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 new legal definitions and procedures under Minnesota Statutes, chapter 428A, including the definitions of "City," "District," and "Ordinance." It outlines the process for a city’s governing body to adopt an ordinance to create a land-value taxation district, which must include a description of the properties involved and a procedure for reallocating property taxes among those parcels. Additionally, the ordinance must evaluate the economic effects of the district over a minimum of 15 years.

The bill also specifies the procedures for tax reallocation within the district, requiring uniform rates based on various tax bases, and mandates that cities compile and allocate property taxes for each taxing jurisdiction within the district. It establishes reporting requirements for the county treasurer to the commissioner of revenue and allows property owners within the district to appeal land valuations separately from improvements. All provisions of the bill are set to take effect for property taxes payable in 2026.