HF 5198

1st Division Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/15/2024 10:36pm

A bill for an act
relating to taxation; modifying property taxes, local government aids, minerals
taxes, and other tax-related provisions; modifying property tax exemptions, credits,
classifications, and abatements; adjusting local government aid calculations and
payments; providing for transfers and distributions of proceeds of minerals taxes;
providing for issuance of revenue bonds; providing special tax increment financing
authority; modifying certain special local taxes; providing for the establishment
of land valuation districts; appropriating money; amending Minnesota Statutes
2022, sections 272.02, by adding subdivisions; 273.13, subdivision 22; 273.135,
subdivision 2; 275.065, by adding a subdivision; 276.04, by adding a subdivision;
298.28, subdivision 8; 298.282, subdivision 1; 298.292, subdivision 2; 469.1812,
by adding a subdivision; 469.1813, subdivisions 1, 6, by adding a subdivision;
469.190, subdivisions 1, 7; 477A.013, subdivision 1; 477A.03, subdivision 2c;
Minnesota Statutes 2023 Supplement, sections 298.018, subdivision 1; 298.28,
subdivision 16; 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, chapter 428A.

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

ARTICLE 1

PROPERTY TAXES AND LOCAL GOVERNMENT AIDS

Section 1.

Minnesota Statutes 2022, 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 Property is exempt that:
new text end

new text begin (1) was classified as class 2b under section 273.13, subdivision 24, 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 EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, 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 1, 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 2025.
new text end

Sec. 3.

Minnesota Statutes 2022, section 273.13, subdivision 22, is amended to read:

Subd. 22.

Class 1.

(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.

The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:

(1) any person who is blind as defined in section 256D.35, or the person who is blind
and the spouse of the person who is blind;

(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or

(3) the surviving spouse of a veteran who was permanently and totally disabled
homesteading a property classified under this paragraph for taxes payable in 2008.

Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.

Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property is classified as class 1a or class 2a property, whichever is
appropriate.

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort even if the title to
the homestead is held by the corporation, partnership, or limited liability company. For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property 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. Class 1c property must provide recreational
activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
or cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first deleted text begin $600,000 deleted text end new text begin $1,100,000 new text end of market value is tier
I, the next deleted text begin $1,700,000 deleted text end new text begin $2,600,000 new text end of market value is tier II, and any remaining market value
is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent;
and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and
seasonal residential occupancy for recreation purposes in which all or a portion of the
property was devoted to commercial purposes for not more than 250 days in the year
preceding the year of assessment desiring classification as class 1c, 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 as
class 1c as otherwise provided. The remainder of the cabins or units and a proportionate
share of the land on which they are located must be designated as class 3a commercial. The
owner of property desiring designation as class 1c property must provide guest registers or
other records demonstrating that the units for which class 1c 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 1c.

(d) Class 1d property includes structures that meet all of the following criteria:

(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;

(3) the structure meets all applicable health and safety requirements for the appropriate
season; and

(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.

The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2022, 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. 5.

Minnesota Statutes 2022, 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; 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. 6.

Minnesota Statutes 2022, 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. 7.

Minnesota Statutes 2022, 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), items (ix) and (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. 8.

Minnesota Statutes 2022, section 477A.013, subdivision 1, is amended to read:

Subdivision 1.

Towns.

(a) deleted text begin In 2014 and thereafter, each town is eligible for a distribution
under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town
area factor, (iii) its population factor, and (iv) 0.0045. deleted text end As used in this subdivision, the
following terms have the meanings given them:

(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
agricultural property located in a town, to the adjusted net tax capacity of all other property
located in the town. The agricultural property factor cannot exceed eight;

(2) "agricultural property" means property classified under section 273.13, as homestead
and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
recreational property;

(3) "town area factor" means the most recent estimate of total acreage, not to exceed
50,000 acres, located in the township available as of July 1 in the aid calculation year,
estimated or established by:

(i) the United States Bureau of the Census;

(ii) the State Land Management Information Center; or

(iii) the secretary of state; deleted text begin and
deleted text end

(4) "population factor" means the square root of the towns' population deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) "town aid factor" means the product of the town's (i) agricultural property factor, (ii)
town area factor, and (iii) population factor.
new text end

deleted text begin (b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
under section 477A.03, subdivision 2c, the distribution to each town must be reduced
proportionately so that the total amount of aids distributed under this subdivision does not
exceed the limit in section 477A.03, subdivision 2c.
deleted text end

new text begin (b) Each town is eligible for a distribution under this subdivision equal to the product
of (1) the total amount available for town aid under section 477A.03, subdivision 2c, and
(2) the ratio of (i) the town's town aid factor to (ii) the sum of the town aid factors for all
towns.
new text end

(c) Data used in calculating aids to towns under this subdivision, other than acreage,
shall be the most recently available data as of January 1 in the year in which the aid is
calculated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payable in calendar year 2025
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2022, section 477A.03, subdivision 2c, is amended to read:

Subd. 2c.

Towns.

For aids payable in 2015 deleted text begin and thereafter deleted text end new text begin through 2024 new text end , the total aids
paid under section 477A.013, subdivision 1, is limited to $10,000,000. new text begin For aids payable in
2025 and thereafter, the total aid payable under section 477A.013, subdivision 1, is
$11,500,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payable in calendar year 2025
and thereafter.
new text end

Sec. 10. 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 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. The city assessor must provide the property owner with an application for
exemption under this section and the property owner must file the application with the city
assessor by August 1, 2024. An amount necessary to make a payment to the county for the
property taxes attributable to the exemption is appropriated from the general fund to the
commissioner of revenue in fiscal year 2024.
new text end

new text begin (b) By August 1, 2024, 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, 2024. The county auditor must distribute the payment to the property owner
by August 31, 2024.
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 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 it received the
annual financial reporting form for 2022 from the city by June 1, 2024. The commissioner
of revenue must make a payment of $87,501.50 to the city by June 30, 2024.
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

ARTICLE 2

MINERALS TAXES

Section 1.

Minnesota Statutes 2022, section 273.135, subdivision 2, is amended to read:

Subd. 2.

Reduction amount.

The amount of the reduction authorized by subdivision 1
shall be:

(a) In the case of property located within a municipality as defined under section 273.134,
paragraph (a), 66 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).

(b) In the case of property located within the boundaries of a school district which
qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the
boundaries of a municipality which meets the qualifications prescribed in section 273.134,
paragraph (a), 57 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).

(c) The maximum reduction of the tax is deleted text begin $315.10 deleted text end new text begin $515 new text end on property described in paragraph
(a) and deleted text begin $289.80 on property described in deleted text end paragraph (b).

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 275.065, is amended by adding a subdivision to
read:

new text begin Subd. 3c. new text end

new text begin Notice of proposed taxes; property subject to chapter 276A. new text end

new text begin In the case of
property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to
the tax amounts shown for each jurisdiction, the statement must include a line showing the
"fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax
amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may
be a negative number. If the fiscal disparities adjustment for either the current year taxes
or the proposed tax amount is a negative number, the percentage change must not be shown.
In all other respects the statement must fulfill the requirements of subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end

Sec. 3.

Minnesota Statutes 2022, section 276.04, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Contents of tax statements; property subject to chapter 276A. new text end

new text begin In the case
of property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the previous year tax amounts, the net tax capacity portion of the tax
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown
for each jurisdiction, the statement must include a line showing the "fiscal disparities
adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown
for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may
be a negative number. In all other respects the statement must fulfill the requirements of
subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 298.018, subdivision 1, is amended
to read:

Subdivision 1.

Within taconite assistance area.

(a) The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:

(1) except as provided under paragraph (b), five percent to the city or town within which
the minerals or energy resources are mined or extracted, or within which the concentrate
was produced. If the mining and concentration, or different steps in either process, are
carried on in more than one taxing district, the commissioner shall apportion equitably the
proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to
the operation of mining or extraction, and the remainder to the concentrating plant and to
the processes of concentration, and with respect to each thereof giving due consideration
to the relative extent of the respective operations performed in each taxing district;

(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282, subdivisions 1 and 2, on the dates provided under this section;

(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);

(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;

(5) ten percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;

(6) five percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;

(7) 20 percent to the commissioner of Iron Range resources and rehabilitation for the
purposes of section 298.22;

(8) three percent to the Douglas J. Johnson economic protection trust fund;

(9) seven percent to the taconite environmental protection fund; and

(10) ten percent to the commissioner of Iron Range resources and rehabilitation for
capital improvements to Giants Ridge Recreation Area.

(b) If the materials or energy resources are mined, extracted, or concentrated in School
District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead
be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes
must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township
must each receive ten percent of the amount.

(c) For the first five years that tax paid under section 298.015, subdivisions 1 and 2, is
distributed under this subdivision, ten percent of the total proceeds distributed in each year
must first be distributed pursuant to this paragraph. The remaining 90 percent of the total
proceeds distributed in each of those years must be distributed as outlined in paragraph (a).
Of the amount available under this paragraph, the cities of Aurora, Babbitt, Ely, and Hoyt
Lakes must each receive 20 percent. Of the amount available under this paragraph, the city
of Biwabik and Embarrass Township must each receive ten percent. new text begin This paragraph applies
only to tax paid by a person engaged in the business of mining within the area described in
section 273.1341, clauses (1) and (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2025 distribution.
new text end

Sec. 5.

Minnesota Statutes 2022, section 298.28, subdivision 8, is amended to read:

Subd. 8.

Range Association of Municipalities and Schools.

deleted text begin .30 deleted text end new text begin 0.40 new text end cent per taxable
ton shall be paid to the Range Association of Municipalities and Schools, for the purpose
of providing an areawide approach to problems which demand coordinated and cooperative
actions and which are common to those areas of northeast Minnesota affected by operations
involved in mining iron ore and taconite and producing concentrate therefrom, and for the
purpose of promoting the general welfare and economic development of the cities, towns,
and school districts within the Iron Range area of northeast Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 298.28, subdivision 16, is amended
to read:

Subd. 16.

Transfer.

Of the amount annually distributed to the Douglas J. Johnson
Economic Protection Trust Fund under this section, deleted text begin $3,500,000 deleted text end new text begin the following amounts new text end shall
be transferred to the Iron Range school consolidation and cooperatively operated school
account under subdivision 7a. new text begin For distributions in 2024, $6,250,000 must be transferred.
For distributions in 2025 through 2029, $6,500,000 must be transferred. For distributions
in 2030 through 2034, $5,500,000 must be transferred. For distributions in 2035 and 2036,
$5,000,000 must be transferred. For distributions in 2037 and thereafter, $3,500,000 must
be transferred. new text end Any remaining amount of the amount annually distributed to the Douglas J.
Johnson Economic Protection Trust Fund shall be transferred to the Iron Range resources
and rehabilitation account under subdivision 7. The transfers under this subdivision must
be made within ten days of the August payment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 7.

Minnesota Statutes 2022, section 298.282, subdivision 1, is amended to read:

Subdivision 1.

Distribution of taconite municipal aid account.

(a) The amount
deposited with the county as provided in section 298.28, subdivision 3, must be distributed
as provided by this section among: (1) the municipalities located within a taconite assistance
area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2)
a township that contains a state park consisting primarily of an underground iron ore mine;
(3) a city located within five miles of that state park; and (4) Breitung Township in St. Louis
County, each being referred to in this section as a qualifying municipality. The distribution
to Breitung Township under this subdivision shall be deleted text begin $15,000 deleted text end new text begin $25,000 new text end annually.

(b) The amount deposited in the state general fund as provided in section 298.018,
subdivision 1, must be distributed in the same manner as provided under paragraph (a),
except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the
dates provided under section 298.018, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 8.

Minnesota Statutes 2022, section 298.292, subdivision 2, is amended to read:

Subd. 2.

Use of money.

(a) Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
with private sources of financing, but a loan to a private enterprise shall be for a principal
amount not to exceed one-half of the cost of the project for which financing is sought, and
the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
percent or an interest rate three percentage points less than a full faith and credit obligation
of the United States government of comparable maturity, at the time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section 298.2211 new text begin , including bonds authorized
by the legislature to be repaid from the distributions under section 298.28, subdivision 7a new text end ;

(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
retrofitting heating facilities in connection with district heating systems or systems utilizing
alternative energy sources;

(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
Johnson economic protection trust fund may not exceed the amount of the largest investment
by an unrelated investor in the venture capital fund or enterprise. For purposes of this
subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
which the investment is made or to any individual who owns more than 40 percent of the
value of the entity, in any of the following relationships: spouse, parent, child, sibling,
employee, or owner of an interest in the entity that exceeds ten percent of the value of all
interests in it. For purposes of determining the limitations under this clause, the amount of
investments made by an investor other than the Douglas J. Johnson economic protection
trust fund is the sum of all investments made in the venture capital fund or enterprise during
the period beginning one year before the date of the investment by the Douglas J. Johnson
economic protection trust fund; and

(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
be held and managed as a public trust for the benefit of the area for the purposes authorized
in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
commissioner, after consultation with the advisory board. The net proceeds must be deposited
in the trust fund for the purposes and uses of this section.

(b) Money from the trust fund shall be expended only in deleted text begin or for the benefit of deleted text end the taconite
assistance area defined in section 273.1341.

(c) Money devoted to the trust fund under this section shall not be expended, appropriated,
or transferred from the trust fund for any purpose except as provided in this section.

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 IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER;
BONDS AUTHORIZED IN 2024.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance; purpose. new text end

new text begin (a) Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation shall, in 2024, issue revenue bonds in a principal amount of up to $49,000,000
plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may
issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs
of issuance and to make distributions pursuant this section. The commissioner of Iron Range
resources and rehabilitation must distribute these transferred funds as outlined in this section.
In order to receive a distribution, a recipient must submit to the commissioner a plan of how
the distribution will be spent and the commissioner must ensure that the plan matches the
intended use outlined in this section. The plan must be submitted in a form and manner
determined by the commissioner. The uses listed are not subject to review or recommendation
by the Iron Range Resources and Rehabilitation Board. By December 31, 2025, each recipient
must report to the commissioner how the distribution received under this section was spent.
If a recipient's plan is submitted and approved, the commissioner must distribute the funds
for the uses outlined in subdivision 3. The bonds issued under this section do not constitute
public debt as that term is defined in article XI, section 4, of the Minnesota Constitution,
and as such are not subject to its provisions.
new text end

new text begin (b) Funds under this section are available for four years from the date the bonds are
issued. Any unexpended funds after that date cancel to the taconite environmental fund
under Minnesota Statutes, section 298.28, subdivision 9b.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin (a) There is annually appropriated from the distribution of the
taconite production tax revenues under Minnesota Statutes, section 298.28, subdivision 7a,
an amount sufficient to pay when due the principal and interest on the bonds issued pursuant
to subdivision 1. Payments must be made from the account annually after the distribution
of the production tax revenues has been made.
new text end

new text begin (b) If in any year the amount available under paragraph (a) is insufficient to pay principal
and interest due on the bonds in that year, an additional amount is appropriated from the
Douglas J. Johnson economic protection trust fund to make up the deficiency.
new text end

new text begin (c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin (a) The commissioner of Iron Range resources and rehabilitation must
distribute funds available for distribution under subdivision 1 for the following uses:
new text end

new text begin (1) $160,000 to the Grand Portage Band of Lake Superior Chippewa to construct a
playground;
new text end

new text begin (2) $3,600,000 to the Mesabi Fit Coalition for the renovation, reconstruction, and
expansion of the former Mesabi Family YMCA in the city of Mountain Iron;
new text end

new text begin (3) $950,000 to the Buyck Volunteer Fire Department for design, engineering, and
construction of a new fire and training hall and related equipment;
new text end

new text begin (4) $750,000 to the Voyageur Trail Society for a joint maintenance facility with Voyageur
Country ATV in the city of Orr;
new text end

new text begin (5) $2,250,000 to Cook County, of which $250,000 must be spent to preserve affordable
housing units for seniors in the city of Grand Marais and $2,000,000 must be used to
construct, furnish, and equip a solid waste transfer station in the county;
new text end

new text begin (6) $1,200,000 to the Northland Learning Center for construction costs;
new text end

new text begin (7) $2,720,000 to the city of Chisholm, of which $520,000 must be used for the renovation
of the Chisholm Ice Arena facility and parking and the remaining amount must be used for
the public works facility;
new text end

new text begin (8) $1,000,000 to the city of Gilbert for the Gilbert Community Center;
new text end

new text begin (9) $360,000 to the city of Biwabik for housing and infrastructure;
new text end

new text begin (10) $3,000,000 to the city of Tower for water management infrastructure projects;
new text end

new text begin (11) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct
publicly owned infrastructure including sewers, water systems, utility extensions, street
construction, wastewater treatment, stormwater management systems, sidewalks, and
compliance with the Americans with Disabilities Act;
new text end

new text begin (12) $2,275,000 to St. Louis County for the development of the Canyon Integrated Solid
Waste Management Campus;
new text end

new text begin (13) $3,475,000 to the city of Eveleth to design, engineer, and construct public utilities
in its business park and construction of the Hat Trick Avenue slip ramp;
new text end

new text begin (14) $700,000 to the city of Meadowlands for costs related to park improvements and
a community center;
new text end

new text begin (15) $600,000 to School District No. 2142, St. Louis County, of which $400,000 must
be used for septic system upgrades at South Ridge School and $200,000 must be used for
cafeteria renovations at Northeast Range School in Babbitt and Tower Elementary School
in Tower;
new text end

new text begin (16) $250,000 to the city of Two Harbors for band stand repairs and Odegard Park and
Trail restoration;
new text end

new text begin (17) $720,000 to the Central Iron Range Sanitary Sewer District for infrastructure
projects;
new text end

new text begin (18) $5,240,000 to the Minnesota Discovery Center to design, construct, renovate,
furnish, and repair facilities, including HVAC upgrades, demolition, and compliance with
the Americans with Disabilities Act, at the Minnesota Discovery Center in the city of
Chisholm, and for historical research funding;
new text end

new text begin (19) $5,200,000 to the commissioner of Iron Range resources and rehabilitation for the
design, engineering, and upgrades or replacement of chair lifts and for the design,
engineering, demolition, and construction of a nordic and welcome center at the Giants
Ridge Recreation Area;
new text end

new text begin (20) $250,000 to Independent School District No. 696, Ely, for baseball field renovation;
new text end

new text begin (21) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
new text end

new text begin (22) $200,000 to Cook County Higher Education Board for costs to bring commercial
drivers' licenses and trades training to the region along with educational training and academic
support to remote populations;
new text end

new text begin (23) $200,000 to Save Our Ship, Inc., for construction costs at Knife River;
new text end

new text begin (24) $3,000,000 to Hibbing Public Utilities for water infrastructure projects;
new text end

new text begin (25) $400,000 to Veterans On The Lake for demolition of existing structures and the
building of a triplex that is compliant with the Americans with Disabilities Act;
new text end

new text begin (26) $350,000 to the city of Eveleth for the Hippodrome renovation;
new text end

new text begin (27) $500,000 to the Great Expectations School Foundation in Cook County for school
facilities construction;
new text end

new text begin (28) $225,000 to the Minnesota Forest Zone Trappers Association to plan, engineer,
purchase land, and develop the Sportsperson Training and Development Center;
new text end

new text begin (29) $200,000 to the Sturgeon Chain Lake Association to update the engineering and
hydrology study of the lakes, for regulatory and community outreach, and for preparing
recommendations to the commissioner of natural resources related to bank stabilization and
maintenance;
new text end

new text begin (30) $300,000 to the Northern Lights Music Festival to support programs, of this amount
$100,000 is available each year in calendar years 2025, 2026, and 2027;
new text end

new text begin (31) $250,000 to Cherry Township for recreational facilities upgrades and lights;
new text end

new text begin (32) $350,000 to the East Range Developmental Achievement Center for building
renovations;
new text end

new text begin (33) $500,000 to the Northland Foundation for grants or loans to (i) businesses or resorts
that were economically damaged by floods that occurred in 2022 or 2023 and which are
eligible under article 5 of the Canadian border counties economic relief program, or (ii)
outfitters in the border region who experienced either more than a 50 percent reduction in
Boundary Waters Canoe Area Wilderness permits obtained by their customers between
2019 and 2021, or a 50 percent reduction between 2019 and 2021 in trips across the fee-based
mechanical portages into the Boundary Waters Canoe Area Wilderness or Quetico Provincial
Park. Businesses may be awarded a maximum grant under this clause of up to $50,000,
must be located within the taconite assistance area, as defined under Minnesota Statutes,
section 273.1341, and must not have received a grant under the Canadian border counties
economic relief program. The Northland Foundation may retain up to four percent of the
amount under this clause for administration;
new text end

new text begin (34) $3,300,000 to the city of Virginia for a grant to be used for: (i) modernization,
renovation, and expansion of the Virginia Hospital emergency room complex to 12
emergency rooms; (ii) construction of an emergency behavior health suite for adults and
children; and (iii) security and safety upgrades. The grant must be transferred by the city
within 30 days of receipt;
new text end

new text begin (35) $100,000 to Crystal Bay Township for a septic project at the Clair Nelson
Community Center;
new text end

new text begin (36) $25,000 to the Northwoods Friends of the Arts in the city of Cook for facility
upgrades and programs;
new text end

new text begin (37) $50,000 to the Bois Forte Band of Chippewa for food shelf expenses;
new text end

new text begin (38) $100,000 to the Lake Vermilion Cultural Center to improve and renovate the facility
and its displays in Tower;
new text end

new text begin (39) $50,000 to the Lyric Center for the Arts in Virginia for repairs and renovation;
new text end

new text begin (40) $50,000 to the Pioneer Mine historical site for maintenance and displays in Ely;
new text end

new text begin (41) $150,000 to the Lake Superior School District to support an emergency preparedness
career introduction program; and
new text end

new text begin (42) $500,000 for grants of $25,000 distributed pursuant to paragraph (b).
new text end

new text begin (b) Of the amount under paragraph (a), clause (42), grants of $25,000 to be used for trail
grooming costs or equipment must be made available to the following entities:
new text end

new text begin (1) Alborn Dirt Devils ATV Club;
new text end

new text begin (2) Wild Country ATV Club;
new text end

new text begin (3) Ely Igloo Snowmobile Club;
new text end

new text begin (4) CC Riders Snowmobile Club;
new text end

new text begin (5) PathBlazers Snowmobile Club;
new text end

new text begin (6) Cook Timberwolves Snowmobile Club;
new text end

new text begin (7) Crane Lake Voyageurs Club;
new text end

new text begin (8) Pequaywan Area Trail Blazers Snowmobile Club;
new text end

new text begin (9) Eveleth Trail Hawks Snowmobile Club;
new text end

new text begin (10) Ranger Snowmobile/ATV Club;
new text end

new text begin (11) Silver Trail Riders Snowmobile and ATV Club;
new text end

new text begin (12) Voyageur Snowmobile Club;
new text end

new text begin (13) Mesabi Sno Voyageurs;
new text end

new text begin (14) Quad Cities ATV Club;
new text end

new text begin (15) Prospector ATV Club;
new text end

new text begin (16) Northern Traxx ATV Club;
new text end

new text begin (17) Finland Snowmobile and ATV Club;
new text end

new text begin (18) Babbitt ATV and Snowmobile Club;
new text end

new text begin (19) Cook County ATV Club; and
new text end

new text begin (20) Vermilion Penguins Snowmobile Club.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies beginning with the 2024 distribution under Minnesota Statutes, section 298.28.
new text end

Sec. 10. new text begin IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER;
BONDS AUTHORIZED IN 2025.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance; purpose. new text end

new text begin (a) Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation shall, in 2025, issue revenue bonds in a principal amount of up to $30,500,000
plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may
issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs
of issuance and to make distributions pursuant to this section. The commissioner of Iron
Range resources and rehabilitation must distribute these transferred funds as outlined in
this section. In order to receive a distribution, a recipient must submit to the commissioner
a plan of how the distribution will be spent and the commissioner must ensure that the plan
matches the intended use outlined in this section. The plan must be submitted in a form and
manner determined by the commissioner. The uses listed are not subject to review or
recommendation by the Iron Range Resources and Rehabilitation Board. By December 31,
2026, each recipient must report to the commissioner how the distribution received under
this section was spent. If a recipient's plan is submitted and approved, the commissioner
must distribute the funds for the uses outlined in subdivision 3. The bonds issued under this
section do not constitute public debt as that term is defined in article XI, section 4, of the
Minnesota Constitution, and as such are not subject to its provisions.
new text end

new text begin (b) Funds under this section are available for four years from the date the bonds are
issued. Any unexpended funds after that date cancel to the taconite environmental fund
under Minnesota Statutes, section 298.28, subdivision 9b.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin (a) There is annually appropriated from the distribution of the
taconite production tax revenues under Minnesota Statutes, section 298.28, subdivision 7a,
an amount sufficient to pay when due the principal and interest on the bonds issued pursuant
to subdivision 1. Payments must be made from the account annually after the distribution
of the production tax revenues has been made.
new text end

new text begin (b) If in any year the amount available under paragraph (a) is insufficient to pay principal
and interest due on the bonds in that year, an additional amount is appropriated from the
Douglas J. Johnson economic protection trust fund to make up the deficiency.
new text end

new text begin (c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin The commissioner of Iron Range resources and rehabilitation must
distribute funds available for distribution under subdivision 1 for the following uses:
new text end

new text begin (1) $5,000,000 to the Minnesota Discovery Center to design, construct, renovate, furnish,
and repair facilities, including HVAC upgrades, demolition, and compliance with the
Americans with Disabilities Act, at the Minnesota Discovery Center in the city of Chisholm,
and for historical research funding;
new text end

new text begin (2) $7,800,000 to the commissioner of Iron Range resources and rehabilitation for the
design, engineering, and upgrades or replacement of chair lifts and for the design,
engineering, demolition, and construction of a nordic and welcome center at the Giants
Ridge Recreation Area;
new text end

new text begin (3) $600,000 to the Central Iron Range Sanitary Sewer District for infrastructure projects;
new text end

new text begin (4) $500,000 to the city of Eveleth to design, engineer, and construct public utilities in
the city of Eveleth's business park and construction of the Hat Trick Avenue slip ramp;
new text end

new text begin (5) $1,200,000 to Independent School District No. 2909, Rock Ridge, for demolition of
the James Madison Elementary School in Virginia;
new text end

new text begin (6) $500,000 to the city of Buhl for infrastructure projects;
new text end

new text begin (7) $500,000 to St. Louis and Lake Counties Regional Railroad Authority to design,
engineer, acquire right-of-way, and construct the Mesabi Trail Spur from Aurora to Hoyt
Lakes;
new text end

new text begin (8) $2,000,000 to the city of Mountain Iron for infrastructure projects including but not
limited to Enterprise Drive North East infrastructure development, water main and other
infrastructure in the city, waste water plant improvements to comply with new permits,
supervisory control and data acquisition on lift stations, and recreation projects;
new text end

new text begin (9) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct
publicly owned infrastructure including sewers, water systems, utility extensions, street
construction, wastewater treatment, stormwater management systems, sidewalks, and
compliance with the Americans with Disabilities Act;
new text end

new text begin (10) $5,000,000 to Independent School District No. 696, Ely, for planning, design,
engineering, demolition, and construction related to the district's athletic complex;
new text end

new text begin (11) $1,080,000 to the Northland Learning Center to construct the Alternative Learning
Center on the campus in the city of Mountain Iron;
new text end

new text begin (12) $1,000,000 for the city of Biwabik for a public safety facility;
new text end

new text begin (13) $1,820,000 to Hibbing Public Utilities for water infrastructure projects; and
new text end

new text begin (14) $500,000 to St. Louis County for the demolition of the public school in Hoyt Lakes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies beginning with the 2025 distribution under Minnesota Statutes, section 298.28.
new text end

Sec. 11. new text begin TRANSFER 2024 DISTRIBUTION ONLY; TACONITE ECONOMIC
DEVELOPMENT FUND.
new text end

new text begin Of the funds distributed to the taconite economic development fund under Minnesota
Statutes, section 298.28, subdivision 9a, for the 2024 distribution only, an amount equal to
$300,000 shall be transferred from the taconite economic development fund to the city of
Chisholm for the Senator David Tomassoni Bridge of Peace. The transfer must be made
within ten days of the August 2024 payment. If less than $300,000 is distributed to the
taconite economic development fund in 2024, distributions to the fund in future years must
be transferred to the city of Chisholm, pursuant to this paragraph, until the total amount
transferred equals $300,000.
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

ARTICLE 3

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 requirements of Minnesota Statutes, section 469.178, subdivision 7, for advancing
or loaning money to finance eligible expenditures under Minnesota Statutes, section 469.176,
subdivision 4, do not apply 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; and (2) the cost of public
improvements installed within the tax increment financing district after the establishment
of the district.
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 deleted text begin abutting deleted text end new text begin serving new text end 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 deleted text begin project area deleted text end new text begin city new text end .

(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 deleted text begin project area deleted text end new text begin city new text end , 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), deleted text begin the city may use deleted text end
increments from a soil deficiency district deleted text begin to acquire parcels deleted text end new text begin may be used to pay for land
acquisition costs new text end and for other infrastructure costs either inside or outside of the district,
but within the deleted text begin project area deleted text end new text begin city new text end , 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 (j) Notwithstanding the restrictions in paragraph (f), clause (2), or paragraph (i),
increments from a soil deficiency district may be used to pay for improvements to the
Highway 169 and County Road 130 interchange.
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 Maple Grove and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
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;
new text end

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end

new text begin (3) increment generated from the district may be expended on activities within the area
described in subdivision 1 and all such expenditures 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 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 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 Pursuant to 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 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) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
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. 6. 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. 7. 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. 8. new text begin CITY OF MINNETONKA; 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 The special rules provided in this section apply to the
renewal and renovation tax increment financing district established in 2021 by the Economic
Development Authority in and for the City of Minnetonka and the city of Minnetonka under
Minnesota Statutes, sections 469.174 to 469.1794.
new text end

new text begin Subd. 2. new text end

new text begin Requirements deemed met. new text end

new text begin The tax increment financing district is 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 Eligible expenditures within district. new text end

new text begin (a) Eligible expenditures within the tax
increment financing district include but are not limited to: (1) infrastructure and roadway
improvements, including but not limited to sanitary sewer, water, storm sewer, and utility
improvements; (2) costs related to environmental remediation, soil correction, demolition,
and relocation; (3) site improvement costs; (4) land acquisition; (5) right-of-way acquisition
for road improvements; (6) surface and structured parking; (7) related administrative costs;
and (8) any expenditures detailed in the city of Minnetonka Final Alternative Urban Area
Review Opus Study Area, dated December 2020.
new text end

new text begin (b) The eligible expenditures described in paragraph (a) are deemed to meet the
requirements of Minnesota Statutes, section 469.176, subdivision 4j.
new text end

new text begin Subd. 4. new text end

new text begin Five-year rule. new text end

new text begin The requirements 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 tax increment
financing district if the activities are undertaken within ten years from the date of certification
of the district.
new text end

new text begin Subd. 5. new text end

new text begin Six-year rule. new text end

new text begin The requirements of Minnesota Statutes, section 469.1763,
subdivision 4, do not apply to the tax increment district.
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. 9. 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 administered by 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. 10. new text begin CITY OF PLYMOUTH; 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
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) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
new text end

new text begin (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years;
new text end

new text begin (4) increments from a district may be expended outside of the district and within the
boundaries of the city and are deemed expended on activities within the district for purposes
of Minnesota Statutes, section 469.1763; and
new text end

new text begin (5) Minnesota Statutes, section 469.1763, subdivision 4, does not apply to the district.
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. 11. 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 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 4

SPECIAL LOCAL TAXES

Section 1.

Minnesota Statutes 2022, 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, 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, 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, 2024.
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, 2024.
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, 2024.
new text end

ARTICLE 5

MISCELLANEOUS

Section 1.

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 taxes payable in 2025.
new text end

Sec. 2.

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 for 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 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 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. Notice of the hearing must be published 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, notice must be mailed 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 hearing may be adjourned from time to
time and the ordinance establishing the district may be adopted 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 taxes payable in 2025.
new text end

Sec. 3.

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

new text begin (2) 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 taxes payable in 2025.
new text end

Sec. 4.

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,
the 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 The city must allocate the tax, as determined
under subdivision 1, among all properties in the district according to the terms of the
ordinance, such that 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 provide for revised property tax statements
to be mailed 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 taxes payable in 2025.
new text end

Sec. 5.

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 taxes payable in 2025.
new text end

Sec. 6. new text begin APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
new text end

new text begin (a) $100,000 in fiscal year 2024 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, 2024.
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