HF 2274

as introduced - 94th Legislature (2025 - 2026) Posted on 03/13/2025 03:02pm

A bill for an act
relating to taxation; modifying individual income and corporate franchise taxes,
property taxes, local government aids, sales and use taxes, tax increment financing
provisions, special local taxes, and other various taxes and tax-related provisions;
modifying the political contribution refund; modifying the beginning farmer credit;
providing for disclosure of certain corporate franchise tax information; providing
for electronic direct free filing for individual income tax returns; providing a
subtraction of discharge of coerced debt and excluding that discharged debt from
certain definitions of income; modifying the child tax credit; modifying the housing
credit; providing nonconformity to certain worker classification rules; modifying
and providing for certain property tax exemptions; modifying property
classifications; providing an advance homestead credit for seniors; providing an
advance credit of homestead credit refunds; providing for land bank organizations;
modifying use of certain local government aids; providing for local government
aid penalty forgiveness; reducing the credit for research for the provider tax;
providing for an amusement device gross receipts tax; repealing the tax on illegal
cannabis and controlled substances; providing a sales and use tax exemption for
certain construction materials; modifying and providing for certain local tax
increment financing authority; clarifying the tax base for local lodging taxes;
decreasing certain local special tax rates; modifying use of funds by lawful purpose
gambling organizations; providing for land-value taxation districts; providing for
certain financial assistance to units of local government; requiring reports;
appropriating money; amending Minnesota Statutes 2024, sections 10A.02,
subdivision 11b; 10A.322, subdivision 4; 41B.0391, subdivision 4; 272.02,
subdivisions 7, 19, by adding subdivisions; 273.13, subdivision 25; 273.1392;
273.1393; 273.38; 273.41; 275.065, subdivision 3; 276.04, subdivision 2; 289A.08,
subdivision 1; 290.0132, by adding a subdivision; 290.06, subdivision 23; 290.0661,
subdivision 1; 290.0671, subdivision 1a; 290.0683, subdivision 3; 290.92, by
adding a subdivision; 290A.03, subdivisions 3, 13, by adding subdivisions; 295.53,
subdivision 4a; 297A.61, subdivision 3; 297A.68, subdivisions 3a, 45; 349.12,
subdivision 25; 469.1812, by adding a subdivision; 469.1813, subdivisions 1, 6,
by adding a subdivision; 469.190, subdivisions 1, 7; 477A.30, subdivisions 4, 7;
609.902, subdivision 4; Laws 1986, chapter 396, section 5, as amended; Laws
1986, chapter 400, section 44, as amended; Laws 2010, chapter 389, article 7,
section 22, as amended; Laws 2014, chapter 308, article 6, section 9, as amended;
Laws 2017, First Special Session chapter 1, article 6, section 22; proposing coding
for new law in Minnesota Statutes, chapters 270B; 273; 289A; 290A; 295; 428A;
repealing Minnesota Statutes 2024, sections 13.4967, subdivision 5; 297D.01;
297D.02; 297D.03; 297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085;
297D.09, subdivisions 1, 1a, 2; 297D.10; 297D.11; 297D.12; 297D.13; 477A.30,
subdivision 8.

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

ARTICLE 1

INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2024, section 10A.02, subdivision 11b, is amended to read:

Subd. 11b.

Data privacy related to electronic reporting system.

new text begin (a) new text end The board may
develop and maintain systems to enable treasurers to enter and store electronic records
online for the purpose of complying with this chapter. Data entered into such systems by
treasurers or their authorized agents is not government data under chapter 13 and may not
be accessed or used by the board for any purpose without the treasurer's written consent.
Data from such systems that has been submitted to the board as a filed report is government
data under chapter 13.

new text begin (b) For purposes of administering the refund under section 290.06, subdivision 23, the
board may access or use the following data entered and stored in an electronic reporting
system and share the data with the commissioner of revenue: (1) the amount of the
contribution; (2) the name and address of the person requesting the refund; (3) any unique
identifier for the contribution; (4) the name and campaign identification number of the party
or candidate that received the contribution; and (5) the date on which the contribution was
received. Data accessed, used, or maintained by the board under this paragraph is private
data on individuals, as defined in section 13.02, subdivision 12.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

Sec. 2.

Minnesota Statutes 2024, section 10A.322, subdivision 4, is amended to read:

Subd. 4.

Refund deleted text begin receipt forms deleted text end new text begin receipts new text end ; penalty.

(a) The board must make available
to a political party on request and to any candidate for whom an agreement under this section
is effective, deleted text begin a supply of deleted text end official new text begin electronic new text end refund deleted text begin receipt forms deleted text end new text begin receipts new text end that state in boldface
type that:

(1) a contributor who is given a receipt deleted text begin form deleted text end is eligible to claim a refund as provided in
section 290.06, subdivision 23; and

(2) if the contribution is to a candidate, that the candidate has signed an agreement to
limit campaign expenditures as provided in this section.

deleted text begin The forms must provide duplicate copies of the receipt to be attached to the contributor's
claim. deleted text end new text begin An electronic receipt must only be issued for a contribution of $10 or more. Each
receipt must include a unique receipt validation number that allows the commissioner of
revenue to verify the information on the receipt with the Campaign Finance Board. A
political party or candidate may provide a printed copy of the electronic receipt to the
contributor.
new text end

new text begin (b) At least once a week, the board must provide the commissioner of revenue a receipt
validation report. For each contribution reported to the board during the week, the report
must include:
new text end

new text begin (1) the date and amount of the contribution;
new text end

new text begin (2) the name and address of the contributor;
new text end

new text begin (3) the name and campaign identification number of the party or candidate that received
the contribution; and
new text end

new text begin (4) the receipt validation number assigned to the contribution.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The willful issuance of an official refund receipt deleted text begin form or a facsimile of one deleted text end to
any of the candidate's contributors by a candidate or treasurer of a candidate who did not
sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed
by the board.

deleted text begin (c) deleted text end new text begin (d) new text end The willful issuance of an official refund receipt deleted text begin form or a facsimile deleted text end to an
individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to
a civil penalty of up to $3,000 imposed by the board.

deleted text begin (d) deleted text end new text begin (e) new text end A violation of paragraph deleted text begin (b) deleted text end new text begin (c) new text end or deleted text begin (c) deleted text end new text begin (d) new text end is a misdemeanor.

new text begin (f) A receipt validation report and a receipt validation number prepared pursuant to this
section are private data on individuals, as defined in section 13.02, subdivision 12.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contributions made after December
31, 2026.
new text end

Sec. 3.

Minnesota Statutes 2024, section 41B.0391, subdivision 4, is amended to read:

Subd. 4.

Authority duties.

(a) The authority shall:

(1) approve and certify or recertify beginning farmers as eligible for the program under
this section;

(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
credit under subdivision 2 subject to the allocation limits in paragraph (c);

(3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;

(4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance; and

(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
with the commissioner of revenue to the extent necessary to administer provisions under
this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
must annually notify the commissioner of revenue of approval and certification or
recertification of beginning farmers and owners of agricultural assets under this section.
For credits under subdivision 2, the notification must include the amount of credit approved
by the authority and stated on the credit certificate.

(b) The certification of a beginning farmer or an owner of agricultural assets under this
section is valid for the year of the certification and the two following years, after which
time the beginning farmer or owner of agricultural assets must apply to the authority for
recertification.

(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
must not allocate more than deleted text begin $6,500,000 for taxable years beginning after December 31,
2022, and before January 1, 2024, and deleted text end $4,000,000 deleted text begin for deleted text end new text begin each new text end taxable deleted text begin years beginning after
December 31, 2023 deleted text end new text begin year new text end . The authority must allocate credits on a first-come, first-served
basis beginning on January 1 of each year, except that recertifications for the second and
third years of credits under subdivision 2, paragraph (a), clauses (1) and (2), have first
priority. deleted text begin Any amount authorized but not allocated for taxable years ending before January
1, 2023, is canceled and is not allocated for future taxable years. For taxable years beginning
after December 31, 2022, deleted text end Any amount authorized but not allocated in any taxable year does
not cancel and is added to the allocation for the next taxable year. For each taxable year,
50 percent of newly allocated credits must be allocated to emerging farmers. Any portion
of a taxable year's newly allocated credits that is reserved for emerging farmers that is not
allocated by deleted text begin September 30 deleted text end new text begin May 31 new text end of the taxable year is available for allocation to other
credit allocations beginning on deleted text begin October deleted text end new text begin June new text end 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 4.

new text begin [270B.163] DISCLOSURE OF CERTAIN CORPORATE FRANCHISE TAX
INFORMATION.
new text end

new text begin (a) Except as otherwise provided in this section, within one month from the first day of
the third calendar year following the calendar year in which a taxpayer's taxable year ends,
the commissioner must make the following information available on a website:
new text end

new text begin (1) a corporation's corporate franchise tax return required under section 289A.18,
subdivision 1, and any amended or adjusted returns;
new text end

new text begin (2) all corporate franchise tax forms relating to the calculation of income, apportionment,
and calculation of tax; and
new text end

new text begin (3) the corporation's identity for state corporate franchise tax purposes.
new text end

new text begin (b) This section does not authorize the commissioner to disclose a corporation's federal
return or federal return information.
new text end

new text begin (c) This section applies to a corporation required to file a return under section 289A.08,
subdivision 3, that has $250,000,000 or more in aggregate gross sales or receipts in a taxable
year as determined by the original or most recent amended or adjusted return, including a
unitary business under section 290.17, subdivision 4.
new text end

new text begin (d) Compliance with this section by the commissioner is not a violation of this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for information required to be made
available in calendar years beginning after December 31, 2025.
new text end

Sec. 5.

new text begin [289A.081] DIRECT FREE FILING OF INDIVIDUAL RETURNS.
new text end

new text begin (a) The commissioner must establish an electronic filing system through which taxpayers
may directly file an electronic individual income tax return free of charge. The commissioner
may contract with a software vendor to develop the filing system required under this section,
but the vendor must not offer paid tax preparation services for Minnesota individual income
taxpayers for tax years that the system is active, and the filing system must be made available
on the Department of Revenue website.
new text end

new text begin (b) To the extent feasible, the commissioner must coordinate the state filing system
under this section with any direct file systems established for filing federal tax returns.
new text end

new text begin (c) For taxable years beginning after December 31, 2025, the filing system established
under this section must include the ability to file a sufficient number of tax forms that the
commissioner estimates at least 70 percent of resident individual income tax returns could
be filed using the system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Discharges of indebtedness; coerced debt. new text end

new text begin The amount of discharge of
indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 7.

Minnesota Statutes 2024, section 290.06, subdivision 23, is amended to read:

Subd. 23.

Refund of contributions to political parties and candidates.

(a) A taxpayer
may claim a refund equal to the amount of the taxpayer's contributions made in the calendar
year to candidates and to a political party. The maximum new text begin total new text end refund new text begin per calendar year new text end for
an individual must not exceed $75 and for a married couple, filing jointly, must not exceed
$150. new text begin The commissioner must not issue a refund, whether in one payment or in aggregate,
to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. new text end A
refund of a contribution is allowed only if the taxpayer files new text begin :
new text end

new text begin (1) new text end a form required by the commissioner and attaches to the form deleted text begin a copy of deleted text end an official
refund receipt deleted text begin form deleted text end issued by the candidate or party and signed by the candidate, the treasurer
of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
after the contribution was received deleted text begin . The receipt forms must be numbered, and the data on
the receipt that are not public must be made available to the campaign finance and public
disclosure board upon its request deleted text end new text begin ; or
new text end

new text begin (2) a claim using the electronic filing system authorized in paragraph (i) new text end .

new text begin The form or claim must include one or more unique receipt validation numbers from receipts
issued pursuant to section 10A.322, subdivision 4.
new text end

new text begin (b) new text end A claim must be filed with the commissioner no sooner than January 1 of the calendar
year in which the contribution was made and no later than April 15 of the calendar year
following the calendar year in which the contribution was made. deleted text begin A taxpayer may file only
one claim per calendar year. deleted text end new text begin A claim must be for a minimum of $10. new text end Amounts paid by the
commissioner after June 15 of the calendar year following the calendar year in which the
contribution was made must include interest at the rate specified in section 270C.405.

deleted text begin (b) deleted text end new text begin (c) new text end No refund is allowed under this subdivision for a contribution to a candidate
unless the candidate:

(1) has signed an agreement to limit campaign expenditures as provided in section
10A.322;

(2) is seeking an office for which voluntary spending limits are specified in section
10A.25; and

(3) has designated a principal campaign committee.

This subdivision does not limit the campaign expenditures of a candidate who does not
sign an agreement but accepts a contribution for which the contributor improperly claims
a refund.

deleted text begin (c) deleted text end new text begin (d) new text end For purposes of this subdivision, "political party" means a major political party
as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion
on the income tax or property tax refund form under section 10A.31, subdivision 3a.

A "major party" or "minor party" includes the aggregate of that party's organization
within each house of the legislature, the state party organization, and the party organization
within congressional districts, counties, legislative districts, municipalities, and precincts.

"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a
candidate for judicial office.

"Contribution" means a gift of money.

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner shall make copies of the form available to the public and
candidates upon request.

deleted text begin (e) deleted text end new text begin (f) new text end The following data collected or maintained by the commissioner under this
subdivision are private: the identities of individuals claiming a refund, the identities of
candidates to whom those individuals have made contributions, and the amount of each
contribution.

deleted text begin (f) deleted text end new text begin (g) new text end The commissioner shall report to the campaign finance and public disclosure
board by each August 1 a summary showing the total number and aggregate amount of
political contribution refunds made on behalf of each candidate and each political party.
These data are public.

deleted text begin (g) deleted text end new text begin (h) new text end The amount necessary to pay claims for the refund provided in this section is
appropriated from the general fund to the commissioner of revenue.

deleted text begin (h) For a taxpayer who files a claim for refund via the Internet or other electronic means,
the commissioner may accept the number on the official receipt as documentation that a
contribution was made rather than the actual receipt as required by paragraph (a) deleted text end new text begin (i) The
commissioner must establish an electronic filing system by which refunds are claimed new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contributions made after December
31, 2026.
new text end

Sec. 8.

Minnesota Statutes 2024, section 290.0661, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, "qualifying child" has the
meaning given in section 32(c) of the Internal Revenue Code, except:

(1) excluding individuals who attained the age of deleted text begin 18 deleted text end new text begin 19 new text end or greater in the taxable year;
and

(2) section 32(m) of the Internal Revenue Code does not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 9.

Minnesota Statutes 2024, section 290.0671, subdivision 1a, is amended to read:

Subd. 1a.

Definitions.

For purposes of this section, "qualifying older child" means a
qualifying child, as defined in section 32(c) of the Internal Revenue Code, that attained at
least the age of deleted text begin 18 deleted text end new text begin 19 new text end in the taxable year. For the purposes of determining a qualifying older
child, section 32(m) of the Internal Revenue Code does not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 10.

Minnesota Statutes 2024, section 290.0683, subdivision 3, is amended to read:

Subd. 3.

Allocation.

(a) To qualify for the credit, a taxpayer must contribute to the
Minnesota housing tax credit contribution account. A taxpayer may indicate that a
contribution is intended for a specific qualified project. A taxpayer is prohibited from
contributing to certain projects as provided in section 462A.40, subdivision 3.

(b) The aggregate amount of tax credits allowed to all eligible contributors is limited to
$9,900,000 annually. new text begin The allocation for 2025 only is the annual allocation plus the sum of
the unused allocation amounts in 2023 and 2024, if any.
new text end

(c) Within 30 days after a taxpayer contributes to the account, the agency must file with
the contributing taxpayer a credit certificate statement or return any amounts to the taxpayer
as provided in this paragraph. The agency must send a copy of the credit certificate to the
commissioner. If there are insufficient credits to match the contribution, the agency must
not issue a credit certificate for the amount of the contribution for which there are insufficient
credits, and must return that amount to the taxpayer before issuing any credit certificate.

(d) The credit certificate must state the dollar amount of the contribution made by the
taxpayer and the date the payment was received by the account, and indicate if the
contribution was intended for a specific qualified project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 11.

Minnesota Statutes 2024, section 290.92, is amended by adding a subdivision to
read:

new text begin Subd. 32. new text end

new text begin Nonconformity to certain worker classification rules. new text end

new text begin For purposes of
employee classification under this section, "Internal Revenue Code" does not include section
530 of Public Law 95-600, as amended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 12.

Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:

Subd. 3.

Income.

(a) "Income" means the sum of the following:

(1) federal adjusted gross income as defined in the Internal Revenue Code; and

(2) the sum of the following amounts to the extent not included in clause (1):

(i) all nontaxable income;

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;

(iv) cash public assistance and relief;

(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;

(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;

(vii) workers' compensation;

(viii) nontaxable strike benefits;

(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;

(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;

(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;

(xiii) nontaxable scholarship or fellowship grants;

(xiv) alimony received to the extent not included in the recipient's income;

(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;

(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and

(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.

In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.

(b) "Income" does not include:

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;

(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;

(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;

(4) surplus food or other relief in kind supplied by a governmental agency;

(5) relief granted under this chapter;

(6) child support payments received under a temporary or final decree of dissolution or
legal separation;

(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16;

(8) alimony paid; deleted text begin or
deleted text end

(9) veterans disability compensation paid under title 38 of the United States Code new text begin ; or
new text end

new text begin (10) to the extent included in federal adjusted gross income, the amount of discharge of
indebtedness awarded to the claimant under section 332.74, subdivision 3 new text end .

(c) The sum of the following amounts may be subtracted from income:

(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;

(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;

(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;

(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;

(5) for the claimant's fifth dependent, the exemption amount; and

(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
before December 31 of the year for which the taxes were levied, the exemption amount.

(d) For purposes of this subdivision, the following terms have the meanings given:

(1) "exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b), for the taxable year for which the income is reported;

(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and

(3) "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2026 and
thereafter.
new text end

Sec. 13. new text begin APPROPRIATION; POLITICAL CONTRIBUTION REFUND
ELECTRONIC FILING SYSTEM.
new text end

new text begin $147,000 in fiscal year 2026 and $59,000 in fiscal year 2027 are appropriated from the
general fund to the commissioner of revenue to establish and implement an electronic filing
system for political contribution refund claims.
new text end

Sec. 14. new text begin APPROPRIATION; DIRECT FREE FILING SYSTEM.
new text end

new text begin $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general
fund to the commissioner of revenue for the free filing system under Minnesota Statutes,
section 289A.081.
new text end

Sec. 15. new text begin APPROPRIATION; CORPORATE FRANCHISE TAX INFORMATION
DISCLOSURE.
new text end

new text begin $480,000 in fiscal year 2026 and $198,000 in fiscal year 2027 are appropriated from the
general fund to the commissioner of revenue to administer the publication of corporate
franchise tax information required under Minnesota Statutes, section 270B.163.
new text end

ARTICLE 2

PROPERTY TAXES AND LOCAL GOVERNMENT AIDS

Section 1.

Minnesota Statutes 2024, section 272.02, subdivision 7, is amended to read:

Subd. 7.

Institutions of public charity.

(a) Institutions of purely public charity that are
exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code
are exempt if they meet the requirements of this subdivision. In determining whether real
property is exempt under this subdivision, the following factors must be considered:

(1) whether the stated purpose of the undertaking is to be helpful to others without
immediate expectation of material reward;

(2) whether the institution of public charity is supported by material donations, gifts, or
government grants for services to the public in whole or in part;

(3) whether a material number of the recipients of the charity receive benefits or services
at reduced or no cost, or whether the organization provides services to the public that alleviate
burdens or responsibilities that would otherwise be borne by the government;

(4) whether the income received, including material gifts and donations, produces a
profit to the charitable institution that is not distributed to private interests;

(5) whether the beneficiaries of the charity are restricted or unrestricted, and, if restricted,
whether the class of persons to whom the charity is made available is one having a reasonable
relationship to the charitable objectives; and

(6) whether dividends, in form or substance, or assets upon dissolution, are not available
to private interests.

A charitable organization must satisfy the factors in clauses (1) to (6) for its property to
be exempt under this subdivision, unless there is a reasonable justification for failing to
meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the
factual basis for that justification. If there is reasonable justification for failing to meet the
factors in clause (2), (3), or (5), an organization is a purely public charity under this
subdivision without meeting those factors. After an exemption is properly granted under
this subdivision, it will remain in effect unless there is a material change in facts.

(b) For purposes of this subdivision, a grant is a written instrument or electronic document
defining a legal relationship between a granting agency and a grantee when the principal
purpose of the relationship is to transfer cash or something of value to the grantee to support
a public purpose authorized by law in a general manner instead of acquiring by professional
or technical contract, purchase, lease, or barter property or services for the direct benefit or
use of the granting agency.

new text begin (c) Rental housing property does not qualify for an exemption under this subdivision
unless: (1) its use is in furtherance of the tax-exempt charitable purpose of the organization;
and (2) its use does not further the tax-exempt charitable purpose of the organization solely
by providing rental housing to persons or families on the basis of the income characteristics
of those persons or families.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end In determining whether rental housing property qualifies for exemption under
this subdivision, the following are not gifts or donations to the owner of the rental housing:

(1) rent assistance provided by the government to or on behalf of tenants; and

(2) financing assistance or tax credits provided by the government to the owner on
condition that specific units or a specific quantity of units be set aside for persons or families
with certain income characteristics.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2026 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:

Subd. 19.

Property used to distribute electricity to farmers.

Electric power distribution
deleted text begin lines and their attachments and appurtenances deleted text end new text begin systems, not including substations, or
transmission or generation equipment new text end , that are used primarily for supplying electricity to
farmers at retail, are exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2025 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 106. new text end

new text begin Certain property owned by an Indian Tribe. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) was classified as class 2b under section 273.13, subdivision 23, for taxes payable in
2024;
new text end

new text begin (2) is located within a county with a population greater than 5,580 but less than 5,620
according to the 2020 federal census;
new text end

new text begin (3) is located in an unorganized territory with a population less than 800 according to
the 2020 federal census; and
new text end

new text begin (4) was on January 2, 2023, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
new text end

new text begin (b) The exemption under this subdivision does not apply if the use of the property
receiving the exemption changes from the use of the property in assessment year 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026.
new text end

Sec. 4.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 107. new text end

new text begin Certain property owned by an Indian Tribe. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in
2024;
new text end

new text begin (2) is located in a city of the first class with a population greater than 400,000 as of the
2020 federal census;
new text end

new text begin (3) was on January 2, 2023, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
and
new text end

new text begin (4) is used exclusively for Tribal purposes or institutions of purely public charity as
defined in subdivision 7.
new text end

new text begin (b) Property that qualifies for the exemption under this subdivision is limited to one
parcel that does not exceed 40,000 square feet. Property used for single-family housing,
market-rate apartments, agriculture, or forestry does not qualify for this exemption.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026.
new text end

Sec. 5.

Minnesota Statutes 2024, section 273.13, subdivision 25, is amended to read:

Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more units
and used or held for use by the owner or by the tenants or lessees of the owner as a residence
for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
under section 272.02, and contiguous property used for hospital purposes, without regard
to whether the property has been platted or subdivided. The market value of class 4a property
has a classification rate of 1.25 percent.

(b) Class 4b includes:

(1) residential real estate containing less than four units, including property rented as a
short-term rental property for more than 14 days in the preceding year, that does not qualify
as class 4bb, other than seasonal residential recreational property;

(2) manufactured homes not classified under any other provision;

(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
classified under subdivision 23, paragraph (b) containing two or three units; and

(4) unimproved property that is classified residential as determined under subdivision
33.

For the purposes of this paragraph, "short-term rental property" means nonhomestead
residential real estate rented for periods of less than 30 consecutive days.

The market value of class 4b property has a classification rate of 1.25 percent.

(c) Class 4bb includes:

(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property;

(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b); and

(3) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose.

Class 4bb property has the same classification rates as class 1a property under subdivision
22.

Property that has been classified as seasonal residential recreational property at any time
during which it has been owned by the current owner or spouse of the current owner does
not qualify for class 4bb.

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
for not more than 250 days in the year preceding the year of assessment. For purposes of
this clause, property is devoted to a commercial purpose on a specific day if any portion of
the property is used for residential occupancy, and a fee is charged for residential occupancy.
Class 4c property under this clause must contain three or more rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles. A camping pad offered
for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
under this clause regardless of the term of the rental agreement, as long as the use of the
camping pad does not exceed 250 days. In order for a property to be classified under this
clause, either (i) the business located on the property must provide recreational activities,
at least 40 percent of the annual gross lodging receipts related to the property must be from
business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
bookings by lodging guests during the year must be for periods of at least two consecutive
nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
and must be located in a township or a city with a population of 2,500 or less located outside
the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
of a state trail administered by the Department of Natural Resources. For purposes of item
(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
property also includes commercial use real property used exclusively for recreational
purposes in conjunction with other class 4c property classified under this clause and devoted
to temporary and seasonal residential occupancy for recreational purposes, up to a total of
two acres, provided the property is not devoted to commercial recreational use for more
than 250 days in the year preceding the year of assessment and is located within two miles
of the class 4c property with which it is used. In order for a property to qualify for
classification under this clause, the owner must submit a declaration to the assessor
designating the cabins or units occupied for 250 days or less in the year preceding the year
of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
share of the land on which they are located must be designated class 4c under this clause
as otherwise provided. The remainder of the cabins or units and a proportionate share of
the land on which they are located will be designated as class 3a. The owner of property
desiring designation as class 4c property under this clause must provide guest registers or
other records demonstrating that the units for which class 4c designation is sought were not
occupied for more than 250 days in the year preceding the assessment if so requested. The
portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
or meeting room, and (5) other nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy for recreation purposes
does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
ski equipment; providing marina services, launch services, or guide services; or selling bait
and fishing tackle;

(2) qualified property used as a golf course if:

(i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
but a membership fee may not be required in order to use the property for golfing, and its
green fees for golfing must be comparable to green fees typically charged by municipal
courses; and

(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).

A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
the golf course is classified as class 3a property;

(3) real property up to a maximum of three acres of land owned and used by a nonprofit
community service oriented organization and not used for residential purposes on either a
temporary or permanent basis, provided that:

(i) the property is not used for a revenue-producing activity for more than six days in
the calendar year preceding the year of assessment; or

(ii) the organization makes annual charitable contributions and donations at least equal
to the property's previous year's property taxes and the property is allowed to be used for
public and community meetings or events for no charge, as appropriate to the size of the
facility.

For purposes of this clause:

(A) "charitable contributions and donations" has the same meaning as lawful gambling
purposes under section 349.12, subdivision 25, excluding those purposes relating to the
payment of taxes, assessments, fees, auditing costs, and utility payments;

(B) "property taxes" excludes the state general tax;

(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and

(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.

Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
use of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.

The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the requirement
under item (ii) must file an application by May 1 with the assessor for eligibility for the
current year's assessment. The commissioner shall prescribe a uniform application form
and instructions;

(4) postsecondary student housing of not more than one acre of land that is owned by a
nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;

(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
3a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision
2;

(6) real property that is actively and exclusively devoted to indoor fitness, health, social,
recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
located within the metropolitan area as defined in section 473.121, subdivision 2;

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and

(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
premise, prohibits commercial activity performed at the hangar.

If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
filed by the new owner with the assessor of the county where the property is located within
60 days of the sale;

(8) a privately owned noncommercial aircraft storage hangar not exempt under section
272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land abuts a public airport; and

(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
restricting the use of the premises, prohibiting commercial use or activity performed at the
hangar; and

(9) residential real estate, a portion of which is used by the owner for homestead purposes,
and that is also a place of lodging, if all of the following criteria are met:

(i) rooms are provided for rent to transient guests that generally stay for periods of 14
or fewer days;

(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
the basic room rate;

(iii) meals are not provided to the general public except for special events on fewer than
seven days in the calendar year preceding the year of the assessment; and

(iv) the owner is the operator of the property.

The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;

(10) real property up to a maximum of three acres and operated as a restaurant as defined
under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
of its annual gross receipts from business conducted during four consecutive months. Gross
receipts from the sale of alcoholic beverages must be included in determining the property's
qualification under item (ii). The property's primary business must be as a restaurant and
not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
Owners of real property desiring 4c classification under this clause must submit an annual
declaration to the assessor by February 1 of the current assessment year, based on the
property's relevant information for the preceding assessment year;

(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
and devoted to recreational use for marina services. The marina owner must annually provide
evidence to the assessor that it provides services, including lake or river access to the public
by means of an access ramp or other facility that is either located on the property of the
marina or at a publicly owned site that abuts the property of the marina. No more than 800
feet of lakeshore may be included in this classification. Buildings used in conjunction with
a marina for marina services, including but not limited to buildings used to provide food
and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
as class 3a property; and

(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.

Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, the market
value of manufactured home parks assessed under clause (5), item (ii), have a classification
rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a classification rate of one
percent if 50 percent or less of the lots are so occupied, and class I manufactured home
parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent,
(iii) commercial-use seasonal residential recreational property and marina recreational land
as described in clause (11), has a classification rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a classification rate of one percent, (v) the market value
of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
clause (3) that is owned or operated by a congressionally chartered veterans organization
has a classification rate of one percent. The commissioner of veterans affairs must provide
a list of congressionally chartered veterans organizations to the commissioner of revenue
by June 30, 2017, and by January 1, 2018, and each year thereafter.

(e) Class 4d property includes:

(1) qualifying low-income rental housing certified to the assessor by the Housing Finance
Agency under section 273.128, subdivision 3. If only a portion of the units in the building
qualify as low-income rental housing units as certified under section 273.128, subdivision
3, only the proportion of qualifying units to the total number of units in the building qualify
for class 4d(1). The remaining portion of the building shall be classified by the assessor
based upon its use. Class 4d(1) also includes the same proportion of land as the qualifying
low-income rental housing units are to the total units in the building. For all properties
qualifying as class 4d(1), the market value determined by the assessor must be based on the
normal approach to value using normal unrestricted rents; and

(2) a unit that is owned by the occupant and used as a homestead by the occupant, and
otherwise meets all the requirements for community land trust property under section 273.11,
subdivision 12, provided that by December 31 of each assessment year, the community land
trust certifies to the assessor that (i) the community land trust owns the real property on
which the unit is located, and (ii) the unit owner is a member in good standing of the
community land trust. deleted text begin For all units qualifying as class 4d(2), the market value determined
by the assessor must be based on the normal approach to value without regard to any
restrictions that apply because the unit is a community land trust property.
deleted text end

(f) Class 4d(1) property has a classification rate of 0.25 percent. Class 4d(2) property
has a classification rate of 0.75 percent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025.
new text end

Sec. 6.

new text begin [273.1389] ADVANCE HOMESTEAD CREDIT FOR SENIORS.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin Homestead property is eligible to receive the advance
homestead credit for seniors under this section if it is owned by an eligible senior claimant
who received homestead treatment on the property in the prior taxes payable year. For the
purposes of this section, "eligible senior claimant" means a claimant who has submitted an
application and has been determined eligible under section 290A.071.
new text end

new text begin Subd. 2. new text end

new text begin Credit amount. new text end

new text begin For each qualifying property, the amount of the advance
homestead credit for seniors is equal to 50 percent of the amount of the homestead credit
refund the property owner received in the previous year.
new text end

new text begin Subd. 3. new text end

new text begin Certification. new text end

new text begin No later than January 2 of the year for which an eligible senior
claimant elected to receive the advance homestead credit for seniors under this section, the
commissioner of revenue must calculate and certify to each county auditor credit amounts
under this section. The county auditor must apply the credit to each qualifying property's
first half payment. If a property's credit amount under subdivision 2 exceeds the first half
payment amount after all other applicable credits, the auditor must reduce the advance
homestead credit for seniors so that the first half payment amount is $0. No later than July
1 of the taxes payable year in which the credit is applied, the county auditor must certify
any reductions under this subdivision to the commissioner of revenue under section 270C.85,
subdivision 2. The commissioner shall review the certifications for accuracy and may make
any changes the commissioner deems necessary or return the certification to the county
auditor for correction.
new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin (a) The commissioner of revenue shall reimburse each local taxing
jurisdiction, other than school districts, for the tax reductions granted under this section in
one installment on October 31 of the taxes payable year for which the reductions are granted,
including in each payment any prior year adjustments. The reimbursements related to tax
increments shall be issued in one installment each year on December 26.
new text end

new text begin (b) The commissioner of revenue shall certify the total of the tax reductions granted
under this section for each taxes payable year within each school district to the commissioner
of education. The commissioner of education shall pay the reimbursement amounts to each
school district as provided in section 273.1392.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by this
section to taxing jurisdictions other than school districts is annually appropriated from the
general fund to the commissioner of revenue. An amount sufficient to make the payments
required by this section for school districts is annually appropriated from the general fund
to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2027.
new text end

Sec. 7.

Minnesota Statutes 2024, section 273.1392, is amended to read:

273.1392 PAYMENT; SCHOOL DISTRICTS.

The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387; new text begin
the advance homestead credit for seniors under section 273.1389; new text end aids and credits under
section 273.1398; enterprise zone property credit payments under section 469.171;
metropolitan agricultural preserve reduction under section 473H.10; and electric generation
transition aid under section 477A.24 for school districts, shall be certified to the Department
of Education by the Department of Revenue. The amounts so certified shall be paid according
to section 127A.45, subdivisions 9, 10, and 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2027.
new text end

Sec. 8.

Minnesota Statutes 2024, section 273.1393, is amended to read:

273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are determined
by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) the school bond credit as provided in section 273.1387;

(8) agricultural credit as provided in section 273.1384;

(9) taconite homestead credit as provided in section 273.135;

(10) supplemental homestead credit as provided in section 273.1391; deleted text begin and
deleted text end

(11) the bovine tuberculosis zone credit, as provided in section 273.113 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (12) the advance homestead credit for seniors under section 273.1389.
new text end

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2027.
new text end

Sec. 9.

Minnesota Statutes 2024, section 273.38, is amended to read:

273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.

The distribution deleted text begin lines and the attachments and appurtenances thereto deleted text end new text begin systems, not
including substations, or transmission or generation equipment new text end of cooperative associations
organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
and supplemental thereto, and engaged in the electrical heat, light and power business, upon
a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
273.40 and 273.41.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2025 and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2024, section 273.41, is amended to read:

273.41 AMOUNT OF TAX; DISTRIBUTION.

There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
deleted text begin distribution lines and the attachments and appurtenances thereto of such associations deleted text end new text begin that
part of the association's distribution system, not including substations, or transmission or
generation equipment, new text end located in rural areas. The tax shall be payable on or before March
1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
thereof, is not paid within the time herein specified for the payment thereof, there shall be
added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
Such penalty shall be collected as part of said tax, and the amount of said tax not timely
paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
from the time such tax should have been paid until paid. The commissioner shall deposit
the amount so received in the general fund of the state treasury.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2025 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, metropolitan taxing
districts as defined in paragraph (i), and fire protection and emergency medical services
special taxing districts established under section 144F.01, the time and place of a meeting
for each taxing authority in which the budget and levy will be discussed and public input
allowed, prior to the final budget and levy determination. The taxing authorities must provide
the county auditor with the information to be included in the notice on or before the time it
certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
must provide a website address and a telephone number for the taxing authority that taxpayers
may call if they have questions related to the notice and an address where comments will
be received by mail, except that no notice required under this section shall be interpreted
as requiring the printing of a personal telephone number or address as the contact information
for a taxing authority. If a taxing authority does not maintain a website or public offices
where telephone calls can be received by the authority, the authority may inform the county
of the lack of a public website or telephone number and the county shall not list a website
or telephone number for that taxing authority.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, school building bond agricultural
credit under section 273.1387, new text begin the advance homestead credit for seniors under section
273.1389, new text end voter approved school levy, other local school levy, and the sum of the special
taxing districts, and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include the
following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value reductions
for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.

(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2027.
new text end

Sec. 12.

Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar.

(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13, subdivision
35;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for agricultural properties, the credits under sections 273.1384 and 273.1387;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
new text begin 273.1389; new text end 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
of credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2027.
new text end

Sec. 13.

Minnesota Statutes 2024, section 289A.08, subdivision 1, is amended to read:

Subdivision 1.

Generally; individuals.

(a) A taxpayer must file a return for each taxable
year the taxpayer is required to file a return under section 6012 of the Internal Revenue
Code or meets the requirements under paragraph (d) to file a return, except that:

(1) an individual who is not a Minnesota resident for any part of the year is not required
to file a Minnesota income tax return if the individual's gross income derived from Minnesota
sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
filing requirements for a single individual who is a full year resident of Minnesota;

(2) an individual who is a Minnesota resident is not required to file a Minnesota income
tax return if the individual's gross income derived from Minnesota sources as determined
under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
12 and 15, is less than the filing requirements for a single individual who is a full-year
resident of Minnesota.

(b) The decedent's final income tax return, and other income tax returns for prior years
where the decedent had gross income in excess of the minimum amount at which an
individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must be
filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
of the decedent.

(c) The term "gross income," as it is used in this section, has the same meaning given it
in section 290.01, subdivision 20.

(d) The commissioner of revenue must annually determine the gross income levels at
which individuals are required to file a return for each taxable year based on the amounts
allowed as a deduction under section 290.0123.

(e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return
for each taxable year that the taxpayer has made an election to receive advance payments
of the child tax credit under section 290.0661, subdivision 8.

new text begin (f) A claimant who elects to receive advance payments under section 290A.071 must
file a claim for a homestead credit refund as a return to reconcile their advanced payment.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2024, section 290A.03, subdivision 13, is amended to read:

Subd. 13.

Property taxes payable.

new text begin (a) new text end "Property taxes payable" means the property tax
exclusive of new text begin :
new text end

new text begin (1) new text end special assessments, penalties, and interest payable on a claimant's homestead after
deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2 deleted text begin , and deleted text end new text begin ;
new text end

new text begin (2) new text end any other state paid property tax credits in any calendar year, new text begin except the credit under
section 273.1389; new text end and

new text begin (3) new text end after any refund claimed and allowable under section 290A.04, subdivision 2h, that
is first payable in the year that the property tax is payable.

new text begin (b) new text end In the case of a claimant who makes ground lease payments, "property taxes payable"
includes the amount of the payments directly attributable to the property taxes assessed
against the parcel on which the house is located.

new text begin (c) new text end Regardless of the limitations in section 280A(c)(5) of the Internal Revenue Code,
"property taxes payable" must be apportioned or reduced for the use of a portion of the
claimant's homestead for a business purpose if the claimant deducts any business depreciation
expenses for the use of a portion of the homestead or deducts expenses under section 280A
of the Internal Revenue Code for a business operated in the claimant's homestead.

new text begin (d) new text end For manufactured homes, "property taxes payable" shall also include 17 percent of
the gross rent paid in the preceding year for the site on which the homestead is located.

new text begin (e) new text end When a homestead is owned by two or more persons as joint tenants or tenants in
common, such tenants shall determine between them which tenant may claim the property
taxes payable on the homestead. If they are unable to agree, the matter shall be referred to
the commissioner of revenue whose decision shall be final.

new text begin (f) new text end Property taxes are considered payable in the year prescribed by law for payment of
the taxes.

new text begin (g) new text end In the case of a claim relating to "property taxes payable," the claimant must have
owned and occupied the homestead on January 2 of the year in which the tax is payable and
(i) the property must have been classified as homestead property pursuant to section 273.124,
on or before December 31 of the assessment year to which the "property taxes payable"
relate; or (ii) the claimant must provide documentation from the local assessor that application
for homestead classification has been made on or before December 31 of the year in which
the "property taxes payable" were payable and that the assessor has approved the application.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2024, section 290A.03, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Eligible senior claimant. new text end

new text begin "Eligible senior claimant" means a claimant who
has attained at least the age of 65, or in the case of a married claimant filing a joint claim,
one spouse has attained at least the age of 65 and the other spouse has attained at least the
age of 62.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for advance payment elections after
December 31, 2025, for credits applied to property taxes payable in 2027 and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2024, section 290A.03, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin Homestead credit refund. new text end

new text begin "Homestead credit refund" means the refund under
section 290A.04, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for advance payment elections after
December 31, 2025, for credits applied to property taxes payable in 2027 and thereafter.
new text end

Sec. 17.

new text begin [290A.071] ADVANCE CREDIT OF HOMESTEAD CREDIT REFUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Advance payment election established. new text end

new text begin The commissioner must establish
a process to allow an eligible senior claimant to elect to receive advance credit of the
homestead credit refund, as provided in this section.
new text end

new text begin Subd. 2. new text end

new text begin Election for senior claimants to receive advance payments. new text end

new text begin At the time of
filing a claim for the homestead credit refund, an eligible senior claimant may elect to
receive an advance credit of the claimant's homestead credit refund for property taxes payable
in the following year by applying for the advance homestead credit for seniors under section
273.1389. The application must be made in the form and manner specified by the
commissioner, but the claimant must attest that they intend to continue to occupy the same
homestead in the following year.
new text end

new text begin Subd. 3. new text end

new text begin Reconciliation. new text end

new text begin (a) A claimant's homestead credit refund is reduced by the
amount of any advance homestead credit for seniors under section 273.1389 received by
the claimant. If a claimant's credit exceeds the amount of the refund for which the claimant
was eligible, the claimant must repay to the commissioner the difference between the amount
of advance payments received and the credit amount for which the claimant is eligible.
new text end

new text begin (b) The commissioner must deposit repayments under this subdivision in the general
fund.
new text end

new text begin (c) A claimant that receives an advance credit under this section and section 273.1389
must file a claim for a homestead credit refund for the property taxes payable year for which
the advance credit was received.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for advance payment elections after
December 31, 2025, for credits applied to property taxes payable in 2027 and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2024, section 469.1812, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Land bank organization. new text end

new text begin "Land bank organization" means an organization
that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited
property for future development, redevelopment, or disposal, and that is either:
new text end

new text begin (1) a nonprofit organization exempt from federal income taxation under section 501(c)(3)
of the Internal Revenue Code whose governing board members are elected or appointed by
the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of
the state of Minnesota or its political subdivisions, or are elected or appointed officials of
the state of Minnesota or any of its political subdivisions; or
new text end

new text begin (2) a limited liability company of which a nonprofit organization described in clause (1)
is the sole member.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2024, section 469.1813, subdivision 1, is amended to read:

Subdivision 1.

Authority.

The governing body of a political subdivision may grant a
current or prospective abatement, by contract or otherwise, of the taxes imposed by the
political subdivision on a parcel of property, which may include personal property and
machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise
would apply, if:

(1) it expects the benefits to the political subdivision of the proposed abatement agreement
to at least equal the costs to the political subdivision of the proposed agreement or intends
the abatement to phase in a property tax increase, as provided in clause (2)(vii); and

(2) it finds that doing so is in the public interest because it will:

(i) increase or preserve tax base;

(ii) provide employment opportunities in the political subdivision;

(iii) provide or help acquire or construct public facilities;

(iv) help redevelop or renew blighted areas;

(v) help provide access to services for residents of the political subdivision;

(vi) finance or provide public infrastructure;

(vii) phase in a property tax increase on the parcel resulting from an increase of 50
percent or more in one year on the estimated market value of the parcel, other than increase
attributable to improvement of the parcel; deleted text begin or
deleted text end

(viii) stabilize the tax base through equalization of property tax revenues for a specified
period of time with respect to a taxpayer whose real and personal property is subject to
valuation under Minnesota Rules, chapter 8100 new text begin ;
new text end

new text begin (ix) provide for the development of affordable housing to households at or below 80
percent of area median income as estimated by the United States Department of Housing
and Urban Development for the political subdivision in which the project is located; or
new text end

new text begin (x) allow the property to be held by a land bank organization for future development new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2024, section 469.1813, subdivision 6, is amended to read:

Subd. 6.

Duration limit.

(a) A political subdivision may grant an abatement for a period
no longer than 15 years, except as provided under deleted text begin paragraph deleted text end new text begin paragraphs new text end (b) new text begin and (c) new text end . The
abatement period commences in the first year in which the abatement granted is either paid
or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify
in the abatement resolution a shorter duration. If the resolution does not specify a period of
time, the abatement is for eight years. If an abatement has been granted to a parcel of property
and the period of the abatement has expired, the political subdivision that granted the
abatement may not grant another abatement for eight years after the expiration of the first
abatement. This prohibition does not apply to improvements added after and not subject to
the first abatement. Economic abatement agreements for real and personal property subject
to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and
may be granted successively.

(b) A political subdivision proposing to abate taxes for a parcel may request, in writing,
that the other political subdivisions in which the parcel is located grant an abatement for
the property. If one of the other political subdivisions declines, in writing, to grant an
abatement or if 90 days pass after receipt of the request to grant an abatement without a
written response from one of the political subdivisions, the duration limit for an abatement
for the parcel by the requesting political subdivision and any other participating political
subdivision is increased to 20 years. If the political subdivision which declined to grant an
abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by
one year for each year that the declining political subdivision grants an abatement for the
parcel during the period of the abatement granted by the requesting political subdivision.
The duration limit may not be reduced below the limit under paragraph (a).

new text begin (c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for
a period no longer than five years. This limit also applies if the resolution does not specify
a period of time.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for abatement resolutions approved after
the day following final enactment.
new text end

Sec. 21.

Minnesota Statutes 2024, section 469.1813, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Repayment. new text end

new text begin A land bank organization receiving an abatement under
subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land
for which the abatement was granted is used for a purpose other than the purpose given by
the land bank organization prior to redevelopment. This subdivision applies immediately
after the abatement under this section expires. Land is subject to repayment under this
subdivision for the same number of years that the abatement was granted. Interest under
this section is payable at the rate determined in section 270C.40, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 22.

Minnesota Statutes 2024, section 477A.30, subdivision 4, is amended to read:

Subd. 4.

Use of proceeds.

(a) Counties and Tribal governments that receive a distribution
under this section must use the proceeds to fund new or existing family homeless prevention
and assistance projects or programs. These projects or programs may be administered by a
county, a group of contiguous counties jointly acting together, a city, a group of contiguous
cities jointly acting together, a Tribal government, a group of Tribal governments, or a
community-based nonprofit organization. Each project or program must include plans for:

(1) targeting families with children who are eligible for a prekindergarten through grade
12 academic program and are:

(i) living in overcrowded conditions in their current housing;

(ii) paying more than 50 percent of their income for rent; or

(iii) lacking a fixed, regular, and adequate nighttime residence;

(2) targeting unaccompanied youth in need of an alternative residential setting;

(3) connecting families with the social services necessary to maintain the families'
stability in their homes, including but not limited to housing navigation, legal representation,
and family outreach; and

(4) one or more of the following:

(i) providing rental assistance for a specified period of time which may exceed 24 months;
or

(ii) providing support and case management services to improve housing stability,
including but not limited to housing navigation and family outreach.

new text begin (b) Aid distributions under this section must not be used to cover the costs of removing
from an encampment any individuals living at the encampment or clearing the encampment
site of any personal property used by individuals living at the encampment.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Counties may choose not to spend all or a portion of the distribution under this
section. Any unspent funds must be returned to the commissioner of revenue by December
31 of the year following the year that the aid was received. Any funds returned to the
commissioner under this paragraph must be added to the overall distribution of aids certified
under this section in the following year. Any unspent funds returned to the commissioner
after the expiration under subdivision 8 are canceled to the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2025.
new text end

Sec. 23.

Minnesota Statutes 2024, section 477A.30, subdivision 7, is amended to read:

Subd. 7.

Report.

(a) No later than January 15, 2025, the commissioner of revenue must
produce a report on projects and programs funded by counties and Tribal governments under
this section. The report must include a list of the projects and programs, the number of
people served by each, and an assessment of how each project and program impacts people
who are currently experiencing homelessness or who are at risk of experiencing
homelessness, as reported by the counties and Tribal governments to the commissioner by
December 31 each year on a form prescribed by the commissioner. The commissioner must
provide a copy of the report to the chairs and ranking minority members of the legislative
committees with jurisdiction over property taxes and services for persons experiencing
homelessness.

(b) The report in paragraph (a) must be updated deleted text begin every two years deleted text end new text begin in 2027 and 2029 new text end and
the commissioner of revenue must provide copies of the updated reports to the chairs and
ranking minority members of the legislative committees with jurisdiction over property
taxes and services for persons experiencing homelessness by January 15 of the year the
report is due. Report requirements under this subdivision expire following the report which
includes the deleted text begin final deleted text end distribution deleted text begin preceding the expiration in subdivision 8 deleted text end new text begin in 2028 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2025.
new text end

Sec. 24. new text begin 2023 AID PENALTY FORGIVENESS; CITY OF STEWART.
new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Stewart
must receive its aid payment for calendar year 2023 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
provided that the state auditor certifies to the commissioner of revenue that the state auditor
received the annual financial reporting form for 2022 from the city by June 1, 2025. The
commissioner of revenue must make a payment of $87,501.50 to the city of Stewart by June
30, 2025. An amount sufficient to pay aid under this section is appropriated in fiscal year
2025 from the general fund to the commissioner of revenue. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 25. new text begin PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b),
and any other law to the contrary, property located in the city of Minneapolis acquired by
Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021
is exempt from property taxes payable in 2022 and the portion of property taxes payable in
2021 due after the property was acquired. An amount necessary to make a payment to the
county for the property taxes that would be payable but for the exemption is appropriated
from the general fund to the commissioner of revenue in fiscal year 2026. All prior year
penalties, interest, and costs are canceled.
new text end

new text begin (b) By August 1, 2025, the auditor of the county in which the property is located must
certify to the commissioner of revenue the amount to be paid by the commissioner of revenue
to the county under paragraph (a). The commissioner of revenue must make this payment
by August 15, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 26. new text begin APPROPRIATION; ADMINISTRATION OF ADVANCE HOMESTEAD
CREDIT FOR SENIORS.
new text end

new text begin $158,000 in fiscal year 2026 and $118,000 in fiscal year 2027 are appropriated from the
general fund to the commissioner of revenue to administer the advance homestead credit
for seniors in Minnesota Statutes, sections 273.1389 and 290A.071. The base for this
appropriation is $116,000 in fiscal year 2028.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 27. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 477A.30, subdivision 8, new text end new text begin is repealed.
new text end

ARTICLE 3

SALES AND USE TAXES

Section 1.

Minnesota Statutes 2024, section 295.53, subdivision 4a, is amended to read:

Subd. 4a.

Credit for research.

(a) In addition to the exemptions allowed under
subdivision 1, a hospital or health care provider may claim an annual credit against the total
amount of tax, if any, the hospital or health care provider owes for that calendar year under
sections 295.50 to 295.57. The credit shall equal deleted text begin 2.5 deleted text end new text begin 0.5 new text end percent of revenues for patient
services used to fund expenditures for qualifying research conducted by an allowable research
program. The amount of the credit shall not exceed the tax liability of the hospital or health
care provider under sections 295.50 to 295.57.

(b) For purposes of this subdivision, the following requirements apply:

(1) expenditures must be for program costs of qualifying research conducted by an
allowable research program;

(2) an allowable research program must be a formal program of medical and health care
research conducted by an entity which is exempt under section 501(c)(3) of the Internal
Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under
authority of a governmental unit;

(3) qualifying research must:

(A) be approved in writing by the governing body of the hospital or health care provider
which is taking the deduction under this subdivision;

(B) have as its purpose the development of new knowledge in basic or applied science
relating to the diagnosis and treatment of conditions affecting the human body;

(C) be subject to review by individuals with expertise in the subject matter of the proposed
study but who have no financial interest in the proposed study and are not involved in the
conduct of the proposed study; and

(D) be subject to review and supervision by an institutional review board operating in
conformity with federal regulations if the research involves human subjects or an institutional
animal care and use committee operating in conformity with federal regulations if the
research involves animal subjects. Research expenses are not exempt if the study is a routine
evaluation of health care methods or products used in a particular setting conducted for the
purpose of making a management decision. Costs of clinical research activities paid directly
for the benefit of an individual patient are excluded from this exemption. Basic research in
fields including biochemistry, molecular biology, and physiology are also included if such
programs are subject to a peer review process.

(c) No credit shall be allowed under this subdivision for any revenue received by the
hospital or health care provider in the form of a grant, gift, or otherwise, whether from a
government or nongovernment source, on which the tax liability under section 295.52 is
not imposed.

(d) The taxpayer shall apply for the credit under this section on the annual return under
section 295.55, subdivision 5.

deleted text begin (e) Beginning September 1, 2001, if the actual or estimated amount paid under this
section for the calendar year exceeds $2,500,000, the commissioner of management and
budget shall determine the rate of the research credit for the following calendar year to the
nearest one-half percent so that refunds paid under this section will most closely equal
$2,500,000. The commissioner of management and budget shall publish in the State Register
by October 1 of each year the rate of the credit for the following calendar year. A
determination under this section is not subject to the rulemaking provisions of chapter 14.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [295.85] AMUSEMENT DEVICE GROSS RECEIPTS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Amusement device" means any electronic or mechanical machine or device that is
activated and operated by providing payment for use to provide entertainment or amusement,
including but not limited to bowling alleys, fortune-telling machines, cranes, foosball tables,
pool tables, video games, pinball machines, batting cages, rides, photo or video booths,
shuffleboard tables, air hockey tables, arcade games, shooting gallery games, dart boards,
and jukeboxes. An amusement device does not include vending machines, lottery devices,
or gaming devices as described in chapters 297E and 349.
new text end

new text begin (c) "Commissioner" means the commissioner of revenue.
new text end

new text begin (d) "Gross receipts" means the total amount received in money or by barter or exchange
for sales derived from the making available of amusement devices for play as measured by
the sales price.
new text end

new text begin (e) "Providing payment" means activating an amusement device by either:
new text end

new text begin (1) inserting a coin, paper currency, or token; swiping a card; entering a code; or using
an electronic payment on the device; or
new text end

new text begin (2) giving such payment to a person who activates for play the amusement device.
new text end

new text begin Subd. 2. new text end

new text begin Tax imposed. new text end

new text begin A tax equal to 6.875 percent of gross receipts from making
available any amusement device for play is imposed on the owners of each device operated
in Minnesota. The tax imposed by this section is in lieu of the taxes imposed by chapter
297A.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin Unless specifically provided otherwise, the audit, assessment,
refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
297A apply to the tax imposed under this section.
new text end

new text begin Subd. 4. new text end

new text begin Returns; payment of tax. new text end

new text begin (a) An owner of an amusement device must report
the tax on a return prescribed by the commissioner and must remit the tax in a form and
manner prescribed by the commissioner. The return and the tax must be filed and paid using
the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision
4, and chapter 297A.
new text end

new text begin (b) Interest must be paid on an overpayment refunded or credited to the taxpayer from
the date of payment of the tax until the date the refund is paid or credited. For purposes of
this subdivision, the date of payment is the due date of the return or the date of actual
payment of the tax, whichever is later.
new text end

new text begin Subd. 5. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner must deposit the revenues, including
penalties and interest, derived from the tax imposed by this section as follows:
new text end

new text begin (1) the revenue derived from the portion of the tax equal to 6.5 percent must be deposited
into the general fund; and
new text end

new text begin (2) the revenue derived from the portion of the tax equal to 0.375 percent must be
deposited pursuant to Minnesota Constitution, article XI, section 15.
new text end

new text begin Subd. 6. new text end

new text begin Personal debt. new text end

new text begin The tax imposed by this section, and interest and penalties
imposed with respect to the tax, are a personal debt of the person required to file a return
from the time that the liability for the tax arises, irrespective of when the time for payment
of the liability occurs. The debt must, in the case of the executor or administrator of the
estate of a decedent and in the case of a fiduciary, be that of the person in the person's official
or fiduciary capacity only, unless the person has voluntarily distributed the assets held in
that capacity without reserving sufficient assets to pay the tax, interest, and penalties, in
which event the person is personally liable for any deficiency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2024, section 297A.61, subdivision 3, is amended to read:

Subd. 3.

Sale and purchase.

(a) "Sale" and "purchase" include, but are not limited to,
each of the transactions listed in this subdivision. In applying the provisions of this chapter,
the terms "tangible personal property" and "retail sale" include the taxable services listed
in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable
services, unless specifically provided otherwise. Services performed by an employee for
an employer are not taxable. Services performed by a partnership or association for another
partnership or association are not taxable if one of the entities owns or controls more than
80 percent of the voting power of the equity interest in the other entity. Services performed
between members of an affiliated group of corporations are not taxable. For purposes of
the preceding sentence, "affiliated group of corporations" means those entities that would
be classified as members of an affiliated group as defined under United States Code, title
26, section 1504, disregarding the exclusions in section 1504(b).

(b) Sale and purchase include:

(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and

(2) the leasing of or the granting of a license to use or consume, for a consideration in
money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.

(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.

(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:

(1) prepared food sold by the retailer;

(2) soft drinks;

(3) candy; and

(4) dietary supplements.

(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas,
water, or steam for use or consumption within this state.

(f) A sale and a purchase includes the transfer for a consideration of prewritten computer
software whether delivered electronically, by load and leave, or otherwise.

(g) A sale and a purchase includes the furnishing for a consideration of the following
services:

(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of deleted text begin amusement devices, deleted text end tanning facilities, reducing salons,
steam baths, health clubs, and spas or athletic facilities;

(2) lodging and related services by a hotel, rooming house, resort, campground, motel,
or trailer camp, including furnishing the guest of the facility with access to telecommunication
services, and the granting of any similar license to use real property in a specific facility,
other than the renting or leasing of it for a continuous period of 30 days or more under an
enforceable written agreement that may not be terminated without prior notice and including
accommodations intermediary services provided in connection with other services provided
under this clause;

(3) nonresidential parking services, whether on a contractual, hourly, or other periodic
basis, except for parking at a meter;

(4) the granting of membership in a club, association, or other organization if:

(i) the club, association, or other organization makes available for the use of its members
sports and athletic facilities, without regard to whether a separate charge is assessed for use
of the facilities; and

(ii) use of the sports and athletic facility is not made available to the general public on
the same basis as it is made available to members.

Granting of membership means both onetime initiation fees and periodic membership dues.
Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash
courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming
pools; and other similar athletic or sports facilities;

(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block.
For purposes of this clause, "road construction" means construction of:

(i) public roads;

(ii) cartways; and

(iii) private roads in townships located outside of the seven-county metropolitan area
up to the point of the emergency response location sign; and

(6) services as provided in this clause:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services provided
by coin operated facilities operated by the customer, and rustproofing, undercoating, and
towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting services and pest
control and exterminating services;

(iv) detective, security, burglar, fire alarm, and armored car services; but not including
services performed within the jurisdiction they serve by off-duty licensed peace officers as
defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
or any organization at the direction of a county for monitoring and electronic surveillance
of persons placed on in-home detention pursuant to court order or under the direction of the
Minnesota Department of Corrections;

(v) pet grooming services;

(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant
care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing
contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility
lines. Services performed under a construction contract for the installation of shrubbery,
plants, sod, trees, bushes, and similar items are not taxable;

(vii) massages, except when provided by a licensed health care facility or professional
or upon written referral from a licensed health care facility or professional for treatment of
illness, injury, or disease; and

(viii) the furnishing of lodging, board, and care services for animals in kennels and other
similar arrangements, but excluding veterinary and horse boarding services.

(h) A sale and a purchase includes the furnishing for a consideration of tangible personal
property or taxable services by the United States or any of its agencies or instrumentalities,
or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.

(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication services,
and pay television services. Telecommunication services include, but are not limited to, the
following services, as defined in section 297A.669: air-to-ground radiotelephone service,
mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid
wireless calling service, and private communication services. The services in this paragraph
are taxed to the extent allowed under federal law.

(j) A sale and a purchase includes the furnishing for a consideration of installation if the
installation charges would be subject to the sales tax if the installation were provided by
the seller of the item being installed.

(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a
customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor
vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02,
subdivision 11.

(l) A sale and a purchase includes furnishing for a consideration of specified digital
products or other digital products or granting the right for a consideration to use specified
digital products or other digital products on a temporary or permanent basis and regardless
of whether the purchaser is required to make continued payments for such right. Wherever
the term "tangible personal property" is used in this chapter, other than in subdivisions 10
and 38, the provisions also apply to specified digital products, or other digital products,
unless specifically provided otherwise or the context indicates otherwise.

(m) The sale of the privilege of admission under section 297A.61, subdivision 3,
paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event
includes all charges included in the privilege of admission's sales price, without deduction
for amenities that may be provided, unless the amenities are separately stated and the
purchaser of the privilege of admission is entitled to add or decline the amenities, and the
amenities are not otherwise taxable.

(n) A sale and purchase includes the transfer for consideration of a taxable cannabis
product as defined in section 295.81, subdivision 1, paragraph (r).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2025.
new text end

Sec. 4.

Minnesota Statutes 2024, section 297A.68, subdivision 3a, is amended to read:

Subd. 3a.

deleted text begin Coin-operated entertainment and deleted text end Amusement devices.

deleted text begin Coin-operated
entertainment and deleted text end Amusement devices new text begin as defined in section 295.85, subdivision 1, new text end including,
but not limited to, fortune-telling machines, cranes, foosball and pool tables, video and
pinball games, batting cages, rides, photo or video booths, and jukeboxes are exempt when
purchased by retailers selling admission to places of amusement and making available
amusement devices as provided in section deleted text begin 297A.61, subdivision 3, paragraph (g), clause
(1). Coin-operated entertainment and deleted text end new text begin 295.85. new text end Amusement devices do not include vending
machines, lottery devices, or gaming devices as described in chapters 297E and 349.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2025.
new text end

Sec. 5.

Minnesota Statutes 2024, section 297A.68, subdivision 45, is amended to read:

Subd. 45.

Jukebox music.

The purchase of music, either as a digital audio work or in
tangible form such as a record or compact disc, by operators that provide the service of
making available jukeboxes as amusement devices, as provided in section deleted text begin 297A.61,
subdivision 3, paragraph (g), clause (1) deleted text end new text begin 295.85 new text end , is exempt if the music is used exclusively
for the jukebox.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2025.
new text end

Sec. 6.

Minnesota Statutes 2024, section 609.902, subdivision 4, is amended to read:

Subd. 4.

Criminal act.

"Criminal act" means conduct constituting, or a conspiracy or
attempt to commit, a felony violation of chapter 152, or a felony violation of section deleted text begin 297D.09; deleted text end
299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222;
609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343;
609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
plan corporation regulated under chapter 62C, a health maintenance organization regulated
under chapter 62D, or a fraternal benefit society regulated under chapter 64B.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

Sec. 7. new text begin CITY OF WOODBURY; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a water treatment facility, including water pipeline infrastructure and
associated improvements, funded by the city of Woodbury are exempt from sales and use
tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, and
equipment are purchased after January 31, 2024, and before July 1, 2025.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds must not
be issued until after June 30, 2025.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after January 31, 2024, and before July 1, 2025.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 13.4967, subdivision 5; 297D.01; 297D.02; 297D.03;
297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivisions 1, 1a,
and 2; 297D.10; 297D.11; 297D.12; and 297D.13, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

ARTICLE 4

TAX INCREMENT FINANCING

Section 1.

Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter
112, article 11, section 16, is amended to read:

Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.

(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
increment financing plan for a district, the rules under this section apply to a redevelopment
tax increment financing district established by the city or an authority of the city. The
redevelopment tax increment district includes parcels within the area bounded on the east
by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
Street, on the west by Llama Street, and on the south by a line running parallel to and 600
feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County
Regional Park property in its entirety. A parcel within this area that is included in a tax
increment financing district that was certified before the date of enactment of this act may
be included in the district created under this act if the initial district is decertified.

(b) The requirements for qualifying a redevelopment tax increment district under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
within the district.

(c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
Eligible expenditures within the district include but are not limited to (1) the city's share of
the costs necessary to provide for the construction of the Northstar Transit Station and
related infrastructure, including structured parking, a pedestrian overpass, and roadway
improvements, (2) the cost of land acquired by the city or the housing and redevelopment
authority in and for the city of Ramsey within the district prior to the establishment of the
district, and (3) the cost of public improvements installed within the tax increment financing
district prior to the establishment of the district.

(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for the district if the activities were undertaken
within ten years from the date of certification of the district.

(e) Except for administrative expenses, the in-district percentage for purposes of the
restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this
district is 100 percent.

(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not
apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred
after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of
the tax increment financing plan for the district.

new text begin (g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph
(b), is considered to be met for the district if the city adopts interfund loan resolutions
reflecting the terms and conditions required by Minnesota Statutes, section 469.178,
subdivision 7, paragraph (d), by December 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of Ramsey and its
chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and
3.
new text end

Sec. 2.

Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First
Special Session chapter 1, article 6, section 12, is amended to read:

Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "City" means the city of Maple Grove.

(c) "Project area" means all or a portion of the area in the city commencing at a point
130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
24; thence West along said south line to the east right-of-way line of Zachary Lane; thence
North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
South along the east line of said Outlot A and its southerly extension to the south right-of-way
line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
Section 24; thence South along said east line to the north line of the South Half of the
Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
and there terminating, provided that the project area includes the rights-of-way for all present
and future highway interchanges abutting the area described in this paragraph, and may
include any additional property necessary to cause the property included in the tax increment
financing district to consist of complete parcels.

(d) "Soil deficiency district" means a type of tax increment financing district consisting
of a portion of the project area in which the city finds by resolution that the following
conditions exist:

(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and

(2) the estimated cost of the physical preparation under clause (1), but excluding costs
directly related to roads as defined in Minnesota Statutes, section 160.01, and local
improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
completion of the preparation.

Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area.

(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;

(2) soils or terrain that require substantial filling in order to permit the development of
commercial buildings or infrastructure;

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.

(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.

(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to deleted text begin eight deleted text end new text begin 13 new text end years for any district, and Minnesota Statutes, section 469.1763,
subdivision 4, does not apply to any district.

(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through deleted text begin 20 deleted text end new text begin 25 new text end years after the receipt by the authority
of the first increment from the district;

(2) increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the administrative expenses of the authority allocable to the district; and

(3) any parcel acquired with increments from the district must be sold at no less than
their fair market value.

(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.

(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.

(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
increments from a soil deficiency district to acquire parcels and for other infrastructure costs
either inside or outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development. For purposes of this paragraph, a development
is a qualified development only if all of the following requirements are satisfied:

(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
primarily to serve the development;

(2) the city has a binding, written commitment and adequate financial assurances from
the developer that the development will be constructed; and

(3) the development does not consist of retail trade or housing improvements.

new text begin EFFECTIVE DATE. new text end

new text begin (a) The extension of the five- and six-year rules under this section
are effective the day after the governing body of the city of Maple Grove and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

new text begin (b) The district duration extension under this section is effective upon compliance by
the city of Maple Grove, Hennepin County, and Independent School District No. 279 with
the requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end

Sec. 3.

Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to
read:

Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.

(a) For purposes of computing the duration limits under Minnesota Statutes, section
469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to the first four years of increment or increments derived
from taxes payable in 2023, whichever occurs first.

(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
applying any limits based on when the district was certified under Minnesota Statutes,
section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
to be January 2 of the property tax assessment year for which increment is first received
under the waiver.

new text begin (c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city
of St. Paul.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 4. new text begin CITY OF BROOKLYN CENTER; TAX INCREMENT FINANCING
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Center or the city of Brooklyn
Center may establish one or more redevelopment tax increment financing districts located
wholly within the area in the city identified as the "Opportunity Site," which includes the
area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway 10 to
Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked Trunk
Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin County
State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked Trunk
Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads and
rights-of-way.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the district is deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires on December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Center and its chief clerical officer comply with the requirements of
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 5. new text begin CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
AUTHORITY; VILLAGE CREEK AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of districts. new text end

new text begin Upon the termination of Tax Increment
Financing District No. 20 within the city of Brooklyn Park, under the special rules established
in subdivision 2, the economic development authority of the city of Brooklyn Park or city
of Brooklyn Park may establish one or more redevelopment tax increment financing districts
located wholly within the area of the city of Brooklyn Park. The districts may be comprised
of the following parcels identified by their current parcel identification numbers:
new text end

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new text begin together with adjacent and internal roads and rights-of-way, and the following roadways
within the city of Brooklyn Park: Zane Avenue North (from and including the intersection
at 78th Avenue North to and including the intersection at Highway 94), Brooklyn Boulevard
(from and including the intersection at the border of Brooklyn Center to and including the
intersection at Kentucky Avenue North), Brookdale Drive North (from and including the
intersection at Zane Avenue North to and including the intersection at Welcome Avenue
North), Village Creek Parkway North, 77th Avenue North (from and including the
intersection at Village Creek Parkway North to and including the intersection at Brookdale
Drive North), 73rd Avenue North/Regent Avenue (from and including the intersection at
Zane Avenue North to and including the intersection at Brooklyn Boulevard).
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end

new text begin (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to request certification of any district under this
section expires on December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 6. new text begin CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
AUTHORITY; 610/ZANE AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of districts. new text end

new text begin Under the special rules established in
subdivision 2, the economic development authority of the city of Brooklyn Park or the city
of Brooklyn Park may establish one or more redevelopment districts located wholly within
the area of the city of Brooklyn Park. The districts may be comprised of the following
parcels identified by their current parcel identification numbers together with adjacent and
internal roads and rights-of-way:
new text end

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new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end

new text begin (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to request certification of any district under this
section expires on December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 7. new text begin CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
AUTHORITY; BIOTECH AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Park or the city of Brooklyn Park
may establish one or more redevelopment districts located wholly within the area of the
city of Brooklyn Park. The districts may be comprised of the following parcels identified
by their current parcel identification numbers together with adjacent and internal roads and
rights-of-way:
new text end

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new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end

new text begin (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to request certification of any district under this
section expires on December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 8. new text begin CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY;
EDEN PRAIRIE CENTER.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of Eden Prairie or the city of Eden Prairie may
establish one or more redevelopment districts located wholly within the area of the city of
Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within
the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Eden Prairie and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 9. new text begin CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end

new text begin (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by five years for Tax Increment Financing District 72nd & France 2.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text begin CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end

new text begin (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 70th & France in the city of Edina.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by ten years for Tax Increment Financing District 70th & France.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text begin CITY OF MINNETONKA; OPUS TIF DISTRICT; FIVE-YEAR RULE
EXTENSION.
new text end

new text begin The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Opus tax increment financing district established in 2021 by the economic
development authority in the city of Minnetonka.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 12. new text begin CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT
NO. 31; FIVE-YEAR RULE EXTENSION.
new text end

new text begin The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District No. 31 in the city of Moorhead.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Moorhead and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 13. new text begin CITY OF PLYMOUTH; TAX INCREMENT FINANCING AUTHORITY;
FIVE-YEAR RULE EXTENSION.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
city of Plymouth may establish one or more redevelopment districts located wholly within
the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as the city
center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024, and
adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city establishes a tax increment financing district under
this section, the following special rules apply:
new text end

new text begin (1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174,
subdivision 10;
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end

new text begin (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 14. new text begin CITY OF ST. CLOUD; TAX INCREMENT FINANCING AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of St. Cloud or the city of St. Cloud may establish
one or more redevelopment districts adjacent to the Division Street corridor or within the
Central Business District or Fringe Central District, limited to the following parcels identified
by tax identification numbers, together with the adjacent roads and rights-of-way:
new text end

new text begin (1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North
Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015
(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); and 82528850001
(Former Herberger's); and
new text end

new text begin (2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site);
170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601;
170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South
Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; and 170058900.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end

new text begin (3) increments generated from the districts may be expended for the reconstruction,
expansion, or new construction of adjacent public infrastructure, including but not limited
to public parking, streets, and utilities necessary to serve the development, and all
expenditures under this clause are deemed expended on activities within the district for
purposes of Minnesota Statutes, section 469.1763.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of St. Cloud and
its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2
and 3.
new text end

ARTICLE 5

SPECIAL LOCAL TAXES

Section 1.

Minnesota Statutes 2024, section 469.190, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

new text begin (a) new text end Notwithstanding section 477A.016 or any other law,
a statutory or home rule charter city may by ordinance, and a town may by the affirmative
vote of the electors at the annual town meeting, or at a special town meeting, impose a tax
of up to three percent on the gross receipts from the furnishing for consideration of lodging
at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing
of it for a continuous period of 30 days or more. A statutory or home rule charter city may
by ordinance impose the tax authorized under this subdivision on the camping site receipts
of a municipal campground.

new text begin (b) A lodging tax imposed under this section, a city charter, or a special law applies to
the entire consideration paid to obtain access to lodging, including ancillary or related
services, such as services provided by an accommodations intermediary as defined in section
297A.61, subdivision 47.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 469.190, subdivision 7, is amended to read:

Subd. 7.

Collection.

new text begin (a) new text end The statutory or home rule charter city may agree with the
commissioner of revenue that a tax imposed pursuant to this section shall be collected by
the commissioner together with the tax imposed by chapter 297A, and subject to the same
interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be
remitted to the city.

new text begin (b) If a lodging tax imposed under this section, a city charter, or a special law is not
collected by the commissioner of revenue, the local government imposing the tax may, by
ordinance, limit the required filing and remittance of the tax by an accommodations
intermediary to once per calendar year. The local government must inform the
accommodations intermediary of the date when the return or remittance is due and the dates
must coincide with one of the monthly dates for filing and remitting state sales tax under
chapter 297A. The local government must electronically provide an accommodations
intermediary with the geographic and zip code information necessary to properly collect
the tax.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 3.

Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
chapter 5, article 12, section 87, Laws 2012, chapter 299, article 3, section 3, and Laws
2019, First Special Session chapter 6, article 6, section 5, is amended to read:

Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.

The city may, by resolution, levy in addition to taxes authorized by other law:

(1) a sales tax of not more than deleted text begin three deleted text end new text begin 2.5 new text end percent on the gross receipts on retail on-sales
of intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor
establishments located within the downtown taxing area, provided that this tax may not be
imposed if sales of intoxicating liquor and fermented malt beverages are exempt from
taxation under chapter 297A;

(2) a sales tax of not more than three percent on the gross receipts from the furnishing
for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming
house, tourist court, or trailer camp located within the city by a hotel or motel which has
more than 50 rooms available for lodging; the tax imposed under this clause shall be at a
rate that, when added to the sum of the rate of all other city taxes on lodging in the city of
Minneapolis, equals 6.5 percent; and

(3) a sales tax of not more than deleted text begin three deleted text end new text begin 2.5 new text end percent on the gross receipts on all sales of
food primarily for consumption on or off the premises by restaurants and places of
refreshment as defined by resolution of the city that occur within the downtown taxing area.

The taxes authorized by this section must not be terminated before January 1, 2047. The
taxes shall be imposed and may be adjusted periodically by the city council such that the
rates imposed produce revenue sufficient, together with the tax imposed under section 4,
to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4,
subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes,
section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain,
and fund the payment of any principal of, premium on, and interest on any bonds or any
other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter
into appropriate agreements with the city to provide for the collection of these taxes by the
state on behalf of the city. These taxes shall be subject to the same interest, penalties, and
enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2025.
new text end

Sec. 4.

Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264, article
2, section 39, and Laws 2009, chapter 88, article 4, section 13, is amended to read:

Sec. 44. DOWNTOWN TAXING AREA.

If a bill is enacted into law in the 1986 legislative session which authorizes the city of
Minneapolis to issue bonds and expend certain funds including taxes to finance the
acquisition and betterment of a convention center and related facilities, which authorizes
certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions
of that law "downtown taxing area" shall mean the geographic area bounded by the portion
of the Mississippi River between I-35W and Washington Avenue, the portion of Washington
Avenue between the river and I-35W, the portion of I-35W between Washington Avenue
and deleted text begin 8th Street deleted text end new text begin Portland Avenue new text end South, the portion of 8th Street South between I-35W and
Portland Avenue South, the portion of Portland Avenue South between 8th Street South
and I-94, the portion of I-94 from the intersection of Portland Avenue South to the
intersection of I-94 and deleted text begin the Burlington Northern Railroad tracks deleted text end new text begin Plymouth Avenue North new text end ,
the portion of deleted text begin the Burlington Northern Railroad tracks from I-94 deleted text end new text begin Plymouth Avenue North
to the Mississippi River. From Plymouth Avenue North and the Mississippi River south new text end to
Main Street and including Nicollet Island, and the portion of Main Street to Hennepin
Avenue and the portion of Hennepin Avenue between Main Street and 2nd Street S.E., and
the portion of 2nd Street S.E. between Main Street and Bank Street, and the portion of Bank
Street between 2nd Street S.E. and University Avenue S.E., and the portion of University
Avenue S.E. between Bank Street and I-35W, and by I-35W from University Avenue S.E.,
to the river. The downtown taxing area excludes the area bounded on the south and west
by Oak Grove Street, on the east by Spruce Place, and on the north by West 15th Street.
The downtown taxing area also excludes any property located in a zone that is contained
in chapter 546 of the Minneapolis Zoning Code of Ordinances on which a restaurant with
a wine license is operated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2025.
new text end

ARTICLE 6

MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 349.12, subdivision 25, is amended to read:

Subd. 25.

Lawful purpose.

(a) "Lawful purpose" means one or more of the following:

(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined
in subdivision 15c, provided that the organization and expenditure or contribution are in
conformity with standards prescribed by the board under section 349.154, which standards
must apply to both types of organizations in the same manner and to the same extent;

(2) a contribution to or expenditure for goods and services for an individual or family
suffering from poverty, homelessness, or disability, which is used to relieve the effects of
that suffering;

(3) a contribution to a program recognized by the Minnesota Department of Human
Services for the education, prevention, or treatment of problem gambling;

(4) a contribution to or expenditure on a public or private nonprofit educational institution
registered with or accredited by this state or any other state;

(5) a contribution to an individual, public or private nonprofit educational institution
registered with or accredited by this state or any other state, or to a scholarship fund of a
nonprofit organization whose primary mission is to award scholarships, for defraying the
cost of education to individuals where the funds are awarded through an open and fair
selection process;

(6) activities by an organization or a government entity which recognize military service
to the United States, the state of Minnesota, or a community, subject to rules of the board,
provided that the rules must not include mileage reimbursements in the computation of the
per diem reimbursement limit and must impose no aggregate annual limit on the amount of
reasonable and necessary expenditures made to support:

(i) members of a military marching or color guard unit for activities conducted within
the state;

(ii) members of an organization solely for services performed by the members at funeral
services;

(iii) members of military marching, color guard, or honor guard units may be reimbursed
for participating in color guard, honor guard, or marching unit events within the state or
states contiguous to Minnesota at a per participant rate of up to $50 per diem; or

(iv) active military personnel and their immediate family members in need of support
services;

(7) recreational, community, and athletic facilities and activities, intended primarily for
persons under age 21, provided that such facilities and activities do not discriminate on the
basis of gender and the organization complies with section 349.154, subdivision 3a;

(8) payment of local taxes authorized under this chapter, including local gambling taxes
authorized under section 349.213, subdivision 3, taxes imposed by the United States on
receipts from lawful gambling, the taxes imposed by section 297E.02, subdivisions 1 and
6, and the tax imposed on unrelated business income by section 290.05, subdivision 3;

(9) payment of real estate taxes and assessments on permitted gambling premises owned
by the licensed organization paying the taxes, or wholly leased by a licensed veterans
organization under a national charter recognized under section 501(c)(19) of the Internal
Revenue Code;

(10) a contribution to the United States, this state or any of its political subdivisions, or
any agency or instrumentality thereof other than a direct contribution to a law enforcement
or prosecutorial agency;

(11) a contribution to or expenditure by a nonprofit organization which is a church or
body of communicants gathered in common membership for mutual support and edification
in piety, worship, or religious observances;

(12) an expenditure for citizen monitoring of surface water quality by individuals or
nongovernmental organizations that is consistent with section 115.06, subdivision 4, and
Minnesota Pollution Control Agency guidance on monitoring procedures, quality assurance
protocols, and data management, provided that the resulting data is submitted to the
Minnesota Pollution Control Agency for review and inclusion in the state water quality
database;

(13) a contribution to or expenditure on projects or activities approved by the
commissioner of natural resources for:

(i) wildlife management projects that benefit the public at large;

(ii) grant-in-aid trail maintenance and grooming established under sections 84.83 and
84.927, and other trails open to public use, including purchase or lease of equipment for
this purpose; and

(iii) supplies and materials for safety training and educational programs coordinated by
the Department of Natural Resources, including the Enforcement Division;

(14) conducting nutritional programs, food shelves, and congregate dining programs
primarily for persons who are age 62 or older or disabled;

(15) a contribution to a community arts organization, or an expenditure to sponsor arts
programs in the community, including but not limited to visual, literary, performing, or
musical arts;

(16) an expenditure by a licensed fraternal organization or a licensed veterans organization
for payment of water, fuel for heating, electricity, and sewer costs for:

(i) up to 100 percent for a building wholly owned or wholly leased by and used as the
primary headquarters of the licensed veteran or fraternal organization; or

(ii) a proportional amount subject to approval by the director and based on the portion
of a building used as the primary headquarters of the licensed veteran or fraternal
organization;

(17) expenditure by a licensed veterans organization of up to $5,000 in a calendar year
in net costs to the organization for meals and other membership events, limited to members
and spouses, held in recognition of military service. No more than $5,000 can be expended
in total per calendar year under this clause by all licensed veterans organizations sharing
the same veterans post home;

(18) payment of fees authorized under this chapter imposed by the state of Minnesota
to conduct lawful gambling in Minnesota;

(19) a contribution or expenditure to honor an individual's humanitarian service as
demonstrated through philanthropy or volunteerism to the United States, this state, or local
community;

(20) a contribution by a licensed organization to another licensed organization with prior
board approval, with the contribution designated to be used for one or more of the following
lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);

(21) an expenditure that is a contribution to a parent organization, if the parent
organization: (i) has not provided to the contributing organization within one year of the
contribution any money, grants, property, or other thing of value, and (ii) has received prior
board approval for the contribution that will be used for a program that meets one or more
of the lawful purposes under subdivision 7a;

(22) an expenditure for the repair, maintenance, or improvement of real property and
capital assets owned by an organization, or for the replacement of a capital asset that can
no longer be repaired, with a fiscal year limit of five percent of gross profits from the
previous fiscal year, with no carryforward of unused allowances. The fiscal year is July 1
through June 30. Total expenditures for the fiscal year may not exceed the limit unless the
board has specifically approved the expenditures that exceed the limit due to extenuating
circumstances beyond the organization's control. An expansion of a building or bar-related
expenditures are not allowed under this provision.

(i) The expenditure must be related to the portion of the real property or capital asset
that must be made available for use free of any charge to other nonprofit organizations,
community groups, or service groups, and is used for the organization's primary mission or
headquarters.

(ii) An expenditure may be made to bring an existing building that the organization owns
into compliance with the Americans with Disabilities Act.

(iii) An organization may apply the amount that is allowed under item (ii) to the erection
or acquisition of a replacement building that is in compliance with the Americans with
Disabilities Act if the board has specifically approved the amount. The cost of the erection
or acquisition of a replacement building may not be made from gambling proceeds, except
for the portion allowed under this item;

(23) an expenditure for the acquisition or improvement of a capital asset with a cost
greater than $2,000, excluding real property, that will be used exclusively for lawful purposes
under this section if the board has specifically approved the amount;

(24) an expenditure for the acquisition, erection, improvement, or expansion of real
property, if the board has first specifically authorized the expenditure after finding that the
real property will be used exclusively for lawful purpose under this section;

(25) an expenditure, including a mortgage payment or other debt service payment, for
the erection or acquisition of a comparable building to replace an organization-owned
building that was destroyed or made uninhabitable by fire or catastrophe or to replace an
organization-owned building that was taken or sold under an eminent domain proceeding.
The expenditure may be only for that part of the replacement cost not reimbursed by
insurance for the fire or catastrophe or compensation not received from a governmental unit
under the eminent domain proceeding, if the board has first specifically authorized the
expenditure; deleted text begin or
deleted text end

(26) a contribution to a 501(c)(19) organization that does not have an organization license
under section 349.16 and is not affiliated with the contributing organization, and whose
owned or leased property is not a permitted premises under section 349.165. The 501(c)(19)
organization may only use the contribution for lawful purposes under this subdivision or
for the organization's primary mission. The 501(c)(19) organization may not use the
contribution for expansion of a building or for bar-related expenditures. A contribution may
not be made to a statewide organization representing a consortia of 501(c)(19) organizations deleted text begin . deleted text end new text begin ;
or
new text end

new text begin (27) an expenditure for the repair, maintenance, or improvement of real property and
capital assets or for the replacement of a capital asset that can no longer be repaired subject
to the following requirements:
new text end

new text begin (i) the capital asset must be owned by one of the following organizations:
new text end

new text begin (A) American Legion;
new text end

new text begin (B) Veterans of Foreign Wars of the United States (VFW);
new text end

new text begin (C) Jewish War Veterans of the United States of America;
new text end

new text begin (D) Military Order of the Purple Heart;
new text end

new text begin (E) AMVETS;
new text end

new text begin (F) Marine Corps League;
new text end

new text begin (G) Paralyzed Veterans of America; or
new text end

new text begin (H) Disabled American Veterans;
new text end

new text begin (ii) the expenditure is limited to 50 percent of gross profits from the previous fiscal year.
The fiscal year is July 1 through June 30. Any unused allowances may carry forward for
one fiscal year. Any organization carrying forward funds must identify the planned project
for which the funds will be used prior to carrying forward the unused allowances; and
new text end

new text begin (iii) total expenditures for the fiscal year may not exceed the limit imposed under item
(ii) unless the board has specifically approved the expenditures that exceed the limit due to
extenuating circumstances beyond the organization's control. An expansion of a building
or any capital improvements within the building regardless of use of the improvement are
allowed under this provision. This provision applies only to capital improvements to the
existing building square footage and does not apply to the new construction of a new or
replacement building.
new text end

(b) Expenditures authorized by the board under paragraph (a), clauses (24) and (25),
must be 51 percent completed within two years of the date of board approval; otherwise the
organization must reapply to the board for approval of the project. "Fifty-one percent
completed" means that the work completed must represent at least 51 percent of the value
of the project as documented by the contractor or vendor.

(c) Notwithstanding paragraph (a), "lawful purpose" does not include:

(1) any expenditure made or incurred for the purpose of influencing the nomination or
election of a candidate for public office or for the purpose of promoting or defeating a ballot
question;

(2) any activity intended to influence an election or a governmental decision-making
process;

(3) a contribution to a statutory or home rule charter city, county, or town by a licensed
organization with the knowledge that the governmental unit intends to use the contribution
for a pension or retirement fund; or

(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect of
not complying with lawful purpose restrictions or requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [428A.30] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For purposes of sections 428A.30 to 428A.34, the terms defined
in this section have the meanings given them, unless the context indicates otherwise.
new text end

new text begin Subd. 2. new text end

new text begin City. new text end

new text begin "City" means a statutory or home rule charter city.
new text end

new text begin Subd. 3. new text end

new text begin District. new text end

new text begin "District" means a land-value taxation district established under section
428A.31.
new text end

new text begin Subd. 4. new text end

new text begin Ordinance. new text end

new text begin "Ordinance" means the ordinance establishing a land-value taxation
district under section 428A.31.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2026.
new text end

Sec. 3.

new text begin [428A.31] ESTABLISHMENT OF LAND-VALUE TAXATION DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Ordinance. new text end

new text begin (a) The governing body of a city may adopt an ordinance
establishing a land-value taxation district. The ordinance must describe:
new text end

new text begin (1) the parcels of property constituting the district, either by specific identification of
each parcel, or by defining a geographic area or areas within the city, and then within that
area or those areas, identifying the specific types of property, as defined under section
273.13, to be included in the district; and
new text end

new text begin (2) the procedure for reallocating the collective property tax of all parcels within the
district.
new text end

new text begin (b) In addition, the ordinance must provide an evaluation of the economic effects of the
district, including the impact on redevelopment of and investment in the district, within a
specified period of time, but not less than 15 years after the date the district becomes
effective.
new text end

new text begin Subd. 2. new text end

new text begin Hearing; notice. new text end

new text begin Before adopting an ordinance, the governing body of the city
must hold a public hearing on the question. Notice of the hearing must include the time and
place of the hearing, a description of the parcels to be included in the district, a description
of the procedure for reallocating the tax burden among the parcels, and the duration of the
district. Each person owning property in the proposed district must be given the opportunity
to be heard at the hearing. The governing body must publish notice of the hearing on the
city's website and in at least two issues of the official newspaper of the city. The two
publications must be two weeks apart and the hearing must be held at least three days after
the last publication. Not less than ten days before the hearing, the governing body must mail
notice to the owner of each parcel proposed to be included in the district. For the purpose
of the mailed notice, owners are those shown on the records of the county auditor. Other
records may be used to supply the necessary information. At the public hearing, a person
affected by the proposed district may testify on any issues relevant to the proposed district.
The governing body may adjourn the hearing from time to time and may adopt the ordinance
establishing the district at any time within six months after the date of the conclusion of the
hearing by a vote of the majority of the governing body of the city. Within 30 days after
adoption of the ordinance, the governing body shall send a copy of the ordinance to the
commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2026.
new text end

Sec. 4.

new text begin [428A.32] RESTRICTIONS ON TAX REALLOCATION PROCEDURE.
new text end

new text begin A tax reallocation procedure under section 428A.31, subdivision 1, paragraph (a), clause
(2), must distribute taxes on taxable properties in the district by applying uniform rates to
one or more of the following tax bases:
new text end

new text begin (1) the net tax capacity, as defined under section 273.13, subdivision 21b;
new text end

new text begin (2) the referendum market value, as defined under section 126C.01, subdivision 3;
new text end

new text begin (3) a tax base consisting of each property's estimated market value excluding the market
value attributable to improvements; or
new text end

new text begin (4) a tax base consisting of each property's estimated market value excluding the market
value attributable to improvements made after a date specified in the ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2026.
new text end

Sec. 5.

new text begin [428A.33] TAXATION WITHIN DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Initial taxation within district. new text end

new text begin For each property taxes payable year, a
city must compile the total property taxes imposed upon all properties within the district
for each taxing jurisdiction after final property tax statements are issued under section
276.04. For the purposes of this section, the areawide taxes under chapters 276A and 473F,
and the state general levy under section 275.025, are considered to be taxing jurisdictions.
new text end

new text begin Subd. 2. new text end

new text begin Final taxation within district. new text end

new text begin A city must allocate the tax, as determined
under subdivision 1, among all properties in the district according to the terms of the
ordinance so the entire amount of tax payable to each taxing jurisdiction under subdivision
1 is allocated among the properties constituting the district. The city must report the revised
property tax amounts for each parcel of property to the county treasurer by April 30 of the
year the tax is payable. The city must mail revised property tax statements to all properties
within the district by April 30 of the year the tax is payable. Taxpayers must make payments
according to the dates specified in section 279.01 as if the property tax statements were
mailed 21 days prior to May 15 of the year the taxes are payable.
new text end

new text begin Subd. 3. new text end

new text begin Report to commissioner of revenue. new text end

new text begin By September 1 of each year, the county
treasurer must report the initial and final distribution of the net tax for each parcel of property
in the district to the commissioner of revenue on a form prescribed by the commissioner of
revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2026.
new text end

Sec. 6.

new text begin [428A.34] APPEAL OF LAND VALUE.
new text end

new text begin The owner of any property included in a land-value taxation district under section
428A.31 may appeal the valuation attributable to land separately from the valuation
attributable to improvements upon the land under sections 274.01 and 274.13 or chapter
271.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2026.
new text end

Sec. 7. new text begin APPROPRIATION; ANOKA COUNTY SOIL AND WATER
CONSERVATION DISTRICT; GRANT.
new text end

new text begin $50,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
of revenue for a grant to the Anoka County Soil and Water Conservation District. This is a
onetime appropriation. The grant must be paid by July 15, 2025. The grant under this section
is not subject to retention of administrative costs under Minnesota Statutes, section 16B.98,
subdivision 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text begin APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
new text end

new text begin (a) $100,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue for a grant to the city of South St. Paul. This is a onetime appropriation. The
grant must be paid by June 30, 2025. The grant under this section is not subject to retention
of administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
new text end

new text begin (b) The grant under this section must be used by the city of South St. Paul to pay for
planning and development costs within the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9. new text begin CITY OF MINNEAPOLIS; EMERALD ASH BORER FINANCIAL
ASSISTANCE; APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "eligible costs" means costs incurred in 2020 or later for treating or removing a tree
on owner-occupied residential property that has been required by state law or by municipal
ordinance to be treated or removed due to infestation or possible infestation by the emerald
ash borer, including but not limited to costs incurred by the city and assessed to a property
owner;
new text end

new text begin (2) "eligible homeowner" means a homeowner who experienced eligible costs related
to a tree on the homeowner's property in an eligible region and whose income is below 200
percent of the official federal poverty guideline;
new text end

new text begin (3) "eligible region" means a census block group in Minneapolis with a supplemental
demographic index score in the 70th percentile or higher within the state of Minnesota; and
new text end

new text begin (4) "supplemental demographic index" means an index in the Environmental Justice
Screening and Mapping Tool developed by the United States Environmental Protection
Agency that is based on socioeconomic indicators, including low income, unemployment,
less than high school education, limited English speaking, and low life expectancy.
new text end

new text begin Subd. 2. new text end

new text begin Eligible uses; prioritization. new text end

new text begin (a) The city of Minneapolis must use the full
amount of the aid under this section to pay eligible homeowners for their eligible costs.
new text end

new text begin (b) After receiving an application for a payment from an eligible homeowner, the city
must use funds received under this section to directly reduce the remaining balance of an
eligible homeowner's special assessment related to eligible costs. If the original balance of
the special assessment is greater than the remaining balance, the city must reimburse the
eligible homeowner for the difference.
new text end

new text begin (c) If the amount of funds available is insufficient to reimburse all eligible homeowners
for the full amount of their eligible costs, the city must prioritize reimbursing a subset of
eligible homeowners for the full amount of their eligible costs.
new text end

new text begin (d) After December 31, 2026, the city may use any remaining funds to reimburse other
eligible homeowners who incurred eligible costs but did not have a special assessment
applied to their properties.
new text end

new text begin (e) Notwithstanding paragraph (a), after June 30, 2027, the city may use any remaining
funds to offset the eligible costs of resident homeowners whose properties are not in an
eligible region but who otherwise meet the definition of an eligible homeowner.
new text end

new text begin (f) The city must administer the funding under this section within existing city resources
and not with money appropriated in this section.
new text end

new text begin Subd. 3. new text end

new text begin Outreach. new text end

new text begin The city of Minneapolis must promote the availability of financial
assistance under this section in eligible regions. As part of its outreach efforts, the city
department administering the program under this section must consult with Hope Community,
Metro Blooms, Harrison Neighborhood Association, the Center for Urban and Regional
Affairs at the University of Minnesota, and the public health department of the city.
new text end

new text begin Subd. 4. new text end

new text begin Reporting. new text end

new text begin On July 1, 2026, and July 1, 2027, the city must report to the
commissioner of revenue on its use of money under this section. By income level and
neighborhood, the report must detail the number of eligible homeowners reimbursed and
the amount of money distributed.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin $800,000 in fiscal year 2026 is appropriated from the general
fund to the commissioner of revenue for an aid to the city of Minneapolis. This is a onetime
appropriation. The aid must be paid on July 1, 2025. The aid under this section is not subject
to retention of administrative costs under Minnesota Statutes, section 16B.98, subdivision
14.
new text end

Sec. 10. new text begin APPROPRIATION; CITY OF MINNEAPOLIS.
new text end

new text begin (a) The $10,000,000 appropriation from the general fund in Laws 2023, chapter 64,
article 15, section 30, is canceled.
new text end

new text begin (b) $8,000,000 in fiscal year 2025 is appropriated from the general fund to the
commissioner of employment and economic development for a grant to the city of
Minneapolis. The balance of the grant must be awarded to a foundation that supports business
advising, branding and marketing, and real estate consulting to businesses located in the
area of Minneapolis bounded by the intersections of West 28th Street and Blaisdell Avenue;
Blaisdell Avenue and West 32nd Street; East 32nd Street and 30th Avenue South; and 30th
Avenue South and East 28th Street. The foundation must use the funds for direct business
support or direct corridor support, including assistance with marketing, place making,
redevelopment, real estate acquisition, and public relations services. The foundation may
subcontract with other organizations to deliver these services. This is a onetime appropriation
and is available until June 30, 2029.
new text end

new text begin (c) $2,000,000 in fiscal year 2025 is appropriated from the general fund to the Public
Facilities Authority for a grant to the city of Minneapolis for the predesign, design,
engineering, and environmental analysis of a water distribution facility to be located in
Hennepin County. This is a onetime appropriation and is available until June 30, 2029. If
the funds under this paragraph are not spent pursuant to this paragraph by June 30, 2029,
the funds must be returned to the commissioner of management and budget and cancel to
the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11. new text begin APPROPRIATION; BROWERVILLE PUBLIC SCHOOLS.
new text end

new text begin $....... in fiscal year 2026 is appropriated from the general fund to the commissioner of
revenue for a grant to Browerville public schools, Independent School District No. 787, to
remediate the effects of a school building roof collapse that occurred in 2023. The grant
recipient must use the money appropriated under this section for materials and supplies
used in and equipment incorporated into renovations to the prekindergarten through grade
12 school building, and construction of a new gymnasium, classrooms, locker rooms, a
wrestling and weight room, offices, and a stage. The grant must be paid by July 15, 2025.
This appropriation is onetime. The grant under this section is not subject to retention of
administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-04030

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.

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.