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 the governing body of the city to adopt an ordinance that details the properties included in the district and the tax reallocation procedure. The ordinance must also evaluate the economic effects of the district over a minimum period of 15 years.

Additionally, the bill specifies the procedures for tax reallocation within the district, stating that taxes must be distributed uniformly based on various tax bases, such as net tax capacity and estimated market value. It mandates that cities compile and allocate property taxes for all properties within the district and report these amounts to the county treasurer and the commissioner of revenue. Property owners within the district are granted the right to appeal the valuation of their land separately from any improvements. All provisions of the bill are set to take effect for property taxes payable in 2026.