SF 4608

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/19/2026 09:31 a.m.

A bill for an act
relating to taxation; property; establishing levy limits for cities and counties;
modifying the authorization process for additional levies above the limit; amending
Minnesota Statutes 2024, sections 275.71, subdivisions 2, 4; 275.73, by adding a
subdivision; repealing Minnesota Statutes 2024, section 275.73, subdivisions 1,
2.

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

Section 1.

Minnesota Statutes 2024, section 275.71, subdivision 2, is amended to read:

Subd. 2.

Levy limit base.

deleted text begin The levy limit base for a local governmental unit for taxes
levied in 2008 is its levy aid base from the previous year, subject to any adjustments under
section 275.72. For taxes levied in 2009 and 2010, the levy limit base for a local
governmental unit is its adjusted levy limit base in the previous year, subject to any
adjustments under section 275.72.
deleted text end

new text begin The levy limit base for a local governmental unit for taxes levied in 2026 and thereafter
is the final levy certified by the local governmental unit in the preceding year under section
275.07, subject to adjustments for consolidation and annexation under section 275.72.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2027 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2024, section 275.71, subdivision 4, is amended to read:

Subd. 4.

Adjusted levy limit base.

deleted text begin For taxes levied in 2008 through 2010, the adjusted
levy limit base is equal to the levy limit base computed under subdivision 2 or section
275.72, multiplied by:
deleted text end

deleted text begin (1) one plus the percentage growth in the implicit price deflator, but the percentage shall
not be less than zero or exceed 3.9 percent;
deleted text end

deleted text begin (2) one plus a percentage equal to 50 percent of the percentage increase in the number
of households, if any, for the most recent 12-month period for which data is available; and
deleted text end

deleted text begin (3) one plus a percentage equal to 50 percent of the percentage increase in the estimated
market value of the jurisdiction due to new construction of class 3 property, as defined in
section 273.13, subdivision 24, except for state-assessed utility and railroad property, for
the most recent year for which data is available.
deleted text end

new text begin For taxes levied in 2026 and thereafter, the adjusted levy limit base for a local
governmental unit equals the levy limit base computed under subdivision 2 multiplied by
the sum of one and the greater of zero or the percentage change in the implicit price deflator
between the first quarter of the levy year and the first quarter of the preceding year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2027 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2024, section 275.73, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Additional levy authorization. new text end

new text begin (a) Notwithstanding the provisions of sections
275.70 to 275.72, but subject to other law or charter provisions establishing other limitations
on the amount of property taxes a local governmental unit may levy, a local governmental
unit may levy an additional levy in any amount by a resolution approved by a unanimous
vote of the governing body of the local governmental unit. The resolution and notice of the
public hearing during which the resolution will be discussed must be posted on the local
governmental unit's website and in a newspaper with general circulation within the
governmental unit for two successive weeks before the public hearing.
new text end

new text begin (b) Notwithstanding section 275.61, any levy authorized under this section must be
levied against net tax capacity unless the levy required voter approval under another general
or special law or any charter provisions.
new text end

new text begin (c) An additional levy approved on or before the first Tuesday after the first Monday in
November in any levy year may be levied in that same levy year and subsequent levy years.
An additional levy approved after the first Tuesday after the first Monday in November in
any levy year shall not be levied in that same levy but may be levied in subsequent levy
years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2027 and
thereafter.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 275.73, subdivisions 1 and 2, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 26-07484

275.73 ELECTIONS FOR ADDITIONAL LEVIES.

Subdivision 1.

Additional levy authorization.

Notwithstanding the provisions of sections 275.70 to 275.72, but subject to other law or charter provisions establishing other limitations on the amount of property taxes a local governmental unit may levy, a local governmental unit may levy an additional levy in any amount which is approved by the majority of voters of the governmental unit voting on the question at a general or special election. Notwithstanding section 275.61, any levy authorized under this section must be levied against net tax capacity unless the levy required voter approval under another general or special law or any charter provisions. When the governing body of the local governmental unit resolves to increase the levy pursuant to this section, it shall provide for submission of the proposition of an additional levy at a general or special election. Notice of the election must be given in the manner required by law. The notice must state the purpose and the maximum yearly amount of the additional levy.

Subd. 2.

Levy effective date.

An additional levy approved under subdivision 1 at a general or special election held on or before the first Tuesday after the first Monday in November in any levy year may be levied in that same levy year and subsequent levy years. An additional levy approved under subdivision 1 at a general or special election held after the first Tuesday after the first Monday in November in any levy year shall not be levied in that same levy but may be levied in subsequent levy years.