1.1 	A bill for an act
1.2 	relating to taxation; property; establishing levy limits for cities and counties; 
1.3 	modifying the authorization process for additional levies above the limit;amending 
1.4 	Minnesota Statutes 2024, sections 275.71, subdivisions 2, 4; 275.73, by adding a 
1.5 	subdivision; repealing Minnesota Statutes 2024, section 275.73, subdivisions 1, 
1.6 	2.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2024, section 275.71, subdivision 2, is amended to read:
1.9 		Subd. 2.Levy limit base. The levy limit base for a local governmental unit for taxes 
1.10 	levied in 2008 is its levy aid base from the previous year, subject to any adjustments under 
1.11 	section 275.72. For taxes levied in 2009 and 2010, the levy limit base for a local 
1.12 	governmental unit is its adjusted levy limit base in the previous year, subject to any 
1.13 	adjustments under section 275.72.
1.14 	The levy limit base for a local governmental unit for taxes levied in 2026 and thereafter 
1.15 	is the final levy certified by the local governmental unit in the preceding year under section 
1.16 	275.07, subject to adjustments for consolidation and annexation under section 275.72.

1.17 	EFFECTIVE DATE. This section is effective for property taxes payable in 2027 and 
1.18 	thereafter.

1.19 	Sec. 2. Minnesota Statutes 2024, section 275.71, subdivision 4, is amended to read:
1.20 		Subd. 4.Adjusted levy limit base. For taxes levied in 2008 through 2010, the adjusted 
1.21 	levy limit base is equal to the levy limit base computed under subdivision 2 or section 
1.22 	275.72, multiplied by:
2.1 	(1) one plus the percentage growth in the implicit price deflator, but the percentage shall 
2.2 	not be less than zero or exceed 3.9 percent;
2.3 	(2) one plus a percentage equal to 50 percent of the percentage increase in the number 
2.4 	of households, if any, for the most recent 12-month period for which data is available; and
2.5 	(3) one plus a percentage equal to 50 percent of the percentage increase in the estimated 
2.6 	market value of the jurisdiction due to new construction of class 3 property, as defined in 
2.7 	section 273.13, subdivision 24, except for state-assessed utility and railroad property, for 
2.8 	the most recent year for which data is available.
2.9 	For taxes levied in 2026 and thereafter, the adjusted levy limit base for a local 
2.10 	governmental unit equals the levy limit base computed under subdivision 2 multiplied by 
2.11 	the sum of one and the greater of zero or the percentage change in the implicit price deflator 
2.12 	between the first quarter of the levy year and the first quarter of the preceding year.

2.13 	EFFECTIVE DATE. This section is effective for property taxes payable in 2027 and 
2.14 	thereafter.

2.15 	Sec. 3. Minnesota Statutes 2024, section 275.73, is amended by adding a subdivision to 
2.16 	read:
2.17 		Subd. 3.Additional levy authorization. (a) Notwithstanding the provisions of sections 
2.18 	275.70 to 275.72, but subject to other law or charter provisions establishing other limitations 
2.19 	on the amount of property taxes a local governmental unit may levy, a local governmental 
2.20 	unit may levy an additional levy in any amount by a resolution approved by a unanimous 
2.21 	vote of the governing body of the local governmental unit. The resolution and notice of the 
2.22 	public hearing during which the resolution will be discussed must be posted on the local 
2.23 	governmental unit's website and in a newspaper with general circulation within the 
2.24 	governmental unit for two successive weeks before the public hearing.
2.25 	(b) Notwithstanding section 275.61, any levy authorized under this section must be 
2.26 	levied against net tax capacity unless the levy required voter approval under another general 
2.27 	or special law or any charter provisions.
2.28 	(c) An additional levy approved on or before the first Tuesday after the first Monday in 
2.29 	November in any levy year may be levied in that same levy year and subsequent levy years. 
2.30 	An additional levy approved after the first Tuesday after the first Monday in November in 
2.31 	any levy year shall not be levied in that same levy but may be levied in subsequent levy 
2.32 	years.

3.1 	EFFECTIVE DATE. This section is effective for property taxes payable in 2027 and 
3.2 	thereafter.

3.3 	Sec. 4. REPEALER.
 3.4 	Minnesota Statutes 2024, section 275.73, subdivisions 1 and 2, are repealed.

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.