political contribution 
16.5 	refund claims. This appropriation is available until June 30, 2026. The base for this 
16.6 	appropriation is $59,000 for fiscal year 2026 and $59,000 for fiscal year 2027.

16.7 	Sec. 18. TRANSFER; APPROPRIATION; DIRECT FREE FILING SYSTEM.
 16.8 	(a) $5,000,000 in fiscal year 2025 is appropriated from the general fund to the 
16.9 	commissioner of revenue to implement the electronic filing system required in Minnesota 
16.10 	Statutes, section 289A.081. This is a onetime appropriation and is available until June 30, 
16.11 	2027. The base for the appropriation is $2,300,000 in fiscal year 2027.
16.12 	(b) On July 1, 2024, $5,000,000 is transferred to the general fund from the tax filing 
16.13 	modernization account in the special revenue fund established in Laws 2023, chapter 64, 
16.14 	article 15, section 24.

16.15 	Sec. 19. APPROPRIATION; CORPORATE FRANCHISE TAX INFORMATION 
16.16 	DISCLOSURE.
 16.17 	$480,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
16.18 	of revenue to administer the publication of corporate franchise tax information required 
16.19 	under Minnesota Statutes, section 270B.163. The base for this appropriation is $198,000 
16.20 	in fiscal year 2026 and $198,000 in fiscal year 2027.

16.21 	Sec. 20. APPROPRIATION; CORPORATE TAX BASE EROSION STUDY.
 16.22 	$655,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
16.23 	of revenue to produce the study required in section 16. This is a onetime appropriation and 
16.24 	is available until June 30, 2025.

16.25 	Sec. 21. CHILD TAX CREDIT ACCOUNT; TRANSFER; APPROPRIATION.
 16.26 	(a) By June 30, 2025, and June 30, 2026, the commissioner of revenue must certify to 
16.27 	the commissioner of management and budget:
16.28 	(1) the total change in individual income tax liability from the credit allowed under 
16.29 	Minnesota Statutes, section 290.0661, subdivision 9, compared to the credit calculated under 
16.30 	Minnesota Statutes, section 290.0661, subdivision 2; and
17.1 	(2) the total change in individual income tax liability resulting from an 18-year-old 
17.2 	individual to be considered a qualifying child under Minnesota Statutes, section 290.0661, 
17.3 	subdivision 1.
17.4 	(b) A child tax credit account is created in the special revenue fund. Money in the account 
17.5 	is appropriated to the commissioner of management and budget for transfers to the general 
17.6 	fund required in paragraph (d).
17.7 	(c) $32,300,000 in fiscal year 2025 is transferred from the general fund to the child tax 
17.8 	credit account established in paragraph (b). This is a onetime transfer.
17.9 	(d) In fiscal years 2026 and 2027, the commissioner of management and budget must 
17.10 	transfer an amount sufficient to cover the amounts certified in paragraph (a) from the child 
17.11 	tax credit account to the general fund. On June 30, 2027, any amount remaining in the child 
17.12 	tax credit account cancels to the general fund and this section expires.

17.13 	Sec. 22. REPEALER.
 17.14 	Laws 2023, chapter 64, article 15, section 24, is repealed.

17.15 	EFFECTIVE DATE. This section is effective July 2, 2024.

17.16 	ARTICLE 2
17.17 	PROPERTY TAXES AND LOCAL GOVERNMENT AIDS

17.18 	Section 1. Minnesota Statutes 2022, section 272.02, subdivision 7, is amended to read:
17.19 		Subd. 7.Institutions of public charity. (a) Institutions of purely public charity that are 
17.20 	exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code 
17.21 	are exempt if they meet the requirements of this subdivision. In determining whether real 
17.22 	property is exempt under this subdivision, the following factors must be considered:
17.23 	(1) whether the stated purpose of the undertaking is to be helpful to others without 
17.24 	immediate expectation of material reward;
17.25 	(2) whether the institution of public charity is supported by material donations, gifts, or 
17.26 	government grants for services to the public in whole or in part;
17.27 	(3) whether a material number of the recipients of the charity receive benefits or services 
17.28 	at reduced or no cost, or whether the organization provides services to the public that alleviate 
17.29 	burdens or responsibilities that would otherwise be borne by the government;
17.30 	(4) whether the income received, including material gifts and donations, produces a 
17.31 	profit to the charitable institution that is not distributed to private interests;
18.1 	(5) whether the beneficiaries of the charity are restricted or unrestricted, and, if restricted, 
18.2 	whether the class of persons to whom the charity is made available is one having a reasonable 
18.3 	relationship to the charitable objectives; and
18.4 	(6) whether dividends, in form or substance, or assets upon dissolution, are not available 
18.5 	to private interests.
18.6 	A charitable organization must satisfy the factors in clauses (1) to (6) for its property to 
18.7 	be exempt under this subdivision, unless there is a reasonable justification for failing to 
18.8 	meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the 
18.9 	factual basis for that justification. If there is reasonable justification for failing to meet the 
18.10 	factors in clause (2), (3), or (5), an organization is a purely public charity under this 
18.11 	subdivision without meeting those factors. After an exemption is properly granted under 
18.12 	this subdivision, it will remain in effect unless there is a material change in facts.
18.13 	(b) For purposes of this subdivision, a grant is a written instrument or electronic document 
18.14 	defining a legal relationship between a granting agency and a grantee when the principal 
18.15 	purpose of the relationship is to transfer cash or something of value to the grantee to support 
18.16 	a public purpose authorized by law in a general manner instead of acquiring by professional 
18.17 	or technical contract, purchase, lease, or barter property or services for the direct benefit or 
18.18 	use of the granting agency.
18.19 	(c) Rental housing property does not qualify for an exemption under this subdivision 
18.20 	unless: (1) its use is in furtherance of the tax-exempt charitable purpose of the organization; 
18.21 	and (2) its use does not further the tax-exempt charitable purpose of the organization solely 
18.22 	by providing rental housing to persons or families on the basis of the income characteristics 
18.23 	of those persons or families.
18.24 	(c) (d) In determining whether rental housing property qualifies for exemption under 
18.25 	this subdivision, the following are not gifts or donations to the owner of the rental housing:
18.26 	(1) rent assistance provided by the government to or on behalf of tenants; and
18.27 	(2) financing assistance or tax credits provided by the government to the owner on 
18.28 	condition that specific units or a specific quantity of units be set aside for persons or families 
18.29 	with certain income characteristics.

18.30 	EFFECTIVE DATE. This section is effective for taxes payable in 2025 and thereafter.

19.1 	Sec. 2. Minnesota Statutes 2022, section 272.02, subdivision 19, is amended to read:
19.2 		Subd. 19.Property used to distribute electricity to farmers. Electric power distribution 
19.3 	lines and their attachments and appurtenances systems, not including substations, or 
19.4 	transmission or generation equipment, that are used primarily for supplying electricity to 
19.5 	farmers at retail, are exempt.

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

19.7 	Sec. 3. Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to 
19.8 	read:
19.9 		Subd. 106.Certain property owned by an Indian Tribe. (a) Property is exempt that:
19.10 	(1) was classified as class 2b under section 273.13, subdivision 24, for taxes payable in 
19.11 	2024;
19.12 	(2) is located within a county with a population greater than 5,580 but less than 5,620 
19.13 	according to the 2020 federal census;
19.14 	(3) is located in an unorganized territory with a population less than 800 according to 
19.15 	the 2020 federal census; and
19.16 	(4) was on January 2, 2023, and is for the current assessment, owned by a federally 
19.17 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
19.18 	(b) The exemption under this subdivision does not apply if the use of the property 
19.19 	receiving the exemption changes from the use of the property in assessment year 2024.

19.20 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025.

19.21 	Sec. 4. Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to 
19.22 	read:
19.23 		Subd. 107.Certain property owned by an Indian Tribe. (a) Property is exempt that:
19.24 	(1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in 
19.25 	2024;
19.26 	(2) is located in a city of the first class with a population greater than 400,000 as of the 
19.27 	2020 federal census;
19.28 	(3) was on January 1, 2023, and is for the current assessment, owned by a federally 
19.29 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota; 
19.30 	and
20.1 	(4) is used exclusively for Tribal purposes or institutions of purely public charity as 
20.2 	defined in subdivision 7.
20.3 	(b) Property that qualifies for the exemption under this subdivision is limited to one 
20.4 	parcel that does not exceed 40,000 square feet. Property used for single-family housing, 
20.5 	market-rate apartments, agriculture, or forestry does not qualify for this exemption.

20.6 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025.

20.7 	Sec. 5. Minnesota Statutes 2022, section 273.13, subdivision 22, is amended to read:
20.8 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
20.9 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
20.10 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
20.11 	property is deemed to be used for homestead purposes. The market value of class 1a property 
20.12 	must be determined based upon the value of the house, garage, and land.
20.13 	The first $500,000 of market value of class 1a property has a net classification rate of 
20.14 	one percent of its market value; and the market value of class 1a property that exceeds 
20.15 	$500,000 has a classification rate of 1.25 percent of its market value.
20.16 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
20.17 	used for the purposes of a homestead by:
20.18 	(1) any person who is blind as defined in section 256D.35, or the person who is blind 
20.19 	and the spouse of the person who is blind;
20.20 	(2) any person who is permanently and totally disabled or by the person with a disability 
20.21 	and the spouse of the person with a disability; or
20.22 	(3) the surviving spouse of a veteran who was permanently and totally disabled 
20.23 	homesteading a property classified under this paragraph for taxes payable in 2008.
20.24 	Property is classified and assessed under clause (2) only if the government agency or 
20.25 	income-providing source certifies, upon the request of the homestead occupant, that the 
20.26 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
20.27 	property is not eligible for the valuation exclusion under subdivision 34.
20.28 	Property is classified and assessed under paragraph (b) only if the commissioner of 
20.29 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
20.30 	of this paragraph.
20.31 	Permanently and totally disabled for the purpose of this subdivision means a condition 
20.32 	which is permanent in nature and totally incapacitates the person from working at an 
21.1 	occupation which brings the person an income. The first $50,000 market value of class 1b 
21.2 	property has a net classification rate of .45 percent of its market value. The remaining market 
21.3 	value of class 1b property is classified as class 1a or class 2a property, whichever is 
21.4 	appropriate.
21.5 	(c) Class 1c property is commercial use real and personal property that abuts public 
21.6 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
21.7 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
21.8 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
21.9 	250 days in the year preceding the year of assessment, and that includes a portion used as 
21.10 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
21.11 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
21.12 	resort, or a member of a limited liability company that owns the resort even if the title to 
21.13 	the homestead is held by the corporation, partnership, or limited liability company. For 
21.14 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
21.15 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
21.16 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
21.17 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
21.18 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
21.19 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
21.20 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
21.21 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
21.22 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
21.23 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
21.24 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
21.25 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
21.26 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
21.27 	the same owner owns two separate parcels that are located in the same township, and one 
21.28 	of those properties is classified as a class 1c property and the other would be eligible to be 
21.29 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
21.30 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
21.31 	deemed to be owned by the same owner if each of them is owned by a limited liability 
21.32 	company, and both limited liability companies have the same membership. The portion of 
21.33 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
21.34 	of the property is classified as follows: the first $600,000 $1,100,000 of market value is tier 
21.35 	I, the next $1,700,000 $2,600,000 of market value is tier II, and any remaining market value 
21.36 	is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; 
22.1 	and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and 
22.2 	seasonal residential occupancy for recreation purposes in which all or a portion of the 
22.3 	property was devoted to commercial purposes for not more than 250 days in the year 
22.4 	preceding the year of assessment desiring classification as class 1c, must submit a declaration 
22.5 	to the assessor designating the cabins or units occupied for 250 days or less in the year 
22.6 	preceding the year of assessment by January 15 of the assessment year. Those cabins or 
22.7 	units and a proportionate share of the land on which they are located must be designated as 
22.8 	class 1c as otherwise provided. The remainder of the cabins or units and a proportionate 
22.9 	share of the land on which they are located must be designated as class 3a commercial. The 
22.10 	owner of property desiring designation as class 1c property must provide guest registers or 
22.11 	other records demonstrating that the units for which class 1c designation is sought were not 
22.12 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
22.13 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
22.14 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
22.15 	directly related to temporary and seasonal residential occupancy for recreation purposes 
22.16 	does not qualify for class 1c.
22.17 	(d) Class 1d property includes structures that meet all of the following criteria:
22.18 	(1) the structure is located on property that is classified as agricultural property under 
22.19 	section 273.13, subdivision 23;
22.20 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
22.21 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
22.22 	the property, provided that use of the structure for storage of farm equipment and produce 
22.23 	does not disqualify the property from classification under this paragraph;
22.24 	(3) the structure meets all applicable health and safety requirements for the appropriate 
22.25 	season; and
22.26 	(4) the structure is not salable as residential property because it does not comply with 
22.27 	local ordinances relating to location in relation to streets or roads.
22.28 	The market value of class 1d property has the same classification rates as class 1a property 
22.29 	under paragraph (a).

22.30 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025.

23.1 	Sec. 6. Minnesota Statutes 2023 Supplement, section 273.13, subdivision 25, is amended 
23.2 	to read:
23.3 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
23.4 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
23.5 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
23.6 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
23.7 	under section 272.02, and contiguous property used for hospital purposes, without regard 
23.8 	to whether the property has been platted or subdivided. The market value of class 4a property 
23.9 	has a classification rate of 1.25 percent.
23.10 	(b) Class 4b includes:
23.11 	(1) residential real estate containing less than four units, including property rented as a 
23.12 	short-term rental property for more than 14 days in the preceding year, that does not qualify 
23.13 	as class 4bb, other than seasonal residential recreational property;
23.14 	(2) manufactured homes not classified under any other provision;
23.15 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
23.16 	classified under subdivision 23, paragraph (b) containing two or three units; and
23.17 	(4) unimproved property that is classified residential as determined under subdivision 
23.18 	33.
23.19 	For the purposes of this paragraph, "short-term rental property" means nonhomestead 
23.20 	residential real estate rented for periods of less than 30 consecutive days.
23.21 	The market value of class 4b property has a classification rate of 1.25 percent.
23.22 	(c) Class 4bb includes:
23.23 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
23.24 	residential recreational property;
23.25 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
23.26 	nonhomestead farm classified under subdivision 23, paragraph (b); and
23.27 	(3) a condominium-type storage unit having an individual property identification number 
23.28 	that is not used for a commercial purpose.
23.29 	Class 4bb property has the same classification rates as class 1a property under subdivision 
23.30 	22.
24.1 	Property that has been classified as seasonal residential recreational property at any time 
24.2 	during which it has been owned by the current owner or spouse of the current owner does 
24.3 	not qualify for class 4bb.
24.4 	(d) Class 4c property includes:
24.5 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
24.6 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
24.7 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
24.8 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
24.9 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
24.10 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
24.11 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
24.12 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
24.13 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
24.14 	under this clause regardless of the term of the rental agreement, as long as the use of the 
24.15 	camping pad does not exceed 250 days. In order for a property to be classified under this 
24.16 	clause, either (i) the business located on the property must provide recreational activities, 
24.17 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
24.18 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
24.19 	bookings by lodging guests during the year must be for periods of at least two consecutive 
24.20 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
24.21 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
24.22 	and must be located in a township or a city with a population of 2,500 or less located outside 
24.23 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
24.24 	of a state trail administered by the Department of Natural Resources. For purposes of item 
24.25 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
24.26 	property also includes commercial use real property used exclusively for recreational 
24.27 	purposes in conjunction with other class 4c property classified under this clause and devoted 
24.28 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
24.29 	two acres, provided the property is not devoted to commercial recreational use for more 
24.30 	than 250 days in the year preceding the year of assessment and is located within two miles 
24.31 	of the class 4c property with which it is used. In order for a property to qualify for 
24.32 	classification under this clause, the owner must submit a declaration to the assessor 
24.33 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
24.34 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
24.35 	share of the land on which they are located must be designated class 4c under this clause 
25.1 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
25.2 	the land on which they are located will be designated as class 3a. The owner of property 
25.3 	desiring designation as class 4c property under this clause must provide guest registers or 
25.4 	other records demonstrating that the units for which class 4c designation is sought were not 
25.5 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
25.6 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
25.7 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
25.8 	directly related to temporary and seasonal residential occupancy for recreation purposes 
25.9 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
25.10 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
25.11 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
25.12 	and fishing tackle;
25.13 	(2) qualified property used as a golf course if:
25.14 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
25.15 	but a membership fee may not be required in order to use the property for golfing, and its 
25.16 	green fees for golfing must be comparable to green fees typically charged by municipal 
25.17 	courses; and
25.18 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
25.19 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
25.20 	the golf course is classified as class 3a property;
25.21 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
25.22 	community service oriented organization and not used for residential purposes on either a 
25.23 	temporary or permanent basis, provided that:
25.24 	(i) the property is not used for a revenue-producing activity for more than six days in 
25.25 	the calendar year preceding the year of assessment; or
25.26 	(ii) the organization makes annual charitable contributions and donations at least equal 
25.27 	to the property's previous year's property taxes and the property is allowed to be used for 
25.28 	public and community meetings or events for no charge, as appropriate to the size of the 
25.29 	facility.
25.30 	For purposes of this clause:
25.31 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
25.32 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
25.33 	payment of taxes, assessments, fees, auditing costs, and utility payments;
26.1 	(B) "property taxes" excludes the state general tax;
26.2 	(C) a "nonprofit community service oriented organization" means any corporation, 
26.3 	society, association, foundation, or institution organized and operated exclusively for 
26.4 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
26.5 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
26.6 	Revenue Code; and
26.7 	(D) "revenue-producing activities" shall include but not be limited to property or that 
26.8 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
26.9 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
26.10 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
26.11 	insurance business, or office or other space leased or rented to a lessee who conducts a 
26.12 	for-profit enterprise on the premises.
26.13 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
26.14 	use of the property for social events open exclusively to members and their guests for periods 
26.15 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
26.16 	the organization shall not be considered a revenue-producing activity.
26.17 	The organization shall maintain records of its charitable contributions and donations 
26.18 	and of public meetings and events held on the property and make them available upon 
26.19 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
26.20 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
26.21 	current year's assessment. The commissioner shall prescribe a uniform application form 
26.22 	and instructions;
26.23 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
26.24 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
26.25 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
26.26 	miles of the border of a college campus;
26.27 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 
26.28 	manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as 
26.29 	defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 
26.30 	3a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision 
26.31 	2;
26.32 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
26.33 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
26.34 	located within the metropolitan area as defined in section 473.121, subdivision 2;
27.1 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
27.2 	section 272.01, subdivision 2, and the land on which it is located, provided that:
27.3 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
27.4 	Airports Commission, or group thereof; and
27.5 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
27.6 	premise, prohibits commercial activity performed at the hangar.
27.7 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
27.8 	filed by the new owner with the assessor of the county where the property is located within 
27.9 	60 days of the sale;
27.10 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
27.11 	272.01, subdivision 2, and the land on which it is located, provided that:
27.12 	(i) the land abuts a public airport; and
27.13 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
27.14 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
27.15 	hangar; and
27.16 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
27.17 	and that is also a place of lodging, if all of the following criteria are met:
27.18 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
27.19 	or fewer days;
27.20 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
27.21 	the basic room rate;
27.22 	(iii) meals are not provided to the general public except for special events on fewer than 
27.23 	seven days in the calendar year preceding the year of the assessment; and
27.24 	(iv) the owner is the operator of the property.
27.25 	The market value subject to the 4c classification under this clause is limited to five rental 
27.26 	units. Any rental units on the property in excess of five, must be valued and assessed as 
27.27 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
27.28 	be classified as class 1a property under subdivision 22;
27.29 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
27.30 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
27.31 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
27.32 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
28.1 	of its annual gross receipts from business conducted during four consecutive months. Gross 
28.2 	receipts from the sale of alcoholic beverages must be included in determining the property's 
28.3 	qualification under item (ii). The property's primary business must be as a restaurant and 
28.4 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
28.5 	Owners of real property desiring 4c classification under this clause must submit an annual 
28.6 	declaration to the assessor by February 1 of the current assessment year, based on the 
28.7 	property's relevant information for the preceding assessment year;
28.8 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
28.9 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
28.10 	and devoted to recreational use for marina services. The marina owner must annually provide 
28.11 	evidence to the assessor that it provides services, including lake or river access to the public 
28.12 	by means of an access ramp or other facility that is either located on the property of the 
28.13 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
28.14 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
28.15 	a marina for marina services, including but not limited to buildings used to provide food 
28.16 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
28.17 	as class 3a property; and
28.18 	(12) real and personal property devoted to noncommercial temporary and seasonal 
28.19 	residential occupancy for recreation purposes.
28.20 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
28.21 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
28.22 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
28.23 	under clause (5), item (i), have the same classification rate as class 4b property, the market 
28.24 	value of manufactured home parks assessed under clause (5), item (ii), have a classification 
28.25 	rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by 
28.26 	shareholders in the cooperative corporation or association and a classification rate of one 
28.27 	percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
28.28 	parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent, 
28.29 	(iii) commercial-use seasonal residential recreational property and marina recreational land 
28.30 	as described in clause (11), has a classification rate of one percent for the first $500,000 of 
28.31 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
28.32 	property described in clause (4) has a classification rate of one percent, (v) the market value 
28.33 	of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 
28.34 	(vi) that portion of the market value of property in clause (9) qualifying for class 4c property 
28.35 	has a classification rate of 1.25 percent, and (vii) property qualifying for classification under 
29.1 	clause (3) that is owned or operated by a congressionally chartered veterans organization 
29.2 	has a classification rate of one percent. The commissioner of veterans affairs must provide 
29.3 	a list of congressionally chartered veterans organizations to the commissioner of revenue 
29.4 	by June 30, 2017, and by January 1, 2018, and each year thereafter.
29.5 	(e) Class 4d property includes:
29.6 	(1) qualifying low-income rental housing certified to the assessor by the Housing Finance 
29.7 	Agency under section 273.128, subdivision 3. If only a portion of the units in the building 
29.8 	qualify as low-income rental housing units as certified under section 273.128, subdivision 
29.9 	3, only the proportion of qualifying units to the total number of units in the building qualify 
29.10 	for class 4d(1). The remaining portion of the building shall be classified by the assessor 
29.11 	based upon its use. Class 4d(1) also includes the same proportion of land as the qualifying 
29.12 	low-income rental housing units are to the total units in the building. For all properties 
29.13 	qualifying as class 4d(1), the market value determined by the assessor must be based on the 
29.14 	normal approach to value using normal unrestricted rents; and
29.15 	(2) a unit that is owned by the occupant and used as a homestead by the occupant, and 
29.16 	otherwise meets all the requirements for community land trust property under section 273.11, 
29.17 	subdivision 12, provided that by December 31 of each assessment year, the community land 
29.18 	trust certifies to the assessor that (i) the community land trust owns the real property on 
29.19 	which the unit is located, and (ii) the unit owner is a member in good standing of the 
29.20 	community land trust. For all units qualifying as class 4d(2), the market value determined 
29.21 	by the assessor must be based on the normal approach to value without regard to any 
29.22 	restrictions that apply because the unit is a community land trust property.
29.23 	(f) Class 4d(1) property has a classification rate of 0.25 percent. Class 4d(2) property 
29.24 	has a classification rate of 0.75 percent.

29.25 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

29.26 	Sec. 7. [273.1389] ADVANCE HOMESTEAD CREDIT FOR SENIORS.
29.27 		Subdivision 1.Eligibility. Homestead property is eligible to receive the advance 
29.28 	homestead credit for seniors under this section if it is owned by an eligible senior claimant 
29.29 	who received homestead treatment on the property in the prior taxes payable year. For the 
29.30 	purposes of this section, "eligible senior claimant" means a claimant who has submitted an 
29.31 	application and has been determined eligible under section 290A.071.
30.1 		Subd. 2.Credit amount. For each qualifying property, the amount of the advance 
30.2 	homestead credit for seniors is equal to 50 percent of the amount of the homestead credit 
30.3 	refund the property owner received in the previous year.
30.4 		Subd. 3.Certification. No later than January 2 of the year for which an eligible senior 
30.5 	claimant elected to receive the advance homestead credit for seniors under this section, the 
30.6 	commissioner of revenue must calculate and certify to each county auditor credit amounts 
30.7 	under this section. The county auditor must apply the credit to each qualifying property's 
30.8 	first half payment. If a property's credit amount under subdivision 2 exceeds the first half 
30.9 	payment amount after all other applicable credits, the auditor must reduce the advance 
30.10 	homestead credit for seniors so that the first half payment amount is $0. No later than July 
30.11 	1 of the taxes payable year in which the credit is applied, the county auditor must certify 
30.12 	any reductions under this subdivision to the commissioner of revenue under section 270C.85, 
30.13 	subdivision 2. The commissioner shall review the certifications for accuracy and may make 
30.14 	any changes the commissioner deems necessary or return the certification to the county 
30.15 	auditor for correction.
30.16 		Subd. 4.Payment. (a) The commissioner of revenue shall reimburse each local taxing 
30.17 	jurisdiction, other than school districts, for the tax reductions granted under this section in 
30.18 	one installment on October 31 of the taxes payable year for which the reductions are granted, 
30.19 	including in each payment any prior year adjustments. The reimbursements related to tax 
30.20 	increments shall be issued in one installment each year on December 26.
30.21 	(b) The commissioner of revenue shall certify the total of the tax reductions granted 
30.22 	under this section for each taxes payable year within each school district to the commissioner 
30.23 	of education. The commissioner of education shall pay the reimbursement amounts to each 
30.24 	school district as provided in section 273.1392.
30.25 		Subd. 5.Appropriation. An amount sufficient to make the payments required by this 
30.26 	section to taxing jurisdictions other than school districts is annually appropriated from the 
30.27 	general fund to the commissioner of revenue. An amount sufficient to make the payments 
30.28 	required by this section for school districts is annually appropriated from the general fund 
30.29 	to the commissioner of education.

30.30 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
30.31 	in 2026.

31.1 	Sec. 8. Minnesota Statutes 2023 Supplement, section 273.1392, is amended to read:
31.2 	273.1392 PAYMENT; SCHOOL DISTRICTS.
31.3 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
31.4 	conservation tax credits under section 273.119; disaster or emergency reimbursement under 
31.5 	sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
31.6 	the advance homestead credit for seniors under section 273.1389; aids and credits under 
31.7 	section 273.1398; enterprise zone property credit payments under section 469.171; 
31.8 	metropolitan agricultural preserve reduction under section 473H.10; and electric generation 
31.9 	transition aid under section 477A.24 for school districts, shall be certified to the Department 
31.10 	of Education by the Department of Revenue. The amounts so certified shall be paid according 
31.11 	to section 127A.45, subdivisions 9, 10, and 13.

31.12 	EFFECTIVE DATE. This section is effective beginning July 1, 2026.

31.13 	Sec. 9. Minnesota Statutes 2022, section 273.1393, is amended to read:
31.14 	273.1393 COMPUTATION OF NET PROPERTY TAXES.
31.15 	Notwithstanding any other provisions to the contrary, "net" property taxes are determined 
31.16 	by subtracting the credits in the order listed from the gross tax:
31.17 	(1) disaster credit as provided in sections 273.1231 to 273.1235;
31.18 	(2) powerline credit as provided in section 273.42;
31.19 	(3) agricultural preserves credit as provided in section 473H.10;
31.20 	(4) enterprise zone credit as provided in section 469.171;
31.21 	(5) disparity reduction credit;
31.22 	(6) conservation tax credit as provided in section 273.119;
31.23 	(7) the school bond credit as provided in section 273.1387;
31.24 	(8) agricultural credit as provided in section 273.1384;
31.25 	(9) taconite homestead credit as provided in section 273.135;
31.26 	(10) supplemental homestead credit as provided in section 273.1391; and
31.27 	(11) the bovine tuberculosis zone credit, as provided in section 273.113.; and
31.28 	(12) the advance homestead credit for seniors under section 273.1389.
31.29 	The combination of all property tax credits must not exceed the gross tax amount.

32.1 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
32.2 	in 2026.

32.3 	Sec. 10. Minnesota Statutes 2022, section 273.38, is amended to read:
32.4 	273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
32.5 	The distribution lines and the attachments and appurtenances thereto systems, not 
32.6 	including substations, or transmission or generation equipment of cooperative associations 
32.7 	organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof 
32.8 	and supplemental thereto, and engaged in the electrical heat, light and power business, upon 
32.9 	a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections 
32.10 	273.40 and 273.41.

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

32.12 	Sec. 11. Minnesota Statutes 2022, section 273.41, is amended to read:
32.13 	273.41 AMOUNT OF TAX; DISTRIBUTION.
32.14 	There is hereby imposed upon each such cooperative association on December 31 of 
32.15 	each year a tax of $10 for each 100 members, or fraction thereof, of such association. The 
32.16 	tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon 
32.17 	distribution lines and the attachments and appurtenances thereto of such associations that 
32.18 	part of the association's distribution system, not including substations, or transmission or 
32.19 	generation equipment, located in rural areas. The tax shall be payable on or before March 
32.20 	1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion 
32.21 	thereof, is not paid within the time herein specified for the payment thereof, there shall be 
32.22 	added thereto a specific penalty equal to ten percent of the amount so remaining unpaid. 
32.23 	Such penalty shall be collected as part of said tax, and the amount of said tax not timely 
32.24 	paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
32.25 	from the time such tax should have been paid until paid. The commissioner shall deposit 
32.26 	the amount so received in the general fund of the state treasury.

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

32.28 	Sec. 12. Minnesota Statutes 2023 Supplement, section 275.065, subdivision 3, is amended 
32.29 	to read:
32.30 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare and 
32.31 	the county treasurer shall deliver after November 10 and on or before November 24 each 
33.1 	year, by first class mail to each taxpayer at the address listed on the county's current year's 
33.2 	assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 
33.3 	the treasurer may send the notice in electronic form or by electronic mail instead of on paper 
33.4 	or by ordinary mail.
33.5 	(b) The commissioner of revenue shall prescribe the form of the notice.
33.6 	(c) The notice must inform taxpayers that it contains the amount of property taxes each 
33.7 	taxing authority proposes to collect for taxes payable the following year. In the case of a 
33.8 	town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
33.9 	The notice must clearly state for each city that has a population over 500, county, school 
33.10 	district, regional library authority established under section 134.201, metropolitan taxing 
33.11 	districts as defined in paragraph (i), and fire protection and emergency medical services 
33.12 	special taxing districts established under section 144F.01, the time and place of a meeting 
33.13 	for each taxing authority in which the budget and levy will be discussed and public input 
33.14 	allowed, prior to the final budget and levy determination. The taxing authorities must provide 
33.15 	the county auditor with the information to be included in the notice on or before the time it 
33.16 	certifies its proposed levy under subdivision 1. The public must be allowed to speak at that 
33.17 	meeting, which must occur after November 24 and must not be held before 6:00 p.m. It 
33.18 	must provide a website address and a telephone number for the taxing authority that taxpayers 
33.19 	may call if they have questions related to the notice and an address where comments will 
33.20 	be received by mail, except that no notice required under this section shall be interpreted 
33.21 	as requiring the printing of a personal telephone number or address as the contact information 
33.22 	for a taxing authority. If a taxing authority does not maintain a website or public offices 
33.23 	where telephone calls can be received by the authority, the authority may inform the county 
33.24 	of the lack of a public website or telephone number and the county shall not list a website 
33.25 	or telephone number for that taxing authority.
33.26 	(d) The notice must state for each parcel:
33.27 	(1) the market value of the property as determined under section 273.11, and used for 
33.28 	computing property taxes payable in the following year and for taxes payable in the current 
33.29 	year as each appears in the records of the county assessor on November 1 of the current 
33.30 	year; and, in the case of residential property, whether the property is classified as homestead 
33.31 	or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 
33.32 	values apply and that the values are final values;
33.33 	(2) the items listed below, shown separately by county, city or town, and state general 
33.34 	tax, agricultural homestead credit under section 273.1384, school building bond agricultural 
34.1 	credit under section 273.1387, the advance homestead credit for seniors under section 
34.2 	273.1389, voter approved school levy, other local school levy, and the sum of the special 
34.3 	taxing districts, and as a total of all taxing authorities:
34.4 	(i) the actual tax for taxes payable in the current year; and
34.5 	(ii) the proposed tax amount.
34.6 	If the county levy under clause (2) includes an amount for a lake improvement district 
34.7 	as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
34.8 	must be separately stated from the remaining county levy amount.
34.9 	In the case of a town or the state general tax, the final tax shall also be its proposed tax 
34.10 	unless the town changes its levy at a special town meeting under section 365.52. If a school 
34.11 	district has certified under section 126C.17, subdivision 9, that a referendum will be held 
34.12 	in the school district at the November general election, the county auditor must note next 
34.13 	to the school district's proposed amount that a referendum is pending and that, if approved 
34.14 	by the voters, the tax amount may be higher than shown on the notice. In the case of the 
34.15 	city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 
34.16 	from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 
34.17 	the St. Paul Library Agency must be listed separately from the remaining amount of the 
34.18 	city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 
34.19 	listed separately from the remaining amount of the county's levy. In the case of a parcel 
34.20 	where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 
34.21 	applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 
34.22 	capacity subject to the areawide tax must each be stated separately and not included in the 
34.23 	sum of the special taxing districts; and
34.24 	(3) the increase or decrease between the total taxes payable in the current year and the 
34.25 	total proposed taxes, expressed as a percentage.
34.26 	For purposes of this section, the amount of the tax on homesteads qualifying under the 
34.27 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
34.28 	property tax before subtraction of the deferred property tax amount.
34.29 	(e) The notice must clearly state that the proposed or final taxes do not include the 
34.30 	following:
34.31 	(1) special assessments;
34.32 	(2) levies approved by the voters after the date the proposed taxes are certified, including 
34.33 	bond referenda and school district levy referenda;
35.1 	(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 
35.2 	in November of the levy year as provided under section 275.73;
35.3 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 
35.4 	after the date the proposed taxes are certified;
35.5 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
35.6 	final after the date the proposed taxes are certified; and
35.7 	(6) the contamination tax imposed on properties which received market value reductions 
35.8 	for contamination.
35.9 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 
35.10 	county treasurer to deliver the notice as required in this section does not invalidate the 
35.11 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
35.12 	(g) If the notice the taxpayer receives under this section lists the property as 
35.13 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
35.14 	applicable deadline, and the property qualifies for the homestead classification in that 
35.15 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
35.16 	in the following year.
35.17 	(h) In the case of class 4 residential property used as a residence for lease or rental 
35.18 	periods of 30 days or more, the taxpayer must either:
35.19 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 
35.20 	or lessee; or
35.21 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
35.22 	The notice must be mailed or posted by the taxpayer by November 27 or within three 
35.23 	days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 
35.24 	of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 
35.25 	notice must be mailed in order to fulfill the requirements of this paragraph.
35.26 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
35.27 	districts" means the following taxing districts in the seven-county metropolitan area that 
35.28 	levy a property tax for any of the specified purposes listed below:
35.29 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 
35.30 	473.521, 473.547, or 473.834;
35.31 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
35.32 	(3) Metropolitan Mosquito Control Commission under section 473.711.
36.1 	For purposes of this section, any levies made by the regional rail authorities in the county 
36.2 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
36.3 	shall be included with the appropriate county's levy.
36.4 	(j) The governing body of a county, city, or school district may, with the consent of the 
36.5 	county board, include supplemental information with the statement of proposed property 
36.6 	taxes about the impact of state aid increases or decreases on property tax increases or 
36.7 	decreases and on the level of services provided in the affected jurisdiction. This supplemental 
36.8 	information may include information for the following year, the current year, and for as 
36.9 	many consecutive preceding years as deemed appropriate by the governing body of the 
36.10 	county, city, or school district. It may include only information regarding:
36.11 	(1) the impact of inflation as measured by the implicit price deflator for state and local 
36.12 	government purchases;
36.13 	(2) population growth and decline;
36.14 	(3) state or federal government action; and
36.15 	(4) other financial factors that affect the level of property taxation and local services 
36.16 	that the governing body of the county, city, or school district may deem appropriate to 
36.17 	include.
36.18 	The information may be presented using tables, written narrative, and graphic 
36.19 	representations and may contain instruction toward further sources of information or 
36.20 	opportunity for comment.

36.21 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
36.22 	in 2026.

36.23 	Sec. 13. Minnesota Statutes 2022, section 276.04, subdivision 2, as amended by Laws 
36.24 	2024, chapter 85, section 87, is amended to read:
36.25 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the printing of 
36.26 	the tax statements. The commissioner of revenue shall prescribe the form of the property 
36.27 	tax statement and its contents. The tax statement must not state or imply that property tax 
36.28 	credits are paid by the state of Minnesota. The statement must contain a tabulated statement 
36.29 	of the dollar amount due to each taxing authority and the amount of the state tax from the 
36.30 	parcel of real property for which a particular tax statement is prepared. The dollar amounts 
36.31 	attributable to the county, the state tax, the voter approved school tax, the other local school 
36.32 	tax, the township or municipality, and the total of the metropolitan special taxing districts 
36.33 	as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 
37.1 	amounts due all other special taxing districts, if any, may be aggregated except that any 
37.2 	levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 
37.3 	Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 
37.4 	under the appropriate county's levy. If the county levy under this paragraph includes an 
37.5 	amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 
37.6 	the amount attributable for that purpose must be separately stated from the remaining county 
37.7 	levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 
37.8 	an amount for public library service under section 134.07, the amount attributable for that 
37.9 	purpose may be separated from the remaining county levy amount. The amount of the tax 
37.10 	on homesteads qualifying under the senior citizens' property tax deferral program under 
37.11 	chapter 290B is the total amount of property tax before subtraction of the deferred property 
37.12 	tax amount. The amount of the tax on contamination value imposed under sections 270.91 
37.13 	to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 
37.14 	amount of any special assessments, may be rounded to the nearest even whole dollar. For 
37.15 	purposes of this section whole odd-numbered dollars may be adjusted to the next higher 
37.16 	even-numbered dollar.
37.17 	(b) The property tax statements for manufactured homes and sectional structures taxed 
37.18 	as personal property shall contain the same information that is required on the tax statements 
37.19 	for real property.
37.20 	(c) Real and personal property tax statements must contain the following information 
37.21 	in the order given in this paragraph. The information must contain the current year tax 
37.22 	information in the right column with the corresponding information for the previous year 
37.23 	in a column on the left:
37.24 	(1) the property's estimated market value under section 273.11, subdivision 1;
37.25 	(2) the property's homestead market value exclusion under section 273.13, subdivision 
37.26 	35;
37.27 	(3) the property's taxable market value under section 272.03, subdivision 15;
37.28 	(4) the property's gross tax, before credits;
37.29 	(5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
37.30 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
37.31 	273.1389; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount 
37.32 	of credit received under section 273.135 must be separately stated and identified as "taconite 
37.33 	tax relief"; and
38.1 	(7) the net tax payable in the manner required in paragraph (a).
38.2 	(d) If the county uses envelopes for mailing property tax statements and if the county 
38.3 	agrees, a taxing district may include a notice with the property tax statement notifying 
38.4 	taxpayers when the taxing district will begin its budget deliberations for the current year, 
38.5 	and encouraging taxpayers to attend the hearings. If the county allows notices to be included 
38.6 	in the envelope containing the property tax statement, and if more than one taxing district 
38.7 	relative to a given property decides to include a notice with the tax statement, the county 
38.8 	treasurer or auditor must coordinate the process and may combine the information on a 
38.9 	single announcement.

38.10 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
38.11 	in 2026.

38.12 	Sec. 14. Minnesota Statutes 2022, section 289A.08, subdivision 1, is amended to read:
38.13 		Subdivision 1.Generally; individuals. (a) A taxpayer must file a return for each taxable 
38.14 	year the taxpayer is required to file a return under section 6012 of the Internal Revenue 
38.15 	Code or meets the requirements under paragraph (d) to file a return, except that:
38.16 	(1) an individual who is not a Minnesota resident for any part of the year is not required 
38.17 	to file a Minnesota income tax return if the individual's gross income derived from Minnesota 
38.18 	sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the 
38.19 	filing requirements for a single individual who is a full year resident of Minnesota;
38.20 	(2) an individual who is a Minnesota resident is not required to file a Minnesota income 
38.21 	tax return if the individual's gross income derived from Minnesota sources as determined 
38.22 	under section 290.17, less the subtractions allowed under section 290.0132, subdivisions 
38.23 	12 and 15, is less than the filing requirements for a single individual who is a full-year 
38.24 	resident of Minnesota.
38.25 	(b) The decedent's final income tax return, and other income tax returns for prior years 
38.26 	where the decedent had gross income in excess of the minimum amount at which an 
38.27 	individual is required to file and did not file, must be filed by the decedent's personal 
38.28 	representative, if any. If there is no personal representative, the return or returns must be 
38.29 	filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property 
38.30 	of the decedent.
38.31 	(c) The term "gross income," as it is used in this section, has the same meaning given it 
38.32 	in section 290.01, subdivision 20.
39.1 	(d) The commissioner of revenue must annually determine the gross income levels at 
39.2 	which individuals are required to file a return for each taxable year based on the amounts 
39.3 	allowed as a deduction under section 290.0123.
39.4 	(e) A claimant who elects to receive advance payments under section 290A.071 must 
39.5 	file a claim for a homestead credit refund as a return to reconcile their advanced payment.

39.6 	EFFECTIVE DATE. This section is effective for credits applied to property taxes 
39.7 	payable in 2026 and thereafter.

39.8 	Sec. 15. Minnesota Statutes 2023 Supplement, section 290A.03, subdivision 13, is amended 
39.9 	to read:
39.10 		Subd. 13.Property taxes payable. (a) "Property taxes payable" means the property tax 
39.11 	exclusive of:
39.12 	(1) special assessments, penalties, and interest payable on a claimant's homestead after 
39.13 	deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, and;
39.14 	(2) any other state paid property tax credits in any calendar year, except the credit under 
39.15 	section 273.1389; and
39.16 	(3) after any refund claimed and allowable under section 290A.04, subdivision 2h, that 
39.17 	is first payable in the year that the property tax is payable.
39.18 	(b) In the case of a claimant who makes ground lease payments, "property taxes payable" 
39.19 	includes the amount of the payments directly attributable to the property taxes assessed 
39.20 	against the parcel on which the house is located.
39.21 	(c) Regardless of the limitations in section 280A(c)(5) of the Internal Revenue Code, 
39.22 	"property taxes payable" must be apportioned or reduced for the use of a portion of the 
39.23 	claimant's homestead for a business purpose if the claimant deducts any business depreciation 
39.24 	expenses for the use of a portion of the homestead or deducts expenses under section 280A 
39.25 	of the Internal Revenue Code for a business operated in the claimant's homestead.
39.26 	(d) For manufactured homes, "property taxes payable" shall also include 17 percent of 
39.27 	the gross rent paid in the preceding year for the site on which the homestead is located.
39.28 	(e) When a homestead is owned by two or more persons as joint tenants or tenants in 
39.29 	common, such tenants shall determine between them which tenant may claim the property 
39.30 	taxes payable on the homestead. If they are unable to agree, the matter shall be referred to 
39.31 	the commissioner of revenue whose decision shall be final.
40.1 	(f) Property taxes are considered payable in the year prescribed by law for payment of 
40.2 	the taxes.
40.3 	(g) In the case of a claim relating to "property taxes payable," the claimant must have 
40.4 	owned and occupied the homestead on January 2 of the year in which the tax is payable and 
40.5 	(i) the property must have been classified as homestead property pursuant to section 273.124, 
40.6 	on or before December 31 of the assessment year to which the "property taxes payable" 
40.7 	relate; or (ii) the claimant must provide documentation from the local assessor that application 
40.8 	for homestead classification has been made on or before December 31 of the year in which 
40.9 	the "property taxes payable" were payable and that the assessor has approved the application.

40.10 	EFFECTIVE DATE. This section is effective for refunds based on property taxes 
40.11 	payable in 2026 and thereafter.

40.12 	Sec. 16. Minnesota Statutes 2022, section 290A.03, is amended by adding a subdivision 
40.13 	to read:
40.14 		Subd. 17.Eligible senior claimant. "Eligible senior claimant" means a claimant who, 
40.15 	for the year property taxes were payable:
40.16 	(1) attained at least the age of 65; or
40.17 	(2) in the case of a married claimant filing a joint claim, one spouse has attained at least 
40.18 	the age of 65 and the other spouse has attained at least the age of 62.

40.19 	EFFECTIVE DATE. This section is effective for advance payment elections after 
40.20 	December 31, 2024, for credits applied to property taxes payable in 2026 and thereafter.

40.21 	Sec. 17. Minnesota Statutes 2022, section 290A.03, is amended by adding a subdivision 
40.22 	to read:
40.23 		Subd. 18.Homestead credit refund. "Homestead credit refund" means the refund under 
40.24 	section 290A.04, subdivision 2.

40.25 	EFFECTIVE DATE. This section is effective for advance payment elections after 
40.26 	December 31, 2024, for credits applied to property taxes payable in 2026 and thereafter.

40.27 	Sec. 18. [290A.071] ADVANCE CREDIT OF HOMESTEAD CREDIT REFUNDS.
40.28 		Subdivision 1.Advance payment election established. The commissioner must establish 
40.29 	a process to allow an eligible senior claimant to elect to receive advance credit of the 
40.30 	homestead credit refund, as provided in this section.
41.1 		Subd. 2.Election for senior claimants to receive advance payments. At the time of 
41.2 	filing a claim for the homestead credit refund, an eligible senior claimant may elect to 
41.3 	receive an advance credit of the claimant's homestead credit refund for property taxes payable 
41.4 	in the following year by applying for the advance homestead credit for seniors under section 
41.5 	273.1389. The application must be made in the form and manner specified by the 
41.6 	commissioner, but the claimant must attest that they intend to continue to occupy the same 
41.7 	homestead in the following year. To receive an advance credit under this section, a claimant 
41.8 	must submit an application to the commissioner no later than August 15 of the year prior 
41.9 	to the property taxes payable year.
41.10 		Subd. 3.Reconciliation. (a) A claimant's homestead credit refund is reduced by the 
41.11 	amount of any advance homestead credit for seniors under section 273.1389 received by 
41.12 	the claimant. If a claimant's credit exceeds the amount of the refund for which the claimant 
41.13 	was eligible, the claimant must repay to the commissioner the difference between the amount 
41.14 	of advance payments received and the credit amount for which the claimant is eligible.
41.15 	(b) The commissioner must deposit repayments under this subdivision in the general 
41.16 	fund.
41.17 	(c) A claimant that receives an advance credit under this section and section 273.1389 
41.18 	must file a claim for a homestead credit refund for the property taxes payable year for which 
41.19 	the advanced credit was received. If the claimant does not submit an application by August 
41.20 	15 of the property taxes payable year for which the claimant received an advance credit, 
41.21 	the commissioner may assess a penalty consistent with the penalty for a late individual 
41.22 	income tax return under section 289A.60, subdivision 1, paragraph (c), and interest as 
41.23 	provided in section 289A.55.

41.24 	EFFECTIVE DATE. This section is effective for advance payment elections after 
41.25 	December 31, 2024, for credits applied to property taxes payable in 2026 and thereafter.

41.26 	Sec. 19. Minnesota Statutes 2022, section 469.1812, is amended by adding a subdivision 
41.27 	to read:
41.28 		Subd. 2a.Land bank organization. "Land bank organization" means an organization 
41.29 	that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited 
41.30 	property for future development, redevelopment, or disposal, and that is either:
41.31 	(1) a nonprofit organization exempt from federal income taxation under section 501(c)(3) 
41.32 	of the Internal Revenue Code whose governing board members are elected or appointed by 
41.33 	the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of 
42.1 	the state of Minnesota or its political subdivisions, or are elected or appointed officials of 
42.2 	the state of Minnesota or any of its political subdivisions; or
42.3 	(2) a limited liability company of which a nonprofit organization described in clause (1) 
42.4 	is the sole member.

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

42.6 	Sec. 20. Minnesota Statutes 2022, section 469.1813, subdivision 1, is amended to read:
42.7 		Subdivision 1.Authority. The governing body of a political subdivision may grant a 
42.8 	current or prospective abatement, by contract or otherwise, of the taxes imposed by the 
42.9 	political subdivision on a parcel of property, which may include personal property and 
42.10 	machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise 
42.11 	would apply, if:
42.12 	(1) it expects the benefits to the political subdivision of the proposed abatement agreement 
42.13 	to at least equal the costs to the political subdivision of the proposed agreement or intends 
42.14 	the abatement to phase in a property tax increase, as provided in clause (2)(vii); and
42.15 	(2) it finds that doing so is in the public interest because it will:
42.16 	(i) increase or preserve tax base;
42.17 	(ii) provide employment opportunities in the political subdivision;
42.18 	(iii) provide or help acquire or construct public facilities;
42.19 	(iv) help redevelop or renew blighted areas;
42.20 	(v) help provide access to services for residents of the political subdivision;
42.21 	(vi) finance or provide public infrastructure;
42.22 	(vii) phase in a property tax increase on the parcel resulting from an increase of 50 
42.23 	percent or more in one year on the estimated market value of the parcel, other than increase 
42.24 	attributable to improvement of the parcel; or
42.25 	(viii) stabilize the tax base through equalization of property tax revenues for a specified 
42.26 	period of time with respect to a taxpayer whose real and personal property is subject to 
42.27 	valuation under Minnesota Rules, chapter 8100;
42.28 	(ix) provide for the development of affordable housing to households at or below 80 
42.29 	percent of area median income as estimated by the United States Department of Housing 
42.30 	and Urban Development for the political subdivision in which the project is located; or
43.1 	(x) allow the property to be held by a land bank organization for future development.

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

43.3 	Sec. 21. Minnesota Statutes 2022, section 469.1813, subdivision 6, is amended to read:
43.4 		Subd. 6.Duration limit. (a) A political subdivision may grant an abatement for a period 
43.5 	no longer than 15 years, except as provided under paragraph paragraphs (b) and (c). The 
43.6 	abatement period commences in the first year in which the abatement granted is either paid 
43.7 	or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify 
43.8 	in the abatement resolution a shorter duration. If the resolution does not specify a period of 
43.9 	time, the abatement is for eight years. If an abatement has been granted to a parcel of property 
43.10 	and the period of the abatement has expired, the political subdivision that granted the 
43.11 	abatement may not grant another abatement for eight years after the expiration of the first 
43.12 	abatement. This prohibition does not apply to improvements added after and not subject to 
43.13 	the first abatement. Economic abatement agreements for real and personal property subject 
43.14 	to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and 
43.15 	may be granted successively.
43.16 	(b) A political subdivision proposing to abate taxes for a parcel may request, in writing, 
43.17 	that the other political subdivisions in which the parcel is located grant an abatement for 
43.18 	the property. If one of the other political subdivisions declines, in writing, to grant an 
43.19 	abatement or if 90 days pass after receipt of the request to grant an abatement without a 
43.20 	written response from one of the political subdivisions, the duration limit for an abatement 
43.21 	for the parcel by the requesting political subdivision and any other participating political 
43.22 	subdivision is increased to 20 years. If the political subdivision which declined to grant an 
43.23 	abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by 
43.24 	one year for each year that the declining political subdivision grants an abatement for the 
43.25 	parcel during the period of the abatement granted by the requesting political subdivision. 
43.26 	The duration limit may not be reduced below the limit under paragraph (a).
43.27 	(c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for 
43.28 	a period no longer than five years. This limit also applies if the resolution does not specify 
43.29 	a period of time.

43.30 	EFFECTIVE DATE. This section is effective for abatement resolutions approved after 
43.31 	the day following final enactment.

44.1 	Sec. 22. Minnesota Statutes 2022, section 469.1813, is amended by adding a subdivision 
44.2 	to read:
44.3 		Subd. 11.Repayment. A land bank organization receiving an abatement under 
44.4 	subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land 
44.5 	for which the abatement was granted is used for a purpose other than the purpose given by 
44.6 	the land bank organization prior to redevelopment. This subdivision applies immediately 
44.7 	after the abatement under this section expires. Land is subject to repayment under this 
44.8 	subdivision for the same number of years that the abatement was granted. Interest under 
44.9 	this section is payable at the rate determined in section 270C.40, subdivision 5.

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

44.11 	Sec. 23. Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 4, is amended 
44.12 	to read:
44.13 		Subd. 4.Use of proceeds. (a) Counties and Tribal governments that receive a distribution 
44.14 	under this section must use the proceeds to fund new or existing family homeless prevention 
44.15 	and assistance projects or programs. These projects or programs may be administered by a 
44.16 	county, a group of contiguous counties jointly acting together, a city, a group of contiguous 
44.17 	cities jointly acting together, a Tribal government, a group of Tribal governments, or a 
44.18 	community-based nonprofit organization. Each project or program must include plans for:
44.19 	(1) targeting families with children who are eligible for a prekindergarten through grade 
44.20 	12 academic program and are:
44.21 	(i) living in overcrowded conditions in their current housing;
44.22 	(ii) paying more than 50 percent of their income for rent; or
44.23 	(iii) lacking a fixed, regular, and adequate nighttime residence;
44.24 	(2) targeting unaccompanied youth in need of an alternative residential setting;
44.25 	(3) connecting families with the social services necessary to maintain the families' 
44.26 	stability in their homes, including but not limited to housing navigation, legal representation, 
44.27 	and family outreach; and
44.28 	(4) one or more of the following:
44.29 	(i) providing rental assistance for a specified period of time which may exceed 24 months; 
44.30 	or
45.1 	(ii) providing support and case management services to improve housing stability, 
45.2 	including but not limited to housing navigation and family outreach.
45.3 	(b) Aid distributions under this section must not be used to cover the costs of removing 
45.4 	from an encampment any individuals living at the encampment or clearing the encampment 
45.5 	site of any personal property used by individuals living at the encampment.
45.6 	(b) (c) Counties may choose not to spend all or a portion of the distribution under this 
45.7 	section. Any unspent funds must be returned to the commissioner of revenue by December 
45.8 	31 of the year following the year that the aid was received. Any funds returned to the 
45.9 	commissioner under this paragraph must be added to the overall distribution of aids certified 
45.10 	under this section in the following year. Any unspent funds returned to the commissioner 
45.11 	after the expiration under subdivision 8 are canceled to the general fund.

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

45.13 	Sec. 24. Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 5, is amended 
45.14 	to read:
45.15 		Subd. 5.Payments. The commissioner of revenue must compute the amount of local 
45.16 	homeless prevention aid payable to each county and Tribal government under this section. 
45.17 	On or before August 1 of each year, the commissioner shall certify the amount to be paid 
45.18 	to each county and Tribal government in the following year. The commissioner shall pay 
45.19 	local homeless prevention aid annually at the times provided in section 477A.015. For aids 
45.20 	payable in 2023 2024 only, the commissioner must recalculate and recertify the aid under 
45.21 	this section by July 15, 2023 2024.

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

45.23 	Sec. 25. Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 6, is amended 
45.24 	to read:
45.25 		Subd. 6.Appropriation. (a) For aid payable in 2024, $22,000,000 is appropriated from 
45.26 	the general fund to the commissioner of revenue to make payments to counties required 
45.27 	under this section. For aid payable in 2025 and thereafter, $17,600,000 is annually 
45.28 	appropriated from the general fund to the commissioner of revenue to make payments to 
45.29 	counties required under this section.
45.30 	(b) For aid payable in 2024, $3,000,000 is appropriated from the general fund to the 
45.31 	commissioner of revenue to make payments to Tribal governments required under this 
45.32 	section. For aid payable in 2025 and thereafter, $2,400,000 is annually appropriated from 
46.1 	the general fund to the commissioner of revenue to make payments to Tribal governments 
46.2 	required under this section.

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

46.4 	Sec. 26. Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 7, is amended 
46.5 	to read:
46.6 		Subd. 7.Report. (a) No later than January 15, 2025, the commissioner of revenue must 
46.7 	produce a report on projects and programs funded by counties and Tribal governments under 
46.8 	this section. The report must include a list of the projects and programs, the number of 
46.9 	people served by each, and an assessment of how each project and program impacts people 
46.10 	who are currently experiencing homelessness or who are at risk of experiencing 
46.11 	homelessness, as reported by the counties and Tribal governments to the commissioner by 
46.12 	December 31 each year on a form prescribed by the commissioner. The commissioner must 
46.13 	provide a copy of the report to the chairs and ranking minority members of the legislative 
46.14 	committees with jurisdiction over property taxes and services for persons experiencing 
46.15 	homelessness.
46.16 	(b) The report in paragraph (a) must be updated every two years in 2027 and 2029 and 
46.17 	the commissioner of revenue must provide copies of the updated reports to the chairs and 
46.18 	ranking minority members of the legislative committees with jurisdiction over property 
46.19 	taxes and services for persons experiencing homelessness by January 15 of the year the 
46.20 	report is due. Report requirements under this subdivision expire following the report which 
46.21 	includes the final distribution preceding the expiration in subdivision 8 in 2028.

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

46.23 	Sec. 27. 2023 AID PENALTY FORGIVENESS; CITY OF STEWART.
 46.24 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Stewart 
46.25 	must receive its aid payment for calendar year 2023 under Minnesota Statutes, section 
46.26 	477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, 
46.27 	provided that the state auditor certifies to the commissioner of revenue that it received the 
46.28 	annual financial reporting form for 2022 from the city by June 1, 2024. The commissioner 
46.29 	of revenue must make a payment of $87,501.50 to the city by June 30, 2024.

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

47.1 	Sec. 28. PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
 47.2 	(a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b), 
47.3 	and any other law to the contrary, property located in the city of Minneapolis acquired by 
47.4 	Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021 
47.5 	is exempt from property taxes payable in 2022 and the portion of property taxes payable in 
47.6 	2021 due after the property was acquired. An amount necessary to make a payment to the 
47.7 	county for the property taxes that would be payable but for the exemption is appropriated 
47.8 	from the general fund to the commissioner of revenue in fiscal year 2025. All prior year 
47.9 	penalties, interest, and costs are canceled.
47.10 	(b) By August 1, 2024, the auditor of the county in which the property is located must 
47.11 	certify to the commissioner of revenue the amount to be paid by the commissioner of revenue 
47.12 	to the county under paragraph (a). The commissioner of revenue must make this payment 
47.13 	by August 15, 2024.

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

47.15 	Sec. 29. APPROPRIATION; ADMINISTRATION OF ADVANCE HOMESTEAD 
47.16 	CREDIT FOR SENIORS.
 47.17 	$158,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
47.18 	of revenue to administer the advance homestead credit for seniors in Minnesota Statutes, 
47.19 	sections 273.1389 and 290A.071. The base for this appropriation is $118,000 in fiscal year 
47.20 	2026 and $116,000 in fiscal year 2027.

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

47.22 	Sec. 30. REPEALER.
 47.23 	Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 8, is repealed.

47.24 	ARTICLE 3
47.25 	MINERALS TAXES

47.26 	Section 1. Minnesota Statutes 2022, section 123B.53, subdivision 1, is amended to read:
47.27 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
47.28 	revenue of a district is defined as follows:
47.29 	(1) the amount needed to produce between five and six percent in excess of the amount 
47.30 	needed to meet when due the principal and interest payments on the obligations of the district 
48.1 	for eligible projects according to subdivision 2, excluding the amounts listed in paragraph 
48.2 	(b), minus
48.3 	(2) the amount of debt service excess levy reduction for that school year calculated 
48.4 	according to the procedure established by the commissioner.
48.5 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
48.6 	(1) obligations under section 123B.61;
48.7 	(2) the part of debt service principal and interest paid from the taconite environmental 
48.8 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
48.9 	taconite payments from the Iron Range school consolidation and cooperatively operated 
48.10 	school and community development account under section 298.28, subdivision 7a;
48.11 	(3) obligations for long-term facilities maintenance under section 123B.595;
48.12 	(4) obligations under section 123B.62; and
48.13 	(5) obligations equalized under section 123B.535.
48.14 	(c) For purposes of this section, if a preexisting school district reorganized under sections 
48.15 	123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the 
48.16 	preexisting district's bonded indebtedness or capital loans, debt service equalization aid 
48.17 	must be computed separately for each of the preexisting districts.
48.18 	(d) For purposes of this section, the adjusted net tax capacity determined according to 
48.19 	sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
48.20 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

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

48.22 	Sec. 2. Minnesota Statutes 2022, section 273.135, subdivision 2, is amended to read:
48.23 		Subd. 2.Reduction amount. The amount of the reduction authorized by subdivision 1 
48.24 	shall be:
48.25 	(a) In the case of property located within a municipality as defined under section 273.134, 
48.26 	paragraph (a), 66 percent of the tax, provided that the reduction shall not exceed the 
48.27 	maximum amounts specified in paragraph (c).
48.28 	(b) In the case of property located within the boundaries of a school district which 
48.29 	qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the 
48.30 	boundaries of a municipality which meets the qualifications prescribed in section 273.134, 
49.1 	paragraph (a), 57 percent of the tax, provided that the reduction shall not exceed the 
49.2 	maximum amounts specified in paragraph (c).
49.3 	(c) The maximum reduction of the tax is $315.10 $515 on property described in paragraph 
49.4 	(a) and $289.80 on property described in paragraph (b).

49.5 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
49.6 	in 2025.

49.7 	Sec. 3. Minnesota Statutes 2022, section 275.065, is amended by adding a subdivision to 
49.8 	read:
49.9 		Subd. 3c.Notice of proposed taxes; property subject to chapter 276A. In the case of 
49.10 	property subject to the areawide tax under section 276A.06, subdivision 7, for both the 
49.11 	current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes 
49.12 	shown for each taxing jurisdiction must be based on the property's total net tax capacity 
49.13 	multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to 
49.14 	the tax amounts shown for each jurisdiction, the statement must include a line showing the 
49.15 	"fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax 
49.16 	amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may 
49.17 	be a negative number. If the fiscal disparities adjustment for either the current year taxes 
49.18 	or the proposed tax amount is a negative number, the percentage change must not be shown. 
49.19 	In all other respects the statement must fulfill the requirements of subdivision 3.

49.20 	EFFECTIVE DATE. This section is effective beginning with proposed notices for 
49.21 	property taxes payable in 2025.

49.22 	Sec. 4. Minnesota Statutes 2022, section 276.04, is amended by adding a subdivision to 
49.23 	read:
49.24 		Subd. 2a.Contents of tax statements; property subject to chapter 276A. In the case 
49.25 	of property subject to the areawide tax under section 276A.06, subdivision 7, for both the 
49.26 	current year taxes and the previous year tax amounts, the net tax capacity portion of the tax 
49.27 	shown for each taxing jurisdiction must be based on the property's total net tax capacity 
49.28 	multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown 
49.29 	for each jurisdiction, the statement must include a line showing the "fiscal disparities 
49.30 	adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown 
49.31 	for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may 
49.32 	be a negative number. In all other respects the statement must fulfill the requirements of 
49.33 	subdivision 2.

50.1 	EFFECTIVE DATE. This section is effective beginning with proposed notices for 
50.2 	property taxes payable in 2025.

50.3 	Sec. 5. Minnesota Statutes 2022, section 276A.01, subdivision 17, is amended to read:
50.4 		Subd. 17.School fund allocation. (a) "School fund allocation" means an amount up to 
50.5 	25 percent of the areawide levy certified by the commissioner of Iron Range resources and 
50.6 	rehabilitation, after consultation with the Iron Range Resources and Rehabilitation Board, 
50.7 	to be used for the purposes of the Iron Range school consolidation and cooperatively operated 
50.8 	school and community development account under section 298.28, subdivision 7a.
50.9 	(b) The allocation under paragraph (a) shall only be made after the commissioner of 
50.10 	Iron Range resources and rehabilitation, after consultation with the Iron Range Resources 
50.11 	and Rehabilitation Board, has certified by June 30 that the Iron Range school consolidation 
50.12 	and cooperatively operated and community development account has insufficient funds to 
50.13 	make payments as authorized under section 298.28, subdivision 7a.

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

50.15 	Sec. 6. Minnesota Statutes 2022, section 276A.06, subdivision 8, is amended to read:
50.16 		Subd. 8.Certification of values; payment. The administrative auditor shall determine 
50.17 	for each county the difference between the total levy on distribution value pursuant to 
50.18 	subdivision 3, clause (1), including the school fund allocation within the county and the 
50.19 	total tax on contribution value pursuant to subdivision 7, within the county. On or before 
50.20 	May 16 of each year, the administrative auditor shall certify the differences so determined 
50.21 	and the county's portion of the school fund allocation to each county auditor. In addition, 
50.22 	the administrative auditor shall certify to those county auditors for whose county the total 
50.23 	tax on contribution value exceeds the total levy on distribution value the settlement the 
50.24 	county is to make to the other counties of the excess of the total tax on contribution value 
50.25 	over the total levy on distribution value in the county. On or before June 15 and November 
50.26 	15 of each year, each county treasurer in a county having a total tax on contribution value 
50.27 	in excess of the total levy on distribution value shall pay one-half of the excess to the other 
50.28 	counties in accordance with the administrative auditor's certification. On or before June 15 
50.29 	and November 15 of each year, each county treasurer shall pay to the administrative auditor 
50.30 	that county's share of the school fund allocation. On or before December 1 of each year, 
50.31 	the administrative auditor shall pay the school fund allocation to the commissioner of Iron 
50.32 	Range resources and rehabilitation for deposit in the Iron Range school consolidation and 
50.33 	cooperatively operated and community development account.

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

51.2 	Sec. 7. Minnesota Statutes 2023 Supplement, section 298.018, subdivision 1, is amended 
51.3 	to read:
51.4 		Subdivision 1.Within taconite assistance area. (a) The proceeds of the tax paid under 
51.5 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
51.6 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
51.7 	(1) except as provided under paragraph (b), five percent to the city or town within which 
51.8 	the minerals or energy resources are mined or extracted, or within which the concentrate 
51.9 	was produced. If the mining and concentration, or different steps in either process, are 
51.10 	carried on in more than one taxing district, the commissioner shall apportion equitably the 
51.11 	proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to 
51.12 	the operation of mining or extraction, and the remainder to the concentrating plant and to 
51.13 	the processes of concentration, and with respect to each thereof giving due consideration 
51.14 	to the relative extent of the respective operations performed in each taxing district;
51.15 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
51.16 	section 298.282, subdivisions 1 and 2, on the dates provided under this section;
51.17 	(3) ten percent to the school district within which the minerals or energy resources are 
51.18 	mined or extracted, or within which the concentrate was produced. If the mining and 
51.19 	concentration, or different steps in either process, are carried on in more than one school 
51.20 	district, distribution among the school districts must be based on the apportionment formula 
51.21 	prescribed in clause (1);
51.22 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
51.23 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
51.24 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
51.25 	district indexes as follows: for each school district, its pupil units determined under section 
51.26 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
51.27 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
51.28 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
51.29 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
51.30 	portion of the distribution which its index bears to the sum of the indices for all school 
51.31 	districts that receive the distributions;
51.32 	(5) ten percent to the county within which the minerals or energy resources are mined 
51.33 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
52.1 	or different steps in either process, are carried on in more than one county, distribution 
52.2 	among the counties must be based on the apportionment formula prescribed in clause (1), 
52.3 	provided that any county receiving distributions under this clause shall pay one percent of 
52.4 	its proceeds to the Range Association of Municipalities and Schools;
52.5 	(6) five percent to St. Louis County acting as the counties' fiscal agent to be distributed 
52.6 	as provided in sections 273.134 to 273.136;
52.7 	(7) 20 percent to the commissioner of Iron Range resources and rehabilitation for the 
52.8 	purposes of section 298.22;
52.9 	(8) three percent to the Douglas J. Johnson economic protection trust fund;
52.10 	(9) seven percent to the taconite environmental protection fund; and
52.11 	(10) ten percent to the commissioner of Iron Range resources and rehabilitation for 
52.12 	capital improvements to Giants Ridge Recreation Area.
52.13 	(b) If the materials or energy resources are mined, extracted, or concentrated in School 
52.14 	District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead 
52.15 	be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes 
52.16 	must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township 
52.17 	must each receive ten percent of the amount.
52.18 	(c) For the first five years that tax paid under section 298.015, subdivisions 1 and 2, is 
52.19 	distributed under this subdivision, ten percent of the total proceeds distributed in each year 
52.20 	must first be distributed pursuant to this paragraph. The remaining 90 percent of the total 
52.21 	proceeds distributed in each of those years must be distributed as outlined in paragraph (a). 
52.22 	Of the amount available under this paragraph, the cities of Aurora, Babbitt, Ely, and Hoyt 
52.23 	Lakes must each receive 20 percent. Of the amount available under this paragraph, the city 
52.24 	of Biwabik and Embarrass Township must each receive ten percent. This paragraph applies 
52.25 	only to tax paid by a person engaged in the business of mining within the area described in 
52.26 	section 273.1341, clauses (1) and (2).

52.27 	EFFECTIVE DATE. This section is effective beginning with the 2025 distribution.

52.28 	Sec. 8. Minnesota Statutes 2022, section 298.17, is amended to read:
52.29 	298.17 OCCUPATION TAXES TO BE APPORTIONED.
52.30 	(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 
52.31 	companies, corporations, and associations, however or for whatever purpose organized, 
52.32 	engaged in the business of mining or producing iron ore or other ores, when collected shall 
53.1 	be apportioned and distributed in accordance with the Constitution of the state of Minnesota, 
53.2 	article X, section 3, in the manner following: 90 percent shall be deposited in the state 
53.3 	treasury and credited to the general fund of which four-ninths shall be used for the support 
53.4 	of elementary and secondary schools; and ten percent of the proceeds of the tax imposed 
53.5 	by this section shall be deposited in the state treasury and credited to the general fund for 
53.6 	the general support of the university.
53.7 	(b) Of the money apportioned to the general fund by this section: (1) there is annually 
53.8 	appropriated and credited to the mining environmental and regulatory account in the special 
53.9 	revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax 
53.10 	imposed by section 298.24 on each taxable ton produced in the preceding calendar year. 
53.11 	Money in the mining environmental and regulatory account is appropriated annually to the 
53.12 	commissioner of natural resources to fund agency staff to work on environmental issues 
53.13 	and provide regulatory services for ferrous and nonferrous mining operations in this state. 
53.14 	Payment to the mining environmental and regulatory account shall be made by July 1 
53.15 	annually. The commissioner of natural resources shall execute an interagency agreement 
53.16 	with the Pollution Control Agency to assist with the provision of environmental regulatory 
53.17 	services such as monitoring and permitting required for ferrous and nonferrous mining 
53.18 	operations; (2) there is annually appropriated and credited to the Iron Range resources and 
53.19 	rehabilitation account in the special revenue fund an amount equal to that which would have 
53.20 	been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced 
53.21 	in the preceding calendar year, to be expended for the purposes of section 298.22; and (3) 
53.22 	there is annually appropriated and credited to the Iron Range resources and rehabilitation 
53.23 	account in the special revenue fund for transfer to the Iron Range school consolidation and 
53.24 	cooperatively operated school and community development account under section 298.28, 
53.25 	subdivision 7a, an amount equal to that which would have been generated by a six cent tax 
53.26 	imposed by section 298.24 on each taxable ton produced in the preceding calendar year. 
53.27 	Payment to the Iron Range resources and rehabilitation account shall be made by May 15 
53.28 	annually.
53.29 	(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to 
53.30 	provide environmental development grants to local governments located within any county 
53.31 	in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 
53.32 	which does not contain a municipality qualifying pursuant to section 273.134, paragraph 
53.33 	(b), or (ii) to provide economic development loans or grants to businesses located within 
53.34 	any such county, provided that the county board or an advisory group appointed by the 
53.35 	county board to provide recommendations on economic development shall make 
54.1 	recommendations to the commissioner of Iron Range resources and rehabilitation regarding 
54.2 	the loans. Payment to the Iron Range resources and rehabilitation account shall be made by 
54.3 	May 15 annually.
54.4 	(d) Of the money allocated to Koochiching County, one-third must be paid to the 
54.5 	Koochiching County Economic Development Commission.

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

54.7 	Sec. 9. Minnesota Statutes 2023 Supplement, section 298.28, subdivision 7a, is amended 
54.8 	to read:
54.9 		Subd. 7a.Iron Range school consolidation and cooperatively operated school and 
54.10 	community development account. (a) The following amounts must be allocated to the 
54.11 	commissioner of Iron Range resources and rehabilitation to be deposited in the Iron Range 
54.12 	school consolidation and cooperatively operated school and community development account 
54.13 	that is hereby created:
54.14 	(1) for distributions beginning in 2015, ten cents per taxable ton of the tax imposed under 
54.15 	section 298.24;
54.16 	(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
54.17 	(3) any other amount as provided by law.
54.18 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
54.19 	and shall be made only to provide disbursements to assist school districts with the payment 
54.20 	of bonds that were issued for qualified school projects, or for any other school disbursement 
54.21 	as approved by the commissioner of Iron Range resources and rehabilitation after consultation 
54.22 	with the Iron Range Resources and Rehabilitation Board. For purposes of this section, 
54.23 	"qualified school projects" means school projects within the taconite assistance area as 
54.24 	defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; 
54.25 	and (2) approved by the commissioner of education pursuant to section 123B.71.
54.26 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
54.27 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
54.28 	any reduction in debt service equalization aid that the school district qualifies for in that 
54.29 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
54.30 	qualified for in fiscal year 2018.
55.1 	(d) No expenditure under this section shall be made unless approved by the commissioner 
55.2 	of Iron Range resources and rehabilitation after consultation with the Iron Range Resources 
55.3 	and Rehabilitation Board.

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

55.5 	Sec. 10. Minnesota Statutes 2022, section 298.28, subdivision 8, is amended to read:
55.6 		Subd. 8.Range Association of Municipalities and Schools. .30 0.50 cent per taxable 
55.7 	ton shall be paid to the Range Association of Municipalities and Schools, for the purpose 
55.8 	of providing an areawide approach to problems which demand coordinated and cooperative 
55.9 	actions and which are common to those areas of northeast Minnesota affected by operations 
55.10 	involved in mining iron ore and taconite and producing concentrate therefrom, and for the 
55.11 	purpose of promoting the general welfare and economic development of the cities, towns, 
55.12 	and school districts within the Iron Range area of northeast Minnesota.

55.13 	EFFECTIVE DATE. This section is effective beginning with the 2024 distribution.

55.14 	Sec. 11. Minnesota Statutes 2023 Supplement, section 298.28, subdivision 16, is amended 
55.15 	to read:
55.16 		Subd. 16.Transfer. Of the amount annually distributed to the Douglas J. Johnson 
55.17 	Economic Protection Trust Fund under this section, $3,500,000 the following amounts shall 
55.18 	be transferred to the Iron Range school consolidation and cooperatively operated school
55.19 	and community development account under subdivision 7a. For distributions in 2024, 
55.20 	$6,250,000 must be transferred. For distributions in 2025 through 2029, $6,500,000 must 
55.21 	be transferred. For distributions in 2030 through 2034, $5,500,000 must be transferred. For 
55.22 	distributions in 2035 and 2036, $5,000,000 must be transferred. For distributions in 2037 
55.23 	and thereafter, $3,500,000 must be transferred. Any remaining amount of the amount 
55.24 	annually distributed to the Douglas J. Johnson Economic Protection Trust Fund shall be 
55.25 	transferred to the Iron Range resources and rehabilitation account under subdivision 7. The 
55.26 	transfers under this subdivision must be made within ten days of the August payment.

55.27 	EFFECTIVE DATE. This section is effective beginning with the 2024 distribution.

55.28 	Sec. 12. Minnesota Statutes 2022, section 298.282, subdivision 1, is amended to read:
55.29 		Subdivision 1.Distribution of taconite municipal aid account. (a) The amount 
55.30 	deposited with the county as provided in section 298.28, subdivision 3, must be distributed 
55.31 	as provided by this section among: (1) the municipalities located within a taconite assistance 
55.32 	area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2) 
56.1 	a township that contains a state park consisting primarily of an underground iron ore mine; 
56.2 	(3) a city located within five miles of that state park; and (4) Breitung Township in St. Louis 
56.3 	County, each being referred to in this section as a qualifying municipality. The distribution 
56.4 	to Breitung Township under this subdivision shall be $15,000 $25,000 annually.
56.5 	(b) The amount deposited in the state general fund as provided in section 298.018, 
56.6 	subdivision 1, must be distributed in the same manner as provided under paragraph (a), 
56.7 	except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the 
56.8 	dates provided under section 298.018, subdivision 1a.

56.9 	EFFECTIVE DATE. This section is effective beginning with the 2024 distribution.

56.10 	Sec. 13. Minnesota Statutes 2022, section 298.292, subdivision 2, is amended to read:
56.11 		Subd. 2.Use of money. (a) Money in the Douglas J. Johnson economic protection trust 
56.12 	fund may be used for the following purposes:
56.13 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 
56.14 	with private sources of financing, but a loan to a private enterprise shall be for a principal 
56.15 	amount not to exceed one-half of the cost of the project for which financing is sought, and 
56.16 	the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 
56.17 	percent or an interest rate three percentage points less than a full faith and credit obligation 
56.18 	of the United States government of comparable maturity, at the time that the loan is approved;
56.19 	(2) to fund reserve accounts established to secure the payment when due of the principal 
56.20 	of and interest on bonds issued pursuant to section 298.2211, including bonds authorized 
56.21 	by the legislature to be repaid from the distributions under section 298.28, subdivision 7a;
56.22 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 
56.23 	bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 
56.24 	retrofitting heating facilities in connection with district heating systems or systems utilizing 
56.25 	alternative energy sources;
56.26 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
56.27 	entities that are engaging in, or that will engage in, projects or programs that have the 
56.28 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
56.29 	or enterprise unless at least two other unrelated investors make investments of at least 
56.30 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 
56.31 	Johnson economic protection trust fund may not exceed the amount of the largest investment 
56.32 	by an unrelated investor in the venture capital fund or enterprise. For purposes of this 
56.33 	subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 
57.1 	which the investment is made or to any individual who owns more than 40 percent of the 
57.2 	value of the entity, in any of the following relationships: spouse, parent, child, sibling, 
57.3 	employee, or owner of an interest in the entity that exceeds ten percent of the value of all 
57.4 	interests in it. For purposes of determining the limitations under this clause, the amount of 
57.5 	investments made by an investor other than the Douglas J. Johnson economic protection 
57.6 	trust fund is the sum of all investments made in the venture capital fund or enterprise during 
57.7 	the period beginning one year before the date of the investment by the Douglas J. Johnson 
57.8 	economic protection trust fund; and
57.9 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 
57.10 	be held and managed as a public trust for the benefit of the area for the purposes authorized 
57.11 	in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 
57.12 	commissioner, after consultation with the advisory board. The net proceeds must be deposited 
57.13 	in the trust fund for the purposes and uses of this section.
57.14 	(b) Money from the trust fund shall be expended only in or for the benefit of the taconite 
57.15 	assistance area defined in section 273.1341.
57.16 	(c) Money devoted to the trust fund under this section shall not be expended, appropriated, 
57.17 	or transferred from the trust fund for any purpose except as provided in this section.

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

57.19 	Sec. 14. IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER; 
57.20 	BONDS AUTHORIZED IN 2024.
 57.21 		Subdivision 1.Issuance; purpose. (a) Notwithstanding any provision of Minnesota 
57.22 	Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and 
57.23 	rehabilitation shall, by March 31, 2025, issue revenue bonds in a principal amount of up to 
57.24 	$49,000,000 plus an amount sufficient to pay costs of issuance in one or more series, and 
57.25 	thereafter may issue bonds to refund those bonds. The proceeds of the bonds must be used 
57.26 	to pay the costs of issuance and to make distributions pursuant this section. The commissioner 
57.27 	of Iron Range resources and rehabilitation must distribute these transferred funds as outlined 
57.28 	in this section. In order to receive a distribution, a recipient must submit to the commissioner 
57.29 	a plan of how the distribution will be spent and the commissioner must ensure that the plan 
57.30 	matches the intended use outlined in this section. The plan must be submitted in a form and 
57.31 	manner determined by the commissioner. The uses listed are not subject to review or 
57.32 	recommendation by the Iron Range Resources and Rehabilitation Board. By December 31, 
57.33 	2025, each recipient must report to the commissioner how the distribution received under 
57.34 	this section was spent. If a recipient's plan is submitted and approved, the commissioner 
58.1 	must distribute the funds for the uses outlined in subdivision 3. The bonds issued under this 
58.2 	section do not constitute public debt as that term is defined in article XI, section 4, of the 
58.3 	Minnesota Constitution, and as such are not subject to its provisions.
58.4 	(b) Funds under this section are available for four years from the date the bonds are 
58.5 	issued. Any unexpended funds after that date cancel to the taconite environmental fund 
58.6 	under Minnesota Statutes, section 298.28, subdivision 9b.
58.7 		Subd. 2.Appropriation. (a) Notwithstanding any restrictions on expenditures from the 
58.8 	account, there is annually appropriated from the distribution of the taconite production tax 
58.9 	revenues under Minnesota Statutes, section 298.28, subdivision 7a, an amount sufficient to 
58.10 	pay when due the principal and interest on the bonds issued pursuant to subdivision 1. 
58.11 	Payments must be made from the account annually after the distribution of the production 
58.12 	tax revenues has been made.
58.13 	(b) If in any year the amount available under paragraph (a) is insufficient to pay principal 
58.14 	and interest due on the bonds in that year, an additional amount is appropriated from the 
58.15 	Douglas J. Johnson economic protection trust fund to make up the deficiency.
58.16 	(c) The appropriation under this subdivision terminates upon payment or maturity of 
58.17 	the last of the bonds issued under this section.
58.18 		Subd. 3.Grants. (a) The commissioner of Iron Range resources and rehabilitation must 
58.19 	distribute funds available for distribution under subdivision 1 for the following uses:
58.20 	(1) $160,000 to the Grand Portage Band of Lake Superior Chippewa to construct a 
58.21 	playground;
58.22 	(2) $3,600,000 to the Mesabi Fit Coalition for the renovation, reconstruction, and 
58.23 	expansion of the former Mesabi Family YMCA in the city of Mountain Iron;
58.24 	(3) $950,000 to the Buyck Volunteer Fire Department for design, engineering, and 
58.25 	construction of a new fire and training hall and related equipment;
58.26 	(4) $750,000 to the Voyageur Trail Society for a joint maintenance facility with Voyageur 
58.27 	Country ATV in the city of Orr;
58.28 	(5) $2,250,000 to Cook County, of which $250,000 must be spent to preserve affordable 
58.29 	housing units for seniors in the city of Grand Marais and $2,000,000 must be used to 
58.30 	construct, furnish, and equip a solid waste transfer station in the county;
58.31 	(6) $1,000,000 to the Northland Learning Center for construction costs;
59.1 	(7) $2,720,000 to the city of Chisholm, of which $520,000 must be used for the renovation 
59.2 	of the Chisholm Ice Arena facility and parking and the remaining amount must be used for 
59.3 	the public works facility;
59.4 	(8) $1,000,000 to the city of Gilbert for the Gilbert Community Center;
59.5 	(9) $360,000 to the city of Biwabik for housing and infrastructure;
59.6 	(10) $3,000,000 to the city of Tower for water management infrastructure projects;
59.7 	(11) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct 
59.8 	publicly owned infrastructure including sewers, water systems, utility extensions, street 
59.9 	construction, wastewater treatment, stormwater management systems, sidewalks, and 
59.10 	compliance with the Americans with Disabilities Act;
59.11 	(12) $2,100,000 to St. Louis County for the development of the Canyon Integrated Solid 
59.12 	Waste Management Campus;
59.13 	(13) $3,640,000 to the city of Eveleth to design, engineer, and construct public utilities 
59.14 	in its business park and construction of the Hat Trick Avenue slip ramp;
59.15 	(14) $700,000 to the city of Meadowlands for costs related to park improvements and 
59.16 	a community center;
59.17 	(15) $600,000 to School District No. 2142, St. Louis County, of which $400,000 must 
59.18 	be used for septic system upgrades at South Ridge School and $200,000 must be used for 
59.19 	cafeteria renovations at Northeast Range School in Babbitt and Tower Elementary School 
59.20 	in Tower;
59.21 	(16) $250,000 to the city of Two Harbors for band stand repairs and Odegard Park and 
59.22 	Trail restoration;
59.23 	(17) $850,000 to the Central Iron Range Sanitary Sewer District for infrastructure 
59.24 	projects;
59.25 	(18) $5,070,000 to the Minnesota Discovery Center to design, construct, renovate, 
59.26 	furnish, and repair facilities, including HVAC upgrades, demolition, and compliance with 
59.27 	the Americans with Disabilities Act, at the Minnesota Discovery Center in the city of 
59.28 	Chisholm, and for historical research funding;
59.29 	(19) $5,200,000 to the commissioner of Iron Range resources and rehabilitation for the 
59.30 	design, engineering, and upgrades or replacement of chair lifts and for the design, 
59.31 	engineering, demolition, and construction of a nordic and welcome center at the Giants 
59.32 	Ridge Recreation Area;
60.1 	(20) $250,000 to Independent School District No. 696, Ely, for baseball field renovation;
60.2 	(21) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
60.3 	(22) $200,000 to Cook County Higher Education Board for costs to bring commercial 
60.4 	drivers' licenses and trades training to the region along with educational training and academic 
60.5 	support to remote populations;
60.6 	(23) $200,000 to Save Our Ship, Inc., for construction costs at Knife River;
60.7 	(24) $3,000,000 to Hibbing Public Utilities for water infrastructure projects;
60.8 	(25) $400,000 to Veterans On The Lake for demolition of existing structures and the 
60.9 	building of a triplex that is compliant with the Americans with Disabilities Act;
60.10 	(26) $350,000 to the city of Eveleth for the Hippodrome renovation;
60.11 	(27) $500,000 to the Great Expectations School Foundation in Cook County for school 
60.12 	facilities construction;
60.13 	(28) $225,000 to the Minnesota Forest Zone Trappers Association to plan, engineer, 
60.14 	purchase land, and develop the Sportsperson Training and Development Center;
60.15 	(29) $200,000 to the Sturgeon Chain Lake Association to update the engineering and 
60.16 	hydrology study of the lakes, for regulatory and community outreach, and for preparing 
60.17 	recommendations to the commissioner of natural resources related to bank stabilization and 
60.18 	maintenance;
60.19 	(30) $300,000 to the Northern Lights Music Festival to support programs, of this amount 
60.20 	$100,000 is available each year in calendar years 2025, 2026, and 2027;
60.21 	(31) $250,000 to Cherry Township for recreational facilities upgrades and lights;
60.22 	(32) $350,000 to the East Range Developmental Achievement Center for building 
60.23 	renovations;
60.24 	(33) $500,000 to the Northland Foundation for grants or loans to (i) businesses or resorts 
60.25 	that were economically damaged by floods that occurred in 2022 or 2023 and which are 
60.26 	eligible under article 5 of the Canadian border counties economic relief program, or (ii) 
60.27 	outfitters in the border region who experienced either more than a 50 percent reduction in 
60.28 	Boundary Waters Canoe Area Wilderness permits obtained by their customers between 
60.29 	2019 and 2021, or a 50 percent reduction between 2019 and 2021 in trips across the fee-based 
60.30 	mechanical portages into the Boundary Waters Canoe Area Wilderness or Quetico Provincial 
60.31 	Park. Businesses may be awarded a maximum grant under this clause of up to $50,000, 
60.32 	must be located within the taconite assistance area, as defined under Minnesota Statutes, 
61.1 	section 273.1341, and must not have received a grant under the Canadian border counties 
61.2 	economic relief program. The Northland Foundation may retain up to four percent of the 
61.3 	amount under this clause for administration;
61.4 	(34) $3,300,000 to the city of Virginia for a grant to be used for: (i) modernization, 
61.5 	renovation, and expansion of the Virginia Hospital emergency room complex to 12 
61.6 	emergency rooms; (ii) construction of an emergency behavior health suite for adults and 
61.7 	children; and (iii) security and safety upgrades. The grant must be transferred by the city 
61.8 	within 30 days of receipt;
61.9 	(35) $100,000 to Crystal Bay Township for a septic project at the Clair Nelson 
61.10 	Community Center;
61.11 	(36) $25,000 to the Northwoods Friends of the Arts in the city of Cook for facility 
61.12 	upgrades and programs;
61.13 	(37) $50,000 to the Bois Forte Band of Chippewa for food shelf expenses;
61.14 	(38) $100,000 to the Lake Vermilion Cultural Center to improve and renovate the facility 
61.15 	and its displays in Tower;
61.16 	(39) $50,000 to the Lyric Center for the Arts in Virginia for repairs and renovation;
61.17 	(40) $50,000 to the Pioneer Mine historical site for maintenance and displays in Ely;
61.18 	(41) $150,000 to the Lake Superior School District to support an emergency preparedness 
61.19 	career introduction program;
61.20 	(42) $50,000 to the Essentia Health Virginia Regional Foundation for the development 
61.21 	of a substance use disorder community education and awareness program;
61.22 	(43) $200,000 to the city of Babbitt for ADA compliance and renovations to the city's 
61.23 	parks; and
61.24 	(44) $500,000 for grants of $25,000 distributed pursuant to paragraph (b).
61.25 	(b) Of the amount under paragraph (a), clause (44), grants of $25,000 to be used for trail 
61.26 	grooming costs or equipment must be made available to the following entities:
61.27 	(1) Alborn Dirt Devils ATV Club;
61.28 	(2) Wild Country ATV Club;
61.29 	(3) Ely Igloo Snowmobile Club;
61.30 	(4) CC Riders Snowmobile Club;
62.1 	(5) PathBlazers Snowmobile Club;
62.2 	(6) Cook Timberwolves Snowmobile Club;
62.3 	(7) Crane Lake Voyageurs Club;
62.4 	(8) Pequaywan Area Trail Blazers Snowmobile Club;
62.5 	(9) Eveleth Trail Hawks Snowmobile Club;
62.6 	(10) Ranger Snowmobile/ATV Club;
62.7 	(11) Silver Trail Riders Snowmobile and ATV Club;
62.8 	(12) Voyageur Snowmobile Club;
62.9 	(13) Mesabi Sno Voyageurs;
62.10 	(14) Quad Cities ATV Club;
62.11 	(15) Prospector ATV Club;
62.12 	(16) Northern Traxx ATV Club;
62.13 	(17) Finland Snowmobile and ATV Club;
62.14 	(18) Babbitt ATV and Snowmobile Club;
62.15 	(19) Cook County ATV Club; and
62.16 	(20) Vermilion Penguins Snowmobile Club.

62.17 	EFFECTIVE DATE. This section is effective the day following final enactment and 
62.18 	applies beginning with the 2024 distribution under Minnesota Statutes, section 298.28.

62.19 	Sec. 15. IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER; 
62.20 	BONDS AUTHORIZED IN 2025.
 62.21 		Subdivision 1.Issuance; purpose. (a) Notwithstanding any provision of Minnesota 
62.22 	Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and 
62.23 	rehabilitation shall, in 2025, issue revenue bonds in a principal amount of up to $31,000,000 
62.24 	plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may 
62.25 	issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs 
62.26 	of issuance and to make distributions pursuant to this section. The commissioner of Iron 
62.27 	Range resources and rehabilitation must distribute these transferred funds as outlined in 
62.28 	this section. In order to receive a distribution, a recipient must submit to the commissioner 
62.29 	a plan of how the distribution will be spent and the commissioner must ensure that the plan 
62.30 	matches the intended use outlined in this section. The plan must be submitted in a form and 
63.1 	manner determined by the commissioner. The uses listed are not subject to review or 
63.2 	recommendation by the Iron Range Resources and Rehabilitation Board. By December 31, 
63.3 	2026, each recipient must report to the commissioner how the distribution received under 
63.4 	this section was spent. If a recipient's plan is submitted and approved, the commissioner 
63.5 	must distribute the funds for the uses outlined in subdivision 3. The bonds issued under this 
63.6 	section do not constitute public debt as that term is defined in article XI, section 4, of the 
63.7 	Minnesota Constitution, and as such are not subject to its provisions.
63.8 	(b) Funds under this section are available for four years from the date the bonds are 
63.9 	issued. Any unexpended funds after that date cancel to the taconite environmental fund 
63.10 	under Minnesota Statutes, section 298.28, subdivision 9b.
63.11 		Subd. 2.Appropriation. (a) Notwithstanding any restrictions on expenditures from the 
63.12 	account, there is annually appropriated from the distribution of the taconite production tax 
63.13 	revenues under Minnesota Statutes, section 298.28, subdivision 7a, an amount sufficient to 
63.14 	pay when due the principal and interest on the bonds issued pursuant to subdivision 1. 
63.15 	Payments must be made from the account annually after the distribution of the production 
63.16 	tax revenues has been made.
63.17 	(b) If in any year the amount available under paragraph (a) is insufficient to pay principal 
63.18 	and interest due on the bonds in that year, an additional amount is appropriated from the 
63.19 	Douglas J. Johnson economic protection trust fund to make up the deficiency.
63.20 	(c) The appropriation under this subdivision terminates upon payment or maturity of 
63.21 	the last of the bonds issued under this section.
63.22 		Subd. 3.Grants. The commissioner of Iron Range resources and rehabilitation must 
63.23 	distribute funds available for distribution under subdivision 1 for the following uses:
63.24 	(1) $5,000,000 to the Minnesota Discovery Center to design, construct, renovate, furnish, 
63.25 	and repair facilities, including HVAC upgrades, demolition, and compliance with the 
63.26 	Americans with Disabilities Act, at the Minnesota Discovery Center in the city of Chisholm, 
63.27 	and for historical research funding;
63.28 	(2) $7,800,000 to the commissioner of Iron Range resources and rehabilitation for the 
63.29 	design, engineering, and upgrades or replacement of chair lifts and for the design, 
63.30 	engineering, demolition, and construction of a nordic and welcome center at the Giants 
63.31 	Ridge Recreation Area;
63.32 	(3) $350,000 to the Central Iron Range Sanitary Sewer District for infrastructure projects;
63.33 	(4) $1,500,000 to the city of Babbitt for renovations to the ice arena;
64.1 	(5) $1,200,000 to Independent School District No. 2909, Rock Ridge, for demolition of 
64.2 	the James Madison Elementary School in Virginia;
64.3 	(6) $500,000 to the city of Buhl for infrastructure projects;
64.4 	(7) $500,000 to St. Louis and Lake Counties Regional Railroad Authority to design, 
64.5 	engineer, acquire right-of-way, and construct the Mesabi Trail Spur from Aurora to Hoyt 
64.6 	Lakes;
64.7 	(8) $2,000,000 to the city of Mountain Iron for infrastructure projects including but not 
64.8 	limited to Enterprise Drive North East infrastructure development, water main and other 
64.9 	infrastructure in the city, waste water plant improvements to comply with new permits, 
64.10 	supervisory control and data acquisition on lift stations, and recreation projects;
64.11 	(9) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct 
64.12 	publicly owned infrastructure including sewers, water systems, utility extensions, street 
64.13 	construction, wastewater treatment, stormwater management systems, sidewalks, and 
64.14 	compliance with the Americans with Disabilities Act;
64.15 	(10) $5,000,000 to Independent School District No. 696, Ely, for planning, design, 
64.16 	engineering, demolition, and construction related to the district's athletic complex;
64.17 	(11) $1,080,000 to the Northland Learning Center to construct the Alternative Learning 
64.18 	Center on the campus in the city of Mountain Iron;
64.19 	(12) $1,000,000 for the city of Biwabik for a public safety facility;
64.20 	(13) $1,570,000 to Hibbing Public Utilities for water infrastructure projects; and
64.21 	(14) $500,000 to St. Louis County for the demolition of the public school in Hoyt Lakes.

64.22 	EFFECTIVE DATE. This section is effective the day following final enactment and 
64.23 	applies beginning with the 2025 distribution under Minnesota Statutes, section 298.28.

64.24 	Sec. 16. TRANSFER 2024 DISTRIBUTION ONLY; TACONITE ECONOMIC 
64.25 	DEVELOPMENT FUND.
 64.26 	Of the funds distributed to the taconite economic development fund under Minnesota 
64.27 	Statutes, section 298.28, subdivision 9a, for the 2024 distribution only, an amount equal to 
64.28 	$300,000 shall be transferred from the taconite economic development fund to the city of 
64.29 	Chisholm for the Senator David Tomassoni Bridge of Peace. The transfer must be made 
64.30 	within ten days of the August 2024 payment. If less than $300,000 is distributed to the 
64.31 	taconite economic development fund in 2024, distributions to the fund in future years must 
65.1 	be transferred to the city of Chisholm, pursuant to this paragraph, until the total amount 
65.2 	transferred equals $300,000.

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

65.4 	ARTICLE 4
65.5 	SALES AND USE TAXES, GROSS RECEIPTS TAXES, AND EXCISE TAXES

65.6 	Section 1. Minnesota Statutes 2022, section 295.53, subdivision 4a, is amended to read:
65.7 		Subd. 4a.Credit for research. (a) In addition to the exemptions allowed under 
65.8 	subdivision 1, a hospital or health care provider may claim an annual credit against the total 
65.9 	amount of tax, if any, the hospital or health care provider owes for that calendar year under 
65.10 	sections 295.50 to 295.57. The credit shall equal 2.5 0.5 percent of revenues for patient 
65.11 	services used to fund expenditures for qualifying research conducted by an allowable research 
65.12 	program. The amount of the credit shall not exceed the tax liability of the hospital or health 
65.13 	care provider under sections 295.50 to 295.57.
65.14 	(b) For purposes of this subdivision, the following requirements apply:
65.15 	(1) expenditures must be for program costs of qualifying research conducted by an 
65.16 	allowable research program;
65.17 	(2) an allowable research program must be a formal program of medical and health care 
65.18 	research conducted by an entity which is exempt under section 501(c)(3) of the Internal 
65.19 	Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under 
65.20 	authority of a governmental unit;
65.21 	(3) qualifying research must:
65.22 	(A) be approved in writing by the governing body of the hospital or health care provider 
65.23 	which is taking the deduction under this subdivision;
65.24 	(B) have as its purpose the development of new knowledge in basic or applied science 
65.25 	relating to the diagnosis and treatment of conditions affecting the human body;
65.26 	(C) be subject to review by individuals with expertise in the subject matter of the proposed 
65.27 	study but who have no financial interest in the proposed study and are not involved in the 
65.28 	conduct of the proposed study; and
65.29 	(D) be subject to review and supervision by an institutional review board operating in 
65.30 	conformity with federal regulations if the research involves human subjects or an institutional 
65.31 	animal care and use committee operating in conformity with federal regulations if the 
66.1 	research involves animal subjects. Research expenses are not exempt if the study is a routine 
66.2 	evaluation of health care methods or products used in a particular setting conducted for the 
66.3 	purpose of making a management decision. Costs of clinical research activities paid directly 
66.4 	for the benefit of an individual patient are excluded from this exemption. Basic research in 
66.5 	fields including biochemistry, molecular biology, and physiology are also included if such 
66.6 	programs are subject to a peer review process.
66.7 	(c) No credit shall be allowed under this subdivision for any revenue received by the 
66.8 	hospital or health care provider in the form of a grant, gift, or otherwise, whether from a 
66.9 	government or nongovernment source, on which the tax liability under section 295.52 is 
66.10 	not imposed.
66.11 	(d) The taxpayer shall apply for the credit under this section on the annual return under 
66.12 	section 295.55, subdivision 5.
66.13 	(e) Beginning September 1, 2001, if the actual or estimated amount paid under this 
66.14 	section for the calendar year exceeds $2,500,000, the commissioner of management and 
66.15 	budget shall determine the rate of the research credit for the following calendar year to the 
66.16 	nearest one-half percent so that refunds paid under this section will most closely equal 
66.17 	$2,500,000. The commissioner of management and budget shall publish in the State Register 
66.18 	by October 1 of each year the rate of the credit for the following calendar year. A 
66.19 	determination under this section is not subject to the rulemaking provisions of chapter 14.

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

66.21 	Sec. 2. [295.85] AMUSEMENT DEVICE GROSS RECEIPTS TAX.
66.22 		Subdivision 1.Definitions (a) For purposes of this section, the following terms have 
66.23 	the meanings given.
66.24 	(b) "Amusement device" means any electronic or mechanical machine or device that is 
66.25 	activated and operated by providing payment for use to provide entertainment or amusement, 
66.26 	including but not limited to bowling alleys, fortune-telling machines, cranes, foosball tables, 
66.27 	pool tables, video games, pinball machines, batting cages, rides, photo or video booths, 
66.28 	shuffleboard tables, air hockey tables, arcade games, shooting gallery games, dart boards, 
66.29 	and jukeboxes. An amusement device does not include vending machines, lottery devices, 
66.30 	or gaming devices as described in chapters 297E and 349.
66.31 	(c) "Commissioner" means the commissioner of revenue.
67.1 	(d) "Gross receipts" means the total amount received in money or by barter or exchange 
67.2 	for sales derived from the making available of amusement devices for play as measured by 
67.3 	the sales price.
67.4 	(e) "Providing payment" means activating an amusement device by either:
67.5 	(1) inserting a coin, paper currency, or token, swiping a card, entering a code, or using 
67.6 	an electronic payment on the device; or
67.7 	(2) giving such payment to a person who activates for play the amusement device.
67.8 		Subd. 2.Tax imposed. A tax equal to 6.875 percent of gross receipts from making 
67.9 	available any amusement device for play is imposed on the owners of each device operated 
67.10 	in Minnesota. The tax imposed by this section is in lieu of the taxes imposed by chapter 
67.11 	297A.
67.12 		Subd. 3.Administration. Unless specifically provided otherwise, the audit, assessment, 
67.13 	refund, penalty, interest, enforcement, collection remedies, appeal, and administrative 
67.14 	provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter 
67.15 	297A apply to the tax imposed under this section.
67.16 		Subd. 4.Returns; payment of tax. (a) An owner of an amusement device must report 
67.17 	the tax on a return prescribed by the commissioner and must remit the tax in a form and 
67.18 	manner prescribed by the commissioner. The return and the tax must be filed and paid using 
67.19 	the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision 
67.20 	4, and chapter 297A.
67.21 	(b) Interest must be paid on an overpayment refunded or credited to the taxpayer from 
67.22 	the date of payment of the tax until the date the refund is paid or credited. For purposes of 
67.23 	this subdivision, the date of payment is the due date of the return or the date of actual 
67.24 	payment of the tax, whichever is later.
67.25 		Subd. 5.Deposit of revenues. The commissioner must deposit the revenues, including 
67.26 	penalties and interest, derived from the tax imposed by this section as follows:
67.27 	(1) The revenue derived from the portion of the tax equal to 6.5 percent must be deposited 
67.28 	into the general fund; and
67.29 	(2) The revenue derived from the portion of the tax equal to 0.375 percent must be 
67.30 	deposited pursuant to Minnesota Constitution, article XI, section 15.
67.31 		Subd. 6.Personal debt. The tax imposed by this section, and interest and penalties 
67.32 	imposed with respect to the tax, are a personal debt of the person required to file a return 
68.1 	from the time that the liability for the tax arises, irrespective of when the time for payment 
68.2 	of the liability occurs. The debt must, in the case of the executor or administrator of the 
68.3 	estate of a decedent and in the case of a fiduciary, be that of the person in the person's official 
68.4 	or fiduciary capacity only, unless the person has voluntarily distributed the assets held in 
68.5 	that capacity without reserving sufficient assets to pay the tax, interest, and penalties, in 
68.6 	which event the person is personally liable for any deficiency.

68.7 	EFFECTIVE DATE. This section is effective October 1, 2024.

68.8 	Sec. 3. Minnesota Statutes 2023 Supplement, section 297A.61, subdivision 3, is amended 
68.9 	to read:
68.10 		Subd. 3.Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to,
68.11 	each of the transactions listed in this subdivision. In applying the provisions of this chapter, 
68.12 	the terms "tangible personal property" and "retail sale" include the taxable services listed 
68.13 	in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable 
68.14 	services, unless specifically provided otherwise. Services performed by an employee for 
68.15 	an employer are not taxable. Services performed by a partnership or association for another 
68.16 	partnership or association are not taxable if one of the entities owns or controls more than 
68.17 	80 percent of the voting power of the equity interest in the other entity. Services performed 
68.18 	between members of an affiliated group of corporations are not taxable. For purposes of 
68.19 	the preceding sentence, "affiliated group of corporations" means those entities that would 
68.20 	be classified as members of an affiliated group as defined under United States Code, title 
68.21 	26, section 1504, disregarding the exclusions in section 1504(b).
68.22 	(b) Sale and purchase include:
68.23 	(1) any transfer of title or possession, or both, of tangible personal property, whether 
68.24 	absolutely or conditionally, for a consideration in money or by exchange or barter; and
68.25 	(2) the leasing of or the granting of a license to use or consume, for a consideration in 
68.26 	money or by exchange or barter, tangible personal property, other than a manufactured 
68.27 	home used for residential purposes for a continuous period of 30 days or more.
68.28 	(c) Sale and purchase include the production, fabrication, printing, or processing of 
68.29 	tangible personal property for a consideration for consumers who furnish either directly or 
68.30 	indirectly the materials used in the production, fabrication, printing, or processing.
68.31 	(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding 
68.32 	section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
68.33 	(1) prepared food sold by the retailer;
69.1 	(2) soft drinks;
69.2 	(3) candy; and
69.3 	(4) dietary supplements.
69.4 	(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, 
69.5 	water, or steam for use or consumption within this state.
69.6 	(f) A sale and a purchase includes the transfer for a consideration of prewritten computer 
69.7 	software whether delivered electronically, by load and leave, or otherwise.
69.8 	(g) A sale and a purchase includes the furnishing for a consideration of the following 
69.9 	services:
69.10 	(1) the privilege of admission to places of amusement, recreational areas, or athletic 
69.11 	events, and the making available of amusement devices, tanning facilities, reducing salons, 
69.12 	steam baths, health clubs, and spas or athletic facilities;
69.13 	(2) lodging and related services by a hotel, rooming house, resort, campground, motel, 
69.14 	or trailer camp, including furnishing the guest of the facility with access to telecommunication 
69.15 	services, and the granting of any similar license to use real property in a specific facility, 
69.16 	other than the renting or leasing of it for a continuous period of 30 days or more under an 
69.17 	enforceable written agreement that may not be terminated without prior notice and including 
69.18 	accommodations intermediary services provided in connection with other services provided 
69.19 	under this clause;
69.20 	(3) nonresidential parking services, whether on a contractual, hourly, or other periodic 
69.21 	basis, except for parking at a meter;
69.22 	(4) the granting of membership in a club, association, or other organization if:
69.23 	(i) the club, association, or other organization makes available for the use of its members 
69.24 	sports and athletic facilities, without regard to whether a separate charge is assessed for use 
69.25 	of the facilities; and
69.26 	(ii) use of the sports and athletic facility is not made available to the general public on 
69.27 	the same basis as it is made available to members.
69.28 	Granting of membership means both onetime initiation fees and periodic membership dues. 
69.29 	Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash 
69.30 	courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming 
69.31 	pools; and other similar athletic or sports facilities;
70.1 	(5) delivery of aggregate materials by a third party, excluding delivery of aggregate 
70.2 	material used in road construction; and delivery of concrete block by a third party if the 
70.3 	delivery would be subject to the sales tax if provided by the seller of the concrete block. 
70.4 	For purposes of this clause, "road construction" means construction of:
70.5 	(i) public roads;
70.6 	(ii) cartways; and
70.7 	(iii) private roads in townships located outside of the seven-county metropolitan area 
70.8 	up to the point of the emergency response location sign; and
70.9 	(6) services as provided in this clause:
70.10 	(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 
70.11 	and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 
70.12 	drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 
70.13 	include services provided by coin operated facilities operated by the customer;
70.14 	(ii) motor vehicle washing, waxing, and cleaning services, including services provided 
70.15 	by coin operated facilities operated by the customer, and rustproofing, undercoating, and 
70.16 	towing of motor vehicles;
70.17 	(iii) building and residential cleaning, maintenance, and disinfecting services and pest 
70.18 	control and exterminating services;
70.19 	(iv) detective, security, burglar, fire alarm, and armored car services; but not including 
70.20 	services performed within the jurisdiction they serve by off-duty licensed peace officers as 
70.21 	defined in section 626.84, subdivision 1, or services provided by a nonprofit organization 
70.22 	or any organization at the direction of a county for monitoring and electronic surveillance 
70.23 	of persons placed on in-home detention pursuant to court order or under the direction of the 
70.24 	Minnesota Department of Corrections;
70.25 	(v) pet grooming services;
70.26 	(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 
70.27 	and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant 
70.28 	care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing 
70.29 	contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility 
70.30 	lines. Services performed under a construction contract for the installation of shrubbery, 
70.31 	plants, sod, trees, bushes, and similar items are not taxable;
71.1 	(vii) massages, except when provided by a licensed health care facility or professional 
71.2 	or upon written referral from a licensed health care facility or professional for treatment of 
71.3 	illness, injury, or disease; and
71.4 	(viii) the furnishing of lodging, board, and care services for animals in kennels and other 
71.5 	similar arrangements, but excluding veterinary and horse boarding services.
71.6 	(h) A sale and a purchase includes the furnishing for a consideration of tangible personal 
71.7 	property or taxable services by the United States or any of its agencies or instrumentalities, 
71.8 	or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
71.9 	(i) A sale and a purchase includes the furnishing for a consideration of 
71.10 	telecommunications services, ancillary services associated with telecommunication services, 
71.11 	and pay television services. Telecommunication services include, but are not limited to, the 
71.12 	following services, as defined in section 297A.669: air-to-ground radiotelephone service, 
71.13 	mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid 
71.14 	wireless calling service, and private communication services. The services in this paragraph 
71.15 	are taxed to the extent allowed under federal law.
71.16 	(j) A sale and a purchase includes the furnishing for a consideration of installation if the 
71.17 	installation charges would be subject to the sales tax if the installation were provided by 
71.18 	the seller of the item being installed.
71.19 	(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a 
71.20 	customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor 
71.21 	vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, 
71.22 	subdivision 11.
71.23 	(l) A sale and a purchase includes furnishing for a consideration of specified digital 
71.24 	products or other digital products or granting the right for a consideration to use specified 
71.25 	digital products or other digital products on a temporary or permanent basis and regardless 
71.26 	of whether the purchaser is required to make continued payments for such right. Wherever 
71.27 	the term "tangible personal property" is used in this chapter, other than in subdivisions 10 
71.28 	and 38, the provisions also apply to specified digital products, or other digital products, 
71.29 	unless specifically provided otherwise or the context indicates otherwise.
71.30 	(m) The sale of the privilege of admission under section 297A.61, subdivision 3, 
71.31 	paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event 
71.32 	includes all charges included in the privilege of admission's sales price, without deduction 
71.33 	for amenities that may be provided, unless the amenities are separately stated and the 
72.1 	purchaser of the privilege of admission is entitled to add or decline the amenities, and the 
72.2 	amenities are not otherwise taxable.
72.3 	(n) A sale and purchase includes the transfer for consideration of a taxable cannabis 
72.4 	product as defined in section 295.81, subdivision 1, paragraph (r).

72.5 	EFFECTIVE DATE. This section is effective October 1, 2024.

72.6 	Sec. 4. Minnesota Statutes 2022, section 297A.68, subdivision 3a, is amended to read:
72.7 		Subd. 3a.Coin-operated entertainment and amusement devices. Coin-operated 
72.8 	entertainment and amusement devices including, but not limited to, fortune-telling machines, 
72.9 	cranes, foosball and pool tables, video and pinball games, batting cages, rides, photo or 
72.10 	video booths, and jukeboxes are exempt when purchased by retailers selling admission to 
72.11 	places of amusement and making available amusement devices as provided in section 
72.12 	297A.61, subdivision 3, paragraph (g), clause (1) 295.85. Coin-operated entertainment and 
72.13 	amusement devices do not include vending machines, lottery devices, or gaming devices 
72.14 	as described in chapters 297E and 349.

72.15 	EFFECTIVE DATE. This section is effective October 1, 2024.

72.16 	Sec. 5. Minnesota Statutes 2022, section 297A.68, subdivision 45, is amended to read:
72.17 		Subd. 45.Jukebox music. The purchase of music, either as a digital audio work or in 
72.18 	tangible form such as a record or compact disc, by operators that provide the service of 
72.19 	making available jukeboxes as amusement devices, as provided in section 297A.61, 
72.20 	subdivision 3, paragraph (g), clause (1) 295.85, is exempt if the music is used exclusively 
72.21 	for the jukebox.

72.22 	EFFECTIVE DATE. This section is effective October 1, 2024.

72.23 	Sec. 6. Minnesota Statutes 2022, section 609.902, subdivision 4, is amended to read:
72.24 		Subd. 4.Criminal act. "Criminal act" means conduct constituting, or a conspiracy or 
72.25 	attempt to commit, a felony violation of chapter 152, or a felony violation of section 297D.09;
72.26 	299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222; 
72.27 	609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343; 
72.28 	609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52, 
72.29 	subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is 
72.30 	a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a), 
72.31 	clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528, 
73.1 	if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582, 
73.2 	subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86; 
73.3 	609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the 
73.4 	offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act" 
73.5 	also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation 
73.6 	of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an 
73.7 	insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service 
73.8 	plan corporation regulated under chapter 62C, a health maintenance organization regulated 
73.9 	under chapter 62D, or a fraternal benefit society regulated under chapter 64B.

73.10 	EFFECTIVE DATE. This section is effective August 1, 2024.

73.11 	Sec. 7. CITY OF WOODBURY; SALES TAX EXEMPTION FOR CONSTRUCTION 
73.12 	MATERIALS.
 73.13 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
73.14 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
73.15 	or remodeling of a water treatment facility, including water pipeline infrastructure and 
73.16 	associated improvements, funded by the city of Woodbury are exempt from sales and use 
73.17 	tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, and 
73.18 	equipment are purchased after January 31, 2024, and before July 1, 2025.
73.19 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
73.20 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
73.21 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
73.22 	purchases must not be issued until after June 30, 2024. No refunds may be issued after June 
73.23 	30, 2025.
73.24 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
73.25 	is appropriated from the general fund to the commissioner of revenue.

73.26 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
73.27 	made after January 31, 2024, and before July 1, 2025.

73.28 	Sec. 8. REPEALER.
 73.29 	(a) Minnesota Statutes 2022, sections 13.4967, subdivision 5; 297D.02; 297D.03; 
73.30 	297D.05; 297D.09, subdivisions 1 and 2; 297D.12; and 297D.13, are repealed.
73.31 	(b) Minnesota Statutes 2023 Supplement, sections 297D.01; 297D.04; 297D.06; 297D.07; 
73.32 	297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; and 297D.11, are repealed.

74.1 	EFFECTIVE DATE. This section is effective August 1, 2024.

74.2 	ARTICLE 5
74.3 	TAX INCREMENT FINANCING

74.4 	Section 1. Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter 
74.5 	112, article 11, section 16, is amended to read:
74.6 	Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT; 
74.7 	SPECIAL RULES.
 74.8 	(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax 
74.9 	increment financing plan for a district, the rules under this section apply to a redevelopment 
74.10 	tax increment financing district established by the city or an authority of the city. The 
74.11 	redevelopment tax increment district includes parcels within the area bounded on the east 
74.12 	by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama 
74.13 	Street, on the west by Llama Street, and on the south by a line running parallel to and 600 
74.14 	feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels 
74.15 	28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County 
74.16 	Regional Park property in its entirety. A parcel within this area that is included in a tax 
74.17 	increment financing district that was certified before the date of enactment of this act may 
74.18 	be included in the district created under this act if the initial district is decertified.
74.19 	(b) The requirements for qualifying a redevelopment tax increment district under 
74.20 	Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located 
74.21 	within the district.
74.22 	(c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district. 
74.23 	Eligible expenditures within the district include but are not limited to (1) the city's share of 
74.24 	the costs necessary to provide for the construction of the Northstar Transit Station and 
74.25 	related infrastructure, including structured parking, a pedestrian overpass, and roadway 
74.26 	improvements, (2) the cost of land acquired by the city or the housing and redevelopment 
74.27 	authority in and for the city of Ramsey within the district prior to the establishment of the 
74.28 	district, and (3) the cost of public improvements installed within the tax increment financing 
74.29 	district prior to the establishment of the district.
74.30 	(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
74.31 	must be undertaken within a five-year period from the date of certification of a tax increment 
74.32 	financing district, is considered to be met for the district if the activities were undertaken 
74.33 	within ten years from the date of certification of the district.
75.1 	(e) Except for administrative expenses, the in-district percentage for purposes of the 
75.2 	restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this 
75.3 	district is 100 percent.
75.4 	(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not 
75.5 	apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred 
75.6 	after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of 
75.7 	the tax increment financing plan for the district.
75.8 	(g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph 
75.9 	(b), is considered to be met for the district if the city adopts interfund loan resolutions 
75.10 	reflecting the terms and conditions required by Minnesota Statutes, section 469.178, 
75.11 	subdivision 7, paragraph (d), by December 31, 2024.

75.12 	EFFECTIVE DATE. This section is effective the day after the city of Ramsey and its 
75.13 	chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 
75.14 	3.

75.15 	Sec. 2. Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First 
75.16 	Special Session chapter 1, article 6, section 12, is amended to read:
75.17 	Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
 75.18 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
75.19 	the meanings given them.
75.20 	(b) "City" means the city of Maple Grove.
75.21 	(c) "Project area" means all or a portion of the area in the city commencing at a point 
75.22 	130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 
75.23 	23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 
75.24 	line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 
75.25 	Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 
75.26 	thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 
75.27 	Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 
75.28 	East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 
75.29 	of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 
75.30 	North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 
75.31 	of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 
75.32 	line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 
76.1 	degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 
76.2 	24; thence West along said south line to the east right-of-way line of Zachary Lane; thence 
76.3 	North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 
76.4 	Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 
76.5 	Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 
76.6 	South along the east line of said Outlot A and its southerly extension to the south right-of-way 
76.7 	line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 
76.8 	line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 
76.9 	Section 24; thence South along said east line to the north line of the South Half of the 
76.10 	Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 
76.11 	line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 
76.12 	Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 
76.13 	right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 
76.14 	A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 
76.15 	Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 
76.16 	line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 
76.17 	line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 
76.18 	Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 
76.19 	westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 
76.20 	Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 
76.21 	line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 
76.22 	Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 
76.23 	westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 
76.24 	and there terminating, provided that the project area includes the rights-of-way for all present 
76.25 	and future highway interchanges abutting the area described in this paragraph, and may 
76.26 	include any additional property necessary to cause the property included in the tax increment 
76.27 	financing district to consist of complete parcels.
76.28 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
76.29 	of a portion of the project area in which the city finds by resolution that the following 
76.30 	conditions exist:
76.31 	(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 
76.32 	the district require substantial filling, grading, or other physical preparation for use; and
76.33 	(2) the estimated cost of the physical preparation under clause (1), but excluding costs 
76.34 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
76.35 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 
77.1 	(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 
77.2 	completion of the preparation.
77.3 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
77.4 	financing plan for a district, the rules under this section apply to a redevelopment district, 
77.5 	renewal and renovation district, soil condition district, or soil deficiency district established 
77.6 	by the city or a development authority of the city in the project area.
77.7 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
77.8 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
77.9 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
77.10 	are characterized by one or more of the following conditions:
77.11 	(1) peat or other soils with geotechnical deficiencies that impair development of 
77.12 	commercial buildings or infrastructure;
77.13 	(2) soils or terrain that require substantial filling in order to permit the development of 
77.14 	commercial buildings or infrastructure;
77.15 	(3) landfills, dumps, or similar deposits of municipal or private waste;
77.16 	(4) quarries or similar resource extraction sites;
77.17 	(5) floodway; and
77.18 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
77.19 	subdivision 10.
77.20 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
77.21 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
77.22 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
77.23 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
77.24 	parcel.
77.25 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
77.26 	extended to eight 13 years for any district, and Minnesota Statutes, section 469.1763, 
77.27 	subdivision 4, does not apply to any district.
77.28 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
77.29 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
77.30 	increments paid by properties in any district, measured over the life of the district, may be 
77.31 	expended on activities outside the district but within the project area.
77.32 	(f) For a soil deficiency district:
78.1 	(1) increments may be collected through 20 25 years after the receipt by the authority 
78.2 	of the first increment from the district;
78.3 	(2) increments may be used only to:
78.4 	(i) acquire parcels on which the improvements described in item (ii) will occur;
78.5 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
78.6 	cost of installing public improvements directly caused by the deficiencies; and
78.7 	(iii) pay for the administrative expenses of the authority allocable to the district; and
78.8 	(3) any parcel acquired with increments from the district must be sold at no less than 
78.9 	their fair market value.
78.10 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
78.11 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
78.12 	Statutes, section 469.176, subdivision 4j.
78.13 	(h) The authority to approve tax increment financing plans to establish tax increment 
78.14 	financing districts under this section expires June 30, 2020.
78.15 	(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use 
78.16 	increments from a soil deficiency district to acquire parcels and for other infrastructure costs 
78.17 	either inside or outside of the district, but within the project area, if the acquisition or 
78.18 	infrastructure is for a qualified development. For purposes of this paragraph, a development 
78.19 	is a qualified development only if all of the following requirements are satisfied:
78.20 	(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken 
78.21 	primarily to serve the development;
78.22 	(2) the city has a binding, written commitment and adequate financial assurances from 
78.23 	the developer that the development will be constructed; and
78.24 	(3) the development does not consist of retail trade or housing improvements.

78.25 	EFFECTIVE DATE. (a) The extension of the five- and six-year rules under this section 
78.26 	are effective the day after the governing body of the city of Maple Grove and its chief 
78.27 	clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
78.28 	(b) The district duration extension under this section is effective upon compliance by 
78.29 	the city of Maple Grove, Hennepin County, and Independent School District No. 279 with 
78.30 	the requirements of Minnesota Statutes, section 469.1782, subdivision 2.

79.1 	Sec. 3. Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to 
79.2 	read:
79.3 	Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
 79.4 	(a) For purposes of computing the duration limits under Minnesota Statutes, section 
79.5 	469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul 
79.6 	may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing 
79.7 	District. This authority is limited to the first four years of increment or increments derived 
79.8 	from taxes payable in 2023, whichever occurs first.
79.9 	(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of 
79.10 	applying any limits based on when the district was certified under Minnesota Statutes, 
79.11 	section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed 
79.12 	to be January 2 of the property tax assessment year for which increment is first received 
79.13 	under the waiver.
79.14 	(c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
79.15 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
79.16 	4, relating to the use of increment after the expiration of the five-year period, is extended 
79.17 	to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city 
79.18 	of St. Paul.

79.19 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
79.20 	city of St. Paul and its chief clerical officer comply with the requirements of Minnesota 
79.21 	Statutes, section 645.021, subdivisions 2 and 3.

79.22 	Sec. 4. CITY OF BROOKLYN CENTER; TAX INCREMENT FINANCING 
79.23 	AUTHORITY.
 79.24 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
79.25 	economic development authority of the city of Brooklyn Center or the city of Brooklyn 
79.26 	Center may establish one or more redevelopment tax increment financing districts located 
79.27 	wholly within the area in the city identified as the "Opportunity Site," which includes the 
79.28 	area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway 10 to 
79.29 	Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked Trunk 
79.30 	Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin County 
79.31 	State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked Trunk 
79.32 	Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads and 
79.33 	rights-of-way.
80.1 		Subd. 2.Special rules. If the city or the authority establishes a tax increment financing 
80.2 	district under this section, the following special rules apply:
80.3 	(1) the district is deemed to meet all the requirements of Minnesota Statutes, section 
80.4 	469.174, subdivision 10; and
80.5 	(2) expenditures incurred in connection with the development of the property described 
80.6 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
80.7 	subdivision 4j.
80.8 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
80.9 	a tax increment financing district under this section expires on December 31, 2030.

80.10 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
80.11 	city of Brooklyn Center and its chief clerical officer comply with the requirements of 
80.12 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.

80.13 	Sec. 5. CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING 
80.14 	AUTHORITY; VILLAGE CREEK AREA.
 80.15 		Subdivision 1.Establishment of districts. Upon the termination of Tax Increment 
80.16 	Financing District No. 20 within the city of Brooklyn Park, under the special rules established 
80.17 	in subdivision 2, the economic development authority of the city of Brooklyn Park or city 
80.18 	of Brooklyn Park may establish one or more redevelopment tax increment financing districts 
80.19 	located wholly within the area of the city of Brooklyn Park. The districts may be comprised 
80.20 	of the following parcels identified by their current parcel identification numbers:

80.21	2011921430101
	2011921440088
	2011921430092
	2011921430099
	2111921330104
	
80.22	2111921340003
	2111921340005
	2111921340006
	2111921340019
	2111921340021
	
80.23	2111921330066
	2111921330068
	2111921340017
	2111921340018
	2811921130004
	
80.24	2811921130005
	2811921140007
	2811921210003
	2811921220002
	2811921220007
	
80.25	2811921240004
	2811921240009
	2811921240010
	2811921240107
	2811921310001
	
80.26	2811921340010
	2911921120032
	2811921130014
	2811921130015
	2811921130024
	
80.27	2811921140012
	2811921210014
	2811921210020
	2811921210023
	2811921210103
	
80.28	2811921220001
	2811921220003
	2811921220005
	2811921240007
	2811921340006
	
80.29	2911921120001
	2911921120004
	2011921440089
	2111921330067
	2111921340002
	
80.30	2111921340004
	2111921340027
	2111921340113
	2811921120001
	2811921130001
	
80.31	2811921130017
	2811921130023
	2811921210001
	2811921210016
	2811921210033
	
80.32	2811921210060
	2811921210101
	2811921240006
	2811921240017
	2911921110004
	
80.33	2911921120005
	2011921430093
	2011921430100
	2011921430102
	2011921430103
	
80.34	2111921330102
	2111921330103
	2111921340001
	2111921340007
	2111921340020
	
81.1	2111921340022
	2811921120002
	2811921120104
	2811921130002
	2811921130020
	
81.2	2811921130021
	2811921210022
	2811921210034
	2811921210099
	2811921210102
	
81.3	2811921220006
	2811921240003
	2811921240012
	2811921340005
	2811921340009
	
81.4	2911921110118
	2911921120006
	2911921120043
	3311921210001
		
81.5 	together with adjacent and internal roads and rights-of-way, and the following roadways 
81.6 	within the city of Brooklyn Park: Zane Avenue North (from and including the intersection 
81.7 	at 78th Avenue North to and including the intersection at Highway 94), Brooklyn Boulevard 
81.8 	(from and including the intersection at the border of Brooklyn Center to and including the 
81.9 	intersection at Kentucky Avenue North), Brookdale Drive North (from and including the 
81.10 	intersection at Zane Avenue North to and including the intersection at Welcome Avenue 
81.11 	North), Village Creek Parkway North, 77th Avenue North (from and including the 
81.12 	intersection at Village Creek Parkway North to and including the intersection at Brookdale 
81.13 	Drive North), 73rd Avenue North/Regent Avenue (from and including the intersection at 
81.14 	Zane Avenue North to and including the intersection at Brooklyn Boulevard).
81.15 		Subd. 2.Special rules. If the city or the authority establishes any tax increment financing 
81.16 	district under subdivision 1, the following special rules apply:
81.17 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
81.18 	469.174, subdivision 10;
81.19 	(2) expenditures incurred in connection with the development of the property described 
81.20 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
81.21 	subdivision 4j; and
81.22 	(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
81.23 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
81.24 	4, relating to the use of increment after the expiration of the five-year period, is extended 
81.25 	to 11 years.
81.26 		Subd. 3.Expiration. The authority to request certification of any district under this 
81.27 	section expires on December 31, 2030.

81.28 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
81.29 	city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota 
81.30 	Statutes, section 645.021.

82.1 	Sec. 6. CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING 
82.2 	AUTHORITY; 610/ZANE AREA.
 82.3 		Subdivision 1.Establishment of districts. Under the special rules established in 
82.4 	subdivision 2, the economic development authority of the city of Brooklyn Park or the city 
82.5 	of Brooklyn Park may establish one or more redevelopment districts located wholly within 
82.6 	the area of the city of Brooklyn Park. The districts may be comprised of the following 
82.7 	parcels identified by their current parcel identification numbers together with adjacent and 
82.8 	internal roads and rights-of-way:

82.9	0811921410009
	0811921140050
	0811921140051
	0911921120005
	0911921210007
	
82.10	0911921230008
	0911921230049
	0911921240006
	0911921240009
	0911921310004
	
82.11	0911921320018
	0911921330009
	0911921430006
	0911921430014
	0911921430015
	
82.12	0911921430019
	0911921430020
	0911921430028
	0911921430030
	0911921430033
	
82.13	0911921430037
	0911921430038
	0911921430040
	0911921430048
	0911921430054
	
82.14	0911921430055
	0911921430059
	0911921430069
	0911921430071
	0911921430072
	
82.15	0911921430076
	0911921430080
	0911921430081
	0911921430082
	0911921430083
	
82.16	0911921430086
	0911921430087
	0911921430088
	0911921430094
	0911921430095
	
82.17	0911921430099
	0911921430104
	0911921430114
	0911921210005
	0911921210095
	
82.18	0911921220070
	0911921220071
	0911921230009
	0911921230010
	0911921230011
	
82.19	0911921230012
	0911921230013
	0911921240005
	0911921240008
	0911921310007
	
82.20	0911921310009
	0911921320023
	0911921330008
	0911921330011
	0911921340008
	
82.21	0911921340014
	0911921340017
	0911921430018
	0911921430024
	0911921430025
	
82.22	0911921430029
	0911921430034
	0911921430035
	0911921430039
	0911921430044
	
82.23	0911921430045
	0911921430049
	0911921430058
	0911921430060
	0911921430061
	
82.24	0911921430062
	0911921430063
	0911921430067
	0911921430068
	0911921430090
	
82.25	0911921430093
	0911921430097
	0911921430098
	0911921430102
	0911921430103
	
82.26	0911921430112
	0911921430113
	0911921430120
	0811921440008
	0911921210006
	
82.27	0911921210096
	0911921210100
	0911921210101
	0911921220008
	0911921220017
	
82.28	0911921230014
	0911921230015
	0911921240004
	0911921240007
	0911921310010
	
82.29	0911921310011
	0911921310012
	0911921330010
	0911921330012
	0911921340009
	
82.30	0911921430013
	0911921430017
	0911921430021
	0911921430022
	0911921430026
	
82.31	0911921430031
	0911921430032
	0911921430036
	0911921430041
	0911921430042
	
82.32	0911921430046
	0911921430053
	0911921430057
	0911921430064
	0911921430065
	
82.33	0911921430073
	0911921430077
	0911921430078
	0911921430100
	0911921430105
	
82.34	0911921430107
	0911921430108
	0911921430110
	0911921430115
	0911921430117
	
82.35	0911921430118
	0911921210097
	0911921210099
	0911921220014
	0911921220015
	
82.36	0911921220068
	0911921230005
	0911921320016
	0911921320021
	0911921320024
	
82.37	0911921330006
	0911921340015
	0911921340016
	0911921430009
	0911921430010
	
83.1	0911921430011
	0911921430012
	0911921430016
	0911921430023
	0911921430027
	
83.2	0911921430043
	0911921430047
	0911921430050
	0911921430051
	0911921430052
	
83.3	0911921430056
	0911921430066
	0911921430070
	0911921430074
	0911921430075
	
83.4	0911921430079
	0911921430084
	0911921430085
	0911921430089
	0911921430091
	
83.5	0911921430092
	0911921430096
	0911921430101
	0911921430106
	0911921430109
	
83.783.6
	0911921430111
	0911921430116
	0911921430119
	0611921440003
	Unplatted 
0611921
	
83.8 		Subd. 2.Special rules. If the city or the authority establishes any tax increment financing 
83.9 	district under subdivision 1, the following special rules apply:
83.10 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
83.11 	469.174, subdivision 10;
83.12 	(2) expenditures incurred in connection with the development of the property described 
83.13 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
83.14 	subdivision 4j; and
83.15 	(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
83.16 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
83.17 	4, relating to the use of increment after the expiration of the five-year period, is extended 
83.18 	to 11 years.
83.19 		Subd. 3.Expiration. The authority to request certification of any district under this 
83.20 	section expires on December 31, 2030.

83.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
83.22 	city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota 
83.23 	Statutes, section 645.021.

83.24 	Sec. 7. CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING 
83.25 	AUTHORITY; BIOTECH AREA.
 83.26 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
83.27 	economic development authority of the city of Brooklyn Park or the city of Brooklyn Park 
83.28 	may establish one or more redevelopment districts located wholly within the area of the 
83.29 	city of Brooklyn Park. The districts may be comprised of the following parcels identified 
83.30 	by their current parcel identification numbers together with adjacent and internal roads and 
83.31 	rights-of-way:

83.32	0711921110007
	0711921140001
	0711921140002
	0711921140007
	0711921240002
	
83.33	0711921240004
	0711921110005
	0711921120009
	0711921220003
	0711921230001
	
84.1	0711921230002
	0811921230004
	0711921110004
	0711921110006
	0711921110008
	
84.2	0711921120005
	0711921130005
	0711921140005
	0711921140006
	0711921210003
	
84.3	0711921110003
	0711921120006
	0811921230002
	0811921220002
		
84.4 		Subd. 2.Special rules. If the city or the authority establishes any tax increment financing 
84.5 	district under subdivision 1, the following special rules apply:
84.6 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
84.7 	469.174, subdivision 10;
84.8 	(2) expenditures incurred in connection with the development of the property described 
84.9 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
84.10 	subdivision 4j; and
84.11 	(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
84.12 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
84.13 	4, relating to the use of increment after the expiration of the five-year period, is extended 
84.14 	to 11 years.
84.15 		Subd. 3.Expiration. The authority to request certification of any district under this 
84.16 	section expires on December 31, 2030.

84.17 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
84.18 	city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota 
84.19 	Statutes, section 645.021.

84.20 	Sec. 8. CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY; 
84.21 	EDEN PRAIRIE CENTER.
 84.22 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
84.23 	economic development authority of the city of Eden Prairie or the city of Eden Prairie may 
84.24 	establish one or more redevelopment districts located wholly within the area of the city of 
84.25 	Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within 
84.26 	the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
84.27 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
84.28 	district under this section, the following special rules apply:
84.29 	(1) the districts are deemed to meet the requirements of Minnesota Statutes, section 
84.30 	469.174, subdivision 10; and
85.1 	(2) expenditures incurred in connection with the development of the property described 
85.2 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
85.3 	subdivision 4j.
85.4 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
85.5 	a tax increment financing district under this section expires December 31, 2025.

85.6 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
85.7 	city of Eden Prairie and its chief clerical officer comply with Minnesota Statutes, section 
85.8 	645.021, subdivisions 2 and 3.

85.9 	Sec. 9. CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE 
85.10 	EXTENSION; DURATION EXTENSION.
 85.11 	(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
85.12 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
85.13 	4, relating to the use of increment after the expiration of the five-year period, is extended 
85.14 	to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
85.15 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the 
85.16 	city of Edina or its housing and redevelopment authority may elect to extend the duration 
85.17 	of the district by five years for Tax Increment Financing District 72nd & France 2.

85.18 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
85.19 	city of Edina and its chief clerical officer comply with the requirements of Minnesota 
85.20 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
85.21 	by the city of Edina, Hennepin County, and Independent School District No. 273 with the 
85.22 	requirements of Minnesota Statutes, section 469.1782, subdivision 2.

85.23 	Sec. 10. CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE 
85.24 	EXTENSION; DURATION EXTENSION.
 85.25 	(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
85.26 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
85.27 	4, relating to the use of increment after the expiration of the five-year period, is extended 
85.28 	to 11 years for Tax Increment Financing District 70th & France in the city of Edina.
85.29 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the 
85.30 	city of Edina or its housing and redevelopment authority may elect to extend the duration 
85.31 	of the district by ten years for Tax Increment Financing District 70th & France.

86.1 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
86.2 	city of Edina and its chief clerical officer comply with the requirements of Minnesota 
86.3 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
86.4 	by the city of Edina, Hennepin County, and Independent School District No. 273 with the 
86.5 	requirements of Minnesota Statutes, section 469.1782, subdivision 2.

86.6 	Sec. 11. CITY OF MINNETONKA; OPUS TIF DISTRICT; FIVE-YEAR RULE 
86.7 	EXTENSION.
 86.8 	The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
86.9 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
86.10 	4, relating to the use of increment after the expiration of the five-year period, is extended 
86.11 	to 11 years for the Opus tax increment financing district established in 2021 by the economic 
86.12 	development authority in the city of Minnetonka.

86.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
86.14 	city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota 
86.15 	Statutes, section 645.021, subdivisions 2 and 3.

86.16 	Sec. 12. CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT 
86.17 	NO. 31; FIVE-YEAR RULE EXTENSION.
 86.18 	The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
86.19 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
86.20 	4, relating to the use of increment after the expiration of the five-year period, is extended 
86.21 	to 11 years for Tax Increment Financing District No. 31 in the city of Moorhead.

86.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
86.23 	city of Moorhead and its chief clerical officer comply with the requirements of Minnesota 
86.24 	Statutes, section 645.021, subdivisions 2 and 3.

86.25 	Sec. 13. CITY OF PLYMOUTH; TAX INCREMENT FINANCING AUTHORITY; 
86.26 	FIVE-YEAR RULE EXTENSION.
 86.27 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
86.28 	city of Plymouth may establish one or more redevelopment districts located wholly within 
86.29 	the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as the city 
86.30 	center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024, and 
86.31 	adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
87.1 		Subd. 2.Special rules. If the city establishes a tax increment financing district under 
87.2 	this section, the following special rules apply:
87.3 	(1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174, 
87.4 	subdivision 10;
87.5 	(2) expenditures incurred in connection with the development of the property described 
87.6 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
87.7 	subdivision 4j; and
87.8 	(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
87.9 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
87.10 	4, relating to the use of increment after the expiration of the five-year period, is extended 
87.11 	to 11 years.
87.12 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
87.13 	a tax increment financing district under this section expires December 31, 2030.

87.14 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
87.15 	city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section 
87.16 	645.021, subdivisions 2 and 3.

87.17 	Sec. 14. CITY OF ST. CLOUD; TAX INCREMENT FINANCING AUTHORITY.
 87.18 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
87.19 	economic development authority of the city of St. Cloud or the city of St. Cloud may establish 
87.20 	one or more redevelopment districts adjacent to the Division Street corridor or within the 
87.21 	Central Business District or Fringe Central District, limited to the following parcels identified 
87.22 	by tax identification numbers, together with the adjacent roads and rights-of-way:
87.23 	(1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North 
87.24 	Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015 
87.25 	(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); and 82528850001 
87.26 	(Former Herbergers); and
87.27 	(2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site); 
87.28 	170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601; 
87.29 	170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South 
87.30 	Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; and 170058900.
87.31 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
87.32 	district under this section, the following special rules apply:
88.1 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
88.2 	469.174, subdivision 10;
88.3 	(2) expenditures incurred in connection with the development of the property described 
88.4 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
88.5 	subdivision 4j; and
88.6 	(3) increments generated from the districts may be expended for the reconstruction, 
88.7 	expansion, or new construction of adjacent public infrastructure, including but not limited 
88.8 	to public parking, streets, and utilities necessary to serve the development, and all 
88.9 	expenditures under this clause are deemed expended on activities within the district for 
88.10 	purposes of Minnesota Statutes, section 469.1763.
88.11 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
88.12 	a tax increment financing district under this section expires December 31, 2030.

88.13 	EFFECTIVE DATE. This section is effective the day after the city of St. Cloud and 
88.14 	its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 
88.15 	and 3.

88.16 	ARTICLE 6
88.17 	LOCAL SALES AND USE TAXES

88.18 	Section 1. Minnesota Statutes 2023 Supplement, section 297A.99, subdivision 1, is 
88.19 	amended to read:
88.20 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may impose 
88.21 	a general sales tax:
88.22 	(1) under section 297A.9901;
88.23 	(2) under section 297A.9915, (2);
88.24 	(3) under section 297A.992, (3);
88.25 	(4) under section 297A.9925, (4);
88.26 	(5) under section 297A.993, (5);
88.27 	(6) if permitted by special law,; or
88.28 	(6) (7) if the political subdivision enacted and imposed the tax before January 1, 1982, 
88.29 	and its predecessor provision.
89.1 	(b) This section governs the imposition of a general sales tax by the political subdivision. 
89.2 	The provisions of this section preempt the provisions of any special law:
89.3 	(1) enacted before June 2, 1997, or;
89.4 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
89.5 	provision from this section's rules by reference.; or
89.6 	(3) enacted before July 1, 2024.
89.7 	(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning 
89.8 	July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles 
89.9 	unless it is imposed under section 297A.993.
89.10 	(d) A political subdivision may not advertise or expend funds for the promotion of a 
89.11 	referendum to support imposing a local sales tax and may only spend funds related to 
89.12 	imposing a local sales tax to:
89.13 	(1) conduct the referendum;
89.14 	(2) disseminate information included in the resolution adopted under subdivision 2, but 
89.15 	only if the disseminated information includes a list of specific projects and the cost of each 
89.16 	individual project;
89.17 	(3) provide notice of, and conduct public forums at which proponents and opponents on 
89.18 	the merits of the referendum are given equal time to express their opinions on the merits of 
89.19 	the referendum;
89.20 	(4) provide facts and data on the impact of the proposed local sales tax on consumer 
89.21 	purchases; and
89.22 	(5) provide facts and data related to the individual programs and projects to be funded 
89.23 	with the local sales tax.

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

89.25 	Sec. 2. Minnesota Statutes 2022, section 297A.99, is amended by adding a subdivision to 
89.26 	read:
89.27 		Subd. 2a.Scope. The provisions of this section only apply to a tax imposed and enacted 
89.28 	by special law. A political subdivision seeking to amend, extend, or otherwise change a tax 
89.29 	imposed and enacted before July 1, 2024, must do so pursuant to the requirements of section 
89.30 	297A.9901.

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

90.1 	Sec. 3. Minnesota Statutes 2022, section 297A.99, subdivision 3, is amended to read:
90.2 		Subd. 3.Legislative authority required before voter approval; requirements for 
90.3 	adoption, use, termination. (a) A political subdivision must receive legislative authority 
90.4 	to impose a local sales tax before submitting the tax for approval by voters of the political 
90.5 	subdivision. Imposition of a local sales tax is subject to approval by voters of the political 
90.6 	subdivision at a general election. The election must be conducted at a general election within 
90.7 	the two-year period after the governing body of the political subdivision has received 
90.8 	authority to impose the tax. If the authorizing legislation allows the tax to be imposed for 
90.9 	more than one project, there must be a separate question approving the use of the tax revenue 
90.10 	for each project. Notwithstanding the authorizing legislation, a project that is not approved 
90.11 	by the voters may not be funded with the local sales tax revenue and the termination date 
90.12 	of the tax set in the authorizing legislation must be reduced proportionately based on the 
90.13 	share of that project's cost to the total costs of all projects included in the authorizing 
90.14 	legislation.
90.15 	(b) The proceeds of the tax must be dedicated exclusively to payment of the construction 
90.16 	and rehabilitation costs and associated bonding costs related to the specific capital 
90.17 	improvement projects that were approved by the voters under paragraph (a).
90.18 	(c) The tax must terminate after the revenues raised are sufficient to fund the projects 
90.19 	approved by the voters under paragraph (a).
90.20 	(d) After a sales tax imposed by a political subdivision has expired or been terminated, 
90.21 	the political subdivision is prohibited from imposing a local sales tax for a period of one 
90.22 	year.
90.23 	(e) Notwithstanding paragraph (a), if a political subdivision received voter approval to 
90.24 	seek authority for a local sales tax at the November 6, 2018, general election and is granted 
90.25 	authority to impose a local sales tax before January 1, 2021, the tax may be imposed without 
90.26 	an additional referendum provided that it meets the requirements of subdivision 2 and the 
90.27 	list of specific projects contained in the resolution does not conflict with the projects listed 
90.28 	in the approving referendum. Beginning January 1, 2025, the reporting requirements under 
90.29 	section 297A.9902 apply to taxes authorized under special law or the requirements of this 
90.30 	section.
90.31 	(f) If a tax is terminated because sufficient revenues have been raised, any amount of 
90.32 	tax collected under subdivision 9, after sufficient revenues have been raised and before the 
90.33 	quarterly termination required under subdivision 12, paragraph (a), that is greater than the 
91.1 	average quarterly revenues collected over the immediately preceding 12 calendar months 
91.2 	must be retained by the commissioner for deposit in the general fund.
91.3 	(g) A political subdivision that receives special law authority to impose a tax must file 
91.4 	a certificate of local approval with the secretary of state in accordance with section 645.021, 
91.5 	subdivisions 2 and 3. If the tax is approved by the voters, the political subdivision must 
91.6 	impose the tax within 15 months of receiving such voter approval. If the tax is not imposed 
91.7 	within 15 months, the special law authority to impose the tax expires.
91.8 	(h) Upon expiration of a tax authorized under this section or any other law, ordinance, 
91.9 	or city charter, the combined tax rate limit in section 297A.9901, subdivision 7, applies.
91.10 	(i) If, after receiving voter approval, a political subdivision cancels a project approved 
91.11 	by the voters, the political subdivision must notify the commissioner. The commissioner 
91.12 	must proportionately decrease the maximum amount of tax revenue the political subdivision 
91.13 	may collect and must adjust the termination of the tax accordingly. If the political subdivision 
91.14 	has already collected revenue for the canceled project, the political subdivision must return 
91.15 	the funds to the commissioner for deposit into the local sales tax equalization distribution 
91.16 	account. The political subdivision must use any other source of revenue available to pay 
91.17 	any outstanding debt on the bonds that were issued for the canceled project.

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

91.19 	Sec. 4. [297A.9901] LOCAL SALES TAXES; LOCAL AUTHORIZATION 
91.20 	ALLOWED.
91.21 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
91.22 	the meanings given.
91.23 	(b) "Convention center" means a structure that is expressly designed and constructed 
91.24 	for the purpose of presenting conventions, public meetings, and exhibitions and that contains 
91.25 	at least 50,000 square feet for exhibit and meeting spaces and includes parking facilities 
91.26 	that serve the center.
91.27 	(c) "Correctional facility" means a public facility licensed and inspected by the 
91.28 	commissioner of corrections, established and operated for the detention and confinement 
91.29 	of adults or juveniles, including but not limited to programs or facilities operating under 
91.30 	chapter 401, secure juvenile detention facilities, municipal holding facilities, juvenile 
91.31 	temporary holdover facilities, regional or local jails, lockups, work houses, work farms, and 
91.32 	detention facilities.
92.1 	(d) "District court" means one of the ten judicial district courts in the state of Minnesota 
92.2 	subject to chapter 484.
92.3 	(e) "Law enforcement center" means a facility that serves multiple communities and 
92.4 	provides public safety functions, including a fire or police station and a facility that provides 
92.5 	emergency 911 and dispatch functions, training facilities, court security and support, 
92.6 	emergency operations, evidence and record retention, and other public safety services.
92.7 	(f) "Library" means a library that is part of a regional public library system as designated 
92.8 	by the regional library board pursuant to section 134.20.
92.9 	(g) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
92.10 	(h) "Park" means an area of regional significance that contains natural, seminatural, or 
92.11 	planted space set aside for recreation and enjoyment of the public or for the protection of 
92.12 	wildlife or natural habitats.
92.13 	(i) "Political subdivision" means a county located in Minnesota or a statutory or home 
92.14 	rule charter city located in Minnesota.
92.15 	(j) "Specified capital project" means a convention center, correctional facility, district 
92.16 	court, law enforcement center, library, park, or trail. A specified capital project must serve 
92.17 	a regional population, provide economic development benefits and opportunities, or draw 
92.18 	nonresident individuals to the region.
92.19 	(k) "Sports complex" means a defined area of sports pavilions, stadiums, gymnasiums, 
92.20 	swimming pools, or similar facilities where regional tournaments may be hosted, and where 
92.21 	members of the public engage in physical exercise, participate in athletic competitions, 
92.22 	witness sporting events, and host regional tournaments.
92.23 	(l) "Trail" means a path or track that passes through a natural area and that serves a 
92.24 	destination, provides recreational opportunities, and draws a regional population.
92.25 		Subd. 2.Local authorization allowed. Notwithstanding section 477A.016 or any other 
92.26 	law or ordinance, a political subdivision may impose, extend, or modify the uses of a local 
92.27 	sales tax to finance a specified capital project by: (1) meeting the requirements of this 
92.28 	section; (2) receiving approval from the commissioner; and (3) receiving voter approval. 
92.29 	The authorization under this section applies to an extension to or modification of a local 
92.30 	sales tax authorized under special law or the requirements of section 297A.99, or any other 
92.31 	law, ordinance, city charter, or other provision.
92.32 		Subd. 3.Use of proceeds. The proceeds of a tax imposed under this section must be 
92.33 	dedicated exclusively to payment of construction or rehabilitation costs, including associated 
93.1 	bonding costs and interest, related to the specified capital projects approved by the voters. 
93.2 	Specified capital projects must meet the requirements specified in subdivisions 1 and 4 to 
93.3 	6. The political subdivision imposing the tax must not commingle revenue from a tax 
93.4 	approved by the voters under this section with revenue from a tax authorized under section 
93.5 	297A.99, or any other law, ordinance, city charter, or other provision, including an extension 
93.6 	of or modification to the uses of a tax for a different project.
93.7 		Subd. 4.Sports complexes and convention centers; additional requirements. (a) To 
93.8 	impose a tax to fund the construction or rehabilitation of a sports complex or convention 
93.9 	center, a political subdivision must demonstrate the following:
93.10 	(1) an analysis of the surrounding region demonstrates that there is no similar sports 
93.11 	complex or convention center open to nonresidents at the same cost as residents within a 
93.12 	15-mile radius of the political subdivision for political subdivisions located outside of a 
93.13 	metropolitan county and within an eight-mile radius of the political subdivision for political 
93.14 	subdivisions located within a metropolitan county; and
93.15 	(2) if admission or entry fees are charged to members of the public for use of the facility, 
93.16 	the fees must be charged equally to residents and nonresidents of the political subdivision 
93.17 	imposing the tax.
93.18 	(b) The political subdivision must submit documentation of the requirements of paragraph 
93.19 	(a) to the commissioner pursuant to the requirements of section 297A.9902, subdivision 1.
93.20 		Subd. 5.Criminal justice facilities; additional requirements. (a) To impose a tax to 
93.21 	fund the construction or rehabilitation of or improvements to a correctional facility, a political 
93.22 	subdivision must demonstrate the need for the facility by providing official documentation 
93.23 	of the age of the facility; and either:
93.24 	(1) official correspondence from the Department of Corrections that includes an analysis 
93.25 	of the facility and description of the improvements or updates needed; or
93.26 	(2) if the facility is a joint project between two or more counties, the joint powers 
93.27 	agreement or other official documentation between at least one other county demonstrating 
93.28 	that the facility will serve public safety functions for the region.
93.29 	(b) To impose a tax to fund construction or rehabilitation of or improvements to a district 
93.30 	court office, a political subdivision must demonstrate the need for the facility by providing 
93.31 	the age of the facility and a description of improvements needed.
93.32 	(c) To impose a tax to fund construction or rehabilitation of or improvements to a law 
93.33 	enforcement center, a political subdivision must provide resolutions from the governing 
94.1 	bodies of surrounding counties, statutory or home rule charter cities, or townships affirming 
94.2 	that the functions of the law enforcement center will meet the needs of the surrounding 
94.3 	county, statutory or home rule charter city, or township.
94.4 	(d) The political subdivision must submit documentation of the requirements of 
94.5 	paragraphs (a) to (c) to the commissioner pursuant to the requirements of section 297A.9902, 
94.6 	subdivision 1.
94.7 		Subd. 6.Parks and trails; additional requirements. (a) To impose a tax to fund the 
94.8 	construction or rehabilitation of or improvements to a park, a political subdivision must 
94.9 	demonstrate that the park:
94.10 	(1) provides a natural resource-based setting, outdoor recreation facilities, and multiple 
94.11 	activities that are primarily natural resource-based;
94.12 	(2) occupies at least 100 acres of land;
94.13 	(3) is utilized by a regional population; and
94.14 	(4) includes unique natural, historic, or cultural features or characteristics.
94.15 	(b) To impose a tax to fund the construction or rehabilitation of or improvements to a 
94.16 	trail, a political subdivision must demonstrate that the trail:
94.17 	(1) serves more than a local population and encompasses multiple jurisdictions; and
94.18 	(2) connects to existing or planned state or regional parks or trails.
94.19 	(c) The political subdivision must submit documentation of the requirements of 
94.20 	paragraphs (a) and (b) to the commissioner pursuant to the requirements of section 
94.21 	297A.9902, subdivision 1.
94.22 	(d) In determining whether the proposed park or trail meets the criteria established in 
94.23 	paragraphs (a) and (b), the commissioner may consult examples and guidance provided by 
94.24 	the Department of Natural Resources Parks and Trails Legacy Plan dated February 14, 2011.
94.25 		Subd. 7.Tax rate and duration. (a) The combined total tax rate imposed by a political 
94.26 	subdivision under this section and section 297A.99 must not exceed one percent. If a local 
94.27 	sales tax is imposed by a county, the limit under this paragraph includes any tax authorized 
94.28 	under section 297A.993.
94.29 	(b) The maximum collection period for a tax imposed under this section must be the 
94.30 	earlier of the amount of time necessary to collect the revenue equal to the cost of the specified 
94.31 	capital projects approved by the voters, including associated financing costs, or 30 years.
95.1 		Subd. 8.Bonds; authorization. (a) A political subdivision may issue bonds under 
95.2 	chapter 475 to finance all or a portion of the costs of a specified capital project. The aggregate 
95.3 	principal amount of bonds issued must not exceed the cost of a qualifying capital project 
95.4 	approved by the voters, plus an amount to be applied to the payment of the costs of issuing 
95.5 	the bonds, including interest. The bonds may be paid from or secured by any funds available 
95.6 	to the political subdivision, including the tax authorized under this section and approved 
95.7 	by the voters. The issuance of bonds under this subdivision is not subject to sections 275.60 
95.8 	and 275.61.
95.9 	(b) A separate election to approve the bonds under section 475.58 is not required.
95.10 		Subd. 9.Public hearing required. (a) Prior to seeking authority to impose a tax under 
95.11 	this section, a political subdivision must hold at least one public hearing occurring not before 
95.12 	6:00 p.m. that is open to residents and nonresidents, at which equal time is given to 
95.13 	proponents and opponents to express their opinions on the imposition of the tax. Notice of 
95.14 	the hearing must be given at least 14 days in advance and published on the political 
95.15 	subdivision's website detailing the time and location of the hearing and contain the following 
95.16 	information:
95.17 	(1) the proposed tax rate;
95.18 	(2) a description of each project proposed to be funded by the local sales tax; and
95.19 	(3) the amount of tax revenue to be used for each project and the estimated time needed 
95.20 	to raise that amount of revenue, inclusive of the estimated amount distributed under 
95.21 	subdivision 16, paragraph (a).
95.22 	(b) The political subdivision must submit the minutes from this hearing to the 
95.23 	commissioner when requesting approval of the tax pursuant to the provisions of section 
95.24 	297A.9902, subdivision 1, paragraph (a).
95.25 		Subd. 10.Resolution required. (a) After conducting the public hearing required under 
95.26 	subdivision 9 and before the governing body of a political subdivision seeks voter approval 
95.27 	to impose a local sales tax, the governing body must adopt a resolution indicating its approval 
95.28 	of the tax. The resolution must include the following information:
95.29 	(1) the proposed tax rate;
95.30 	(2) a detailed description of no more than three projects that will be funded with revenue 
95.31 	from the tax;
95.32 	(3) documentation of the regional significance of each specified capital project, including:
96.1 	(i) the share of the economic benefit to or use of each project by persons residing, or 
96.2 	businesses located, outside of the jurisdiction; and
96.3 	(ii) demonstration that the project meets the requirements of the applicable definitions 
96.4 	in subdivision 1, as well as the requirements of subdivisions 4 to 6;
96.5 	(4) the amount of local sales tax revenue that will be used for each project and the 
96.6 	estimated time needed to raise that amount of revenue; and
96.7 	(5) the total revenue that will be raised for all projects before the tax expires, and the 
96.8 	estimated length of time that the tax will be in effect if all proposed projects are funded.
96.9 	(b) The political subdivision must submit the resolution along with underlying 
96.10 	documentation to the commissioner pursuant to the provisions of section 297A.9902, 
96.11 	subdivision 1, paragraph (a).
96.12 		Subd. 11.Community support required. Prior to seeking authority to impose a tax 
96.13 	under this section, a political subdivision must provide to the commissioner letters or 
96.14 	resolutions from the governing bodies of at least two surrounding local governments that 
96.15 	affirmatively acknowledge that there is a local or regional need for the proposed specified 
96.16 	capital project. Documentation must be submitted to the commissioner as required by section 
96.17 	297A.9902, subdivision 1, paragraph (a).
96.18 		Subd. 12.Voter approval required. (a) A local sales tax approved by the commissioner 
96.19 	is subject to voter approval prior to being imposed. A referendum must be conducted pursuant 
96.20 	to the following requirements:
96.21 	(1) the referendum must be held on the first Tuesday after the first Monday in November 
96.22 	at a general or special election, so long as the ballot question for approval of the tax is not 
96.23 	the only item on the ballot, within the two-year period after the political subdivision has 
96.24 	received authority to impose the tax. For purposes of this section, "general election" and 
96.25 	"special election" have the meanings given in section 200.02, except that a special election 
96.26 	held under this section must be held on the first Tuesday after the first Monday in November;
96.27 	(2) the ballot language must contain the following information:
96.28 	(i) a description of each specified capital project that will be funded by the tax;
96.29 	(ii) the projected start date of the tax;
96.30 	(iii) the proposed tax rate;
96.31 	(iv) the cost of the project, including associated financing costs;
96.32 	(v) the maximum amount of time the tax will be imposed;
97.1 	(vi) a statement that a portion of the tax revenue will be used for payment into the local 
97.2 	sales tax equalization distribution account; and
97.3 	(vii) a statement that an affirmative vote means that a new tax will be imposed or that 
97.4 	an existing tax will be extended or increased;
97.5 	(3) the ballot language must not contain any statement that informs the voter that by 
97.6 	voting "no" the voter acknowledges that the project subject to approval in the question may 
97.7 	be funded by increased property taxes; and
97.8 	(4) each project must be a separate ballot question if a political subdivision is seeking 
97.9 	voter approval for more than one project.
97.10 	(b) A project that is not approved by the voters may not be funded with the tax revenue 
97.11 	and the termination date of the tax approved by the commissioner must be reduced 
97.12 	proportionately based on the share of that project's cost to the total costs of all projects.
97.13 	(c) A political subdivision may not advertise or expend funds for the promotion of a 
97.14 	referendum to support imposing a tax and may only spend funds related to:
97.15 	(1) conduct the referendum;
97.16 	(2) disseminate information regarding the projects to be funded with the tax;
97.17 	(3) provide notice of and conduct public forums at which proponents and opponents of 
97.18 	the referendum are given equal time to express their opinions on the merits of the referendum; 
97.19 	and
97.20 	(4) provide facts and data on the impact of the proposed local sales tax on consumer 
97.21 	purchases.
97.22 	(d) The political subdivision must submit the language of each ballot question to the 
97.23 	commissioner for approval prior to printing the ballot for use in a referendum.
97.24 		Subd. 13.Legislative approval required. (a) A political subdivision seeking to impose 
97.25 	a tax must obtain legislative approval to impose the tax if the tax does not meet the 
97.26 	requirements of this section or if the commissioner does not approve the proposal submitted 
97.27 	for imposition of the tax. The provisions of section 297A.99 apply to any tax imposed by 
97.28 	special law.
97.29 	(b) In addition to the requirements imposed under section 297A.99, subdivision 2, the 
97.30 	political subdivision must include in its resolution submitted to the legislature:
97.31 	(1) a detailed description of how the request does not meet the requirements of this 
97.32 	section; and
98.1 	(2) letters or resolutions from the governing bodies of each local government located in 
98.2 	Minnesota that abuts the political subdivision that affirmatively acknowledge that there is 
98.3 	a local or regional need for the proposed capital project.
98.4 	(c) A tax approved by the legislature is subject to the collection and retention provisions 
98.5 	of subdivision 16, section 297A.9902, subdivision 2, and section 297A.9903.
98.6 		Subd. 14.Filing and imposition requirements. A political subdivision with approval 
98.7 	to impose a tax from the commissioner under this section must file a certificate of local 
98.8 	approval with the secretary of state within 60 days after receiving voter approval for the tax 
98.9 	to be lawfully imposed. If the tax is approved by the voters, the political subdivision must 
98.10 	impose the tax within 15 months of receiving such voter approval. If the tax is not imposed 
98.11 	within 15 months, the authority to impose the tax under this section expires.
98.12 		Subd. 15.Administration; termination. (a) A political subdivision imposing a tax 
98.13 	under this section must not commingle revenue from a tax for a project or projects approved 
98.14 	by the voters under this section with revenue from a tax authorized under section 297A.99 
98.15 	or any other law, ordinance, city charter, or other provision, including an extension of or 
98.16 	modification to the uses of a tax for a different project.
98.17 	(b) A political subdivision imposing the tax must notify the commissioner and the state 
98.18 	auditor at least 60 days before the date the political subdivision anticipates that revenues 
98.19 	raised from the tax are sufficient to fund the projects approved by the voters. The notification 
98.20 	applies to each authorization of a tax and each project approved by the voters, regardless 
98.21 	of whether the legislature has authorized the tax, notwithstanding the requirements of section 
98.22 	297A.99, subdivision 3, paragraph (d).
98.23 	(c) After a tax imposed by a political subdivision has expired or been terminated, the 
98.24 	political subdivision is prohibited from imposing a new local sales tax for a period of one 
98.25 	year.
98.26 	(d) If, after receiving voter approval, a political subdivision cancels a project approved 
98.27 	by the voters, the political subdivision must notify the commissioner and the state auditor. 
98.28 	The commissioner must proportionately decrease the maximum amount of tax revenue the 
98.29 	political subdivision may collect and must adjust the termination of the tax accordingly. If 
98.30 	the political subdivision has already collected revenue for the canceled project, the political 
98.31 	subdivision must return the funds to the commissioner for deposit into the local sales tax 
98.32 	equalization distribution account. The political subdivision must use any other source of 
98.33 	revenue available to pay any outstanding debt on the bonds that were issued for the canceled 
98.34 	project.
99.1 		Subd. 16.Collection and retention. (a) The commissioner shall remit the proceeds of 
99.2 	the tax, less refunds and a proportionate share described in clauses (1) to (3), at least 
99.3 	quarterly, to the political subdivision. The commissioner shall deduct from the proceeds 
99.4 	distributed to a political subdivision an amount that equals:
99.5 	(1) one percent for the direct and indirect costs of the department to administer, audit, 
99.6 	and collect the tax, of which a portion must be used for the cost of constructing and 
99.7 	maintaining a zip code or geocode database necessary for local sales tax collections under 
99.8 	the Streamlined Sales and Use Tax Agreement in section 297A.995;
99.9 	(2) one percent for the direct and indirect costs of the state auditor to audit the tax; and
99.10 	(3) the political subdivision's contribution share of the amount to be paid under section 
99.11 	297A.9903, as defined by subdivision 17.
99.12 	(b) The revenue retained by the commissioner under paragraph (a), clause (1), must be 
99.13 	deposited into the Revenue Department service and recovery special revenue fund established 
99.14 	under section 270C.15.
99.15 	(c) The revenue retained for the purpose outlined in paragraph (a), clause (2), must be 
99.16 	deposited into the state auditor service and recovery account.
99.17 	(d) The revenue retained for the purpose outlined in paragraph (a), clause (3), must be 
99.18 	deposited into the local sales tax equalization distribution account.
99.19 		Subd. 17.Contribution share. The amount of tax that the commissioner must retain 
99.20 	under subdivision 16, paragraph (a), clause (3), is equal to:
99.21 	(1) 15 percent for a political subdivision whose tax is authorized and imposed under this 
99.22 	section;
99.23 	(2) 15 percent for a political subdivision that amends, extends, or otherwise modifies a 
99.24 	tax that was authorized and imposed by special law before July 1, 2024; or
99.25 	(3) 20 percent for a political subdivision that is authorized by special law to impose a 
99.26 	new tax after July 1, 2024.
99.27 		Subd. 18.Enforcement. If notified by the state auditor that a political subdivision 
99.28 	imposing a tax under this section, section 297A.99, or by special law is not in compliance 
99.29 	with the requirements of section 297A.9902, subdivision 2, the commissioner must expire 
99.30 	the tax and deposit any funds collected into the local sales tax equalization distribution 
99.31 	account.
100.1 		Subd. 19.Accounts established; transfer. (a) The local sales tax equalization distribution 
100.2 	account is established in the special revenue fund. Funds in the account must be distributed 
100.3 	in accordance with section 297A.9903.
100.4 	(b) The state auditor service and recovery account is established in the special revenue 
100.5 	fund. Each October 1, the commissioner of revenue must transfer the balance of the account 
100.6 	into the general fund.
100.7 		Subd. 20.Other provisions apply. (a) The provisions of section 297A.99, subdivisions 
100.8 	4 to 10 and 12 to 13, apply to taxes authorized under this section.
100.9 	(b) The requirements of section 475.53 apply to bonds issued for projects under this 
100.10 	section.
100.11 	(c) All contracts for construction of specified capital projects under this section are 
100.12 	subject to the requirements and enforcement provisions of sections 177.27, 177.30, 177.32, 
100.13 	177.41 to 177.435, 177.44, and 177.45. For purposes of complying with section 177.30, 
100.14 	paragraph (a), clauses (6) and (7), and sections 177.41 to 177.435, the political subdivision 
100.15 	imposing the tax is the contracting authority and contracting agency and the project is 
100.16 	considered a public works project.

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

100.18 	Sec. 5. [297A.9902] LOCAL SALES TAXES; VERIFICATION AND OVERSIGHT.
100.19 		Subdivision 1.Filing requirement. (a) A political subdivision seeking to impose a local 
100.20 	sales tax under the provisions of section 297A.9901 must file a copy of all documentation 
100.21 	required under section 297A.9901 with the commissioner. A political subdivision may file 
100.22 	documentation at any point during the year, but documentation must be filed by October 
100.23 	31 to comply with the requirements of section 297A.99, subdivision 2, paragraph (b).
100.24 	(b) The commissioner must verify whether each project included in the submission under 
100.25 	paragraph (a) meets the requirements of section 297A.9901. The commissioner must notify 
100.26 	the political subdivision of the commissioner's determination within 60 days of receipt of 
100.27 	the submission under paragraph (a). Any political subdivision that files its submission by 
100.28 	October 31 must receive the commissioner's determination by January 10 of the following 
100.29 	year. If the commissioner determines that a project does not meet the requirements of section 
100.30 	297A.9901, the political subdivision may seek legislative authorization for a local sales tax 
100.31 	to finance the project under the provisions of section 297A.99.
100.32 		Subd. 2.Annual financial reporting. By January 31 of each budget year, a political 
100.33 	subdivision imposing a local sales tax pursuant to section 297A.99 or 297A.9901 or under 
101.1 	special law, or by city charter or ordinance must submit information regarding the uses of 
101.2 	the local sales tax to the state auditor. The information must be submitted in the form and 
101.3 	manner prescribed by the state auditor. The state auditor or the state auditor's designees 
101.4 	may examine records of a political subdivision to complete or verify the provided 
101.5 	information.
101.6 		Subd. 3.Enforcement. If the state auditor finds a political subdivision does not provide 
101.7 	the information required by subdivision 2 of this section or is not in compliance with the 
101.8 	required use of proceeds of the local sales tax as provided by section 297A.9901, subdivision 
101.9 	3, as approved by the voters or any use of proceeds requirements as required by a special 
101.10 	law as approved by the voters, the state auditor must notify the governing body of the 
101.11 	political subdivision of its findings. The governing body of the political subdivision must 
101.12 	respond in writing to the state auditor within 60 days after receiving the notification. The 
101.13 	written response must state whether the political subdivision accepts in whole or in part the 
101.14 	auditor's findings. If the political subdivision does not accept the findings, the statement 
101.15 	must indicate the basis for its disagreement. If the political subdivision does not take 
101.16 	corrective measures within 60 days of receipt of notice of noncompliance, the state auditor 
101.17 	must notify the commissioner.
101.18 		Subd. 4.Report. By February 15 of each year, the state auditor must submit a report to 
101.19 	the chairs and ranking minority members of the legislative committees with jurisdiction 
101.20 	over taxes summarizing the information provided by political subdivisions in the preceding 
101.21 	year under subdivision 2.

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

101.23 	Sec. 6. [297A.9903] LOCAL SALES TAX EQUALIZATION DISTRIBUTIONS.
101.24 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
101.25 	the meanings given.
101.26 	(b) "Adjusted net tax capacity" means the qualified recipient's adjusted net tax capacity 
101.27 	under section 273.1325.
101.28 	(c) "Average fiscal capacity" means the sum of the adjusted net tax capacities of all 
101.29 	qualified recipients, divided by the sum of their populations.
101.30 	(d) "Contribution share" means the percentage of the total local sales taxes that were 
101.31 	collected by a political subdivision in the previous calendar year pursuant to section 297A.99, 
101.32 	subdivision 2a, or 297A.9901, subdivision 16, paragraph (a), clause (3).
102.1 	(e) "Distribution index" for a qualified recipient means the product of: (1) its population; 
102.2 	and (2) the proportion which the average fiscal capacity in the preceding year bears to the 
102.3 	fiscal capacity of the qualified recipient for the preceding year.
102.4 	(f) "Distribution share" for a qualified recipient means the product of: (1) the total of all 
102.5 	contribution shares of all political subdivisions; and (2) the proportion which the distribution 
102.6 	index for the qualified recipient bears to the sum of the distribution indices of all qualified 
102.7 	recipients.
102.8 	(g) "Fiscal capacity" of a qualified recipient means its adjusted net tax capacity divided 
102.9 	by its population.
102.10 	(h) "Local sales tax" means: (1) a local sales tax imposed under section 297A.9901; or 
102.11 	(2) a local sales tax imposed under section 297A.99, or special law that was enacted or 
102.12 	modified after July 1, 2024.
102.13 	(i) "Political subdivision" means a political subdivision as defined in section 297A.9901, 
102.14 	subdivision 1.
102.15 	(j) "Population" means the population estimated or established, as of January 1 in the 
102.16 	year distributions under this section are calculated, by the most recent federal census, by a 
102.17 	special census conducted under contract with the United States Bureau of the Census, or 
102.18 	by a population estimate of the state demographer made pursuant to section 4A.02, whichever 
102.19 	is the most recent.
102.20 	(k) "Qualified recipient" means a political subdivision that either: (1) had a contribution 
102.21 	share greater than $0 based on local sales taxes collected in the prior calendar year; or (2) 
102.22 	did not collect a local sales tax in the prior calendar year that was approved by voters prior 
102.23 	to July 1, 2024.
102.24 		Subd. 2.Local sales tax revenue sharing required. A political subdivision with a local 
102.25 	sales tax is subject to the contribution requirements under subdivision 3 for any calendar 
102.26 	year, or portion thereof, in which a local sales tax was collected. All qualified recipients 
102.27 	are eligible for distributions under this section, and the commissioner of revenue must 
102.28 	annually calculate each qualified recipient's distribution share.
102.29 		Subd. 3.Contribution share. Pursuant to section 297A.9901, subdivision 16, paragraph 
102.30 	(a), clause (3), the commissioner of revenue must annually retain each political subdivision's 
102.31 	contribution share. For any calendar year in which a political subdivision does not have a 
102.32 	local sales tax, the political subdivision's contribution share is $0.
103.1 		Subd. 4.Certification. The commissioner of revenue must annually calculate and certify 
103.2 	each political subdivision's contribution share and each qualified recipient's distribution 
103.3 	share, based on local sales taxes collected in the prior calendar year. The commissioner 
103.4 	must provide notice of the certification to each political subdivision by January 31.
103.5 		Subd. 5.Settlement. By March 15 annually, the commissioner of revenue must pay to 
103.6 	each qualified recipient the distribution share certified under subdivision 4.
103.7 		Subd. 6.Future contributions and payments A political subdivision that has imposed 
103.8 	a local sales tax prior to July 1, 2024, is a qualified recipient under this section if:
103.9 	(1) the political subdivision modifies, increases, or extends the local sales tax;
103.10 	(2) the political subdivision imposes a new local tax under section 297A.9901 or special 
103.11 	law; or
103.12 	(3) the political subdivision's existing local sales tax expires.
103.13 		Subd. 7.Appropriation. The amount required to make distributions under this section 
103.14 	is appropriated from the local sales tax equalization distribution account established under 
103.15 	section 297A.9901, subdivision 19, paragraph (a), to the commissioner of revenue.

103.16 	Sec. 7. OFFICE OF THE STATE AUDITOR; APPROPRIATION.
 103.17 	$150,000 in fiscal year 2025 is appropriated from the general fund to the state auditor 
103.18 	to implement the requirements of Minnesota Statutes, section 297A.9902. The base for this 
103.19 	appropriation is $110,000 in fiscal year 2026 and $116,000 in fiscal year 2027.

103.20 	Sec. 8. REPEALER.
 103.21 	Minnesota Statutes 2023 Supplement, section 297A.99, subdivision 3a, is repealed.

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

103.23 	ARTICLE 7
103.24 	SPECIAL LOCAL TAXES

103.25 	Section 1. Minnesota Statutes 2022, section 469.190, subdivision 1, is amended to read:
103.26 		Subdivision 1.Authorization. (a) Notwithstanding section 477A.016 or any other law, 
103.27 	a statutory or home rule charter city may by ordinance, and a town may by the affirmative 
103.28 	vote of the electors at the annual town meeting, or at a special town meeting, impose a tax 
103.29 	of up to three percent on the gross receipts from the furnishing for consideration of lodging 
103.30 	at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing 
104.1 	of it for a continuous period of 30 days or more. A statutory or home rule charter city may 
104.2 	by ordinance impose the tax authorized under this subdivision on the camping site receipts 
104.3 	of a municipal campground.
104.4 	(b) A lodging tax imposed under this section, a city charter, or a special law applies to 
104.5 	the entire consideration paid to obtain access to lodging, including ancillary or related 
104.6 	services, such as services provided by an accommodations intermediary as defined in section 
104.7 	297A.61, subdivision 47.

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

104.9 	Sec. 2. Minnesota Statutes 2022, section 469.190, subdivision 7, is amended to read:
104.10 		Subd. 7.Collection. (a) The statutory or home rule charter city may agree with the 
104.11 	commissioner of revenue that a tax imposed pursuant to this section shall be collected by 
104.12 	the commissioner together with the tax imposed by chapter 297A, and subject to the same 
104.13 	interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be 
104.14 	remitted to the city.
104.15 	(b) If a lodging tax imposed under this section, a city charter, or a special law is not 
104.16 	collected by the commissioner of revenue, the local government imposing the tax may, by 
104.17 	ordinance, limit the required filing and remittance of the tax by an accommodations 
104.18 	intermediary to once per calendar year. The local government must inform the 
104.19 	accommodations intermediary of the date when the return or remittance is due and the dates 
104.20 	must coincide with one of the monthly dates for filing and remitting state sales tax under 
104.21 	chapter 297A. The local government must electronically provide an accommodations 
104.22 	intermediary with the geographic and zip code information necessary to properly collect 
104.23 	the tax.

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

104.25 	Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session 
104.26 	chapter 5, article 12, section 87, Laws 2012, chapter 299, article 3, section 3, and Laws 
104.27 	2019, First Special Session chapter 6, article 6, section 5, is amended to read:
104.28 	Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
 104.29 	The city may, by resolution, levy in addition to taxes authorized by other law:
104.30 	(1) a sales tax of not more than three 2.5 percent on the gross receipts on retail on-sales 
104.31 	of intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor 
105.1 	establishments located within the downtown taxing area, provided that this tax may not be 
105.2 	imposed if sales of intoxicating liquor and fermented malt beverages are exempt from 
105.3 	taxation under chapter 297A;
105.4 	(2) a sales tax of not more than three percent on the gross receipts from the furnishing 
105.5 	for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming 
105.6 	house, tourist court, or trailer camp located within the city by a hotel or motel which has 
105.7 	more than 50 rooms available for lodging; the tax imposed under this clause shall be at a 
105.8 	rate that, when added to the sum of the rate of all other city taxes on lodging in the city of 
105.9 	Minneapolis, equals 6.5 percent; and
105.10 	(3) a sales tax of not more than three 2.5 percent on the gross receipts on all sales of 
105.11 	food primarily for consumption on or off the premises by restaurants and places of 
105.12 	refreshment as defined by resolution of the city that occur within the downtown taxing area.
105.13 	The taxes authorized by this section must not be terminated before January 1, 2047. The 
105.14 	taxes shall be imposed and may be adjusted periodically by the city council such that the 
105.15 	rates imposed produce revenue sufficient, together with the tax imposed under section 4, 
105.16 	to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4, 
105.17 	subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes, 
105.18 	section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain, 
105.19 	and fund the payment of any principal of, premium on, and interest on any bonds or any 
105.20 	other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter 
105.21 	into appropriate agreements with the city to provide for the collection of these taxes by the 
105.22 	state on behalf of the city. These taxes shall be subject to the same interest, penalties, and 
105.23 	enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.

105.24 	EFFECTIVE DATE.  This section is effective for sales and purchases made after 
105.25 	September 30, 2024.

105.26 	Sec. 4. Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264, article 
105.27 	2, section 39, and Laws 2009, chapter 88, article 4, section 13, is amended to read:
105.28 	Sec. 44. DOWNTOWN TAXING AREA.
 105.29 	If a bill is enacted into law in the 1986 legislative session which authorizes the city of 
105.30 	Minneapolis to issue bonds and expend certain funds including taxes to finance the 
105.31 	acquisition and betterment of a convention center and related facilities, which authorizes 
105.32 	certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions 
105.33 	of that law "downtown taxing area" shall mean the geographic area bounded by the portion 
106.1 	of the Mississippi River between I-35W and Washington Avenue, the portion of Washington 
106.2 	Avenue between the river and I-35W, the portion of I-35W between Washington Avenue 
106.3 	and 8th Street Portland Avenue South, the portion of 8th Street South between I-35W and 
106.4 	Portland Avenue South, the portion of Portland Avenue South between 8th Street South 
106.5 	and I-94, the portion of I-94 from the intersection of Portland Avenue South to the 
106.6 	intersection of I-94 and the Burlington Northern Railroad tracks Plymouth Avenue North, 
106.7 	the portion of the Burlington Northern Railroad tracks from I-94 Plymouth Avenue North 
106.8 	to the Mississippi River. From Plymouth Avenue North and the Mississippi River south to 
106.9 	Main Street and including Nicollet Island, and the portion of Main Street to Hennepin 
106.10 	Avenue and the portion of Hennepin Avenue between Main Street and 2nd Street S.E., and 
106.11 	the portion of 2nd Street S.E. between Main Street and Bank Street, and the portion of Bank 
106.12 	Street between 2nd Street S.E. and University Avenue S.E., and the portion of University 
106.13 	Avenue S.E. between Bank Street and I-35W, and by I-35W from University Avenue S.E., 
106.14 	to the river. The downtown taxing area excludes the area bounded on the south and west 
106.15 	by Oak Grove Street, on the east by Spruce Place, and on the north by West 15th Street. 
106.16 	The downtown taxing area also excludes any property located in a zone that is contained 
106.17 	in chapter 546 of the Minneapolis Zoning Code of Ordinances on which a restaurant with 
106.18 	a wine license is operated.

106.19 	EFFECTIVE DATE.  This section is effective for sales and purchases made after 
106.20 	September 30, 2024.

106.21 	ARTICLE 8
106.22 	PUBLIC FINANCE

106.23 	Section 1. Minnesota Statutes 2022, section 123B.71, subdivision 8, is amended to read:
106.24 		Subd. 8.Review and comment. A school district, a special education cooperative, or 
106.25 	a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not 
106.26 	initiate enter into an installment contract for purchase or a lease agreement, hold a referendum 
106.27 	for bonds, nor solicit bids for new construction, expansion, or remodeling of an educational 
106.28 	facility that requires an expenditure in excess of $500,000 per school site if it has a capital 
106.29 	loan outstanding, or $2,000,000 per school site if it does not have a capital loan outstanding, 
106.30 	prior to review and comment by the commissioner. A facility addition, maintenance project, 
106.31 	or remodeling project New construction, expansion, or remodeling of an educational facility
106.32 	funded only with general education revenue, lease levy proceeds from an additional capital 
106.33 	expenditure levy under section 126C.40, subdivision 1, capital facilities bond proceeds, or 
106.34 	long-term facilities maintenance revenue is exempt from this provision. A capital project 
107.1 	under section 123B.63 addressing only technology is exempt from this provision if the 
107.2 	district submits a school board resolution stating that funds approved by the voters will be 
107.3 	used only as authorized in section 126C.10, subdivision 14. A school board shall not separate 
107.4 	portions of a single project into components to avoid the requirements of this subdivision.

107.5 	Sec. 2. Minnesota Statutes 2023 Supplement, section 123B.71, subdivision 12, is amended 
107.6 	to read:
107.7 		Subd. 12.Publication. (a) At least 48 days but not more than 60 88 days before a 
107.8 	referendum for bonds under chapter 475 or solicitation of bids for a project that has received 
107.9 	a positive or unfavorable review and comment under section 123B.70, the school board 
107.10 	shall publish a summary of the commissioner's review and comment of that project in the 
107.11 	legal newspaper of the district. The school board must hold a public meeting to discuss the 
107.12 	commissioner's review and comment before the such a referendum for bonds. Supplementary 
107.13 	information shall be available to the public. Where no such referendum for bonds is required, 
107.14 	the publication and public meeting requirements of this subdivision shall not apply.
107.15 	(b) The publication requirement in paragraph (a) does not apply to alternative facilities 
107.16 	projects approved under section 123B.595.

107.17 	Sec. 3. Minnesota Statutes 2023 Supplement, section 126C.40, subdivision 6, is amended 
107.18 	to read:
107.19 		Subd. 6.Lease purchase; installment buys. (a) Upon application to, and approval by, 
107.20 	the commissioner in accordance with the procedures and limits in subdivision 1, paragraphs 
107.21 	(a) and (b), a district, as defined in this subdivision, may:
107.22 	(1) purchase real or personal property under an installment contract or may lease real 
107.23 	or personal property with an option to purchase under a lease purchase agreement, by which 
107.24 	installment contract or lease purchase agreement title is kept by the seller or vendor or 
107.25 	assigned to a third party as security for the purchase price, including interest, if any; and
107.26 	(2) annually levy the amounts necessary to pay the district's obligations under the 
107.27 	installment contract or lease purchase agreement.
107.28 	(b) The obligation created by the installment contract or the lease purchase agreement 
107.29 	must not be included in the calculation of net debt for purposes of section 475.53, and does 
107.30 	not constitute debt under other law. An election is not required in connection with the 
107.31 	execution of the installment contract or the lease purchase agreement.
108.1 	(c) The proceeds of the levy authorized by this subdivision must not be used to acquire 
108.2 	a facility to be primarily used for athletic or school administration purposes.
108.3 	(d) For the purposes of this subdivision, "district" means:
108.4 	(1) Special School District No. 1, Minneapolis, Independent School District No. 625, 
108.5 	St. Paul, Independent School District No. 709, Duluth, or Independent School District No. 
108.6 	535, Rochester, if the district's desegregation plan has been determined by the commissioner 
108.7 	to be in compliance with Department of Education rules relating to equality of educational 
108.8 	opportunity and where the acquisition of property under this subdivision is determined by 
108.9 	the commissioner to contribute to the implementation of the desegregation plan; or
108.10 	(2) other districts eligible for revenue under section 124D.862 if the facility acquired 
108.11 	under this subdivision is to be primarily used for a joint program for interdistrict 
108.12 	desegregation and the commissioner determines that the joint programs are being undertaken 
108.13 	to implement the districts' desegregation plan.
108.14 	(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease 
108.15 	or rent a district-owned building to itself does not apply to levies otherwise authorized by 
108.16 	this subdivision.
108.17 	(f) For the purposes of this subdivision, any references in subdivision 1 to building or 
108.18 	land shall include personal property.
108.19 	(g) Projects funded under this subdivision that require an expenditure in excess of 
108.20 	$500,000 per school site if the school district has a capital loan outstanding, or $2,000,000 
108.21 	per school site if the school district does not have a capital loan outstanding, are subject to 
108.22 	review and comment under section 123B.71, subdivision 8, in the same manner as other 
108.23 	school construction projects.

108.24 	Sec. 4. Minnesota Statutes 2022, section 446A.086, subdivision 1, is amended to read:
108.25 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
108.26 	meanings given.
108.27 	(b) "Authority" means the Minnesota Public Facilities Authority.
108.28 	(c) "Commissioner" means the commissioner of management and budget.
108.29 	(d) "Debt obligation" means:
108.30 	(1) a general obligation bond or note issued by a county, a bond or note to which the 
108.31 	general obligation of a county is pledged under section 469.034, subdivision 2, or a bond 
109.1 	or note payable from a county lease obligation under section 641.24, to provide funds for 
109.2 	the construction of:
109.3 	(i) jails;
109.4 	(ii) correctional facilities;
109.5 	(iii) law enforcement facilities;
109.6 	(iv) a court house or justice center, if connected to a jail, correctional facility, or other 
109.7 	law enforcement facility;
109.8 	(iv) (v) social services and human services facilities;
109.9 	(v) (vi) solid waste facilities; or
109.10 	(vi) (vii) qualified housing development projects as defined in section 469.034, 
109.11 	subdivision 2; or
109.12 	(2) a general obligation bond or note issued by a governmental unit to provide funds for 
109.13 	the construction, improvement, or rehabilitation of:
109.14 	(i) wastewater facilities;
109.15 	(ii) drinking water facilities;
109.16 	(iii) stormwater facilities; or
109.17 	(iv) any publicly owned building or infrastructure improvement that has received partial 
109.18 	funding from grants awarded by the commissioner of employment and economic development 
109.19 	related to redevelopment, contaminated site cleanup, bioscience, small cities development 
109.20 	programs, and rural business infrastructure programs, for which bonds are issued by the 
109.21 	authority under section 446A.087.
109.22 	(e) "Governmental unit" means a county or a statutory or home rule charter city.

109.23 	Sec. 5. Minnesota Statutes 2022, section 469.104, is amended to read:
109.24 	469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.
109.25 	Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to 
109.26 	469.108 that are limited required by federal tax law as defined in section 474A.02, 
109.27 	subdivision 8, to obtain an allocation of volume cap.

110.1 	Sec. 6. Minnesota Statutes 2022, section 474A.091, subdivision 2, is amended to read:
110.2 		Subd. 2.Application for residential rental projects. (a) Issuers may apply for an 
110.3 	allocation for residential rental bonds under this section by submitting to the department an 
110.4 	application on forms provided by the department accompanied by:
110.5 	(1) a preliminary resolution;
110.6 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
110.7 	allocation under this chapter and the Internal Revenue Code;
110.8 	(3) an application deposit in the amount of two percent of the requested allocation;
110.9 	(4) a sworn statement from the applicant identifying the project as a preservation project, 
110.10 	30 percent AMI residential rental project, 50 percent AMI residential rental project, 100 
110.11 	percent LIHTC project, 20 percent LIHTC project, or any other residential rental project; 
110.12 	and
110.13 	(5) a certification from the applicant or its accountant stating that the requested allocation 
110.14 	does not exceed the aggregate bond limitation.
110.15 	The issuer must pay the application deposit to the Department of Management and Budget. 
110.16 	An entitlement issuer may not apply for an allocation for residential rental project bonds 
110.17 	under this section unless it has either permanently issued bonds equal to the amount of its 
110.18 	entitlement allocation for the current year plus any amount carried forward from previous 
110.19 	years or returned for reallocation all of its unused entitlement allocation. For purposes of 
110.20 	this subdivision, its entitlement allocation includes an amount obtained under section 
110.21 	474A.04, subdivision 6.
110.22 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
110.23 	obligations equal to all or a portion of the allocation received on or before the earlier of: 
110.24 	(1) 180 days of the allocation; or (2) the last business day of December. If an issuer that 
110.25 	receives an allocation under this subdivision does not permanently issue obligations equal 
110.26 	to all or a portion of the allocation received within the time period provided in this paragraph 
110.27 	or returns the allocation to the commissioner, the amount of the allocation is canceled and 
110.28 	returned for reallocation through the unified pool.
110.29 	(c) The Minnesota Housing Finance Agency may apply for and receive an allocation 
110.30 	under this section without submitting an application deposit.

111.1 	Sec. 7. Minnesota Statutes 2022, section 474A.091, subdivision 2a, is amended to read:
111.2 		Subd. 2a.Application for all other types of qualified bonds. (a) Issuers may apply 
111.3 	for an allocation for all types of qualified bonds other than residential rental bonds under 
111.4 	this section by submitting to the department an application on forms provided by the 
111.5 	department accompanied by:
111.6 	(1) a preliminary resolution;
111.7 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
111.8 	allocation under this chapter and the Internal Revenue Code;
111.9 	(3) the type of qualified bonds to be issued;
111.10 	(4) an application deposit in the amount of two percent of the requested allocation; and
111.11 	(5) a public purpose scoring worksheet for manufacturing and enterprise zone 
111.12 	applications.
111.13 	The issuer must pay the application deposit to the Department of Management and Budget. 
111.14 	An entitlement issuer may not apply for an allocation for public facility bonds or mortgage 
111.15 	bonds under this section unless it has either permanently issued bonds equal to the amount 
111.16 	of its entitlement allocation for the current year plus any amount carried forward from 
111.17 	previous years or returned for reallocation all of its unused entitlement allocation. For 
111.18 	purposes of this subdivision, an entitlement allocation includes an amount obtained under 
111.19 	section 474A.04, subdivision 6.
111.20 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
111.21 	obligations equal to all or a portion of the allocation received on or before the earlier of: 
111.22 	(1) 120 days of the allocation; or (2) the last business day of December. If an issuer that 
111.23 	receives an allocation under this subdivision does not permanently issue obligations equal 
111.24 	to all or a portion of the allocation received within the time period provided in this paragraph 
111.25 	or returns the allocation to the commissioner, the amount of the allocation is canceled and 
111.26 	returned for reallocation through the unified pool.
111.27 	(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
111.28 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
111.29 	under this section prior to the first Monday in October, but may be awarded allocations for 
111.30 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
111.31 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
111.32 	Rural Finance Authority may apply for and receive an allocation under this section without 
111.33 	submitting an application deposit.

112.1 	ARTICLE 9
112.2 	MISCELLANEOUS

112.3 	Section 1. Minnesota Statutes 2022, section 270C.21, is amended to read:
112.4 	270C.21 TAXPAYER ASSISTANCE GRANTS; TAX CREDIT OUTREACH 
112.5 	GRANTS.
112.6 		Subdivision 1.Taxpayer assistance. When the commissioner awards grants to eligible 
112.7 	organizations to coordinate, facilitate, encourage, and aid in the provision of taxpayer 
112.8 	assistance services under this section, the commissioner must provide public notice of the 
112.9 	grants in a timely manner so that the grant process is completed and grants are awarded by 
112.10 	October 1, in order for recipient eligible organizations to adequately plan expenditures for 
112.11 	the filing season. At the time the commissioner provides public notice, the commissioner 
112.12 	must also notify eligible organizations that received grants in the previous biennium. Amounts 
112.13 	appropriated for grants under this section are not subject to retention of administrative costs 
112.14 	under section 16B.98, subdivision 14.
112.15 		Subd. 2.Eligible organization Definitions. "Eligible organization" means an organization 
112.16 	that meets the definition of eligible organization provided in section 7526A(e)(2)(B) of the 
112.17 	Internal Revenue Code.
112.18 	(a) For the purposes of this section, the following terms have the meanings given.
112.19 	(b) "Eligible credit" means a credit, refund, or other tax preference targeting low-income 
112.20 	taxpayers, including but not limited to the credits under sections 290.0661, 290.0671, 
112.21 	290.0674, and 290.0693, and chapter 290A.
112.22 	(c) "Tax outreach organization" means a nonprofit organization or federally recognized 
112.23 	Indian Tribe with experience serving demographic groups or geographic regions that have 
112.24 	historically had low rates of participation in eligible credits.
112.25 	(d) "Taxpayer assistance services" means accounting and tax preparation services 
112.26 	provided by volunteers to low-income, elderly, and disadvantaged Minnesota residents to 
112.27 	help them file federal and state income tax returns and Minnesota property tax refund claims 
112.28 	and to provide personal representation before the Department of Revenue and Internal 
112.29 	Revenue Service.
112.30 	(e) "Volunteer taxpayer assistance organization" means an eligible organization qualifying 
112.31 	under section 7526A(e)(2)(B) of the Internal Revenue Code of 1986.
113.1 		Subd. 3.Taxpayer assistance grants. The commissioner must regularly make grants 
113.2 	to one or more volunteer taxpayer assistance organizations to coordinate, facilitate, encourage, 
113.3 	and aid in the provision of taxpayer assistance services.
113.4 		Subd. 4.Tax credit outreach grants. The commissioner must regularly make one or 
113.5 	more grants to tax outreach organizations and volunteer assistance organizations. Grants 
113.6 	provided under this subdivision must be used to:
113.7 	(1) publicize and promote the availability of eligible credits to taxpayers likely to be 
113.8 	eligible for those credits; or
113.9 	(2) provide taxpayer assistance services.

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

113.11 	Sec. 2. Minnesota Statutes 2023 Supplement, section 297H.13, subdivision 2, is amended 
113.12 	to read:
113.13 		Subd. 2.Allocation of revenues. (a) Of the amounts remitted under this chapter, 70 
113.14 	percent must be credited to the environmental fund established in section 16A.531, 
113.15 	subdivision 1.
113.16 	(b) In addition to the amounts credited to the environmental fund in paragraph (a), in 
113.17 	fiscal year 2024 and later, three percent of the amounts remitted under this chapter shall be 
113.18 	deposited into the resource management account in the environmental fund. For fiscal year 
113.19 	2025 only, an additional $1,821,000 must be deposited in the resource management account 
113.20 	in the environmental fund.
113.21 	(c) The remainder must be deposited into the general fund.
113.22 	(d) Beginning in fiscal year 2024 and annually thereafter, The money deposited in the 
113.23 	resource management account in the environmental fund under paragraph (b) is appropriated 
113.24 	to the commissioner of the Pollution Control Agency for distribution to counties under 
113.25 	section 115A.557, subdivision 2, paragraph (a), clauses (1) to (7) and (9) to (11). Amounts 
113.26 	appropriated for distribution under this section are not subject to retention of administrative 
113.27 	costs under section 16B.98, subdivision 14.

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

113.29 	Sec. 3. [428A.30] DEFINITIONS.
113.30 		Subdivision 1.Scope. For purposes of sections 428A.30 to 428A.34, the terms defined 
113.31 	in this section have the meanings given them, unless the context indicates otherwise.
114.1 		Subd. 2.City. "City" means a statutory or home rule charter city.
114.2 		Subd. 3.District. "District" means a land-value taxation district established under section 
114.3 	428A.31.
114.4 		Subd. 4.Ordinance. "Ordinance" means the ordinance establishing a land-value taxation 
114.5 	district under section 428A.31.

114.6 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2025.

114.7 	Sec. 4. [428A.31] ESTABLISHMENT OF LAND-VALUE TAXATION DISTRICT.
114.8 		Subdivision 1.Ordinance. (a) The governing body of a city may adopt an ordinance 
114.9 	establishing a land-value taxation district. The ordinance must be adopted by May 1 of the 
114.10 	calendar year prior to the taxes payable year in which the district would take effect. The 
114.11 	ordinance must describe:
114.12 	(1) the parcels of property constituting the district, either by specific identification of 
114.13 	each parcel, or by defining a geographic area or areas within the city, and then within that 
114.14 	area or those areas, identifying the specific types of property, as defined under section 
114.15 	273.13, to be included in the district; and
114.16 	(2) the procedure for reallocating the collective property tax of all parcels within the 
114.17 	district.
114.18 	(b) In addition, the ordinance must provide for an evaluation of the economic effects of 
114.19 	the district, including the impact on redevelopment of and investment in the district, within 
114.20 	a specified period of time, but not less than 15 years after the district becomes effective.
114.21 		Subd. 2.Hearing; notice. Before adopting an ordinance, the city must hold a public 
114.22 	hearing on the question. Notice of the hearing must include the time and place of the hearing, 
114.23 	a description of the parcels to be included in the district, a description of the procedure for 
114.24 	reallocating the tax burden among the parcels, and the duration of the district. Each person 
114.25 	owning property in the proposed district must be given the opportunity to be heard at the 
114.26 	hearing. Notice of the hearing must be published on the city's website and in at least two 
114.27 	issues of the official newspaper of the city. The two publications must be two weeks apart 
114.28 	and the hearing must be held at least three days after the last publication. Not less than ten 
114.29 	days before the hearing, notice must be mailed to the owner of each parcel proposed to be 
114.30 	included in the district. For the purpose of the mailed notice, owners are those shown on 
114.31 	the records of the county auditor. Other records may be used to supply the necessary 
114.32 	information. At the public hearing, a person affected by the proposed district may testify 
114.33 	on any issues relevant to the proposed district. The hearing may be adjourned from time to 
115.1 	time and the ordinance establishing the district may be adopted at any time within six months 
115.2 	after the date of the conclusion of the hearing by a vote of the majority of the governing 
115.3 	body of the city. Within 30 days after adoption of the ordinance, the governing body shall 
115.4 	send a copy of the ordinance to the commissioner of revenue.

115.5 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2025.

115.6 	Sec. 5. [428A.32] RESTRICTIONS ON TAX REALLOCATION PROCEDURE.
115.7 	A tax reallocation procedure under section 428A.31, subdivision 1, paragraph (a), clause 
115.8 	(2), must distribute taxes on taxable properties in the district by applying uniform rates to 
115.9 	one or more of the following tax bases:
115.10 	(1) net tax capacity, as defined under section 273.13, subdivision 21b;
115.11 	(2) referendum market value, as defined under section 126C.01, subdivision 3;
115.12 	(3) a tax base consisting of each property's estimated market value excluding the market 
115.13 	value attributable to improvements; or
115.14 	(4) a tax base consisting of each property's estimated market value excluding the market 
115.15 	value attributable to improvements made after a date specified in the ordinance.

115.16 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2025.

115.17 	Sec. 6. [428A.33] TAXATION WITHIN DISTRICT.
115.18 		Subdivision 1.Initial taxation within district. For each property taxes payable year, 
115.19 	the city must compile the total property taxes imposed upon all properties within the district 
115.20 	for each taxing jurisdiction after final property tax statements are issued under section 
115.21 	276.04. For the purposes of this section, the areawide taxes under chapters 276A and 473F, 
115.22 	and the state general levy under section 275.025, are considered to be taxing jurisdictions.
115.23 		Subd. 2.Final taxation within district. The city must allocate the tax, as determined 
115.24 	under subdivision 1, among all properties in the district according to the terms of the 
115.25 	ordinance, such that the entire amount of tax payable to each taxing jurisdiction under 
115.26 	subdivision 1 is allocated among the properties constituting the district. The city must report 
115.27 	the revised property tax amounts for each parcel of property to the county treasurer by April 
115.28 	30 of the year the tax is payable. The city must provide for revised property tax statements 
115.29 	to be mailed to all properties within the district by April 30 of the year the tax is payable. 
115.30 	Taxpayers must make payments according to the dates specified in section 279.01 as if the 
116.1 	property tax statements were mailed 21 days prior to May 15 of the year the taxes are 
116.2 	payable.
116.3 		Subd. 3.Report to commissioner of revenue. By September 1 of each year, the county 
116.4 	treasurer must report the initial and final distribution of the net tax for each parcel of property 
116.5 	in the district to the commissioner of revenue on a form prescribed by the commissioner of 
116.6 	revenue.

116.7 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2025.

116.8 	Sec. 7. [428A.34] APPEAL OF LAND VALUE.
116.9 	The owner of any property included in a land-value taxation district under section 
116.10 	428A.31 may appeal the valuation attributable to land separately from the valuation 
116.11 	attributable to improvements upon the land under sections 274.01 and 274.13 or chapter 
116.12 	271.

116.13 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2025.

116.14 	Sec. 8. AID TO CITIES FOR EMERALD ASH BORER FINANCIAL ASSISTANCE.
 116.15 		Subdivision 1.Definitions. For the purposes of this section, the following terms have 
116.16 	the meanings given:
116.17 	(1) "eligible costs" means costs incurred in 2020 or later for treating or removing a tree 
116.18 	on residential or agricultural homestead property that has been found to be infested by the 
116.19 	emerald ash borer and has been required by state law or by municipal ordinance to be treated 
116.20 	or removed;
116.21 	(2) "eligible homeowner" means a homeowner who experienced eligible costs related 
116.22 	to a tree on the homeowner's property; and
116.23 	(3) "eligible local government" means:
116.24 	(i) a town with a population of at least 10,000;
116.25 	(ii) a statutory or home rule charter city; or
116.26 	(iii) "Minnesota Tribal governments," as defined in Minnesota Statutes, section 10.65, 
116.27 	subdivision 2, clause (4).
116.28 		Subd. 2.Aid program established; payment. The commissioner of revenue must 
116.29 	distribute aid to eligible local governments, as provided in this section. The commissioner 
116.30 	must certify the aid amount to be paid in 2025 to each eligible local government by January 
117.1 	31, 2025. The commissioner must make the full 2025 payment to each eligible local 
117.2 	government by February 15, 2025. This program is not subject to retention of administrative 
117.3 	costs under Minnesota Statutes, section 16B.98, subdivision 14.
117.4 		Subd. 3.Amount of aid. (a) The commissioner of revenue must establish a process to 
117.5 	allocate the amount of available aid to eligible local governments. The process must be an 
117.6 	open application process for a merit-based competitive grant program. The grant program 
117.7 	established under this subdivision must prioritize distributing aid to eligible local 
117.8 	governments based on:
117.9 	(1) the rate of emerald ash borer infestations on residential properties;
117.10 	(2) the ability of the local government's residents to pay for eligible costs; and
117.11 	(3) the population of the eligible local government.
117.12 	(b) The commissioner of revenue must consult with the commissioners of agriculture 
117.13 	and natural resources when establishing the process required under this subdivision.
117.14 		Subd. 4.Eligible uses. An eligible government must use aid received under this section 
117.15 	to reimburse eligible homeowners with incomes below 200 percent of the official federal 
117.16 	poverty guideline for their eligible costs.
117.17 		Subd. 5.Appropriation. $1,000,000 in fiscal year 2025 is appropriated from the general 
117.18 	fund to the commissioner of revenue for aid under this section. This is a onetime 
117.19 	appropriation. The Department of Revenue may retain up to three percent of this amount 
117.20 	for costs incurred in administering the program.

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

117.22 	Sec. 9. APPROPRIATION; ANOKA COUNTY SOIL AND WATER 
117.23 	CONSERVATION DISTRICT; GRANT.
 117.24 	$50,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
117.25 	of revenue for a grant to the Anoka County Soil And Water Conservation District. This is 
117.26 	a onetime appropriation. The grant must be paid by July 15, 2024. The grant under this 
117.27 	section is not subject to retention of administrative costs under Minnesota Statutes, section 
117.28 	16B.98, subdivision 14.

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

118.1 	Sec. 10. APPROPRIATION; BROWERVILLE PUBLIC SCHOOLS.
 118.2 	$580,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
118.3 	of revenue for a grant to Browerville public schools, Independent School District No. 787, 
118.4 	to remediate the effects of a school building roof collapse that occurred in 2023. The grant 
118.5 	recipient must use the money appropriated under this section for materials and supplies 
118.6 	used in and equipment incorporated into renovations to the prekindergarten through grade 
118.7 	12 school building, and construction of a new gymnasium, classrooms, locker rooms, a 
118.8 	wrestling and weight room, offices, and a stage. The grant must be paid by July 15, 2024. 
118.9 	This appropriation is onetime. The grant under this section is not subject to retention of 
118.10 	administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.

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

118.12 	Sec. 11. APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
 118.13 	(a) $100,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 
118.14 	of revenue for a grant to the city of South St. Paul. This is a onetime appropriation. The 
118.15 	grant must be paid by June 30, 2024. The grant under this section is not subject to retention 
118.16 	of administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
118.17 	(b) The grant under this section must be used by the city of South St. Paul to pay for 
118.18 	planning and development costs within the city.

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

118.20 	Sec. 12. APPROPRIATION; TAX CREDIT OUTREACH GRANTS; TAXPAYER 
118.21 	ASSISTANCE GRANTS.
 118.22 	(a) $1,237,000 in fiscal year 2025 is appropriated from the general fund to the 
118.23 	commissioner of revenue for tax credit outreach grants under Minnesota Statutes, section 
118.24 	270C.21, subdivision 4. This appropriation is in addition to the amount appropriated in 
118.25 	Laws 2023, chapter 64, article 7, section 30. The base for this program is $1,277,000 in 
118.26 	fiscal year 2026 and $1,289,000 in fiscal year 2027.
118.27 	(b) $750,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
118.28 	of revenue for taxpayer assistance grants under Minnesota Statutes, section 270C.21, 
118.29 	subdivision 3. This appropriation is in addition to the amount appropriated for taxpayer 
118.30 	assistance in Laws 2023, chapter 62, article 1, section 14, subdivision 2.

119.1 	ARTICLE 10
119.2 	DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE 
119.3 	FRANCHISE TAXES

119.4 	Section 1. Minnesota Statutes 2022, section 116U.27, subdivision 2, is amended to read:
119.5 		Subd. 2.Credit allowed. A taxpayer is eligible for a credit up to 25 percent of eligible 
119.6 	production costs paid in a taxable year any consecutive 12-month period as described in 
119.7 	subdivision 1, paragraph (h). A taxpayer may only claim a credit if the taxpayer was issued 
119.8 	a credit certificate under subdivision 4.

119.9 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
119.10 	after December 31, 2022.

119.11 	Sec. 2. Minnesota Statutes 2023 Supplement, section 290.01, subdivision 19, is amended 
119.12 	to read:
119.13 		Subd. 19.Net income. (a) For a trust or estate taxable under section 290.03, and a 
119.14 	corporation taxable under section 290.02, the term "net income" means the federal taxable 
119.15 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
119.16 	the date named in this subdivision, incorporating the federal effective dates of changes to 
119.17 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
119.18 	Internal Revenue Code in determining federal taxable income for federal income tax 
119.19 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
119.20 	(b) For an individual, the term "net income" means federal adjusted gross income with 
119.21 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
119.22 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
119.23 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
119.24 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
119.25 	except that:
119.26 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
119.27 	Revenue Code does not apply;
119.28 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
119.29 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
119.30 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
119.31 	and
120.1 	(3) the deduction for dividends paid must also be applied in the amount of any 
120.2 	undistributed capital gains which the regulated investment company elects to have treated 
120.3 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
120.4 	(d) The net income of a real estate investment trust as defined and limited by section 
120.5 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
120.6 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
120.7 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
120.8 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
120.9 	Revenue Code.
120.10 	(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for 
120.11 	taxable years beginning after December 31, 1996.
120.12 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
120.13 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
120.14 	determining net income for the applicable year.
120.15 	(h) In the case of a partnership electing to file a composite return under section 289A.08, 
120.16 	subdivision 7, "net income" means the partner's share of federal adjusted gross income from 
120.17 	the partnership modified by the additions provided in section 290.0131, subdivisions 8 to 
120.18 	10, 16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27, 
120.19 	and 28, and 31, to the extent the amount is assignable or allocable to Minnesota under section 
120.20 	290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed under section 
120.21 	290.0132, subdivision 9, is only allowed on the composite tax computation to the extent 
120.22 	the electing partner would have been allowed the subtraction.
120.23 	(i) In the case of a qualifying entity electing to pay the pass-through entity tax under 
120.24 	section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal 
120.25 	adjusted gross income from the qualifying entity modified by the additions provided in 
120.26 	section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1) 
120.27 	section 290.0132, subdivisions 3, 9, 27, and 28, and 31, to the extent the amount is assignable 
120.28 	or allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. 
120.29 	The subtraction allowed under section 290.0132, subdivision 9, is only allowed on the 
120.30 	pass-through entity tax computation to the extent the qualifying owners would have been 
120.31 	allowed the subtraction. The income of both a resident and nonresident qualifying owner 
120.32 	is allocated and assigned to this state as provided for nonresident partners and shareholders 
120.33 	under sections 290.17, 290.191, and 290.20.

121.1 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
121.2 	after December 31, 2022.

121.3 	Sec. 3. Minnesota Statutes 2023 Supplement, section 290.0132, subdivision 34, is amended 
121.4 	to read:
121.5 		Subd. 34.Qualified retirement benefits. (a) The amount of qualified public pension 
121.6 	income is a subtraction. The subtraction in this section is limited to:
121.7 	(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
121.8 	(2) $12,500 for all other filers.
121.9 	(b) For a taxpayer with adjusted gross income above the phaseout threshold, the 
121.10 	subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction 
121.11 	thereof, in excess of the threshold. The phaseout threshold equals:
121.12 	(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
121.13 	(2) $78,000 for a single or head of household taxpayer; or
121.14 	(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer 
121.15 	filing a joint return.
121.16 	(c) For the purposes of this section, "qualified public pension income" means any amount 
121.17 	received:
121.18 	(1) by a former basic member or the survivor of a former basic member, as an annuity 
121.19 	or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A, 
121.20 	provided that the annuity or benefit is based on service for which the member or survivor 
121.21 	is not also receiving did not earn Social Security benefits;
121.22 	(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State 
121.23 	Patrol retirement plan under chapter 352B, or the public employees police and fire plan 
121.24 	under sections 353.63 to 353.666, provided that the annuity or benefit is based on service 
121.25 	for which the member or survivor is not also receiving did not earn Social Security benefits;
121.26 	(3) from any retirement system administered by the federal government that is based on 
121.27 	service for which the recipient or the recipient's survivor is not also receiving did not earn
121.28 	Social Security benefits; or
121.29 	(4) from a public retirement system of or created by another state or any of its political 
121.30 	subdivisions, or the District of Columbia, if the income tax laws of the other state or district 
121.31 	permit a similar deduction or exemption or a reciprocal deduction or exemption of a 
122.1 	retirement or pension benefit received from a public retirement system of or created by this 
122.2 	state or any political subdivision of this state.
122.3 	(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and 
122.4 	the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year 
122.5 	is taxable year 2023.

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

122.7 	Sec. 4. Minnesota Statutes 2023 Supplement, section 290.0134, subdivision 20, is amended 
122.8 	to read:
122.9 		Subd. 20.Delayed business interest. (a) For each taxable year an addition is required 
122.10 	under section 290.0131, subdivision 19 290.0133, subdivision 15, the amount of the addition, 
122.11 	less the sum of all amounts subtracted under this paragraph in all prior taxable years, that 
122.12 	does not exceed the limitation on business interest in section 163(j) of the Internal Revenue 
122.13 	Code of 1986, as amended through December 15, 2022, notwithstanding the special rule in 
122.14 	section 163(j)(10) of the Internal Revenue Code, is a subtraction. Any excess is a delayed 
122.15 	business interest carryforward, the entire amount of which must be carried to the earliest 
122.16 	taxable year. No subtraction is allowed under this paragraph for taxable years beginning 
122.17 	after December 31, 2022.
122.18 	(b) For each of the five taxable years beginning after December 31, 2022, there is allowed 
122.19 	a subtraction equal to one-fifth of the sum of all carryforward amounts that remain after the 
122.20 	expiration of paragraph (a).
122.21 	(c) Entities that are part of a combined reporting group under the unitary rules of section 
122.22 	290.17, subdivision 4, must compute deductions and additions as required under section 
122.23 	290.34, subdivision 5.

122.24 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
122.25 	after December 31, 2019.

122.26 	Sec. 5. Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 1, is amended 
122.27 	to read:
122.28 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
122.29 	the meanings given.
122.30 	(b) "Dependent" means any individual who is considered a dependent under sections 
122.31 	151 and 152 of the Internal Revenue Code and was claimed by the taxpayer as a dependent.
123.1 	(c) "Disability" has the meaning given in section 290A.03, subdivision 10.
123.2 	(d) "Exemption amount" means the exemption amount under section 290.0121, 
123.3 	subdivision 1, paragraph (b).
123.4 	(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a 
123.5 	homestead, exclusive of charges for any medical services furnished by the landlord as a 
123.6 	part of the rental agreement, whether expressly set out in the rental agreement or not. The 
123.7 	gross rent of a resident of a nursing home or intermediate care facility is $600 per month. 
123.8 	The gross rent of a resident of an adult foster care home is $930 per month. The commissioner 
123.9 	shall annually adjust the amounts in this paragraph as provided in section 270C.22. The 
123.10 	statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's 
123.11 	length and the commissioner determines that the gross rent charged was excessive, the 
123.12 	commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
123.13 	(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
123.14 	(g) "Household" has the meaning given in section 290A.03, subdivision 4.
123.15 	(h) "Household income" means all income received by all persons of a household in a 
123.16 	taxable year while members of the household, other than income of a dependent.
123.17 	(i) "Income" means adjusted gross income, minus:
123.18 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
123.19 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
123.20 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
123.21 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
123.22 	(5) for the taxpayer's fifth dependent, the exemption amount; and
123.23 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
123.24 	before the close of the taxable year, the exemption amount.
123.25 	(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid 
123.26 	in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable 
123.27 	year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the 
123.28 	taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim 
123.29 	for a credit under this section by the claimant. If an individual occupies a homestead with 
123.30 	another person or persons not related to the individual as the individual's spouse or as 
123.31 	dependents, and the other person or persons are residing at the homestead under a rental or 
124.1 	lease agreement with the individual, the amount of rent constituting property tax for the 
124.2 	individual equals that portion not covered by the rental agreement.

124.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
124.4 	31, 2023.

124.5 	Sec. 6. Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 6, is amended 
124.6 	to read:
124.7 		Subd. 6.Residents of nursing homes, intermediate care facilities, long-term care 
124.8 	facilities, or facilities accepting housing support payments. (a) A taxpayer must not claim 
124.9 	a credit under this section if the taxpayer is a resident of a nursing home, intermediate care 
124.10 	facility, long-term residential facility, or a facility that accepts housing support payments 
124.11 	whose rent constituting property taxes is paid pursuant to the Supplemental Security Income 
124.12 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
124.13 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
124.14 	of the Social Security Act, or the housing support program under chapter 256I.
124.15 	(b) If only a portion of the rent constituting property taxes is paid by these programs, 
124.16 	the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction, 
124.17 	the numerator of which is adjusted gross income, reduced by the total amount of income 
124.18 	from the above sources other than vendor payments under the medical assistance program
124.19 	and the denominator of which is adjusted gross income, plus vendor payments under the 
124.20 	medical assistance program, to determine the allowable credit.
124.21 	(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing 
124.22 	home, intermediate care facility, long-term residential facility, or facility for which the rent 
124.23 	was paid for the claimant by the housing support program for only a portion of the taxable 
124.24 	year covered by the claim, the taxpayer may compute rent constituting property taxes by 
124.25 	disregarding the rent constituting property taxes from the nursing home or facility and may 
124.26 	use only that amount of rent constituting property taxes or property taxes payable relating 
124.27 	to that portion of the year when the taxpayer was not in the facility. The taxpayer's household 
124.28 	income is the income for the entire taxable year covered by the claim.

124.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
124.30 	31, 2023.

125.1 	Sec. 7. Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 8, is amended 
125.2 	to read:
125.3 		Subd. 8.One claimant per household. Only one taxpayer per household per year is 
125.4 	entitled to claim a credit under this section. In the case of a married couple filing a joint 
125.5 	return, the couple may claim a credit under this section based on the total amount of both 
125.6 	spouses' gross rent. In the case of a married taxpayer filing a separate return, only one spouse 
125.7 	may claim the credit under this section. The credit amount for the spouse that claims the 
125.8 	credit must be calculated based on household income and not solely on the income of the 
125.9 	spouse.

125.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
125.11 	31, 2023.

125.12 	Sec. 8. Minnesota Statutes 2023 Supplement, section 290.0695, subdivision 2, is amended 
125.13 	to read:
125.14 		Subd. 2.Credit allowed; limitation; carryover. (a) An eligible taxpayer is allowed a 
125.15 	credit against tax due under this chapter equal to 50 percent of eligible expenses, not to 
125.16 	exceed $3,000 per mile, multiplied by the number of miles of railroad track owned or leased 
125.17 	within the state by the eligible taxpayer for which the taxpayer made the qualified railroad 
125.18 	reconstruction or replacement expenditures as of the close of the taxable year for which the 
125.19 	credit is claimed made by an eligible taxpayer within this state during the taxable year for 
125.20 	which the credit is claimed.
125.21 	(b) The credit allowed under paragraph (a) for any taxable year must not exceed the 
125.22 	product of:
125.23 	(1) $3,000, multiplied by;
125.24 	(2) the number of miles of railroad track owned or leased by the eligible taxpayer within 
125.25 	this state as of the close of the taxable year for which the taxpayer made qualified railroad 
125.26 	reconstruction or replacement expenditures for which the credit is claimed.
125.27 	(b) (c) If the amount of the credit determined under this section for any taxable year 
125.28 	exceeds the liability for tax under this chapter, the excess is a credit carryover to each of 
125.29 	the five succeeding taxable years. The entire amount of the excess unused credit for the 
125.30 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
125.31 	be carried and then to each successive year to which the credit may be carried. The amount 
125.32 	of the unused credit that may be added under this paragraph must not exceed the taxpayer's 
125.33 	liability for tax less the credit for the taxable year.
126.1 	(c) (d) An eligible taxpayer claiming a credit under this section may not also claim the 
126.2 	credit under section 297I.20, subdivision 6, for the same qualified railroad reconstruction 
126.3 	or replacement expenditures.

126.4 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
126.5 	after December 31, 2022.

126.6 	Sec. 9. Laws 2023, chapter 1, section 22, is amended to read:
126.7 	Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS, 
126.8 	ESTATES, AND TRUSTS.
 126.9 	(a) For the purposes of this section:
126.10 	(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132, 
126.11 	subdivision 1, and the rules in that subdivision apply to this section;
126.12 	(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision 
126.13 	1, and the rules in that subdivision apply to this section; and
126.14 	(3) the definitions in Minnesota Statutes, section 290.01, apply to this section.
126.15 	(b) The following amounts are subtractions:
126.16 	(1) the amount of wages used for the calculation of the employee retention credit for 
126.17 	employers affected by qualified disasters, to the extent not deducted from income, under 
126.18 	Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section 
126.19 	303;
126.20 	(2) the amount of wages used for the calculation of the payroll credit for required paid 
126.21 	sick leave, to the extent not deducted from income, under Public Law 116-127, section 
126.22 	7001, as amended by section 9641 of Public Law 117-2;
126.23 	(3) the amount of wages or expenses used for the calculation of the payroll credit for 
126.24 	required paid family leave, to the extent not deducted from income, under Public Law 
126.25 	116-127, section 7003, as amended by section 9641 of Public Law 117-2;
126.26 	(4) the amount of wages used for the calculation of the employee retention credit for 
126.27 	employers subject to closure due to COVID-19, to the extent not deducted from income, 
126.28 	under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE, 
126.29 	section 207, and Public Law 117-2, section 9651; and
126.30 	(5) the amount required to be added to gross income to claim the credit in section 6432 
126.31 	of the Internal Revenue Code.
127.1 	(c) The following amounts are additions:
127.2 	(1) the amount subtracted for qualified tuition expenses under section 222 of the Internal 
127.3 	Revenue Code, as amended by Public Law 116-94, division Q, section 104;
127.4 	(2) the amount of above the line charitable contributions deducted under section 2204 
127.5 	of Public Law 116-136;
127.6 	(3) the amount of meal expenses in excess of the 50 percent limitation under section 
127.7 	274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2), 
127.8 	subparagraph (D), of that section; and
127.9 	(4) the amount of charitable contributions deducted from federal taxable income by a 
127.10 	trust for taxable year 2020 under Public Law 116-136, section 2205(a).
127.11 	(d) The commissioner of revenue must apply the subtractions in paragraph (b) and the 
127.12 	additions in paragraph (c), when calculating the following:
127.13 	(1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
127.14 	(e);
127.15 	(2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section 
127.16 	290.091; and
127.17 	(3) "income" as defined in Minnesota Statutes, section 289A.08, subdivision 7, paragraph 
127.18 	(j), for the purposes of determining the tax for composite filers and the pass-through entity 
127.19 	tax, means the partner's share of federal adjusted gross income from the partnership modified 
127.20 	by the additions provided in Minnesota Statutes, section 290.0131, subdivisions 8 to 10, 
127.21 	16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes, section 290.0132, 
127.22 	subdivisions 9, 27, and 28, to the extent the amount is assignable or allocable to Minnesota 
127.23 	under Minnesota Statutes, section 290.17; and (ii) Minnesota Statutes, section 290.0132, 
127.24 	subdivision 14. The subtraction allowed under Minnesota Statutes, section 290.0132, 
127.25 	subdivision 9, is only allowed on the composite tax computation to the extent the electing 
127.26 	partner would have been allowed the subtraction.
127.27 	(e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter 
127.28 	290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income," 
127.29 	as defined in Minnesota Statutes, section 290A.03, subdivision 3.

127.30 	EFFECTIVE DATE. This section is effective retroactively at the same time the changes 
127.31 	in Laws 2023, chapter 1, section 22, were effective for federal purposes.

128.1 	ARTICLE 11
128.2 	DEPARTMENT OF REVENUE; PROPERTY TAXES AND LOCAL GOVERNMENT 
128.3 	AIDS

128.4 	Section 1. Minnesota Statutes 2022, section 273.13, subdivision 22, is amended to read:
128.5 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
128.6 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
128.7 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
128.8 	property is deemed to be used for homestead purposes. The market value of class 1a property 
128.9 	must be determined based upon the value of the house, garage, and land.
128.10 	The first $500,000 of market value of class 1a property has a net classification rate of 
128.11 	one percent of its market value; and the market value of class 1a property that exceeds 
128.12 	$500,000 has a classification rate of 1.25 percent of its market value.
128.13 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
128.14 	used for the purposes of a homestead by:
128.15 	(1) any person who is blind as defined in section 256D.35, or the person who is blind 
128.16 	and the spouse of the person who is blind;
128.17 	(2) any person who is permanently and totally disabled or by the person with a disability 
128.18 	and the spouse of the person with a disability; or
128.19 	(3) the surviving spouse of a veteran who was permanently and totally disabled 
128.20 	homesteading a property classified under this paragraph for taxes payable in 2008.
128.21 	Property is classified and assessed under clause (2) only if the government agency or 
128.22 	income-providing source certifies, upon the request of the homestead occupant, that the 
128.23 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
128.24 	property is not eligible for the valuation exclusion under subdivision 34.
128.25 	Property is classified and assessed under paragraph (b) only if the commissioner of 
128.26 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
128.27 	of this paragraph.
128.28 	Permanently and totally disabled for the purpose of this subdivision means a condition 
128.29 	which is permanent in nature and totally incapacitates the person from working at an 
128.30 	occupation which brings the person an income. The first $50,000 market value of class 1b 
128.31 	property has a net classification rate of .45 percent of its market value. The remaining market 
128.32 	value of class 1b property is classified as class 1a,or class 2a property, or class 4d(2) 
128.33 	whichever is appropriate.
129.1 	(c) Class 1c property is commercial use real and personal property that abuts public 
129.2 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
129.3 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
129.4 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
129.5 	250 days in the year preceding the year of assessment, and that includes a portion used as 
129.6 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
129.7 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
129.8 	resort, or a member of a limited liability company that owns the resort even if the title to 
129.9 	the homestead is held by the corporation, partnership, or limited liability company. For 
129.10 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
129.11 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
129.12 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
129.13 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
129.14 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
129.15 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
129.16 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
129.17 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
129.18 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
129.19 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
129.20 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
129.21 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
129.22 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
129.23 	the same owner owns two separate parcels that are located in the same township, and one 
129.24 	of those properties is classified as a class 1c property and the other would be eligible to be 
129.25 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
129.26 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
129.27 	deemed to be owned by the same owner if each of them is owned by a limited liability 
129.28 	company, and both limited liability companies have the same membership. The portion of 
129.29 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
129.30 	of the property is classified as follows: the first $600,000 of market value is tier I, the next 
129.31 	$1,700,000 of market value is tier II, and any remaining market value is tier III. The 
129.32 	classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 
129.33 	percent. Owners of real and personal property devoted to temporary and seasonal residential 
129.34 	occupancy for recreation purposes in which all or a portion of the property was devoted to 
129.35 	commercial purposes for not more than 250 days in the year preceding the year of assessment 
129.36 	desiring classification as class 1c, must submit a declaration to the assessor designating the 
130.1 	cabins or units occupied for 250 days or less in the year preceding the year of assessment 
130.2 	by January 15 of the assessment year. Those cabins or units and a proportionate share of 
130.3 	the land on which they are located must be designated as class 1c as otherwise provided. 
130.4 	The remainder of the cabins or units and a proportionate share of the land on which they 
130.5 	are located must be designated as class 3a commercial. The owner of property desiring 
130.6 	designation as class 1c property must provide guest registers or other records demonstrating 
130.7 	that the units for which class 1c designation is sought were not occupied for more than 250 
130.8 	days in the year preceding the assessment if so requested. The portion of a property operated 
130.9 	as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 
130.10 	other nonresidential facility operated on a commercial basis not directly related to temporary 
130.11 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
130.12 	(d) Class 1d property includes structures that meet all of the following criteria:
130.13 	(1) the structure is located on property that is classified as agricultural property under 
130.14 	section 273.13, subdivision 23;
130.15 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
130.16 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
130.17 	the property, provided that use of the structure for storage of farm equipment and produce 
130.18 	does not disqualify the property from classification under this paragraph;
130.19 	(3) the structure meets all applicable health and safety requirements for the appropriate 
130.20 	season; and
130.21 	(4) the structure is not salable as residential property because it does not comply with 
130.22 	local ordinances relating to location in relation to streets or roads.
130.23 	The market value of class 1d property has the same classification rates as class 1a property 
130.24 	under paragraph (a).

130.25 	EFFECTIVE DATE. This section is effective for assessment year 2025 and thereafter.

130.26 	Sec. 2. Minnesota Statutes 2022, section 375.192, subdivision 2, is amended to read:
130.27 		Subd. 2.Procedure, conditions. Upon written application by the owner of any property, 
130.28 	the county board may grant the reduction or abatement of estimated market valuation or 
130.29 	taxes and of any costs, penalties, or interest on them as the board deems just and equitable 
130.30 	and order the refund in whole or part of any taxes, costs, penalties, or interest which have 
130.31 	been erroneously or unjustly paid. Except as provided in sections 469.1812 to 469.1815, 
130.32 	no reduction or abatement may be granted on the basis of providing an incentive for economic 
130.33 	development or redevelopment. Except as provided in section 375.194, the county board 
131.1 	may consider and grant reductions or abatements on applications only as they relate to taxes 
131.2 	payable in the current year and the two prior years; provided that reductions or abatements 
131.3 	for the two prior years shall be considered or granted only for (i) clerical errors, or (ii) when 
131.4 	the taxpayer fails to file for a reduction or an adjustment due to hardship, as determined by 
131.5 	the county board. The application must include the Social Security number or individual 
131.6 	taxpayer identification number of the applicant. The Social Security number is and individual 
131.7 	taxpayer identification number are private data on individuals as defined by section 13.02, 
131.8 	subdivision 12. All applications must be approved by the county assessor, or, if the property 
131.9 	is located in a city of the first or second class having a city assessor, by the city assessor, 
131.10 	and by the county auditor before consideration by the county board, except that the part of 
131.11 	the application which is for the abatement of penalty or interest must be approved by the 
131.12 	county treasurer and county auditor. Approval by the county or city assessor is not required 
131.13 	for abatements of penalty or interest. No reduction, abatement, or refund of any special 
131.14 	assessments made or levied by any municipality for local improvements shall be made 
131.15 	unless it is also approved by the board of review or similar taxing authority of the 
131.16 	municipality. On any reduction or abatement when the reduction of taxes, costs, penalties, 
131.17 	and interest exceed $10,000, the county board shall give notice within 20 days to the school 
131.18 	board and the municipality in which the property is located. The notice must describe the 
131.19 	property involved, the actual amount of the reduction being sought, and the reason for the 
131.20 	reduction.
131.21 	An appeal may not be taken to the Tax Court from any order of the county board made 
131.22 	in the exercise of the discretionary authority granted in this section.
131.23 	The county auditor shall notify the commissioner of revenue of all abatements resulting 
131.24 	from the erroneous classification of real property, for tax purposes, as nonhomestead property. 
131.25 	For the abatements relating to the current year's tax processed through June 30, the auditor 
131.26 	shall notify the commissioner on or before July 31 of that same year of all abatement 
131.27 	applications granted. For the abatements relating to the current year's tax processed after 
131.28 	June 30 through the balance of the year, the auditor shall notify the commissioner on or 
131.29 	before the following January 31 of all applications granted. The county auditor shall submit 
131.30 	a form containing the Social Security number or individual taxpayer identification number 
131.31 	of the applicant and such other information the commissioner prescribes.

131.32 	EFFECTIVE DATE. This section is effective retroactively for abatement applications 
131.33 	filed in 2023 and thereafter.

132.1 	Sec. 3. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended 
132.2 	to read:
132.3 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
132.4 	of aid payable to each tier I city and county under this section. By August 1 of each year, 
132.5 	the commissioner must certify the distribution factors of each tier I city and county to be 
132.6 	used in the following year. The commissioner must pay local affordable housing aid annually 
132.7 	at the times provided in section 477A.015, distributing the amounts available on the 
132.8 	immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 
132.9 	2 and 3. On or before September 1 of each year, the commissioner of revenue must certify 
132.10 	the amount to be paid to each tier I city and county in that year. By July 15, 2024, and 
132.11 	annually thereafter, the commissioner of management and budget must certify to the 
132.12 	commissioner of revenue the balances in the accounts established in section 477A.37, 
132.13 	subdivisions 2 and 3, as of the immediately preceding June 1. The commissioner of revenue 
132.14 	must pay the full amount of aid on October 1 annually.
132.15 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
132.16 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
132.17 	include documentation of the location of any unspent funds distributed under this section 
132.18 	and of qualifying projects completed or planned with funds under this section. If a tier I 
132.19 	city or county fails to submit a report, if a tier I city or county fails to spend funds within 
132.20 	the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses 
132.21 	funds for a project that does not qualify under this section, the Minnesota Housing Finance 
132.22 	Agency shall notify the Department of Revenue and the cities and counties that must repay 
132.23 	funds under paragraph (c) by February 15 of the following year.
132.24 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
132.25 	tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or 
132.26 	county received under this section if the city or county:
132.27 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
132.28 	(2) spends the funds on anything other than a qualifying project; or
132.29 	(3) fails to submit a report documenting use of the funds.
132.30 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
132.31 	that, in three consecutive years, the Minnesota Housing Finance Agency has reported, 
132.32 	pursuant to paragraph (b), to have failed to use funds, misused funds, or failed to report on 
132.33 	its use of funds.
133.1 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
133.2 	the commissioner has stopped payments in the year following the August 1 after the 
133.3 	Minnesota Housing Finance Agency certifies that the city or county has submitted 
133.4 	documentation of plans for a qualifying project.
133.5 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
133.6 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
133.7 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
133.8 	on the family homeless prevention and assistance program under section 462A.204, the 
133.9 	economic development and housing challenge program under section 462A.33, and the 
133.10 	workforce and affordable homeownership development program under section 462A.38.

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

133.12 	ARTICLE 12
133.13 	DEPARTMENT OF REVENUE; MISCELLANEOUS

133.14 	Section 1. Minnesota Statutes 2022, section 270C.445, subdivision 6, is amended to read:
133.15 		Subd. 6.Enforcement; administrative order; penalties; cease and desist. (a) The 
133.16 	commissioner may impose an administrative penalty of not more than $1,000 per violation 
133.17 	of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed 
133.18 	for any conduct for which a tax preparer penalty is imposed under section 289A.60, 
133.19 	subdivision 13. The commissioner may terminate a tax preparer's authority to transmit 
133.20 	returns electronically to the state, if the commissioner determines the tax preparer engaged 
133.21 	in a pattern and practice of violating this section. Imposition of a penalty under this paragraph 
133.22 	is subject to the contested case procedure under chapter 14. The commissioner shall collect 
133.23 	the penalty in the same manner as the income tax. There is no right to make a claim for 
133.24 	refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed 
133.25 	under this paragraph are public data.
133.26 	(b) In addition to the penalty under paragraph (a), if the commissioner determines that 
133.27 	a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 
133.28 	issue an administrative order to the tax preparer requiring the tax preparer to cease and 
133.29 	desist from committing the violation. The administrative order may include an administrative 
133.30 	penalty provided in paragraph (a).
133.31 	(c) If the commissioner issues an administrative order under paragraph (b), the 
133.32 	commissioner must send the order to the tax preparer addressed to the last known address 
133.33 	of the tax preparer.
134.1 	(d) A cease and desist order under paragraph (b) must:
134.2 	(1) describe the act, conduct, or practice committed and include a reference to the law 
134.3 	that the act, conduct, or practice violates; and
134.4 	(2) provide notice that the tax preparer may request a hearing as provided in this 
134.5 	subdivision.
134.6 	(e) Within 30 days after the commissioner issues an administrative order under paragraph 
134.7 	(b), the tax preparer may request a hearing to review the commissioner's action. The request 
134.8 	for hearing must be made in writing and must be served on the commissioner at the address 
134.9 	specified in the order. The hearing request must specifically state the reasons for seeking 
134.10 	review of the order. The date on which a request for hearing is served by mail is the postmark 
134.11 	date on the envelope in which the request for hearing is mailed.
134.12 	(f) If a tax preparer does not timely request a hearing regarding an administrative order 
134.13 	issued under paragraph (b), the order becomes a final order of the commissioner and is not 
134.14 	subject to review by any court or agency.
134.15 	(g) If a tax preparer timely requests a hearing regarding an administrative order issued 
134.16 	under paragraph (b), the hearing must be commenced by the issuance of a notice of and 
134.17 	order for hearing by the commissioner within ten 30 days after the commissioner receives 
134.18 	the request for a hearing.
134.19 	(h) A hearing timely requested under paragraph (e) is subject to the contested case 
134.20 	procedure under chapter 14, as modified by this subdivision. The administrative law judge 
134.21 	must issue a report containing findings of fact, conclusions of law, and a recommended 
134.22 	order within ten 30 days after the completion of the hearing, the receipt of late-filed exhibits, 
134.23 	or the submission of written arguments, whichever is later.
134.24 	(i) Within five 15 days of the date of the administrative law judge's report issued under 
134.25 	paragraph (h), any party aggrieved by the administrative law judge's report may submit 
134.26 	written exceptions and arguments to the commissioner. Within 15 45 days after receiving 
134.27 	the administrative law judge's report, the commissioner must issue an order vacating, 
134.28 	modifying, or making final the administrative order.
134.29 	(j) The commissioner and the tax preparer requesting a hearing may by agreement 
134.30 	lengthen any time periods prescribed in paragraphs (g) to (i).
134.31 	(k) An administrative order issued under paragraph (b) is in effect until it is modified 
134.32 	or vacated by the commissioner or an appellate court. The administrative hearing provided 
135.1 	by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 
135.2 	the exclusive remedy for a tax preparer aggrieved by the order.
135.3 	(l) The commissioner may impose an administrative penalty, in addition to the penalty 
135.4 	under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 
135.5 	paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 
135.6 	procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 
135.7 	this paragraph, the tax preparer assessed the penalty may request a hearing to review the 
135.8 	penalty order. The request for hearing must be made in writing and must be served on the 
135.9 	commissioner at the address specified in the order. The hearing request must specifically 
135.10 	state the reasons for seeking review of the order. The cease and desist order issued under 
135.11 	paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 
135.12 	this paragraph. The date on which a request for hearing is served by mail is the postmark 
135.13 	date on the envelope in which the request for hearing is mailed. If the tax preparer does not 
135.14 	timely request a hearing, the penalty order becomes a final order of the commissioner and 
135.15 	is not subject to review by any court or agency. A penalty imposed by the commissioner 
135.16 	under this paragraph may be collected and enforced by the commissioner as an income tax 
135.17 	liability. There is no right to make a claim for refund under section 289A.50 of the penalty 
135.18 	imposed under this paragraph. A penalty imposed under this paragraph is public data.
135.19 	(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 
135.20 	commissioner may terminate the tax preparer's authority to transmit returns electronically 
135.21 	to the state. Termination under this paragraph is public data.
135.22 	(n) A cease and desist order issued under paragraph (b) is public data when it is a final 
135.23 	order.
135.24 	(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 
135.25 	action under this subdivision against a tax preparer, with respect to a return, within the 
135.26 	period to assess tax on that return as provided by sections 289A.38 to 289A.382.
135.27 	(p) Notwithstanding any other law, the imposition of a penalty or any other action against 
135.28 	a tax preparer under this subdivision, other than with respect to a return, must be taken by 
135.29 	the commissioner within five years of the violation of statute.

135.30 	EFFECTIVE DATE. This section is effective for penalties assessed and orders issued 
135.31 	after the day following final enactment.

136.1 	Sec. 2. Minnesota Statutes 2022, section 289A.12, subdivision 18, is amended to read:
136.2 		Subd. 18.Returns Return by qualified heirs. A qualified heir, as defined in section 
136.3 	291.03, subdivision 8, paragraph (c), must file two returns a return with the commissioner 
136.4 	attesting that no disposition or cessation as provided by section 291.03, subdivision 11, 
136.5 	paragraph (a), occurred. The first return must be filed no earlier than 24 months and no later 
136.6 	than 26 months after the decedent's death. The second return must be filed no earlier than 
136.7 	36 months and no later than 39 months after the decedent's death.

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

136.9 	Sec. 3. Minnesota Statutes 2022, section 297I.20, subdivision 4, is amended to read:
136.10 		Subd. 4.Film production credit. (a) A taxpayer may claim a credit against the premiums 
136.11 	tax imposed under this chapter equal to the amount indicated on the credit certificate 
136.12 	statement issued to the company under section 116U.27. If the amount of the credit exceeds 
136.13 	the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of 
136.14 	the five succeeding taxable years. The entire amount of the excess unused credit for the 
136.15 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
136.16 	be carried and then to each successive year to which the credit may be carried. This credit 
136.17 	does not affect the calculation of fire state aid under section 477B.03 and police state aid 
136.18 	under section 477C.03.
136.19 	(b) This subdivision expires January 1, 2025 2031, for taxable years beginning after and 
136.20 	premiums received after December 31, 2024 2030.

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

136.22 	Sec. 4. Laws 2023, chapter 1, section 28, is amended to read:
136.23 	Sec. 28. EXTENSION OF STATUTE OF LIMITATIONS.
 136.24 	(a) Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as 
136.25 	a result of this act may file an amended return by December 31, 2023. The commissioner 
136.26 	may review and assess the return of a taxpayer covered by this provision for the later of:
136.27 	(1) the periods under Minnesota Statutes, sections 289A.38; 289.39 289A.39, subdivision 
136.28 	3; and 289A.40; or
136.29 	(2) one year from the time the amended return is filed as a result of a change in tax 
136.30 	liability under this section.
137.1 	(b) Interest on any additional liabilities as a result of any provision in this act accrue 
137.2 	beginning on January 1, 2024.

137.3 	EFFECTIVE DATE. This section is effective retroactively at the same time the changes 
137.4 	incorporated in Laws 2023, chapter 1, were effective for federal purposes.

APPENDIX 

Repealed Minnesota Statutes: H5247-2 

13.4967 OTHER TAX DATA CODED ELSEWHERE.Subd. 5.Marijuana and controlled substance tax information. 
Disclosure of information obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3. 

297A.99 LOCAL SALES TAXES.Subd. 3a.Temporary moratorium. 
(a) Notwithstanding subdivisions 1, 2, and 3, until after May 31, 2025, a political subdivision may not engage in any of the following activities in connection with imposing a new local sales and use tax or modifying an existing local sales and use tax: 

(1) any activity described in subdivision 1, paragraph (d); 

(2) adopt a resolution; or 

(3) seek voter approval. 

(b) Paragraph (a) does not apply to new local sales and use taxes or modifications to existing local sales and use taxes authorized in May, 2023. 

(c) This subdivision expires June 1, 2025. 

297D.01 DEFINITIONS.Subdivision 1.Illegal cannabis. 
"Illegal cannabis" means any taxable cannabis product as defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota criminal laws. 

Subd. 2.Controlled substance. 
"Controlled substance" means any drug or substance, whether real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does not include illegal cannabis. 

Subd. 3.Tax obligor or obligor. 
"Tax obligor" or "obligor" means a person who in violation of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams of any controlled substance, or ten or more dosage units of any controlled substance which is not sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers. 

Subd. 4.Commissioner. 
"Commissioner" means the commissioner of revenue. 

297D.02 ADMINISTRATION.
The commissioner of revenue shall administer this chapter. The commissioner shall prescribe the content, format, and manner of all forms and other documents required to be filed under this chapter pursuant to section 270C.30. Payments required by this chapter must be made to the commissioner on the form provided by the commissioner. Tax obligors are not required to give their name, address, Social Security number, or other identifying information on the form. The commissioner shall collect all taxes under this chapter. 

297D.03 RULES.
The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed. 

297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.
No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled substance as evidenced by a stamp or other official indicia. 

297D.05 NO IMMUNITY.
Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal prosecution pursuant to Minnesota law. 

297D.06 PHARMACEUTICALS.
Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in possession of illegal cannabis or a controlled substance to pay the tax required under this chapter. 

297D.07 MEASUREMENT.
For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or a controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers. 

297D.08 TAX RATE.
A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01 at the following rates: 

(1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and 

(2) on each gram of controlled substance, or portion of a gram, $200; or 

(3) on each ten dosage units of a controlled substance that is not sold by weight, or portion thereof, $400. 

297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.
If another state or local unit of government has previously assessed an excise tax on the illegal cannabis or controlled substances, the taxpayer must pay the difference between the tax due under section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local unit of government was equal to or greater than the tax due under section 297D.08, no tax is due. The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled substances has been paid to another state or local unit of government. 

297D.09 PENALTIES; CRIMINAL PROVISIONS.Subdivision 1.Penalties. 
Any tax obligor violating this chapter is subject to a penalty of 100 percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected as part of the tax. 

Subd. 1a.Criminal penalty; sale without affixed stamps. 
In addition to the tax penalty imposed, a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be sentenced to imprisonment for not more than seven years or to payment of a fine of not more than $14,000, or both. 

Subd. 2.Statute of limitations. 
Notwithstanding section 628.26, or any other provision of the criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any criminal offense specified in this section, in the proper court within six years after the commission of this offense. 

297D.10 STAMP PRICE.
Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face value for each stamp, label, or other indicia at the time of the purchase. 

297D.11 PAYMENT DUE.Subdivision 1.Stamps affixed. 
When a tax obligor purchases, acquires, transports, or imports into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08, and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor shall have them permanently affixed on the illegal cannabis or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once. 

Subd. 2.Payable on possession. 
Taxes imposed upon illegal cannabis or controlled substances by this chapter are due and payable immediately upon acquisition or possession in this state by a tax obligor. 

297D.12 ALL ASSESSMENTS ARE JEOPARDY.Subdivision 1.Assessment procedure. 
An assessment for a tax obligor not possessing valid stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and applicable penalties based on personal knowledge or information available to the commissioner; mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the amount of tax and penalty; demand its immediate payment; and, if payment is not immediately made, collect the tax and penalty by any method prescribed in chapter 270C, except that the commissioner need not await the expiration of the times specified in chapter 270C. 

Subd. 2.Injunction prohibited. 
No person may bring suit to enjoin the assessment or collection of any taxes, interest, or penalties imposed by this chapter. 

Subd. 3.Standard of proof. 
The tax and penalties assessed by the commissioner are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity. Any statement filed by the commissioner with the court administrator, or any other certificate by the commissioner of the amount of tax and penalties determined or assessed is admissible in evidence and is prima facie evidence of the facts it contains. 

297D.13 CONFIDENTIAL NATURE OF INFORMATION.Subdivision 1.Disclosure prohibited. 
Notwithstanding any law to the contrary, neither the commissioner nor a public employee may reveal facts contained in a report or return required by this chapter or any information obtained from a tax obligor; nor can any information contained in such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this chapter from the tax obligor making the return. 

Subd. 2.Penalty for disclosure. 
Any person violating this section is guilty of a gross misdemeanor. 

Subd. 3.Statistics. 
This section does not prohibit the commissioner from publishing statistics that do not disclose the identity of tax obligors or the contents of particular returns or reports. 

Subd. 4.Possession of stamps. 
A stamp denoting payment of the tax imposed under this chapter must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used against the taxpayer in connection with the administration or civil or criminal enforcement of the tax imposed under this chapter or any similar tax imposed by another state or local unit of government. 

477A.30 LOCAL HOMELESS PREVENTION AID.Subd. 8.Expiration. 
Distributions under this section expire after aids payable in 2028 have been distributed. 

Repealed Minnesota Session Laws: H5247-2 

Laws 2023, chapter 64, article 15, section 24
Sec. 24. TAX FILING MODERNIZATION. Subdivision 1.Account established; appropriation. 
A tax filing modernization account is established in the special revenue fund. All funds in the tax filing modernization account are appropriated to the commissioner of revenue for the purposes specified in subdivision 3. 

Subd. 2.Transfer. 
$5,000,000 in fiscal year 2024 is transferred to the tax filing modernization account from the general fund. This is a onetime transfer. 

Subd. 3.Eligible uses. 
(a) The commissioner of revenue may use funds in the tax filing modernization account to modernize the state process for filing individual income tax returns, including: 

(1) updating and reviewing changes to individual income tax forms resulting from this act; 

(2) coordinating the process for filing state individual income tax returns with free filing options for the federal income tax; and 

(3) development and implementation of state free filing options for the individual income tax. 

(b) Beginning July 1, 2026, the commissioner of revenue may use any unspent funds in the tax filing modernization account to make taxpayer assistance grants to eligible organizations qualifying under section 7526A(e)(2)(B) of the Internal Revenue Code. 

Subd. 4.Unspent funds. 
Any unspent funds in the tax filing modernization account cancel to the general fund on June 30, 2027.