This bill authorizes cities in Minnesota to establish land-value taxation districts, allowing for a new method of property taxation that focuses on the value of land rather than improvements made to it. The bill introduces several new sections to Minnesota Statutes, specifically chapter 428A, which includes definitions for key terms such as "City," "District," and "Ordinance." It outlines the process for creating a land-value taxation district, including the requirement for a public hearing and the need for an ordinance that details the properties included in the district and the tax reallocation procedure. The bill mandates that the governing body of the city must evaluate the economic effects of the district and report the findings to the commissioner of revenue.

Additionally, the bill specifies the procedures for tax reallocation within the district, ensuring that taxes are distributed uniformly based on various tax bases. It also establishes requirements for initial and final taxation within the district, including deadlines for reporting and mailing revised property tax statements. Property owners within the district are granted the right to appeal the valuation of their land separately from improvements. All provisions of the bill are set to take effect beginning with property taxes payable in 2026.