SF 4756

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/08/2026 09:17 a.m.

A bill for an act
relating to taxation; property; establishing levy limits for local governmental units;
amending Minnesota Statutes 2024, section 275.71, subdivisions 2, 4.

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 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 (a) For taxes payable in 2027, the adjusted levy limit base for a local governmental unit
equals the levy limit base computed under subdivision 2, multiplied by:
new text end

new text begin (1) one plus 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; and
new text end

new text begin (2) one plus the greater of zero or an amount equal to 50 percent of the percentage change
in the population of the local governmental unit over the most recent 12-month period for
which data is available.
new text end

new text begin (b) For taxes payable in 2028 and thereafter, the adjusted levy limit base for a local
governmental unit under paragraph (a) is increased by the greater of zero or the difference
between:
new text end

new text begin (1) the levy limit certified by the commissioner of revenue for the local governmental
unit in the preceding year under section 275.74; and
new text end

new text begin (2) the final levy certified by the local governmental unit in the preceding year under
section 275.07, excluding any portion of the final levy approved by the local governmental
unit at a general or special election in the preceding year under section 275.73.
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