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 a series of definitions and procedures for creating these districts, including the requirement for cities to adopt an ordinance that outlines the specific parcels included, the tax reallocation procedure, and an evaluation of the district's economic effects over a minimum of 15 years. Public hearings must be held prior to the adoption of such ordinances, ensuring that property owners have the opportunity to voice their opinions.

Additionally, the bill specifies the taxation process within these districts, detailing how taxes will be compiled and allocated among properties based on the terms set forth in the ordinance. It mandates that cities report tax distributions to the county treasurer and the commissioner of revenue, and it allows property owners to appeal land valuations separately from improvements. All provisions of the bill are set to take effect for property taxes payable starting in 2026.