SF 3377

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/11/2025 09:49 a.m.

A bill for an act
relating to government data practices; modifying data protection requirements in
certain property tax proceedings; amending Minnesota Statutes 2024, sections
13.51, subdivisions 2, 4; 271.06, subdivision 6; 278.05, subdivisions 3, 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 13.51, subdivision 2, is amended to read:

Subd. 2.

Income property assessment data.

The following data collected by political
subdivisions and the state from individuals or business entities concerning income properties
are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:

(a) deleted text begin detailed deleted text end income and expense figures;

(b) deleted text begin average deleted text end vacancy deleted text begin factors deleted text end new text begin rates new text end ;

deleted text begin (c) verified net rentable areas or net usable areas, whichever is appropriate;
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end anticipated income and expenses;

deleted text begin (e) deleted text end new text begin (d) new text end projected vacancy deleted text begin factors deleted text end new text begin rates new text end ; and

deleted text begin (f) deleted text end new text begin (e) new text end lease information.

Sec. 2.

Minnesota Statutes 2024, section 13.51, subdivision 4, is amended to read:

Subd. 4.

Request for legal discovery of income property assessment data.

deleted text begin Upon
request by a party to a responsible authority or designee for legal discovery of income
property assessment data, as defined in subdivision 2, the requesting party shall notify the
owner of record of the property. deleted text end new text begin (a) Notwithstanding section 13.03, subdivision 6, a
responsible authority or designee must not deny a request for legal discovery of income
property assessment data classified by subdivision 2 that is made by a party in a legal
proceeding on the grounds that the data is classified as private or nonpublic data.
new text end

new text begin (b) Subject to a protective order or other order issued by the court in the underlying legal
proceeding, a party receiving access to income property assessment data under paragraph
(a), as well as any person directly involved in the legal proceeding through which the data
was requested who properly receives income property assessment data from that party, must
not:
new text end

new text begin (1) use the data for any purpose unrelated to the legal proceeding; or
new text end

new text begin (2) disseminate the data to a person not directly involved in the legal proceeding.
new text end

new text begin (c) A party in a Tax Court proceeding must not use, file, offer, or move to admit into
evidence any income property assessment data classified by subdivision 2 unless the Tax
Court first issues a protective order protecting the data from public disclosure, dissemination,
access, and use.
new text end

Sec. 3.

Minnesota Statutes 2024, section 271.06, subdivision 6, is amended to read:

Subd. 6.

Hearings; new text begin protective orders required; new text end determination of issues; default.

(a)
The Tax Court shall hear, consider, and determine without a jury every appeal de novo. A
Tax Court judge may empanel an advisory jury upon the judge's motion. The Tax Court
shall hold a public hearing in every case. new text begin The Tax Court must issue protective orders to
protect private or nonpublic income property assessment data classified by section 13.51,
subdivision 2, from public disclosure, dissemination, access, and use, and may review the
data at issue in camera. new text end All such parties shall have an opportunity to offer evidence and
arguments at the hearing; provided, that the order of the commissioner or the appropriate
unit of government in every case shall be prima facie valid. When an appeal to the Tax
Court has been taken from an order or determination of the commissioner or from the
appropriate unit of government, the proceeding shall be an original proceeding in the nature
of a suit to set aside or modify the order or determination. In case no appellant shall appear
the Tax Court shall enter its order affirming the order of the commissioner of revenue or
the appropriate unit of government from which the appeal was taken. If the Department of
Revenue's sales ratio study is introduced in Tax Court as evidence, the sales ratio data from
the study shall be admissible as evidence only as provided in section 278.05, subdivision
4.

(b) The commissioner, the taxpayer, and any other party to an appeal to the Tax Court
may file all necessary notices, documents, and other necessary information with the Tax
Court in a manner approved by the Tax Court.

Sec. 4.

Minnesota Statutes 2024, section 278.05, subdivision 3, is amended to read:

Subd. 3.

Assessor's records; new text begin protective orders required; new text end evidence.

new text begin (a) new text end Assessor's
records deleted text begin , including certificates of real estate value, assessor's field cards and property appraisal
cards deleted text end shall be made available to the petitioner for inspection and copying and may be offered
at the trial subject to the applicable rules of evidence and rules governing pretrial discovery
deleted text begin and deleted text end new text begin . Assessor's records new text end shall not be excluded from discovery or admissible evidence on the
grounds that the documents and the information recorded thereon are confidential or classified
as private data on individuals new text begin or nonpublic data by section 13.51, subdivision 2 new text end . Evidence
of comparable sales of other property shall, within the discretion of the court, be admitted
at the trial.

new text begin (b) The Tax Court must issue protective orders as required under section 271.06,
subdivision 6.
new text end

new text begin (c) For purposes of this subdivision, "assessor's records" includes certificates of real
estate value, assessor's field cards and property appraisal cards, and any other data classified
by section 13.51, subdivision 2, regardless of whether the data:
new text end

new text begin (1) relates to the property that is the subject of the property tax petition; or
new text end

new text begin (2) is located within the assessor's file for the property that is the subject of the property
tax petition.
new text end

Sec. 5.

Minnesota Statutes 2024, section 278.05, subdivision 6, is amended to read:

Subd. 6.

Dismissal of petition; exclusion of certain evidence.

(a) In cases where the
petitioner contests the valuation of income-producing property, the following information
must be provided to the county assessor no later than August 1 of the taxes payable year:

(1) a year-end financial statement for the year prior to the assessment date;

(2) a year-end financial statement for the year of the assessment date;

(3) a rent roll on or near the assessment date listing the tenant name, lease start and end
dates, base rent, square footage leased and vacant space;

(4) identification of all lease agreements not disclosed on a rent roll in the response to
clause (3), listing the tenant name, lease start and end dates, base rent, and square footage
leased;

(5) net rentable square footage of the building or buildings; and

(6) anticipated income and expenses in the form of a proposed budget for the year
subsequent to the year of the assessment date.

(b) The information required to be provided to the county assessor under paragraph (a)
does not include leases. deleted text begin Failure to provide the information required in paragraph (a) deleted text end new text begin If the
assessor has notified the petitioner in writing of a deficiency in the information provided
under paragraph (a), and the petitioner fails to correct the deficiency within 30 days of
receiving the notification, the deficiency new text end shall result in the dismissal of the petition, unless
deleted text begin (1) deleted text end the failure to provide deleted text begin it deleted text end new text begin the information new text end was due to the unavailability of the information
at the time that the information was due deleted text begin , or (2) the petitioner was not aware of or informed
of the requirement to provide the information deleted text end .

deleted text begin If the petitioner proves that the requirements under clause (2) are met, the petitioner has an
additional 30 days to provide the information from the time the petitioner became aware of
or was informed of the requirement to provide the information, otherwise the petition shall
be dismissed.
deleted text end

(c) If, after the August 1 deadline set in paragraph (a), a county assessor determines that
the actual leases in effect on the assessment date are necessary to properly evaluate the
income-producing property, then a county assessor may require that the petitioner submit
the leases. The petitioner must provide the requested information to the county assessor
within 60 days of a county assessor's request. The Tax Court shall hear and decide any
issues relating to subsequent information requests by a county assessor. Failure to provide
the information required in this paragraph shall be addressed under Rules of Civil Procedure,
rule 37.

(d) Provided that the information as contained in paragraph (a) is timely submitted to
the county assessor, the county assessor shall furnish the petitioner at least five days before
the hearing under this chapter with the property's appraisal, if any, which will be presented
to the court at the hearing. The petitioner shall furnish to the county assessor at least five
days before the hearing under this chapter with the property's appraisal, if any, which will
be presented to the court at the hearing. An appraisal of the petitioner's property done by
or for the county shall not be admissible as evidence if the county assessor does not comply
with the provisions in this paragraph. The petition shall be dismissed if the petitioner does
not comply with the provisions in this paragraph.