HF 9

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This Document can be made available
in alternative formats upon request  State of Minnesota
  HOUSE OF REPRESENTATIVES
  SPECIAL SESSION
  H. F. No.      9
06/09/2025     Authored by Davids and Gomez
  The bill was read for the first time
  R/S Rules Suspended, urgency declared
  Read for the Second Time
  Read for the Third Time
  Passed by the House and transmitted to the Senate
06/12/2025     Presented to Governor
06/14/2025     Governor Approval
1.1A bill for an act
1.2relating to taxation; modifying individual income and corporate franchise taxes,
1.3property taxes, sales and use taxes, excise taxes, local government aids, tax
1.4increment financing provisions, local sales and use taxes, public finance provisions,
1.5and other miscellaneous taxes and tax-related provisions; modifying the research
1.6and development credit and making the credit partially refundable; modifying and
1.7providing for income tax credits and subtractions; modifying provisions for the
1.8political contribution refund; modifying property tax exemptions and classifications;
1.9providing for land bank organizations; providing for June accelerated payments
1.10of sales taxes by certain vendors; modifying the sales and use tax exemption for
1.11data centers to remove the exemption for electricity; modifying payments under
1.12the Sustainable Forest Incentive Act; modifying the appropriation for aquatic
1.13invasive species aid; increasing the tax on cannabis products; eliminating local
1.14cannabis aid; modifying provisions for the provider tax; repealing the controlled
1.15substance tax; making related clarifying and technical changes; requiring and
1.16modifying reports; modifying appropriations; appropriation money; amending
1.17Minnesota Statutes 2024, sections 3.192; 3.8855, subdivisions 2, 3, 4, 5, 7, 8; 8.31,
1.18subdivision 2c; 10A.02, subdivision 11b; 10A.322, subdivision 4; 16A.151,
1.19subdivision 2; 37.31, subdivision 1; 41A.30, subdivision 5; 116U.27, subdivision
1.202; 270C.11, subdivision 4; 270C.445, subdivisions 3, 6; 272.02, subdivisions 7,
1.2119, by adding subdivisions; 273.117; 273.128, subdivision 1; 273.13, subdivisions
1.2222, 23; 273.38; 273.41; 279.37, subdivision 2; 289A.12, subdivision 18; 289A.20,
1.23subdivision 4; 289A.60, subdivision 12, by adding a subdivision; 290.0132,
1.24subdivisions 26, as amended, 34, by adding subdivisions; 290.0134, subdivision
1.2520; 290.06, subdivision 23; 290.068, subdivision 3, by adding subdivisions;
1.26290.0693, subdivisions 1, 4, 6, 8; 290.0695, subdivisions 1, 2, 3; 290.091,
1.27subdivision 2; 290A.03, subdivision 3; 290A.19; 290C.07; 290C.10; 295.53,
1.28subdivision 4a; 295.54, subdivision 2; 295.81, subdivisions 2, 10; 297A.68,
1.29subdivision 42; 297A.71, subdivision 54; 297A.75, subdivisions 1, as amended,
1.302, 3; 297A.94; 297A.99, subdivision 10; 297A.995, subdivisions 2, 10; 297E.06,
1.31subdivision 4; 297G.09, subdivision 10; 297I.20, subdivision 4; 373.40, subdivision
1.322; 446A.086, subdivisions 1, 2; 449.08; 462C.04, subdivision 2; 469.104; 469.154,
1.33subdivision 4; 469.176, subdivision 4n; 469.1812, by adding a subdivision;
1.34469.1813, subdivisions 1, 5, 6, by adding a subdivision; 474A.091, subdivisions
1.352, 2a; 475.521, subdivision 2; 477A.013, subdivision 1; 477A.19, subdivision 5;
1.36609.902, subdivision 4; 641.23; Laws 1996, chapter 471, article 2, section 29,
1.37subdivisions 1, as amended, 4, as amended; Laws 2010, chapter 389, article 7,
1.38section 22, as amended; Laws 2013, chapter 143, article 9, section 21; Laws 2014,
1
       06/07/25   REVISOR  EAP/VJ  25-05695
2.1chapter 308, article 6, section 9, as amended; Laws 2017, First Special Session
2.2chapter 1, article 6, section 22; Laws 2023, chapter 1, sections 22; 28; proposing
2.3coding for new law in Minnesota Statutes, chapter 8; repealing Minnesota Statutes
2.42024, sections 13.4967, subdivisions 2a, 5; 275.065, subdivision 3c; 276.04,
2.5subdivision 2a; 290.0679; 297D.01; 297D.02; 297D.03; 297D.04; 297D.05;
2.6297D.06; 297D.07; 297D.08; 297D.085; 297D.09; 297D.10; 297D.11; 297D.12;
2.7297D.13; 477A.32.
2.8  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.9ARTICLE 1
2.10INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
2.11   Section 1. Minnesota Statutes 2024, section 10A.02, subdivision 11b, is amended to read:
2.12     Subd. 11b. Data privacy related to electronic reporting system. (a) The board may
2.13 develop and maintain systems to enable treasurers to enter and store electronic records
2.14 online for the purpose of complying with this chapter. Data entered into such systems by
2.15 treasurers or their authorized agents is not government data under chapter 13 and may not
2.16 be accessed or used by the board for any purpose without the treasurer's written consent.
2.17 Data from such systems that has been submitted to the board as a filed report is government
2.18 data under chapter 13.
2.19     (b) For purposes of administering the refund under section 290.06, subdivision 23, the
2.20 board may access or use the following data entered and stored in an electronic reporting
2.21 system and share the data with the commissioner of revenue: (1) the amount of the
2.22 contribution; (2) the name and address of the contributor; (3) any unique identifier for the
2.23 contribution; (4) the name and campaign identification number of the party or candidate
2.24 that received the contribution; and (5) the date on which the contribution was received. Data
2.25 accessed, used, or maintained by the board under this paragraph are classified as nonpublic
2.26 data, as defined in section 13.02, subdivision 9, and private data on individuals, as defined
2.27 in section 13.02, subdivision 12.
2.28     EFFECTIVE DATE. This section is effective January 1, 2027.
2.29   Sec. 2. Minnesota Statutes 2024, section 10A.322, subdivision 4, is amended to read:
2.30     Subd. 4. Refund receipt forms receipts; penalty. (a) The board must make available
2.31 to a political party on request and to any candidate for whom an agreement under this section
2.32 is effective, a supply of official refund receipt forms receipts in an electronic format that
2.33 state in boldface type that:
2.34     (1) a contributor who is given a receipt form is eligible to claim a refund as provided in
2.35 section 290.06, subdivision 23; and
       Article 1 Sec. 2.  2
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3.1      (2) if the contribution is to a candidate, that the candidate has signed an agreement to
3.2  limit campaign expenditures as provided in this section.
3.3      The forms must provide duplicate copies of the receipt to be attached to the contributor's
3.4  claim. An official refund receipt must only be issued for a contribution of $10 or more.
3.5  Each receipt must be in an electronic format and include a unique receipt validation number
3.6  that allows the commissioner of revenue to verify the information on the receipt with the
3.7  Campaign Finance Board. A political party or candidate may provide a printed copy of the
3.8  electronic receipt to the contributor.
3.9      (b) Once each business day, the board must provide the commissioner of revenue a
3.10 receipt validation report. For each contribution reported to the board since the previous
3.11 report, the report must include:
3.12     (1) the date and amount of the contribution;
3.13     (2) the name and address of the contributor;
3.14     (3) the name and campaign identification number of the party or candidate that received
3.15 the contribution; and
3.16     (4) the receipt validation number assigned to the contribution.
3.17     (b) (c) The willful issuance of an official refund receipt form or a facsimile of one to
3.18 any of the candidate's contributors by a candidate or treasurer of a candidate who did not
3.19 sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed
3.20 by the board.
3.21     (c) (d) The willful issuance of an official refund receipt form or a facsimile to an
3.22 individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to
3.23 a civil penalty of up to $3,000 imposed by the board.
3.24     (d) (e) A violation of paragraph (b) (c) or (c) (d) is a misdemeanor.
3.25     (f) A receipt validation report and a receipt validation number prepared pursuant to this
3.26 section are classified as nonpublic data, as defined in section 13.02, subdivision 9, and
3.27 private data on individuals, as defined in section 13.02, subdivision 12.
3.28     EFFECTIVE DATE. This section is effective for contributions made after December
3.29 31, 2026.
       Article 1 Sec. 2.  3
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4.1    Sec. 3. Minnesota Statutes 2024, section 41A.30, subdivision 5, is amended to read:
4.2      Subd. 5. Allocation limits. (a) Subject to additional rollover allocation as provided in
4.3  paragraph (b), for tax credits allowed under subdivision 2, the commissioner must not issue
4.4  credit certificates for more than $11,600,000 in total, allocated as follows:
4.5      (1) $7,400,000 for fiscal year 2025; and
4.6      (2) $2,100,000 for each of fiscal years 2026 and 2027.
4.7      (b) If the entire amount authorized under paragraph (a) is not allocated in fiscal year
4.8  2025 or 2026, any remaining amount is available for allocation through fiscal year 2030
4.9  until the entire allocation has been made. Any portion of a fiscal year's credits that is not
4.10 allocated by the commissioner does not cancel and may be carried forward to subsequent
4.11 fiscal years until all credits have been allocated, except that the commissioner must not
4.12 issue any credit certificates for fiscal years beginning after June 30, 2030, and any unallocated
4.13 amounts cancel on that date.
4.14     EFFECTIVE DATE. This section is effective the day following final enactment.
4.15   Sec. 4. Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:
4.16     Subd. 3. Standards of conduct. No tax preparer shall:
4.17     (1) without good cause fail to promptly, diligently, and without unreasonable delay
4.18 complete a client's return;
4.19     (2) obtain the signature of a client to a return or authorizing document that contains
4.20 blank spaces to be filled in after it has been signed;
4.21     (3) fail to sign a client's return when compensation for services rendered has been made;
4.22     (4) fail to provide on a client's return the preparer tax identification number when required
4.23 under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
4.24     (5) fail or refuse to give a client a copy of any document requiring the client's signature
4.25 within a reasonable time after the client signs the document;
4.26     (6) fail to retain for at least four years a copy of a client's returns;
4.27     (7) fail to maintain a confidential relationship with clients or former clients;
4.28     (8) fail to take commercially reasonable measures to safeguard a client's nonpublic
4.29 personal information;
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5.1      (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
5.2  indirectly, any false, deceptive, or misleading statement or representation relating to or in
5.3  connection with the offering or provision of tax preparation services;
5.4      (10) require a client to enter into a loan arrangement in order to complete a client's return;
5.5      (11) claim credits or deductions on a client's return for which the tax preparer knows or
5.6  reasonably should know the client does not qualify;
5.7      (12) report a household income on a client's claim filed under chapter 290A that the tax
5.8  preparer knows or reasonably should know is not accurate;
5.9      (13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
5.10 13, 20, 20a, 26, or 28;
5.11     (14) whether or not acting as a taxpayer representative, fail to conform to the standards
5.12 of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
5.13     (15) whether or not acting as a taxpayer representative, engage in any conduct that is
5.14 incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
5.15     (16) whether or not acting as a taxpayer representative, engage in any conduct that is
5.16 disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
5.17     (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
5.18 refund for tax preparation services;
5.19     (18) under any circumstances, withhold or fail to return to a client a document provided
5.20 by the client for use in preparing the client's return;
5.21     (19) take control or ownership of a client's refund by any means, including:
5.22     (i) directly or indirectly endorsing or otherwise negotiating a check or other refund
5.23 instrument, including an electronic version of a check;
5.24     (ii) directing an electronic or direct deposit of the refund into an account unless the
5.25 client's name is on the account; and
5.26     (iii) establishing or using an account in the preparer's name to receive a client's refund
5.27 through a direct deposit or any other instrument unless the client's name is also on the
5.28 account, except that a taxpayer may assign the portion of a refund representing the Minnesota
5.29 education credit available under section 290.0674 to a bank account without the client's
5.30 name, as provided under section 290.0679;
5.31     (20) fail to act in the best interests of the client;
       Article 1 Sec. 4.  5
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6.1      (21) fail to safeguard and account for any money handled for the client;
6.2      (22) fail to disclose all material facts of which the preparer has knowledge which might
6.3  reasonably affect the client's rights and interests;
6.4      (23) violate any provision of section 332.37;
6.5      (24) include any of the following in any document provided or signed in connection
6.6  with the provision of tax preparation services:
6.7      (i) a hold harmless clause;
6.8      (ii) a confession of judgment or a power of attorney to confess judgment against the
6.9  client or appear as the client in any judicial proceeding;
6.10     (iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
6.11 a debtor;
6.12     (iv) an assignment of or an order for payment of wages or other compensation for
6.13 services;
6.14     (v) a provision in which the client agrees not to assert any claim or defense otherwise
6.15 available;
6.16     (vi) a waiver of any provision of this section or a release of any obligation required to
6.17 be performed on the part of the tax preparer; or
6.18     (vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
6.19 a class basis; or
6.20     (25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
6.21 disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
6.22 form that may be retained by the client.
6.23     EFFECTIVE DATE. This section is effective for taxable years beginning after December
6.24 31, 2025.
6.25   Sec. 5. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
6.26 to read:
6.27     Subd. 36. Discharges of indebtedness; coerced debt. The amount of discharge of
6.28 indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.
6.29     EFFECTIVE DATE. This section is effective for taxable years beginning after December
6.30 31, 2024.
       Article 1 Sec. 5.  6
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7.1    Sec. 6. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
7.2  to read:
7.3      Subd. 37. Consumer enforcement public compensation payments. The amount of
7.4  consumer enforcement public compensation received as a distribution to an eligible consumer
7.5  under section 8.37, subdivision 5, is a subtraction.
7.6      EFFECTIVE DATE. This section is effective for taxable years beginning after December
7.7  31, 2024.
7.8    Sec. 7. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
7.9  to read:
7.10     Subd. 38. Student loan education assistance paid by critical access dental clinics. (a)
7.11 The amount of student loan educational assistance payments that is received from a critical
7.12 access dental clinic is a subtraction.
7.13     (b) For the purposes of this subdivision, the following terms have the meanings given.
7.14     (c) "Critical access dental clinic" means a dentist or dental clinic that is designated as a
7.15 critical access dental provider under section 256B.76, subdivision 4.
7.16     (d) "Student loan educational assistance payments" means payments by an employer on
7.17 the education loan of an employee that are included in the definition of educational assistance
7.18 under section 127(c)(1)(B) of the Internal Revenue Code, disregarding the expiration of
7.19 that clause. Student loan educational assistance payments are limited to amounts in excess
7.20 of the limit in section 127(a)(2) of the Internal Revenue Code.
7.21     EFFECTIVE DATE. This section is effective for taxable years beginning after December
7.22 31, 2025.
7.23   Sec. 8. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
7.24 to read:
7.25     Subd. 39. Foreign service pension; retirement pay. (a) Compensation received from
7.26 a pension or other retirement pay from the federal government for service in the foreign
7.27 service and established under United States Code, title 22, sections 4041 to 4069 and 4071,
7.28 is a subtraction.
7.29     (b) The subtraction equals the product of:
7.30     (1) the amount of compensation received under paragraph (a); and
       Article 1 Sec. 8.  7
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8.1      (2) the number of years of foreign service divided by the total number of years of civil
8.2  service for which the taxpayer receives pension income.
8.3      (c) Any amount used to claim the subtraction in this subdivision must not be used to
8.4  claim the subtraction in subdivision 34.
8.5      EFFECTIVE DATE. This section is effective for taxable years beginning after December
8.6  31, 2024.
8.7    Sec. 9. Minnesota Statutes 2024, section 290.06, subdivision 23, is amended to read:
8.8      Subd. 23. Refund of contributions to political parties and candidates. (a) A taxpayer
8.9  may claim a refund equal to the amount of the taxpayer's contributions made in the calendar
8.10 year to candidates and to a political party. The maximum total refund per calendar year for
8.11 an individual must not exceed $75 and for a married couple, filing jointly, must not exceed
8.12 $150. The commissioner must not issue a refund, whether in one payment or in aggregate,
8.13 to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. A
8.14 refund of a contribution is allowed only if the taxpayer files:
8.15     (1) a form required by the commissioner and attaches to the form a copy of an official
8.16 refund receipt form issued by the candidate or party and signed by the candidate, the treasurer
8.17 of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
8.18 after the contribution was received. The receipt forms must be numbered, and the data on
8.19 the receipt that are not public must be made available to the campaign finance and public
8.20 disclosure board upon its request.; or
8.21     (2) a claim using the electronic filing system authorized in paragraph (i).
8.22 The form or claim must include one or more unique receipt validation numbers from receipts
8.23 issued pursuant to section 10A.322, subdivision 4.
8.24     (b) A claim must be filed with the commissioner no sooner than January 1 of the calendar
8.25 year in which the contribution was made and no later than April 15 of the calendar year
8.26 following the calendar year in which the contribution was made. A taxpayer may file only
8.27 one claim per calendar year. A claim must be for a minimum of $10. Amounts paid by the
8.28 commissioner after June 15 of the calendar year following the calendar year in which the
8.29 contribution was made must include interest at the rate specified in section 270C.405.
8.30     (b) (c) No refund is allowed under this subdivision for a contribution to a candidate
8.31 unless the candidate:
       Article 1 Sec. 9.  8
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9.1      (1) has signed an agreement to limit campaign expenditures as provided in section
9.2  10A.322;
9.3      (2) is seeking an office for which voluntary spending limits are specified in section
9.4  10A.25; and
9.5      (3) has designated a principal campaign committee.
9.6      This subdivision does not limit the campaign expenditures of a candidate who does not
9.7  sign an agreement but accepts a contribution for which the contributor improperly claims
9.8  a refund.
9.9      (c) (d) For purposes of this subdivision, "political party" means a major political party
9.10 as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion
9.11 on the income tax or property tax refund form under section 10A.31, subdivision 3a.
9.12     A "major party" or "minor party" includes the aggregate of that party's organization
9.13 within each house of the legislature, the state party organization, and the party organization
9.14 within congressional districts, counties, legislative districts, municipalities, and precincts.
9.15     "Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a
9.16 candidate for judicial office.
9.17     "Contribution" means a gift of money.
9.18     (d) (e) The commissioner shall make copies of the form available to the public and
9.19 candidates upon request.
9.20     (e) (f) The following data collected or maintained by the commissioner under this
9.21 subdivision are private: the identities of individuals claiming a refund, the identities of
9.22 candidates to whom those individuals have made contributions, and the amount of each
9.23 contribution.
9.24     (f) (g) The commissioner shall report to the campaign finance and public disclosure
9.25 board by each August 1 a summary showing the total number and aggregate amount of
9.26 political contribution refunds made on behalf of each candidate and each political party.
9.27 These data are public.
9.28     (g) (h) The amount necessary to pay claims for the refund provided in this section is
9.29 appropriated from the general fund to the commissioner of revenue.
9.30     (h) For a taxpayer who files a claim for refund via the Internet or other electronic means,
9.31 the commissioner may accept the number on the official receipt as documentation that a
9.32 contribution was made rather than the actual receipt as required by paragraph (a).
       Article 1 Sec. 9.  9
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10.1      (i) The commissioner must establish an electronic filing system by which refunds are
10.2  claimed.
10.3      EFFECTIVE DATE. This section is effective for contributions made after December
10.4  31, 2026.
10.5    Sec. 10. Minnesota Statutes 2024, section 290.068, subdivision 3, is amended to read:
10.6      Subd. 3. Limitation; carryover. (a) The credit for taxable years beginning before January
10.7  1, 2025, shall not exceed the liability for tax.
10.8      (b) If the amount of the credit allowed for the taxable year exceeds the liability for tax
10.9  of the taxpayer, but is allowed as a result of the liability for tax of other members of the
10.10 unitary group for the taxable year, the taxpayer must allocate the excess as a research credit
10.11 to another member of the unitary group.
10.12     (b) (c) In the case of a corporation which is a partner in a partnership, the credit allowed
10.13 for the taxable year shall not exceed the lesser of the amount determined under paragraph
10.14 (a) (b) for the taxable year or an amount (separately computed with respect to the
10.15 corporation's interest in the trade or business or entity) equal to the amount of tax attributable
10.16 to that portion of taxable income which is allocable or apportionable to the corporation's
10.17 interest in the trade or business or entity.
10.18     (c) (d) If the amount of the credit determined under this section for any taxable year
10.19 exceeds the limitation under paragraph paragraphs (a) or (b) to (c), including amounts
10.20 allocated to other members of the unitary group, and is not refunded under subdivision 3a,
10.21 the excess shall be a research credit carryover to each of the 15 succeeding taxable years.
10.22 The entire amount of the excess unused credit for the taxable year shall be carried first to
10.23 the earliest of the taxable years to which the credit may be carried and then to each successive
10.24 year to which the credit may be carried. The amount of the unused credit which may be
10.25 added under this clause shall not exceed the taxpayer's liability for tax less the research
10.26 credit for the taxable year.
10.27     EFFECTIVE DATE. This section is effective for taxable years beginning after December
10.28 31, 2024.
10.29   Sec. 11. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision
10.30 to read:
10.31     Subd. 3a. Credit to be partially refundable. (a) If the amount of credit allowed in this
10.32 section for qualified research expenses incurred in taxable years beginning after December
Article 1 Sec. 11.  10
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11.1  31, 2024, exceeds the limitations in subdivision 3, paragraphs (a) to (c), including after the
11.2  credit amounts are allocated to other members of the unitary group, the taxpayer may elect
11.3  to receive a refund.
11.4      (b) The refundable amount allowed under paragraph (a) is equal to the refundability rate
11.5  calculated under subdivision 3b multiplied by the excess, if any, of the allowed credit amount
11.6  under subdivision 1 for the current taxable year remaining after the liability for tax has been
11.7  reduced to zero.
11.8      (c) Any amount not refunded under paragraph (a) is allowed as a carryover under
11.9  subdivision 3, paragraph (d).
11.10     (d) An election under paragraph (a) is irrevocable for the taxable year.
11.11     (e) This subdivision applies only to an allowed credit claimed on a tax return filed on
11.12 or before the due date under section 289A.18 or the extended due date under section 289A.19.
11.13     EFFECTIVE DATE. This section is effective for taxable years beginning after December
11.14 31, 2024.
11.15   Sec. 12. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision
11.16 to read:
11.17     Subd. 3b. Determination of refundability rate. (a) For purposes of this section, the
11.18 refundability rate equals:
11.19     (1) 19.2 percent for taxable years beginning after December 31, 2024, and before January
11.20 1, 2026; and
11.21     (2) 25 percent for taxable years beginning after December 31, 2025, and before January
11.22 1, 2028.
11.23     (b) For taxable years beginning after December 31, 2027, the refundability rate equals
11.24 the lesser of 25 percent or the rate determined under paragraph (c).
11.25     (c) By December 15, 2027, and each year thereafter, the commissioner must determine
11.26 the refundability rate for the immediately succeeding taxable year based on the most recent
11.27 November forecast required under section 16A.103. If the commissioner determines that
11.28 the total amount of refunds paid under this section will exceed $25,000,000 for the
11.29 immediately succeeding taxable year, the commissioner must adjust the refundability rate
11.30 so the total amount of projected refunds paid in the immediately succeeding taxable year
11.31 will approximate $25,000,000 or less. The percentage must be rounded to the nearest whole
Article 1 Sec. 12.  11
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12.1  percentage point. The commissioner must publish the refundability rate on the department's
12.2  external website.
12.3      EFFECTIVE DATE. This section is effective for taxable years beginning after December
12.4  31, 2024.
12.5    Sec. 13. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision
12.6  to read:
12.7      Subd. 8. Appropriation. An amount sufficient to pay the refunds required under this
12.8  section is appropriated to the commissioner from the general fund.
12.9      EFFECTIVE DATE. This section is effective the day following final enactment.
12.10   Sec. 14. Minnesota Statutes 2024, section 290.0695, subdivision 1, is amended to read:
12.11     Subdivision 1. Definitions. (a) For purpose purposes of this section, the following terms
12.12 have the meanings given them.
12.13     (b) "Credit certificate" means the certificate issued by the commissioner of transportation
12.14 under subdivision 3, paragraph (a).
12.15     (b) (c) "Eligible taxpayer" means any railroad that is classified by the United States
12.16 Surface Transportation Board as a Class II or Class III railroad.
12.17     (c) (d) "Eligible transferee" means any taxpayer subject to tax under this chapter or
12.18 chapter 297I.
12.19     (d) (e) "Qualified railroad reconstruction or replacement expenditures" means gross
12.20 expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad
12.21 infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related
12.22 structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1,
12.23 2021. Qualified railroad reconstruction or replacement expenditures also includes new
12.24 construction of industrial leads, switches, spurs and sidings and extensions of existing sidings
12.25 in Minnesota by a Class II or Class III railroad.
12.26     (f) "Transfer credit certificate" means the certificate issued to a transferee by the
12.27 commissioner under subdivision 3, paragraph (d).
12.28     EFFECTIVE DATE. This section is effective for taxable years beginning after December
12.29 31, 2024.
Article 1 Sec. 14.  12
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13.1    Sec. 15. Minnesota Statutes 2024, section 290.0695, subdivision 3, is amended to read:
13.2      Subd. 3. Transferability Credit certificates; written agreement required; credit
13.3  certificate transferability. (a) To qualify for a credit under this section, an eligible taxpayer
13.4  must apply to the commissioner of transportation for a credit certificate. The application
13.5  for the credit certificate must be in the form and manner prescribed by the commissioner
13.6  of transportation, in consultation with the commissioner. If the application is approved, the
13.7  commissioner of transportation must issue the credit certificate to the eligible taxpayer
13.8  within 30 days of receipt of the application. The credit certificate must state the number of
13.9  miles of qualified railroad reconstruction or replacement expenditures in the taxable year
13.10 and the total amount of credit calculated under subdivision 2, paragraph (a). The
13.11 commissioner of transportation must provide a copy of the credit certificate to the
13.12 commissioner. The commissioner of transportation must not issue more than one credit
13.13 certificate to an eligible taxpayer in a taxable year.
13.14     (b) By written agreement, an eligible taxpayer may transfer the credit allowed under
13.15 this section by written agreement to an eligible transferee. The amount of the transferred
13.16 credit is limited to the unused, remaining portion of the credit. as follows:
13.17     (1) any amount of the credit allowed that is stated in the credit certificate before any of
13.18 the credit is claimed; or
13.19     (2) the entire amount of the credit carryover in each of the five succeeding taxable years.
13.20     (b) (c) The eligible taxpayer and the eligible transferee must jointly file a copy of the
13.21 written transfer agreement with the commissioner within 30 days of the transfer. The written
13.22 agreement must contain the name, address, and taxpayer identification number of the parties
13.23 to the transfer; the taxable year the eligible taxpayer incurred the qualified expenditures;
13.24 the amount of credit being transferred; and the taxable year or years for which the transferred
13.25 credit may be claimed.
13.26     (c) (d) The commissioner must issue a transfer credit certificate to the transferee within
13.27 30 days of the joint filing of a copy of the written transfer agreement with the commissioner.
13.28     (d) In the case of an audit or assessment, the transferee is liable for repayment of credits
13.29 claimed in excess of the allowed amount.
13.30     (e) An eligible taxpayer must not transfer a credit to an eligible transferee more than
13.31 once in a taxable year.
13.32     EFFECTIVE DATE. This section is effective for taxable years beginning after December
13.33 31, 2024.
Article 1 Sec. 15.  13
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14.1    Sec. 16. Minnesota Statutes 2024, section 290.091, subdivision 2, is amended to read:
14.2      Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
14.3  terms have the meanings given.
14.4      (a) "Alternative minimum taxable income" means the sum of the following for the taxable
14.5  year:
14.6      (1) the taxpayer's federal alternative minimum taxable income as defined in section
14.7  55(b)(1)(D) of the Internal Revenue Code;
14.8      (2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
14.9  taxable income, but excluding:
14.10     (i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
14.11     (ii) the medical expense deduction;
14.12     (iii) the casualty, theft, and disaster loss deduction; and
14.13     (iv) the impairment-related work expenses of a person with a disability;
14.14     (3) for depletion allowances computed under section 613A(c) of the Internal Revenue
14.15 Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
14.16 to the extent not included in federal alternative minimum taxable income, the excess of the
14.17 deduction for depletion allowable under section 611 of the Internal Revenue Code for the
14.18 taxable year over the adjusted basis of the property at the end of the taxable year (determined
14.19 without regard to the depletion deduction for the taxable year);
14.20     (4) to the extent not included in federal alternative minimum taxable income, the amount
14.21 of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
14.22 Code determined without regard to subparagraph (E);
14.23     (5) to the extent not included in federal alternative minimum taxable income, the amount
14.24 of interest income as provided by section 290.0131, subdivision 2;
14.25     (6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;
14.26     (7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent
14.27 not included in the addition required under clause (6); and
14.28     (8) to the extent not included in federal alternative minimum taxable income, the amount
14.29 of foreign-derived intangible income deducted under section 250 of the Internal Revenue
14.30 Code;
14.31     less the sum of the amounts determined under the following:
Article 1 Sec. 16.  14
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15.1      (i) interest income as defined in section 290.0132, subdivision 2;
15.2      (ii) an overpayment of state income tax as provided by section 290.0132, subdivision
15.3  3, to the extent included in federal alternative minimum taxable income;
15.4      (iii) the amount of investment interest paid or accrued within the taxable year on
15.5  indebtedness to the extent that the amount does not exceed net investment income, as defined
15.6  in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
15.7  in computing federal adjusted gross income;
15.8      (iv) amounts subtracted from federal taxable or adjusted gross income as provided by
15.9  section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, 31, and 34, and 35 to 39;
15.10     (v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
15.11 paragraph (c); and
15.12     (vi) the amount allowable as a Minnesota itemized deduction under section 290.0122,
15.13 subdivision 7.
15.14     In the case of an estate or trust, alternative minimum taxable income must be computed
15.15 as provided in section 59(c) of the Internal Revenue Code, except alternative minimum
15.16 taxable income must be increased by the addition in section 290.0131, subdivision 16.
15.17     (b) "Investment interest" means investment interest as defined in section 163(d)(3) of
15.18 the Internal Revenue Code.
15.19     (c) "Net minimum tax" means the minimum tax imposed by this section.
15.20     (d) "Regular tax" means the tax that would be imposed under this chapter (without regard
15.21 to this section, section 290.033, and section 290.032), reduced by the sum of the
15.22 nonrefundable credits allowed under this chapter.
15.23     (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
15.24 after subtracting the exemption amount determined under subdivision 3.
15.25     EFFECTIVE DATE. This section is effective for taxable years beginning after December
15.26 31, 2024.
15.27   Sec. 17. Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:
15.28     Subd. 3. Income. (a) "Income" means the sum of the following:
15.29     (1) federal adjusted gross income as defined in the Internal Revenue Code; and
15.30     (2) the sum of the following amounts to the extent not included in clause (1):
Article 1 Sec. 17.  15
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16.1      (i) all nontaxable income;
16.2      (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
16.3  paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
16.4  carryover allowed under section 469(b) of the Internal Revenue Code;
16.5      (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
16.6  solvent individual excluded from gross income under section 108(g) of the Internal Revenue
16.7  Code;
16.8      (iv) cash public assistance and relief;
16.9      (v) any pension or annuity (including railroad retirement benefits, all payments received
16.10 under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
16.11 which was not exclusively funded by the claimant or spouse, or which was funded exclusively
16.12 by the claimant or spouse and which funding payments were excluded from federal adjusted
16.13 gross income in the years when the payments were made;
16.14     (vi) interest received from the federal or a state government or any instrumentality or
16.15 political subdivision thereof;
16.16     (vii) workers' compensation;
16.17     (viii) nontaxable strike benefits;
16.18     (ix) the gross amounts of payments received in the nature of disability income or sick
16.19 pay as a result of accident, sickness, or other disability, whether funded through insurance
16.20 or otherwise;
16.21     (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
16.22 1986, as amended through December 31, 1995;
16.23     (xi) contributions made by the claimant to an individual retirement account, including
16.24 a qualified voluntary employee contribution; simplified employee pension plan;
16.25 self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
16.26 the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
16.27 Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
16.28 the claimant and spouse;
16.29     (xii) to the extent not included in federal adjusted gross income, distributions received
16.30 by the claimant or spouse from a traditional or Roth style retirement account or plan;
16.31     (xiii) nontaxable scholarship or fellowship grants;
16.32     (xiv) alimony received to the extent not included in the recipient's income;
Article 1 Sec. 17.  16
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17.1      (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
17.2  Code;
17.3      (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
17.4  Code; and
17.5      (xvii) the amount deducted for certain expenses of elementary and secondary school
17.6  teachers under section 62(a)(2)(D) of the Internal Revenue Code.
17.7      In the case of an individual who files an income tax return on a fiscal year basis, the
17.8  term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
17.9  the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
17.10 by the amount of a net operating loss carryback or carryforward or a capital loss carryback
17.11 or carryforward allowed for the year.
17.12     (b) "Income" does not include:
17.13     (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
17.14     (2) amounts of any pension or annuity which was exclusively funded by the claimant
17.15 or spouse and which funding payments were not excluded from federal adjusted gross
17.16 income in the years when the payments were made;
17.17     (3) to the extent included in federal adjusted gross income, amounts contributed by the
17.18 claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
17.19 the retirement base amount reduced by the amount of contributions excluded from federal
17.20 adjusted gross income, but not less than zero;
17.21     (4) surplus food or other relief in kind supplied by a governmental agency;
17.22     (5) relief granted under this chapter;
17.23     (6) child support payments received under a temporary or final decree of dissolution or
17.24 legal separation;
17.25     (7) restitution payments received by eligible individuals and excludable interest as
17.26 defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
17.27 Public Law 107-16;
17.28     (8) alimony paid; or
17.29     (9) veterans disability compensation paid under title 38 of the United States Code;
17.30     (10) to the extent included in federal adjusted gross income, the amount of discharge of
17.31 indebtedness awarded to the claimant under section 332.74, subdivision 3; or
Article 1 Sec. 17.  17
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18.1      (11) to the extent included in federal adjusted gross income, the amount of consumer
18.2  enforcement public compensation received as a distribution to an eligible consumer under
18.3  section 8.37, subdivision 5.
18.4      (c) The sum of the following amounts may be subtracted from income:
18.5      (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
18.6      (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
18.7      (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
18.8      (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
18.9      (5) for the claimant's fifth dependent, the exemption amount; and
18.10     (6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
18.11 before December 31 of the year for which the taxes were levied, the exemption amount.
18.12     (d) For purposes of this subdivision, the following terms have the meanings given:
18.13     (1) "exemption amount" means the exemption amount under section 290.0121,
18.14 subdivision 1, paragraph (b), for the taxable year for which the income is reported;
18.15     (2) "retirement base amount" means the deductible amount for the taxable year for the
18.16 claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
18.17 inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
18.18 to whether the claimant or spouse claimed a deduction; and
18.19     (3) "traditional or Roth style retirement account or plan" means retirement plans under
18.20 sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
18.21     EFFECTIVE DATE. This section is effective for claims based on property taxes payable
18.22 in 2026 and thereafter.
18.23   Sec. 18. CORRECTION OF ERRORS; CERTAIN RETIREMENT
18.24 CONTRIBUTIONS.
18.25     An annuity contract provider that receives a contribution from an individual to an
18.26 individual retirement plan on an annuity contract no later than the time prescribed by law
18.27 under section 219(f)(3) of the Internal Revenue Code, must treat the contribution as having
18.28 been made on account of the preceding taxable year. This section applies only if the annuity
18.29 contract provider receives notification from the individual indicating the tax year designation
18.30 for the contribution within three years from the original due date for filing the return for
18.31 that taxable year.
Article 1 Sec. 18.  18
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19.1EFFECTIVE DATE. This section is effective retroactively for contributions made in
19.2  calendar year 2023 and designated to apply to the tax year 2022 contribution limitation.
19.3    Sec. 19. STIPEND PAYMENTS TO SEIU HEALTHCARE MINNESOTA & IOWA
19.4  BARGAINING UNIT MEMBERS.
19.5(a) The commissioner of human services shall issue stipend payments to collective
19.6  bargaining unit members as required by the labor agreement between the state of Minnesota
19.7  and the Service Employees International Union (SEIU) Healthcare Minnesota & Iowa.
19.8(b) The definitions in Minnesota Statutes, section 290.01, apply to this section.
19.9(c) For purposes of this section, "subtraction" has the meaning given in Minnesota
19.10 Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply to this
19.11 section.
19.12(d) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
19.13 collective bargaining unit members under this section is a subtraction.
19.14(e) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
19.15 collective bargaining unit members under this section is excluded from alternative minimum
19.16 taxable income under Minnesota Statutes, section 290.091, and income as defined in
19.17 Minnesota Statutes, sections 290.0693, subdivision 1, paragraph (i), and 290A.03, subdivision
19.18 3.
19.19(f) Notwithstanding any law to the contrary, stipend payments under this section must
19.20 not be considered income, assets, or personal property for purposes of determining or
19.21 recertifying eligibility for:
19.22(1) child care assistance programs under Minnesota Statutes, chapter 142E;
19.23(2) general assistance, Minnesota supplemental aid, and food support under Minnesota
19.24 Statutes, chapter 256D;
19.25(3) housing support under Minnesota Statutes, chapter 256I;
19.26(4) the Minnesota family investment program under Minnesota Statutes, chapter 142G;
19.27 and
19.28(5) economic assistance programs under Minnesota Statutes, chapter 256P.
19.29(g) The commissioner of human services must not consider stipend payments under this
19.30 section as income or assets under Minnesota Statutes, section 256B.056, subdivision 1a,
Article 1 Sec. 19.  19
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20.1  paragraph (a); 3; or 3c, or for persons with eligibility determined under Minnesota Statutes,
20.2  section 256B.057, subdivision 3, 3a, or 3b.
20.3      (h) If this section is enacted more than once during the 2025 first special session in
20.4  substantially the same form, this section prevails regardless of order of enactment.
20.5      EFFECTIVE DATE. This section is effective the day following final enactment.
20.6    Sec. 20. REPEALER.
20.7      Minnesota Statutes 2024, sections 13.4967, subdivision 2a; and 290.0679, are repealed.
20.8      EFFECTIVE DATE. This section is effective for assignments after December 31, 2025.
20.9ARTICLE 2
20.10PROPERTY TAXES
20.11   Section 1. Minnesota Statutes 2024, section 272.02, subdivision 7, is amended to read:
20.12     Subd. 7. Institutions of public charity. (a) Institutions of purely public charity that are
20.13 exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code
20.14 are exempt if they meet the requirements of this subdivision. In determining whether real
20.15 property is exempt under this subdivision, the following factors must be considered:
20.16     (1) whether the stated purpose of the undertaking is to be helpful to others without
20.17 immediate expectation of material reward;
20.18     (2) whether the institution of public charity is supported by material donations, gifts, or
20.19 government grants for services to the public in whole or in part;
20.20     (3) whether a material number of the recipients of the charity receive benefits or services
20.21 at reduced or no cost, or whether the organization provides services to the public that alleviate
20.22 burdens or responsibilities that would otherwise be borne by the government;
20.23     (4) whether the income received, including material gifts and donations, produces a
20.24 profit to the charitable institution that is not distributed to private interests;
20.25     (5) whether the beneficiaries of the charity are restricted or unrestricted, and, if restricted,
20.26 whether the class of persons to whom the charity is made available is one having a reasonable
20.27 relationship to the charitable objectives; and
20.28     (6) whether dividends, in form or substance, or assets upon dissolution, are not available
20.29 to private interests.
Article 2 Section 1.  20
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21.1      A charitable organization must satisfy the factors in clauses (1) to (6) for its property to
21.2  be exempt under this subdivision, unless there is a reasonable justification for failing to
21.3  meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the
21.4  factual basis for that justification. If there is reasonable justification for failing to meet the
21.5  factors in clause (2), (3), or (5), an organization is a purely public charity under this
21.6  subdivision without meeting those factors. After an exemption is properly granted under
21.7  this subdivision, it will remain in effect unless there is a material change in facts.
21.8      (b) For purposes of this subdivision, a grant is a written instrument or electronic document
21.9  defining a legal relationship between a granting agency and a grantee when the principal
21.10 purpose of the relationship is to transfer cash or something of value to the grantee to support
21.11 a public purpose authorized by law in a general manner instead of acquiring by professional
21.12 or technical contract, purchase, lease, or barter property or services for the direct benefit or
21.13 use of the granting agency.
21.14     (c) Rental housing property does not qualify for an exemption under this subdivision
21.15 unless: (1) the use of the rental property is in furtherance of the tax-exempt charitable
21.16 purpose of the organization; and (2) the use of the rental property does not further the
21.17 tax-exempt charitable purpose of the organization solely by providing rental housing to
21.18 persons or families on the basis of the income characteristics of those persons or families.
21.19     (c) (d) In determining whether rental housing property qualifies for exemption under
21.20 this subdivision, the following are not gifts or donations to the owner of the rental housing:
21.21     (1) rent assistance provided by the government to or on behalf of tenants; and
21.22     (2) financing assistance or tax credits provided by the government to the owner on
21.23 condition that specific units or a specific quantity of units be set aside for persons or families
21.24 with certain income characteristics.
21.25     EFFECTIVE DATE. This section is effective for property taxes payable in 2026 and
21.26 thereafter.
21.27   Sec. 2. Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:
21.28     Subd. 19. Property used to distribute electricity to farmers. Electric power distribution
21.29 lines and their attachments and appurtenances systems, not including substations, or
21.30 transmission or generation equipment, that are used primarily for supplying electricity to
21.31 farmers at retail, are exempt.
21.32     EFFECTIVE DATE. This section is effective beginning with assessment year 2025
21.33 and thereafter.
Article 2 Sec. 2.  21
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22.1    Sec. 3. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
22.2  read:
22.3      Subd. 106. Certain property owned by an Indian Tribe. (a) Property is exempt that:
22.4      (1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in
22.5  2025;
22.6      (2) is located in a city of the first class with a population greater than 400,000 as of the
22.7  2020 federal census;
22.8      (3) was on January 1, 2024, and is for the current assessment, owned by a federally
22.9  recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
22.10 and
22.11     (4) is used exclusively for Tribal purposes or institutions of purely public charity as
22.12 defined in subdivision 7.
22.13     (b) For the purposes of this subdivision, a "Tribal purpose" means a public purpose
22.14 defined in subdivision 8 and includes noncommercial Tribal government activities. Property
22.15 that qualifies for the exemption under this subdivision is limited to one parcel that does not
22.16 exceed 40,000 square feet. Property used for single-family housing, market-rate apartments,
22.17 agriculture, or forestry does not qualify for this exemption.
22.18     EFFECTIVE DATE. This section is effective beginning with assessment year 2026.
22.19   Sec. 4. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
22.20 read:
22.21     Subd. 107. Certain property owned by an Indian Tribe. (a) Property is exempt that:
22.22     (1) was classified as class 2b under section 273.13, subdivision 23, for taxes payable in
22.23 2025;
22.24     (2) is located within a county with a population greater than 5,580 but less than 5,620
22.25 according to the 2020 federal census;
22.26     (3) is located in an unorganized territory with a population less than 800 according to
22.27 the 2020 federal census; and
22.28     (4) was on January 2, 2023, and is for the current assessment, owned by a federally
22.29 recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
22.30     (b) Property that qualifies for exemption under this subdivision is limited to no more
22.31 than five parcels.
Article 2 Sec. 4.  22
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23.1      EFFECTIVE DATE. This section is effective beginning with assessment year 2026.
23.2    Sec. 5. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
23.3  read:
23.4      Subd. 108. Certain property owned by an Indian Tribe. (a) Property is exempt that:
23.5      (1) is located in a city of the first class with a population greater than 400,000 as of the
23.6  2020 federal census;
23.7      (2) was on January 1, 2025, and is for the current assessment, owned by a federally
23.8  recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
23.9  and
23.10     (3) contains a mixed-use development constructed after January 1, 2024, that includes
23.11 space used exclusively for noncommercial Tribal government activities.
23.12     (b) Any portion of the property used for housing, parking facilities, agriculture, or forestry
23.13 does not qualify for this exemption.
23.14     EFFECTIVE DATE. This section is effective beginning with assessment year 2026.
23.15   Sec. 6. Minnesota Statutes 2024, section 273.117, is amended to read:
23.16     273.117 CONSERVATION PROPERTY TAX VALUATION.
23.17     (a) The value of real property which that is subject to a conservation restriction or
23.18 easement shall must not be reduced by the assessor if:
23.19     (a) (1) the restriction or easement is for a conservation purpose and is recorded on the
23.20 property; and
23.21     (b) (2) the property is being used in accordance with the terms of the conservation
23.22 restriction or easement.
23.23     (b) This section does not apply to:
23.24     (1) conservation restrictions or easements covering riparian buffers along lakes, rivers,
23.25 and streams that are used for water quantity or quality control;
23.26     (2) easements in a county that has adopted, by referendum, a program to protect farmland
23.27 and natural areas since 1999; or
23.28     (3) conservation restrictions or easements entered into prior to May 23, 2013.; or
Article 2 Sec. 6.  23
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24.1(4) conservation easements in a metropolitan county that has adopted, by resolution, a
24.2  program to protect farmland or natural areas. A metropolitan county that has adopted a
24.3  program to protect farmland or natural areas may, by resolution, authorize the assessor to
24.4  consider the impact of the conservation easement on the property's value. For purposes of
24.5  this clause, "metropolitan county" has the meaning given in section 473.121, subdivision
24.6  4.
24.7EFFECTIVE DATE. This section is effective for assessment year 2026 and thereafter.
24.8    Sec. 7. Minnesota Statutes 2024, section 273.128, subdivision 1, is amended to read:
24.9Subdivision 1. Requirement. (a) Low-income rental property classified as class 4d(1)
24.10 under section 273.13, subdivision 25, is entitled to valuation under this section if at least
24.11 20 percent of the units in the rental housing property meet any of the following qualifications:
24.12(1) the units are subject to a housing assistance payments contract under Section 8 of
24.13 the United States Housing Act of 1937, as amended;
24.14(2) the units are rent-restricted and income-restricted units of a qualified low-income
24.15 housing project receiving tax credits under section 42(g) of the Internal Revenue Code;
24.16(3) the units are financed by the Rural Housing Service of the United States Department
24.17 of Agriculture and receive payments under the rental assistance program pursuant to section
24.18 521(a) of the Housing Act of 1949, as amended; or
24.19(4) the units are subject to rent and income restrictions under the terms of financial
24.20 assistance provided to the rental housing property by the federal government or the state of
24.21 Minnesota, or a local unit of government, as evidenced by a document recorded against the
24.22 property. The restrictions under this clause must require assisted units to be occupied by
24.23 residents whose household income at the time of initial occupancy does not exceed 60
24.24 percent of the greater of area or state median income, adjusted for family size, as determined
24.25 by the United States Department of Housing and Urban Development. The restriction must
24.26 also require the rents for assisted units to not exceed 30 percent of 60 percent of the greater
24.27 of area or state median income, adjusted for family size, as determined by the United States
24.28 Department of Housing and Urban Development.
24.29The restrictions must require assisted units to be occupied by residents whose household
24.30 income at the time of initial occupancy does not exceed 60 percent of the greater of area or
24.31 state median income, adjusted for family size, as determined by the United States Department
24.32 of Housing and Urban Development. The restriction must also require the rents for assisted
24.33 units to not exceed 30 percent of 60 percent of the greater of area or state median income,
Article 2 Sec. 7.  24
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25.1  adjusted for family size, as determined by the United States Department of Housing and
25.2  Urban Development.
25.3      (b) The owner of a property certified as class 4d(1) under this section must use the
25.4  property tax savings received from the 4d(1) classification for one or more of the following
25.5  eligible uses: property maintenance, property security, improvements to the property, rent
25.6  stabilization, or increases to the property's replacement reserve account. To maintain the
25.7  class 4d(1) classification, the property owner must annually reapply and certify to the
25.8  Housing Finance Agency that the property tax savings were used for one or more eligible
25.9  uses.
25.10     (c) In order to meet the requirements of this section, property which received the 4d(1)
25.11 classification in the prior year must demonstrate compliance with paragraph (b).
25.12     EFFECTIVE DATE. This section is effective beginning with assessment year 2026.
25.13   Sec. 8. Minnesota Statutes 2024, section 273.13, subdivision 23, is amended to read:
25.14     Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land
25.15 that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
25.16 2a land under the same ownership. The market value of the house and garage and immediately
25.17 surrounding one acre of land has the same classification rates as class 1a or 1b property
25.18 under subdivision 22. The value of the remaining land including improvements up to the
25.19 first tier valuation limit of agricultural homestead property has a classification rate of 0.5
25.20 percent of market value. The remaining property over the first tier has a classification rate
25.21 of one percent of market value. For purposes of this subdivision, the "first tier valuation
25.22 limit of agricultural homestead property" and "first tier" means the limit certified under
25.23 section 273.11, subdivision 23.
25.24     (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
25.25 are agricultural land and buildings. Class 2a property has a classification rate of one percent
25.26 of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
25.27 property must also include any property that would otherwise be classified as 2b, but is
25.28 interspersed with class 2a property, including but not limited to sloughs, wooded wind
25.29 shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
25.30 and other similar land that is impractical for the assessor to value separately from the rest
25.31 of the property or that is unlikely to be able to be sold separately from the rest of the property.
25.32     An assessor may classify the part of a parcel described in this subdivision that is used
25.33 for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
Article 2 Sec. 8.  25
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26.1      (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
26.2  are unplatted real estate, rural in character and not used for agricultural purposes, including
26.3  land used for growing trees for timber, lumber, and wood and wood products, that is not
26.4  improved with a structure. The presence of a minor, ancillary nonresidential structure as
26.5  defined by the commissioner of revenue does not disqualify the property from classification
26.6  under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
26.7  a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
26.8  assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled
26.9  in the sustainable forest management incentive program under chapter 290C, the number
26.10 of acres assigned to the split parcel improved with a structure that is not a minor, ancillary
26.11 nonresidential structure must equal three acres or the number of acres excluded from the
26.12 sustainable forest incentive act covenant due to the structure, whichever is greater. Class
26.13 2b property has a classification rate of one percent of market value unless it is part of an
26.14 agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
26.15     (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
26.16 acres statewide per taxpayer that is being managed under a forest management plan that
26.17 meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource
26.18 management incentive program. It has a classification rate of .65 percent, provided that the
26.19 owner of the property must apply to the assessor in order for the property to initially qualify
26.20 for the reduced rate and provide the information required by the assessor to verify that the
26.21 property qualifies for the reduced rate. If the assessor receives the application and information
26.22 before May 1 in an assessment year, the property qualifies beginning with that assessment
26.23 year. If the assessor receives the application and information after April 30 in an assessment
26.24 year, the property may not qualify until the next assessment year. The commissioner of
26.25 natural resources must concur that the land is qualified. The commissioner of natural
26.26 resources shall annually provide county assessors verification information on a timely basis.
26.27 The presence of a minor, ancillary nonresidential structure as defined by the commissioner
26.28 of revenue does not disqualify the property from classification under this paragraph.
26.29     (e) Agricultural land as used in this section means:
26.30     (1) contiguous acreage of ten acres or more, used during the preceding year for
26.31 agricultural purposes; or
26.32     (2) contiguous acreage used during the preceding year for an intensive livestock or
26.33 poultry confinement operation, provided that land used only for pasturing or grazing does
26.34 not qualify under this clause.
Article 2 Sec. 8.  26
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27.1      "Agricultural purposes" as used in this section means the raising, cultivation, drying, or
27.2  storage of agricultural products for sale, or the storage of machinery or equipment used in
27.3  support of agricultural production by the same farm entity. For a property to be classified
27.4  as agricultural based only on the drying or storage of agricultural products, the products
27.5  being dried or stored must have been produced by the same farm entity as the entity operating
27.6  the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local
27.7  conservation program or the Reinvest in Minnesota program under sections 103F.501 to
27.8  103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
27.9  or a similar state or federal conservation program if the property was classified as agricultural
27.10 (A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying
27.11 program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use
27.12 of land, not to exceed three acres, to provide environmental benefits such as buffer strips,
27.13 old growth forest restoration or retention, or retention ponds to prevent soil erosion. For
27.14 purposes of this section, a "local conservation program" means a program administered by
27.15 a town, statutory or home rule charter city, or county, including a watershed district, water
27.16 management organization, or soil and water conservation district, in which landowners
27.17 voluntarily enroll land and receive incentive payments equal to at least $50 per acre in
27.18 exchange for use or other restrictions placed on the land. In order for property to qualify
27.19 under the local conservation program provision, a taxpayer must apply to the assessor by
27.20 February 1 of the assessment year and must submit the information required by the assessor,
27.21 including but not limited to a copy of the program requirements, the specific agreement
27.22 between the land owner and the local agency, if applicable, and a map of the conservation
27.23 area. Agricultural classification shall not be based upon the market value of any residential
27.24 structures on the parcel or contiguous parcels under the same ownership.
27.25     "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
27.26 portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
27.27 of, a set of contiguous tax parcels under that section that are owned by the same person.
27.28     (f) Agricultural land under this section also includes:
27.29     (1) contiguous acreage that is less than ten acres in size and exclusively used in the
27.30 preceding year for raising or cultivating agricultural products; or
27.31     (2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
27.32 contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
27.33 used in the preceding year for one or more of the following three uses:
Article 2 Sec. 8.  27
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28.1      (i) for an intensive grain drying or storage operation, or for intensive machinery or
28.2  equipment storage activities used to support agricultural activities on other parcels of property
28.3  operated by the same farming entity;
28.4      (ii) as a nursery, provided that only those acres used intensively to produce nursery stock
28.5  are considered agricultural land; or
28.6      (iii) for intensive market farming; for purposes of this paragraph, "market farming"
28.7  means the cultivation of one or more fruits or vegetables or production of animal or other
28.8  agricultural products for sale to local markets by the farmer or an organization with which
28.9  the farmer is affiliated. or
28.10     (3) contiguous acreage that contains a residence and is less than 15 acres in size, if the
28.11 contiguous acreage inclusive of the house, garage, and surrounding one acre of land was
28.12 used in the preceding year for market farming and the owner provides the county assessor
28.13 with the filed federal Schedule F (Form 1040) for the most recent completed tax year that
28.14 reports gross income of at least $20,000.
28.15     For purposes of this paragraph, "market farming" means the cultivation of one or more
28.16 fruits or vegetables or production of animal or other agricultural products for sale to local
28.17 markets by the farmer or an organization with which the farmer is affiliated, and "contiguous
28.18 acreage," for purposes of this paragraph, means all of a tax parcel as described in section
28.19 272.193, or all of a set of contiguous tax parcels under that section that are owned by the
28.20 same person.
28.21     (g) Land shall be classified as agricultural even if all or a portion of the agricultural use
28.22 of that property is the leasing to, or use by another person for agricultural purposes.
28.23     Classification under this subdivision is not determinative for qualifying under section
28.24 273.111.
28.25     (h) The property classification under this section supersedes, for property tax purposes
28.26 only, any locally administered agricultural policies or land use restrictions that define
28.27 minimum or maximum farm acreage.
28.28     (i) The term "agricultural products" as used in this subdivision includes production for
28.29 sale of:
28.30     (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
28.31 animals, horticultural and nursery stock, floriculture, fruit of all kinds, vegetables, forage,
28.32 grains, bees, and apiary products by the owner;
Article 2 Sec. 8.  28
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29.1      (2) aquacultural products for sale and consumption, as defined under section 17.47, if
29.2  the aquaculture occurs on land zoned for agricultural use;
29.3      (3) the commercial boarding of horses, which may include related horse training and
29.4  riding instruction, if the boarding is done on property that is also used for raising pasture
29.5  to graze horses or raising or cultivating other agricultural products as defined in clause (1);
29.6      (4) property which is owned and operated by nonprofit organizations used for equestrian
29.7  activities, excluding racing;
29.8      (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
29.9  97A.105, provided that the annual licensing report to the Department of Natural Resources,
29.10 which must be submitted annually by March 30 to the assessor, indicates that at least 500
29.11 birds were raised or used for breeding stock on the property during the preceding year and
29.12 that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
29.13 shooting preserve licensed under section 97A.115;
29.14     (6) insects primarily bred to be used as food for animals;
29.15     (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
29.16 for timber, lumber, wood, or wood products; and
29.17     (8) maple syrup taken from trees grown by a person licensed by the Minnesota
29.18 Department of Agriculture under chapter 28A as a food processor.
29.19     (j) If a parcel used for agricultural purposes is also used for commercial or industrial
29.20 purposes, including but not limited to:
29.21     (1) wholesale and retail sales;
29.22     (2) processing of raw agricultural products or other goods;
29.23     (3) warehousing or storage of processed goods; and
29.24     (4) office facilities for the support of the activities enumerated in clauses (1), (2), and
29.25 (3), the assessor shall classify the part of the parcel used for agricultural purposes as class
29.26 1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
29.27 The grading, sorting, and packaging of raw agricultural products for first sale is considered
29.28 an agricultural purpose. A greenhouse or other building where floricultural, horticultural
29.29 or nursery products are grown that is also used for the conduct of retail sales must be
29.30 classified as agricultural if it is primarily used for the growing of floricultural, horticultural
29.31 or nursery products from seed, cuttings, or roots and occasionally as a showroom for the
29.32 retail sale of those products. Use of a greenhouse or building only for the display of already
Article 2 Sec. 8.  29
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30.1  grown floricultural, horticultural or nursery products does not qualify as an agricultural
30.2  purpose.
30.3  "Floriculture," for the purposes of this paragraph, includes production of bedding and garden
30.4  plants, foliage plants, potted flowering plants, and cut flowers.
30.5      (k) The assessor shall determine and list separately on the records the market value of
30.6  the homestead dwelling and the one acre of land on which that dwelling is located. If any
30.7  farm buildings or structures are located on this homesteaded acre of land, their market value
30.8  shall not be included in this separate determination.
30.9      (l) Class 2d airport landing area consists of a landing area or public access area of a
30.10 privately owned public use airport. It has a classification rate of one percent of market value.
30.11 To qualify for classification under this paragraph, a privately owned public use airport must
30.12 be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
30.13 area" means that part of a privately owned public use airport properly cleared, regularly
30.14 maintained, and made available to the public for use by aircraft and includes runways,
30.15 taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
30.16 area also includes land underlying both the primary surface and the approach surfaces that
30.17 comply with all of the following:
30.18     (i) the land is properly cleared and regularly maintained for the primary purposes of the
30.19 landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
30.20 for servicing, repair, or maintenance of aircraft is not included as a landing area;
30.21     (ii) the land is part of the airport property; and
30.22     (iii) the land is not used for commercial or residential purposes.
30.23 The land contained in a landing area under this paragraph must be described and certified
30.24 by the commissioner of transportation. The certification is effective until it is modified, or
30.25 until the airport or landing area no longer meets the requirements of this paragraph. For
30.26 purposes of this paragraph, "public access area" means property used as an aircraft parking
30.27 ramp, apron, or storage hangar, or an arrival and departure building in connection with the
30.28 airport.
30.29     (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
30.30 being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
30.31 located in a county that has elected to opt-out of the aggregate preservation program as
30.32 provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
30.33 market value. To qualify for classification under this paragraph, the property must be at
Article 2 Sec. 8.  30
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31.1  least ten contiguous acres in size and the owner of the property must record with the county
31.2  recorder of the county in which the property is located an affidavit containing:
31.3      (1) a legal description of the property;
31.4      (2) a disclosure that the property contains a commercial aggregate deposit that is not
31.5  actively being mined but is present on the entire parcel enrolled;
31.6      (3) documentation that the conditional use under the county or local zoning ordinance
31.7  of this property is for mining; and
31.8      (4) documentation that a permit has been issued by the local unit of government or the
31.9  mining activity is allowed under local ordinance. The disclosure must include a statement
31.10 from a registered professional geologist, engineer, or soil scientist delineating the deposit
31.11 and certifying that it is a commercial aggregate deposit.
31.12     For purposes of this section and section 273.1115, "commercial aggregate deposit"
31.13 means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
31.14 a construction aggregate; and "actively mined" means the removal of top soil and overburden
31.15 in preparation for excavation or excavation of a commercial deposit.
31.16     (n) When any portion of the property under this subdivision or subdivision 22 begins to
31.17 be actively mined, the owner must file a supplemental affidavit within 60 days from the
31.18 day any aggregate is removed stating the number of acres of the property that is actively
31.19 being mined. The acres actively being mined must be (1) valued and classified under
31.20 subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
31.21 resource preservation property tax program under section 273.1115, if the land was enrolled
31.22 in that program. Copies of the original affidavit and all supplemental affidavits must be
31.23 filed with the county assessor, the local zoning administrator, and the Department of Natural
31.24 Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
31.25 time a subsequent portion of the property is actively mined, provided that the minimum
31.26 acreage change is five acres, even if the actual mining activity constitutes less than five
31.27 acres.
31.28     (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
31.29 rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
31.30 section 14.386 concerning exempt rules do not apply.
31.31     EFFECTIVE DATE. This section is effective beginning with assessment year 2026.
Article 2 Sec. 8.  31
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32.1    Sec. 9. Minnesota Statutes 2024, section 273.38, is amended to read:
32.2      273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
32.3      The distribution lines and the attachments and appurtenances thereto systems, not
32.4  including substations, or transmission or generation equipment, of cooperative associations
32.5  organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
32.6  and supplemental thereto, and engaged in the electrical heat, light and power business, upon
32.7  a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
32.8  273.40 and 273.41.
32.9      EFFECTIVE DATE. This section is effective beginning with assessment year 2025
32.10 and thereafter.
32.11   Sec. 10. Minnesota Statutes 2024, section 273.41, is amended to read:
32.12     273.41 AMOUNT OF TAX; DISTRIBUTION.
32.13     There is hereby imposed upon each such cooperative association on December 31 of
32.14 each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
32.15 tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
32.16 distribution lines and the attachments and appurtenances thereto of such associations that
32.17 part of the association's distribution system, not including substations, or transmission or
32.18 generation equipment, located in rural areas. The tax shall be payable on or before March
32.19 1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
32.20 thereof, is not paid within the time herein specified for the payment thereof, there shall be
32.21 added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
32.22 Such penalty shall be collected as part of said tax, and the amount of said tax not timely
32.23 paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
32.24 from the time such tax should have been paid until paid. The commissioner shall deposit
32.25 the amount so received in the general fund of the state treasury.
32.26     EFFECTIVE DATE. This section is effective beginning with assessment year 2025
32.27 and thereafter.
32.28   Sec. 11. Minnesota Statutes 2024, section 279.37, subdivision 2, is amended to read:
32.29     Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to
32.30 whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
32.31 make and file with the county auditor of the county in which the parcel is located a written
32.32 offer to pay the current taxes each year before they become delinquent, or to contest the
Article 2 Sec. 11.  32
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33.1  taxes under chapter 278 and agree to confess judgment for the amount provided, as
33.2  determined by the county auditor. By filing the offer, the owner waives all irregularities in
33.3  connection with the tax proceedings affecting the parcel and any defense or objection which
33.4  the owner may have to the proceedings, and also waives the requirements of any notice of
33.5  default in the payment of any installment or interest to become due pursuant to the composite
33.6  judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer,
33.7  the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty,
33.8  and interest, and (ii) tender all current year taxes and penalty due at the time the confession
33.9  of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal
33.10 installments, with interest as provided in section 279.03, payable annually on installments
33.11 remaining unpaid from time to time, on or before December 31 of each year following the
33.12 year in which judgment was confessed.
33.13     (b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), each
33.14 year the commissioner shall set the interest rate for offers made under paragraph (a) at the
33.15 greater of five percent or two percent above the prime rate charged by banks during the
33.16 six-month period ending on September 30 of that year, rounded to the nearest full percent,
33.17 provided that the rate must not exceed the maximum annum rate specified under section
33.18 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the immediately
33.19 succeeding year. The commissioner's determination under this subdivision is not a rule
33.20 subject to the Administrative Procedure Act in chapter 14, including section 14.386. If a
33.21 default occurs in the payments under any confessed judgment entered under this paragraph,
33.22 the taxes and penalties due are subject to the interest rate specified in section 279.03.
33.23     For the purposes of this subdivision:
33.24     (1) the term "prime rate charged by banks" means the average predominant prime rate
33.25 quoted by commercial banks to large businesses, as determined by the Board of Governors
33.26 of the Federal Reserve System; and
33.27     (2) "default" means the cancellation of the confession of judgment due to nonpayment
33.28 of the current year tax or failure to make any installment payment required by this confessed
33.29 judgment within 60 days from the date on which payment was due.
33.30     (c) The interest rate established at the time judgment is confessed is fixed for the duration
33.31 of the judgment. By October 15 of each year, the commissioner of revenue must determine
33.32 the rate of interest as provided under paragraph (b) and, by November 1 of each year, must
33.33 certify the rate to the county auditor.
Article 2 Sec. 11.  33
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34.1      (d) A qualified property owner eligible to enter into a second confession of judgment
34.2  may do so at the interest rate provided in paragraph (b).
34.3      (e) Repurchase agreements or contracts for repurchase for properties being repurchased
34.4  under section 282.261 are not eligible to receive the interest rate under paragraph (b).
34.5      (f) The offer must be substantially as follows:
34.6      "To the court administrator of the district court of ........... county, I, ....................., am
34.7  the owner of the following described parcel of real estate located in .................... county,
34.8  Minnesota:
34.9  .............................. Upon that real estate there are delinquent taxes for the year ........., and
34.10 prior years, as follows: (here insert year of delinquency and the total amount of delinquent
34.11 taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
34.12 the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
34.13 any defense or objection which I may have to them, and direct judgment to be entered for
34.14 the amount stated above, minus the sum of $............, to be paid with this document, which
34.15 is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
34.16 I agree to pay the balance of the judgment in nine or four equal, annual installments, with
34.17 interest as provided in section 279.03, payable annually, on the installments remaining
34.18 unpaid. I agree to pay the installments and interest on or before December 31 of each year
34.19 following the year in which this judgment is confessed and current taxes each year before
34.20 they become delinquent, or within 30 days after the entry of final judgment in proceedings
34.21 to contest the taxes under chapter 278.
34.22     Dated .............., ......."
34.23     EFFECTIVE DATE. This section is effective January 1, 2026.
34.24   Sec. 12. Minnesota Statutes 2024, section 449.08, is amended to read:
34.25     449.08 TAX LEVY FOR FREE MUSIC IN THIRD CLASS CITIES.
34.26     The council of any city of the third class may levy a tax for the purpose of providing
34.27 free musical entertainment for the general public. The proceeds of this tax shall be used
34.28 only for the purpose of providing free musical entertainment for the public. The annual
34.29 expenditure for this purpose is limited to $3,000 $10,000.
34.30     EFFECTIVE DATE. This section is effective the day following final enactment.
Article 2 Sec. 12.  34
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35.1    Sec. 13. Minnesota Statutes 2024, section 469.1812, is amended by adding a subdivision
35.2  to read:
35.3      Subd. 2a. Land bank organization. "Land bank organization" means an organization
35.4  that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited
35.5  property for future development, redevelopment, or disposal, and that is either:
35.6      (1) a nonprofit organization exempt from federal income taxation under section 501(c)(3)
35.7  of the Internal Revenue Code whose governing board members are elected or appointed by
35.8  the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of
35.9  the state of Minnesota or its political subdivisions, or are elected or appointed officials of
35.10 the state of Minnesota or any of its political subdivisions; or
35.11     (2) a limited liability company of which a nonprofit organization described in clause (1)
35.12 is the sole member.
35.13     EFFECTIVE DATE. This section is effective the day following final enactment.
35.14   Sec. 14. Minnesota Statutes 2024, section 469.1813, subdivision 1, is amended to read:
35.15     Subdivision 1. Authority. The governing body of a political subdivision may grant a
35.16 current or prospective abatement, by contract or otherwise, of the taxes imposed by the
35.17 political subdivision on a parcel of property, which may include personal property and
35.18 machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise
35.19 would apply, if:
35.20     (1) it expects the benefits to the political subdivision of the proposed abatement agreement
35.21 to at least equal the costs to the political subdivision of the proposed agreement or intends
35.22 the abatement to phase in a property tax increase, as provided in clause (2)(vii); and
35.23     (2) it finds that doing so is in the public interest because it will:
35.24     (i) increase or preserve tax base;
35.25     (ii) provide employment opportunities in the political subdivision;
35.26     (iii) provide or help acquire or construct public facilities;
35.27     (iv) help redevelop or renew blighted areas;
35.28     (v) help provide access to services for residents of the political subdivision;
35.29     (vi) finance or provide public infrastructure;
Article 2 Sec. 14.  35
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36.1      (vii) phase in a property tax increase on the parcel resulting from an increase of 50
36.2  percent or more in one year on the estimated market value of the parcel, other than increase
36.3  attributable to improvement of the parcel; or
36.4      (viii) stabilize the tax base through equalization of property tax revenues for a specified
36.5  period of time with respect to a taxpayer whose real and personal property is subject to
36.6  valuation under Minnesota Rules, chapter 8100.;
36.7      (ix) provide for the development of affordable housing to households at or below 80
36.8  percent of area median income as estimated by the United States Department of Housing
36.9  and Urban Development for the political subdivision in which the project is located; or
36.10     (x) allow the property to be held by a land bank organization for future development.
36.11     EFFECTIVE DATE. This section is effective the day following final enactment.
36.12   Sec. 15. Minnesota Statutes 2024, section 469.1813, subdivision 6, is amended to read:
36.13     Subd. 6. Duration limit. (a) A political subdivision may grant an abatement for a period
36.14 no longer than 15 years, except as provided under paragraph paragraphs (b) and (c). The
36.15 abatement period commences in the first year in which the abatement granted is either paid
36.16 or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify
36.17 in the abatement resolution a shorter duration. If the resolution does not specify a period of
36.18 time, the abatement is for eight years. If an abatement has been granted to a parcel of property
36.19 and the period of the abatement has expired, the political subdivision that granted the
36.20 abatement may not grant another abatement for eight years after the expiration of the first
36.21 abatement. This prohibition does not apply to improvements added after and not subject to
36.22 the first abatement. Economic abatement agreements for real and personal property subject
36.23 to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and
36.24 may be granted successively.
36.25     (b) A political subdivision proposing to abate taxes for a parcel may request, in writing,
36.26 that the other political subdivisions in which the parcel is located grant an abatement for
36.27 the property. If one of the other political subdivisions declines, in writing, to grant an
36.28 abatement or if 90 days pass after receipt of the request to grant an abatement without a
36.29 written response from one of the political subdivisions, the duration limit for an abatement
36.30 for the parcel by the requesting political subdivision and any other participating political
36.31 subdivision is increased to 20 years. If the political subdivision which declined to grant an
36.32 abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by
36.33 one year for each year that the declining political subdivision grants an abatement for the
Article 2 Sec. 15.  36
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37.1  parcel during the period of the abatement granted by the requesting political subdivision.
37.2  The duration limit may not be reduced below the limit under paragraph (a).
37.3      (c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for
37.4  a period no longer than five years. This limit also applies if the resolution does not specify
37.5  a period of time.
37.6      EFFECTIVE DATE. This section is effective for abatement resolutions approved after
37.7  the day following final enactment.
37.8    Sec. 16. Minnesota Statutes 2024, section 469.1813, is amended by adding a subdivision
37.9  to read:
37.10     Subd. 11. Repayment. A land bank organization receiving an abatement under
37.11 subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land
37.12 for which the abatement was granted is used for a purpose other than the purpose given by
37.13 the land bank organization prior to redevelopment, as determined by the governing body
37.14 of the political subdivision that granted the abatement. The repayment must be paid to the
37.15 county treasurer and the county auditor shall distribute the repayment in the same proportion
37.16 to the political subdivisions which granted the abatement. This subdivision applies
37.17 immediately after the abatement under this section expires and land is subject to repayment
37.18 under this subdivision for the same number of years that the abatement was granted. Interest
37.19 under this section is payable at the rate determined in section 270C.40, subdivision 5.
37.20     EFFECTIVE DATE. This section is effective the day following final enactment.
37.21   Sec. 17. EXEMPTION FOR LAND HELD FOR ECONOMIC DEVELOPMENT.
37.22     Notwithstanding Minnesota Statutes, section 272.02, subdivision 39, property owned
37.23 by the Port Authority of the city of Bloomington that was acquired by the Port Authority
37.24 in May 2016 and exempt under Minnesota Statutes, section 272.02, subdivision 39, for
37.25 taxes payable in 2017 through 2025, must continue to be exempt pursuant to Minnesota
37.26 Statutes, section 272.02, subdivision 39, for taxes payable in 2026 through 2031 provided
37.27 that the requirements of that subdivision are met. Notwithstanding Minnesota Statutes,
37.28 section 272.025, an initial application for the exemption under this section must be filed
37.29 with the assessor by June 30, 2025.
37.30     EFFECTIVE DATE. This section is effective the day after the governing body of the
37.31 city of Bloomington and its chief clerical officer comply with the requirements of Minnesota
37.32 Statutes, section 645.021, subdivisions 2 and 3.
Article 2 Sec. 17.  37
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38.1    Sec. 18. PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
38.2      (a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b),
38.3  and any other law to the contrary, property located in the city of Minneapolis acquired by
38.4  Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021
38.5  is exempt from property taxes payable in 2022 and the portion of property taxes payable in
38.6  2021 due after the property was acquired. An amount necessary to make a payment to the
38.7  county for the property taxes that would be payable but for the exemption is appropriated
38.8  from the general fund to the commissioner of revenue in fiscal year 2026. All prior year
38.9  penalties, interest, and costs are canceled.
38.10     (b) By August 1, 2025, the auditor of the county in which the property is located must
38.11 certify to the commissioner of revenue the amount to be paid by the commissioner of revenue
38.12 to the county under paragraph (a). The commissioner of revenue must make this payment
38.13 by August 15, 2025.
38.14     EFFECTIVE DATE. This section is effective the day following final enactment.
38.15   Sec. 19. REPEALER.
38.16     Minnesota Statutes 2024, sections 275.065, subdivision 3c; and 276.04, subdivision 2a,
38.17 are repealed.
38.18     EFFECTIVE DATE. This section is effective beginning with property taxes payable
38.19 in 2026.
38.20ARTICLE 3
38.21SALES AND USE TAXES; EXCISE TAXES
38.22   Section 1. Minnesota Statutes 2024, section 289A.20, subdivision 4, is amended to read:
38.23     Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable
38.24 to the commissioner monthly on or before the 20th day of the month following the month
38.25 in which the taxable event occurred, or following another reporting period as the
38.26 commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f)
38.27 or (g), except that use taxes due on an annual use tax return as provided under section
38.28 289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
38.29     (b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30,
38.30 except a vendor of construction materials as defined in paragraph (e), must remit the June
38.31 liability for the next year in the following manner:
Article 3 Section 1.  38
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39.1      (1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must
39.2  remit 87.5 percent of the estimated June liability to the commissioner. Two business days
39.3  before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent, or
39.4  a reduced percentage as certified by the commissioner under section 16A.152, subdivision
39.5  2, paragraph (a), clause (6), of the estimated June liability to the commissioner.
39.6      (2) On or before August 20 of the year, the vendor must pay any additional amount of
39.7  tax not remitted in June.
39.8      (b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30,
39.9  except for taxes imposed under chapters 168E, 295, and 297H, must remit the June liability
39.10 for the next year in the following manner:
39.11     (1) Two business days before June 30 of calendar year 2027 and each year thereafter,
39.12 the vendor must remit 5.6 percent of the estimated June liability to the commissioner.
39.13     (2) On or before August 20 of the year, the vendor must pay any additional amount of
39.14 tax not remitted in June.
39.15     (c) A vendor having a liability of:
39.16     (1) $10,000 or more, but less than $250,000, during a fiscal year must remit by electronic
39.17 means all liabilities on returns due for periods beginning in all subsequent calendar years
39.18 on or before the 20th day of the month following the month in which the taxable event
39.19 occurred, or on or before the 20th day of the month following the month in which the sale
39.20 is reported under section 289A.18, subdivision 4; or
39.21     (2) $250,000 or more during a fiscal year must remit by electronic means all liabilities
39.22 in the manner provided in paragraph (a) on returns due for periods beginning in the
39.23 subsequent calendar year, except that a vendor subject to the remittance requirements of
39.24 paragraph (b) must remit the percentage of the estimated June liability, as provided in
39.25 paragraph (b), clause (1), which is due two business days before June 30. The remaining
39.26 amount of the June liability is due on August 20.
39.27     (d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious
39.28 beliefs from paying electronically shall be allowed to remit the payment by mail. The filer
39.29 must notify the commissioner of revenue of the intent to pay by mail before doing so on a
39.30 form prescribed by the commissioner. No extra fee may be charged to a person making
39.31 payment by mail under this paragraph. The payment must be postmarked at least two business
39.32 days before the due date for making the payment in order to be considered paid on a timely
39.33 basis.
Article 3 Section 1.  39
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40.1      (e) For the purposes of paragraph (b), "vendor of construction materials" means a retailer
40.2  that sells any of the following construction materials, if 50 percent or more of the retailer's
40.3  sales revenue for the fiscal year ending June 30 is from the sale of those materials:
40.4      (1) lumber, veneer, plywood, wood siding, wood roofing;
40.5      (2) millwork, including wood trim, wood doors, wood windows, wood flooring; or
40.6      (3) concrete, cement, and masonry.
40.7      (f) Paragraph (b) expires after the percentage of estimated payment is reduced to zero
40.8  in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
40.9      EFFECTIVE DATE. This section is effective for taxes remitted after May 31, 2027.
40.10   Sec. 2. Minnesota Statutes 2024, section 289A.60, is amended by adding a subdivision to
40.11 read:
40.12     Subd. 15a. Accelerated payment of June sales tax liability; penalty for
40.13 underpayment. For payments made after December 31, 2026, if a vendor is required by
40.14 law to submit an estimation of June sales tax liabilities and 5.6 percent payment by a certain
40.15 date, the vendor shall pay a penalty equal to ten percent of the amount of actual June liability
40.16 required to be paid in June less the amount remitted in June. The penalty must not be
40.17 imposed, however, if the amount remitted in June equals the lesser of 5.6 percent of the
40.18 preceding May's liability or 5.6 percent of the average monthly liability for the previous
40.19 calendar year.
40.20     EFFECTIVE DATE. This section is effective for taxes remitted after May 31, 2027.
40.21   Sec. 3. Minnesota Statutes 2024, section 295.81, subdivision 2, is amended to read:
40.22     Subd. 2. Gross receipts tax imposed. (a) A tax equal to ten 15 percent of gross receipts
40.23 from retail sales in Minnesota of taxable cannabis products is imposed on any taxable
40.24 cannabis product retailer that sells these products to customers. A taxable cannabis product
40.25 retailer may but is not required to collect the tax imposed by this section from the purchaser
40.26 as long as the tax is separately stated on the receipt, invoice, bill of sale, or similar document
40.27 given to the purchaser.
40.28     (b) If a product subject to the tax imposed under this section is included in a bundled
40.29 transaction, the entire sales price of the bundled transaction is subject to the tax imposed
40.30 under this section.
Article 3 Sec. 3.  40
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41.1      (c) The tax imposed under this section is in addition to any other tax imposed on the
41.2  sale or use of taxable cannabis products.
41.3      EFFECTIVE DATE. This section is effective for sales and purchases made after June
41.4  30, 2025.
41.5    Sec. 4. Minnesota Statutes 2024, section 297A.68, subdivision 42, is amended to read:
41.6      Subd. 42. Qualified data centers. (a) Purchases of enterprise information technology
41.7  equipment and computer software for use in a qualified data center, or a qualified refurbished
41.8  data center, are exempt, except that computer software maintenance agreements are exempt
41.9  for purchases made after June 30, 2013. The tax on purchases exempt under this paragraph
41.10 must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied,
41.11 and then refunded after June 30, 2013, in the manner provided in section 297A.75. This
41.12 exemption includes enterprise information technology equipment and computer software
41.13 purchased to replace or upgrade enterprise information technology equipment and computer
41.14 software in a qualified data center, or a qualified refurbished data center.
41.15     (b) Electricity used or consumed in the operation of a qualified data center or qualified
41.16 refurbished data center is exempt.
41.17     (c) (b) For purposes of this subdivision, "qualified data center" means a facility in
41.18 Minnesota:
41.19     (1) that is comprised of one or more buildings that consist in the aggregate of at least
41.20 25,000 square feet, and that are located on a single parcel or on contiguous parcels, where
41.21 the total cost of construction or refurbishment, investment in enterprise information
41.22 technology equipment, and computer software is at least $30,000,000 within a 48-month
41.23 period. The 48-month period begins no sooner than July 1, 2012, except that costs for
41.24 computer software maintenance agreements purchased before July 1, 2013, are not included
41.25 in determining if the $30,000,000 threshold has been met;
41.26     (2) that is constructed or substantially refurbished after June 30, 2012, where
41.27 "substantially refurbished" means that at least 25,000 square feet have been rebuilt or
41.28 modified, including:
41.29     (i) installation of enterprise information technology equipment; environmental control,
41.30 computer software, and energy efficiency improvements; and
41.31     (ii) building improvements; and
Article 3 Sec. 4.  41
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42.1      (3) that is used to house enterprise information technology equipment, where the facility
42.2  has the following characteristics:
42.3      (i) uninterruptible power supplies, generator backup power, or both;
42.4      (ii) sophisticated fire suppression and prevention systems; and
42.5      (iii) enhanced security. A facility will be considered to have enhanced security if it has
42.6  restricted access to the facility to selected personnel; permanent security guards; video
42.7  camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans,
42.8  such as hand scans and retinal or fingerprint recognition; or similar security features.
42.9      In determining whether the facility has the required square footage, the square footage
42.10 of the following spaces shall be included if the spaces support the operation of enterprise
42.11 information technology equipment: office space, meeting space, and mechanical and other
42.12 support facilities. For purposes of this subdivision, "computer software" includes, but is not
42.13 limited to, software utilized or loaded at a qualified data center or qualified refurbished data
42.14 center, including maintenance, licensing, and software customization.
42.15     (d) (c) For purposes of this subdivision, a "qualified refurbished data center" means an
42.16 existing facility that qualifies as a data center under paragraph (c) (b), clauses (2) and (3),
42.17 but that is comprised of one or more buildings that consist in the aggregate of at least 25,000
42.18 square feet, and that are located on a single parcel or contiguous parcels, where the total
42.19 cost of construction or refurbishment, investment in enterprise information technology
42.20 equipment, and computer software is at least $50,000,000 within a 24-month period.
42.21     (e) (d) For purposes of this subdivision, "enterprise information technology equipment"
42.22 means computers and equipment supporting computing, networking, or data storage,
42.23 including servers and routers. It includes, but is not limited to: cooling systems, cooling
42.24 towers, and other temperature control infrastructure; power infrastructure for transformation,
42.25 distribution, or management of electricity used for the maintenance and operation of a
42.26 qualified data center or qualified refurbished data center, including but not limited to exterior
42.27 dedicated business-owned substations, backup power generation systems, battery systems,
42.28 and related infrastructure; and racking systems, cabling, and trays, which are necessary for
42.29 the maintenance and operation of the qualified data center or qualified refurbished data
42.30 center.
42.31     (f) (e) A qualified data center or qualified refurbished data center may claim the
42.32 exemptions in this subdivision for purchases made either within 20 years of the date of its
42.33 first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042,
42.34 whichever is earlier.
Article 3 Sec. 4.  42
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43.1      (g) (f) The purpose of this exemption is to create jobs in the construction and data center
43.2  industries.
43.3      (h) (g) This subdivision is effective for sales and purchases made before July 1, 2042.
43.4      (i) (h) The commissioner of employment and economic development must certify to the
43.5  commissioner of revenue, in a format approved by the commissioner of revenue, when a
43.6  qualified data center has met the requirements under paragraph (c) (b) or a qualified
43.7  refurbished data center has met the requirements under paragraph (d) (c). The certification
43.8  must provide the following information regarding each qualified data center or qualified
43.9  refurbished data center:
43.10     (1) the total square footage amount;
43.11     (2) the total amount of construction or refurbishment costs and the total amount of
43.12 qualifying investments in enterprise information technology equipment and computer
43.13 software;
43.14     (3) the beginning and ending of the applicable period under either paragraph (c) or (d)
43.15 (b) or (c) in which the qualifying expenditures and purchases under clause (2) were made,
43.16 but in no case shall the period begin before July 1, 2012; and
43.17     (4) the date upon which the qualified data center first met the requirements under
43.18 paragraph (c) (b) or a qualified refurbished data center first met the requirements under
43.19 paragraph (d) (c).
43.20     (j) (k) Any refund for sales tax paid on qualifying purchases under this subdivision must
43.21 not be issued unless the commissioner of revenue has received the certification required
43.22 under paragraph (i) (h) issued by the commissioner of employment and economic
43.23 development.
43.24     (k) (j) The commissioner of employment and economic development must annually
43.25 notify the commissioner of revenue of the qualified data centers that are projected to meet
43.26 the requirements under paragraph (c) (b) and the qualified refurbished data centers that are
43.27 projected to meet the requirements under paragraph (d) (c) in each of the next four years.
43.28 The notification must provide the information required under paragraph (i) (h), clauses (1)
43.29 to (4), for each qualified data center or qualified refurbished data center.
43.30     EFFECTIVE DATE. This section is effective for sales and purchases made after June
43.31 30, 2025.
Article 3 Sec. 4.  43
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44.1    Sec. 5. Minnesota Statutes 2024, section 297G.09, subdivision 10, is amended to read:
44.2      Subd. 10. Quarterly and annual payments and returns. (a) If a manufacturer,
44.3  wholesaler, brewer, or importer has an average liquor tax liability equal to or less than $500
44.4  per month in any quarter of a calendar year, and has substantially complied with the state
44.5  tax laws during the preceding four calendar quarters, the manufacturer, wholesaler, brewer,
44.6  or importer may request authorization to file and pay the taxes quarterly in subsequent
44.7  calendar quarters. The authorization remains in effect during the period in which the
44.8  manufacturer's, wholesaler's, brewer's, or importer's quarterly returns reflect liquor tax
44.9  liabilities of less than $1,500 and there is continued compliance with state tax laws.
44.10     (b) If a manufacturer, wholesaler, brewer, or importer has an average liquor tax liability
44.11 equal to or less than $100 per month during a calendar year, and has substantially complied
44.12 with the state tax laws during that period, the manufacturer, wholesaler, brewer, or importer
44.13 may request authorization to file and pay the taxes annually in subsequent years. The
44.14 authorization remains in effect during the period in which the manufacturer's, wholesaler's,
44.15 brewer's, or importer's annual returns reflect liquor tax liabilities of less than $1,200 and
44.16 there is continued compliance with state tax laws. A qualified brewer as defined under
44.17 section 297G.04, subdivision 2, that meets the same criteria during a calendar year may file
44.18 and pay the taxes annually the following calendar year without authorization. A qualified
44.19 brewer must provide notice of intent to file and pay the taxes annually to the commissioner
44.20 in a form and manner prescribed by the commissioner.
44.21     (c) The commissioner may also grant quarterly or annual filing and payment
44.22 authorizations to manufacturers, wholesalers, brewers, or importers if the commissioner
44.23 concludes that the manufacturer's, wholesaler's, brewer's, or importer's future tax liabilities
44.24 will be less than the monthly totals identified in paragraphs (a) and (b). An authorization
44.25 granted under this paragraph is subject to the same conditions as an authorization granted
44.26 under paragraphs (a) and (b).
44.27     (d) The annual tax return and payments must be filed and paid on or before the 18th day
44.28 of January following the calendar year. The quarterly returns and payments must be filed
44.29 and paid on or before April 18 for the quarter ending March 31, on or before July 18 for
44.30 the quarter ending June 30, on or before October 18 for the quarter ending September 30,
44.31 and on or before January 18 for the quarter ending December 31.
44.32     EFFECTIVE DATE. This section is effective January 1, 2026, for 2026 tax return
44.33 obligations.
Article 3 Sec. 5.  44
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45.1ARTICLE 4
45.2PROPERTY TAX AIDS
45.3    Section 1. Minnesota Statutes 2024, section 290C.07, is amended to read:
45.4      290C.07 CALCULATION OF INCENTIVE PAYMENT.
45.5      (a) An approved claimant under the sustainable forest incentive program is eligible to
45.6  receive an annual payment for each acre of enrolled land, excluding any acre improved with
45.7  a paved trail under easement, lease, or terminable license to the state of Minnesota or a
45.8  political subdivision. The payment shall equal a percentage of the property tax that would
45.9  be paid on the land determined by using the previous year's statewide average total tax rate
45.10 for all taxes levied within townships and unorganized territories, the estimated market value
45.11 per acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for
45.12 claimants enrolling land that is subject to a conservation easement funded under section
45.13 97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit
45.14 entity before May 31, 2013, 25 22.5 percent; (2) for claimants enrolling land that is not
45.15 subject to a conservation easement under an eight-year covenant, 65 58.5 percent; (3) for
45.16 claimants enrolling land that is not subject to a conservation easement under a 20-year
45.17 covenant, 90 81 percent; and (4) for claimants enrolling land that is not subject to a
45.18 conservation easement under a 50-year covenant, 115 103.5 percent.
45.19     (b) The calculated payment must not increase or decrease by more than ten percent
45.20 relative to the payment received for the previous year. In no case may the payment be less
45.21 than 90 percent of the amount paid to the claimant for the land enrolled in the program in
45.22 2017. If an eligible claimant elects to change the length of the covenant on enrolled land
45.23 on or before May 15, 2019, the limits under this paragraph do not apply and the claimant
45.24 must receive payment in the amount corresponding to the new covenant length as calculated
45.25 under paragraph (a).
45.26     (c) In addition to the payments provided under this section, a claimant enrolling more
45.27 than 1,920 acres shall be allowed an additional payment per acre equal to the amount
45.28 prescribed in paragraph (a), clause (1), for all acres of enrolled land on which public access
45.29 is allowed, as required under section 290C.03, paragraph (a), clause (6), excluding any land
45.30 subject to a conservation easement funded under section 97A.056, or a permanent easement
45.31 conveyed to a governmental or nonprofit entity that is required to allow for public access
45.32 under section 290C.03, paragraph (a), clause (6).
45.33     EFFECTIVE DATE. This section is effective beginning for payments in calendar year
45.34 2027.
Article 4 Section 1.  45
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46.1    Sec. 2. Minnesota Statutes 2024, section 290C.10, is amended to read:
46.2      290C.10 WITHDRAWAL PROCEDURES.
46.3      (a) The current owner of land enrolled under the sustainable forest incentive program
46.4  for a minimum of one-half the number of years of the covenant's minimum duration may
46.5  notify the commissioner of the intent to terminate enrollment. Within 90 days of receipt of
46.6  notice to terminate enrollment, the commissioner shall inform the claimant in writing,
46.7  acknowledging receipt of this notice and indicating the effective date of termination from
46.8  the sustainable forest incentive program. Termination of enrollment in the sustainable forest
46.9  incentive program occurs on January 1 of the calendar year following receipt by the
46.10 commissioner of the termination notice, but no earlier than January 1 of the fifth, 11th, or
46.11 26th calendar year for the eight-, 20-, or 50-year respective minimum covenant, subject to
46.12 the applicable covenant duration period under section 290C.055. After the commissioner
46.13 issues an effective date of termination, a claimant wishing to continue the land's enrollment
46.14 in the sustainable forest incentive program beyond the termination date must apply for
46.15 enrollment as prescribed in section 290C.04. A claimant who withdraws a parcel of land
46.16 from this program may not reenroll the parcel for a period of three years. Within 90 days
46.17 after the termination date, the commissioner shall execute and acknowledge a document
46.18 releasing the land from the covenant required under this chapter. The document must be
46.19 mailed to the claimant and is entitled to be recorded.
46.20     (b) Notwithstanding paragraph (a), on request of the claimant, the commissioner may
46.21 allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the
46.22 state of Minnesota, any local government unit, or any other entity which has the power of
46.23 eminent domain acquires title or possession to the land for a public purpose. In the case of
46.24 an eligible acquisition under this paragraph, the commissioner shall execute and acknowledge
46.25 a document releasing the land acquired by the state, local government unit, or other entity
46.26 from the covenant.
46.27     (c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall
46.28 allow early withdrawal from the Sustainable Forest Incentive Act without penalty when a
46.29 government or nonprofit entity acquires a permanent conservation easement on the enrolled
46.30 property and the conservation easement is at least as restrictive as the covenant required
46.31 under section 290C.04. The commissioner of natural resources must notify the commissioner
46.32 of lands acquired under this paragraph that are eligible for withdrawal. In the case of an
46.33 eligible easement acquisition under this paragraph, the commissioner shall execute and
46.34 acknowledge a document releasing the land subject to the easement from the covenant.
Article 4 Sec. 2.  46
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47.1      (d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall
47.2  allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land
47.3  that is subject to fee or easement acquisition or lease to the state of Minnesota or a political
47.4  subdivision of the state for the public purpose of a paved trail. The commissioner of natural
47.5  resources must notify the commissioner of lands acquired under this paragraph that are
47.6  eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under
47.7  this paragraph, the commissioner shall execute and acknowledge a document releasing the
47.8  land subject to fee or easement acquisition or lease by the state or political subdivision of
47.9  the state.
47.10     (e) Notwithstanding paragraph (a), as provided in section 290C.055, paragraph (c), on
47.11 request of the claimant, the commissioner must allow early withdrawal from the Sustainable
47.12 Forest Incentive Act without penalty: (1) if there is a reduction in payments due to changes
47.13 in the payment formula under section 290C.07; or (2) if, as a result of executive action, the
47.14 amount of payment a claimant is eligible to receive under section 290C.07 is reduced or
47.15 limited.
47.16     (f) All other enrolled land must remain in the program.
47.17     EFFECTIVE DATE. This section is effective the day following final enactment.
47.18   Sec. 3. Minnesota Statutes 2024, section 477A.013, subdivision 1, is amended to read:
47.19     Subdivision 1. Towns. (a) In 2014 and thereafter, each town is eligible for a distribution
47.20 under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town
47.21 area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the
47.22 following terms have the meanings given them:
47.23     (1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
47.24 agricultural property located in a town, to the adjusted net tax capacity of all other property
47.25 located in the town. The agricultural property factor cannot exceed eight;
47.26     (2) "agricultural property" means property classified under section 273.13, as homestead
47.27 and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
47.28 recreational property;
47.29     (3) "town area factor" means the most recent estimate of total acreage, not to exceed
47.30 50,000 acres, located in the township available as of July 1 in the aid calculation year,
47.31 estimated or established by:
47.32     (i) the United States Bureau of the Census;
Article 4 Sec. 3.  47
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48.1      (ii) the State Land Management Information Center Minnesota Geospatial Information
48.2  Office; or
48.3      (iii) the secretary of state; and
48.4      (4) "population factor" means the square root of the town's population.; and
48.5      (5) "town aid factor" means the product of the town's (i) agricultural property factor, (ii)
48.6  town area factor, and (iii) population factor.
48.7      (b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
48.8  under section 477A.03, subdivision 2c, the distribution to each town must be reduced
48.9  proportionately so that the total amount of aids distributed under this subdivision does not
48.10 exceed the limit in section 477A.03, subdivision 2c.
48.11     (b) Each town is eligible for a distribution under this subdivision equal to the product
48.12 of (1) the total amount available for town aid under section 477A.03, subdivision 2c, and
48.13 (2) the ratio of (i) the town's town aid factor, to (ii) the sum of the town aid factors for all
48.14 towns.
48.15     (c) Data used in calculating aids to towns under this subdivision, other than acreage,
48.16 shall be the most recently available data as of January 1 in the year in which the aid is
48.17 calculated.
48.18     EFFECTIVE DATE. This section is effective for aids payable in 2026 and thereafter.
48.19   Sec. 4. Minnesota Statutes 2024, section 477A.19, subdivision 5, is amended to read:
48.20     Subd. 5. Appropriation. For aids payable in 2025 and 2026, $10,000,000 each year is
48.21 annually appropriated from the general fund to the commissioner of revenue to make the
48.22 payments required under this section. For aids payable in 2027 and thereafter, $5,000,000
48.23 is annually appropriated from the general fund to the commissioner of revenue to make the
48.24 payments required under this section.
48.25     EFFECTIVE DATE. This section is effective for aids payable in 2026 and thereafter.
48.26   Sec. 5. AID PENALTY FORGIVENESS.
48.27     Subdivision 1. City of Stewart. Notwithstanding Minnesota Statutes, section 477A.017,
48.28 subdivision 3, the city of Stewart must receive its aid payment for calendar year 2023 under
48.29 Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
48.30 477A.017, subdivision 3, provided the state auditor certifies to the commissioner of revenue
48.31 by June 16, 2025, that the state auditor received the annual financial reporting for 2022
Article 4 Sec. 5.  48
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49.1  from the city of Stewart by June 1, 2025. Upon certification from the state auditor to the
49.2  commissioner of revenue, the commissioner of revenue must make a payment of $87,501.50
49.3  to the city of Stewart by June 30, 2025.
49.4      Subd. 2. City of Alpha. Notwithstanding Minnesota Statutes, section 477A.017,
49.5  subdivision 3, the city of Alpha must receive its aid payment for calendar year 2023 under
49.6  Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
49.7  477A.017, subdivision 3, provided the state auditor certifies to the commissioner of revenue
49.8  by June 16, 2025, that the state auditor received the annual financial reporting for 2022
49.9  from the city of Alpha by June 1, 2025. Upon certification from the state auditor to the
49.10 commissioner of revenue, the commissioner of revenue must make a payment of $18,472
49.11 to the city of Alpha by June 30, 2025.
49.12     Subd. 3. City of Odin. Notwithstanding Minnesota Statutes, section 477A.017,
49.13 subdivision 3, the city of Odin must receive its aid payment for calendar year 2024 under
49.14 Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
49.15 477A.017, subdivision 3, and its small city assistance payment for calendar year 2024 under
49.16 Minnesota Statutes, section 162.145, that was withheld under Minnesota Statutes, section
49.17 162.145, subdivision 3, paragraph (c), provided the state auditor certifies to the commissioner
49.18 of revenue by June 16, 2025, that the state auditor received the annual financial reporting
49.19 for 2023 from the city of Odin by June 1, 2025. Upon certification from the state auditor to
49.20 the commissioner of revenue, the commissioner of revenue must make a payment of $39,909
49.21 to the city of Odin by June 30, 2025.
49.22     Subd. 4. City of Trosky. Notwithstanding Minnesota Statutes, section 477A.017,
49.23 subdivision 3, the city of Trosky must receive its aid payment for calendar year 2024 under
49.24 Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
49.25 477A.017, subdivision 3, and its small city assistance payment for calendar year 2024 under
49.26 Minnesota Statutes, section 162.145, that was withheld under Minnesota Statutes, section
49.27 162.145, subdivision 3, paragraph (c), provided the state auditor certifies to the commissioner
49.28 of revenue by June 16, 2025, that the state auditor received the annual financial reporting
49.29 for 2023 from the city of Trosky by June 1, 2025. Upon certification from the state auditor
49.30 to the commissioner of revenue, the commissioner of revenue must make a payment of
49.31 $25,003 to the city of Trosky by June 30, 2025.
49.32     Subd. 5. Appropriation. The amounts necessary to make the payments required under
49.33 subdivisions 1 and 2 are appropriated in fiscal year 2025 from the general fund to the
49.34 commissioner of revenue. This is a onetime appropriation.
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50.1      EFFECTIVE DATE. This section is effective the day following final enactment.
50.2    Sec. 6. BASE YEAR FORMULA AID FOR THE CITY OF BALDWIN.
50.3      For the calculation under Minnesota Statutes, section 477A.013, subdivisions 8 and 9,
50.4  for aids payable in 2026, the city of Baldwin's aid for 2025, used in calculating aid payable
50.5  in 2026, is deemed to be equal to $2.85 multiplied by Baldwin's 2023 population.
50.6      EFFECTIVE DATE. This section is effective for aids payable in 2026 only.
50.7ARTICLE 5
50.8TAX INCREMENT FINANCING
50.9    Section 1. Minnesota Statutes 2024, section 469.176, subdivision 4n, is amended to read:
50.10     Subd. 4n. Temporary use of increment authorized. (a) Notwithstanding any other
50.11 provision of this section or any other law to the contrary, except the requirements to pay
50.12 bonds to which increments are pledged, the authority may elect, by resolution, to transfer
50.13 unobligated increment for one or more of the following purposes:
50.14     (1) to provide improvements, loans, interest rate subsidies, or assistance in any form to
50.15 private development consisting of the construction or substantial rehabilitation of buildings
50.16 and ancillary facilities, if doing so will create or retain jobs in the state, including construction
50.17 jobs, and the construction commences before December 31, 2025 2026, and would not have
50.18 commenced before that date without the assistance; or
50.19     (2) to make an equity or similar investment in a corporation, partnership, or limited
50.20 liability company that the authority determines is necessary to make construction of a
50.21 development that meets the requirement of clause (1) financially feasible.
50.22     (b) For each calendar year for which transfers are permitted under this subdivision, the
50.23 maximum transfer equals the excess of the district's unobligated increment which includes
50.24 any increment not required for payments of obligations due during six months following
50.25 the transfer on outstanding bonds, binding contracts, and other outstanding financial
50.26 obligations of the district to which the district's increment is pledged.
50.27     (c) The authority may transfer increments permitted under this subdivision after creating
50.28 a written spending plan that authorizes the authority to take the action described in paragraph
50.29 (a) and details the use of transferred increment, including the use of interest earned on
50.30 transferred increment. Additionally, the municipality must approve the authority's spending
50.31 plan after holding a public hearing. The municipality must publish notice of the hearing in
50.32 a newspaper of general circulation in the municipality and on the municipality's public
Article 5 Section 1.  50
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51.1  website at least ten days, but not more than 30 days, prior to the date of the hearing. Prior
51.2  to December 31, 2025, the municipality may amend a written spending plan to extend the
51.3  date by which transferred increment may be used, and to authorize use of interest earned
51.4  on transferred increment, after holding a public hearing as required in this section. A signed
51.5  and approved copy of the amended plan must be filed with the state auditor. Interest earned
51.6  on transferred increment may be treated the same as transferred increment regardless of
51.7  whether a municipality amends a spending plan.
51.8      (d) Increment that is improperly retained, received, spent, or transferred is not eligible
51.9  for transfer under this subdivision.
51.10     (e) An authority making a transfer under this subdivision must provide to the Office of
51.11 the State Auditor a copy of the spending plan approved and signed by the municipality.
51.12     (f) The authority to transfer increments under this subdivision expires on December 31,
51.13 2022. All transferred increments must be spent, loaned, invested, or otherwise irrevocably
51.14 committed by December 31, 2025, or by December 31, 2026, if authorized by an amended
51.15 spending plan pursuant to paragraph (c). Increment not spent, loaned, invested, or otherwise
51.16 irrevocably committed by December 31, 2025 the applicable deadline in the preceding
51.17 sentence, must be returned to the district. The requirement to return increment to the district
51.18 includes any proceeds, principal, and interest received on loans of transferred increment;
51.19 interest or investment earnings on transferred increment; or other repayments or returns of
51.20 transferred increment defined as tax increment under section 469.174, subdivision 25, that
51.21 remain in the funds or accounts of the authority or municipality on the applicable deadline,
51.22 or that are subsequently received by the authority or municipality. If the district has already
51.23 been decertified when increment is returned under this paragraph, the increment shall be
51.24 treated as excess increment and distributed as provided in subdivision 2, paragraph (c),
51.25 clause (4).
51.26     EFFECTIVE DATE. This section is effective the day following final enactment.
51.27   Sec. 2. Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter
51.28 112, article 11, section 16, is amended to read:
51.29   Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
51.30 SPECIAL RULES.
51.31     (a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
51.32 increment financing plan for a district, the rules under this section apply to a redevelopment
51.33 tax increment financing district established by the city or an authority of the city. The
Article 5 Sec. 2.  51
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52.1  redevelopment tax increment district includes parcels within the area bounded on the east
52.2  by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
52.3  Street, on the west by Llama Street, and on the south by a line running parallel to and 600
52.4  feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
52.5  28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County
52.6  Regional Park property in its entirety. A parcel within this area that is included in a tax
52.7  increment financing district that was certified before the date of enactment of this act may
52.8  be included in the district created under this act if the initial district is decertified.
52.9      (b) The requirements for qualifying a redevelopment tax increment district under
52.10 Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
52.11 within the district.
52.12     (c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
52.13 Eligible expenditures within the district include but are not limited to (1) the city's share of
52.14 the costs necessary to provide for the construction of the Northstar Transit Station and
52.15 related infrastructure, including structured parking, a pedestrian overpass, and roadway
52.16 improvements, (2) the cost of land acquired by the city or the housing and redevelopment
52.17 authority in and for the city of Ramsey within the district prior to the establishment of the
52.18 district, and (3) the cost of public improvements installed within the tax increment financing
52.19 district prior to the establishment of the district.
52.20     (d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
52.21 must be undertaken within a five-year period from the date of certification of a tax increment
52.22 financing district, is considered to be met for the district if the activities were undertaken
52.23 within ten years from the date of certification of the district.
52.24     (e) Except for administrative expenses, the in-district percentage for purposes of the
52.25 restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this
52.26 district is 100 percent.
52.27     (f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not
52.28 apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred
52.29 after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of
52.30 the tax increment financing plan for the district.
52.31     (g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph
52.32 (b), is considered to be met for the district if the city adopts interfund loan resolutions
52.33 reflecting the terms and conditions required by Minnesota Statutes, section 469.178,
52.34 subdivision 7, paragraph (d), by December 31, 2025.
Article 5 Sec. 2.  52
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53.1EFFECTIVE DATE. This section is effective the day after the city of Ramsey and its
53.2  chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and
53.3  3.
53.4    Sec. 3. Laws 2013, chapter 143, article 9, section 21, is amended to read:
53.5    Sec. 21. CITY OF MAPLEWOOD; TAX INCREMENT FINANCING DISTRICT;
53.6  SPECIAL RULES.
53.7(a) If the city of Maplewood elects, upon the adoption of a tax increment financing plan
53.8  for a district, the rules under this section apply to one or more redevelopment tax increment
53.9  financing districts established by the city or the economic development authority of the city.
53.10 The area within which the redevelopment tax increment districts may be created is parcel
53.11 362922240002 (the "parcel") or any replatted parcels constituting a part of the parcel and
53.12 the adjacent rights-of-way. For purposes of this section, the parcel is the "3M Renovation
53.13 and Retention Project Area" or "project area."
53.14(b) The requirements for qualifying redevelopment tax increment districts under
53.15 Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is
53.16 deemed eligible for inclusion in a redevelopment tax increment district.
53.17(c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision 4j, does
53.18 not apply to the parcel.
53.19(d) The expenditures outside district rule under Minnesota Statutes, section 469.1763,
53.20 subdivision 2, does not apply; the five-year rule under Minnesota Statutes, section 469.1763,
53.21 subdivision 3, is extended to ten years; and expenditures must only be made within the
53.22 project area or the area bounded by State Highway 61 to the West, Interstate Highway 694
53.23 to the North, White Bear Avenue to the East, and both sides of Beam Avenue to the South.
53.24(e) If, after one year from the date of certification of the original net tax capacity of the
53.25 tax increment district, no demolition, rehabilitation, or renovation of property has been
53.26 commenced on a parcel located within the tax increment district, no additional tax increment
53.27 may be taken from that parcel, and the original net tax capacity of the parcel shall be excluded
53.28 from the original net tax capacity of the tax increment district. If 3M Company subsequently
53.29 commences demolition, rehabilitation, or renovation, the authority shall certify to the county
53.30 auditor that the activity has commenced, and the county auditor shall certify the net tax
53.31 capacity thereof as most recently certified by the commissioner of revenue and add it to the
53.32 original net tax capacity of the tax increment district. The authority must submit to the
Article 5 Sec. 3.  53
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54.1  county auditor evidence that the required activity has taken place for each parcel in the
54.2  district.
54.3      (f) The authority to approve a tax increment financing plan and to establish a tax
54.4  increment financing district under this section expires December 31, 2018.
54.5      EFFECTIVE DATE. This section is effective the day after the city of Maplewood and
54.6  its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2
54.7  and 3.
54.8    Sec. 4. Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First
54.9  Special Session chapter 1, article 6, section 12, is amended to read:
54.10   Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
54.11     Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
54.12 the meanings given them.
54.13     (b) "City" means the city of Maple Grove.
54.14     (c) "Project area" means all or a portion of the area in the city commencing at a point
54.15 130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
54.16 23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
54.17 line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
54.18 Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
54.19 thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
54.20 Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
54.21 East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
54.22 of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
54.23 North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
54.24 of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
54.25 line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
54.26 degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
54.27 24; thence West along said south line to the east right-of-way line of Zachary Lane; thence
54.28 North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
54.29 Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
54.30 Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
54.31 South along the east line of said Outlot A and its southerly extension to the south right-of-way
54.32 line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
54.33 line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
Article 5 Sec. 4.  54
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55.1  Section 24; thence South along said east line to the north line of the South Half of the
55.2  Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
55.3  line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
55.4  Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
55.5  right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
55.6  A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
55.7  Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
55.8  line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
55.9  line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
55.10 Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
55.11 westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
55.12 Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
55.13 line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
55.14 Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
55.15 westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
55.16 and there terminating, provided that the project area includes the rights-of-way for all present
55.17 and future highway interchanges abutting the area described in this paragraph, and may
55.18 include any additional property necessary to cause the property included in the tax increment
55.19 financing district to consist of complete parcels.
55.20     (d) "Soil deficiency district" means a type of tax increment financing district consisting
55.21 of a portion of the project area in which the city finds by resolution that the following
55.22 conditions exist:
55.23     (1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
55.24 the district require substantial filling, grading, or other physical preparation for use; and
55.25     (2) the estimated cost of the physical preparation under clause (1), but excluding costs
55.26 directly related to roads as defined in Minnesota Statutes, section 160.01, and local
55.27 improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
55.28 (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
55.29 completion of the preparation.
55.30     Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
55.31 financing plan for a district, the rules under this section apply to a redevelopment district,
55.32 renewal and renovation district, soil condition district, or soil deficiency district established
55.33 by the city or a development authority of the city in the project area.
Article 5 Sec. 4.  55
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56.1      (b) Prior to or upon the adoption of the first tax increment plan subject to the special
56.2  rules under this subdivision, the city must find by resolution that parcels consisting of at
56.3  least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
56.4  are characterized by one or more of the following conditions:
56.5      (1) peat or other soils with geotechnical deficiencies that impair development of
56.6  commercial buildings or infrastructure;
56.7      (2) soils or terrain that require substantial filling in order to permit the development of
56.8  commercial buildings or infrastructure;
56.9      (3) landfills, dumps, or similar deposits of municipal or private waste;
56.10     (4) quarries or similar resource extraction sites;
56.11     (5) floodway; and
56.12     (6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
56.13 subdivision 10.
56.14     (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
56.15 relevant condition if at least 70 percent of the area of the parcel contains the relevant
56.16 condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
56.17 substandard buildings if substandard buildings occupy at least 30 percent of the area of the
56.18 parcel.
56.19     (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
56.20 extended to eight 13 years for any district, and Minnesota Statutes, section 469.1763,
56.21 subdivision 4, does not apply to any district.
56.22     (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
56.23 subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
56.24 increments paid by properties in any district, measured over the life of the district, may be
56.25 expended on activities outside the district but within the project area.
56.26     (f) For a soil deficiency district:
56.27     (1) increments may be collected through 20 25 years after the receipt by the authority
56.28 of the first increment from the district;
56.29     (2) increments may be used only to:
56.30     (i) acquire parcels on which the improvements described in item (ii) will occur;
Article 5 Sec. 4.  56
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57.1(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
57.2  cost of installing public improvements directly caused by the deficiencies; and
57.3(iii) pay for the administrative expenses of the authority allocable to the district; and
57.4(3) any parcel acquired with increments from the district must be sold at no less than
57.5  their fair market value.
57.6(g) Increments spent for any infrastructure costs, whether inside a district or outside a
57.7  district but within the project area, are deemed to satisfy the requirements of Minnesota
57.8  Statutes, section 469.176, subdivision 4j.
57.9(h) The authority to approve tax increment financing plans to establish tax increment
57.10 financing districts under this section expires June 30, 2020.
57.11(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
57.12 increments from a soil deficiency district to acquire parcels and for other infrastructure costs
57.13 either inside or outside of the district, but within the project area, if the acquisition or
57.14 infrastructure is for a qualified development. For purposes of this paragraph, a development
57.15 is a qualified development only if all of the following requirements are satisfied:
57.16(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
57.17 primarily to serve the development;
57.18(2) the city has a binding, written commitment and adequate financial assurances from
57.19 the developer that the development will be constructed; and
57.20(3) the development does not consist of retail trade or housing improvements.
57.21EFFECTIVE DATE. (a) The amendment to subdivision 2, paragraph (d), is effective
57.22 the day after the governing body of the city of Maple Grove and its chief clerical officer
57.23 comply with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and
57.24 3.
57.25(b) The amendment to subdivision 2, paragraph (f), is effective upon compliance by the
57.26 city of Maple Grove, Hennepin County, and Independent School District No. 279 with the
57.27 requirements of Minnesota Statutes, section 469.1782, subdivision 2.
Article 5 Sec. 4.  57
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58.1    Sec. 5. Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to
58.2  read:
58.3    Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
58.4      (a) For purposes of computing the duration limits under Minnesota Statutes, section
58.5  469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
58.6  may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
58.7  District. This authority is limited to the first four years of increment or increments derived
58.8  from taxes payable in 2023, whichever occurs first.
58.9      (b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
58.10 applying any limits based on when the district was certified under Minnesota Statutes,
58.11 section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
58.12 to be January 2 of the property tax assessment year for which increment is first received
58.13 under the waiver.
58.14     (c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
58.15 extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
58.16 4, relating to the use of increment after the expiration of the five-year period, is extended
58.17 to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city
58.18 of St. Paul.
58.19     EFFECTIVE DATE. This section is effective the day after the governing body of the
58.20 city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
58.21 Statutes, section 645.021, subdivisions 2 and 3.
58.22   Sec. 6. CITY OF BLOOMINGTON; TEMPORARY USE OF INCREMENT;
58.23 EXTENSION.
58.24     (a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, the city of
58.25 Bloomington may amend its spending plan to spend, loan, or invest transferred increment,
58.26 including any interest or investment earnings on such transferred increment, as authorized
58.27 under Minnesota Statutes, section 469.176, subdivision 4n, through December 31, 2027,
58.28 provided that:
58.29     (1) construction commences prior to December 31, 2027;
58.30     (2) the transferred increment was collected from and used in TIF District No. 1-C or
58.31 TIF District No. 1-G, in the city of Bloomington; and
Article 5 Sec. 6.  58
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59.1      (3) the use of the transferred increment is detailed in the city's written spending plan
59.2  adopted pursuant to Minnesota Statutes, section 469.176, subdivision 4n, paragraph (c).
59.3      (b) Increment not spent, loaned, or invested by December 31, 2027, must be returned
59.4  to the district. The requirement to return increment to the district includes any proceeds,
59.5  principal, and interest received on loans of transferred increment; interest or investment
59.6  earnings on transferred increment; or other repayments or returns of transferred increment
59.7  defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that
59.8  remain in the funds or accounts of the authority or municipality on December 31, 2027, or
59.9  that are subsequently received by the authority or municipality.
59.10     (c) If the city amends its spending plan pursuant to paragraph (a), the city must provide
59.11 a copy of its amended spending plan to the legislative committees with jurisdiction over
59.12 tax increment financing within 30 days.
59.13     EFFECTIVE DATE. This section is effective the day after the governing body of the
59.14 city of Bloomington and its chief clerical officer comply with the requirements of Minnesota
59.15 Statutes, section 645.021, subdivisions 2 and 3.
59.16   Sec. 7. CITY OF BROOKLYN CENTER; TIF AUTHORITY.
59.17     Subdivision 1. Establishment. Under the special rules established in subdivision 2, the
59.18 economic development authority of the city of Brooklyn Center or the city of Brooklyn
59.19 Center may establish not more than two redevelopment tax increment financing districts
59.20 located wholly within the area in the city identified as the "Opportunity Site," which includes
59.21 the area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway
59.22 10 to Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked
59.23 Trunk Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin
59.24 County State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked
59.25 Trunk Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads
59.26 and rights of way.
59.27     Subd. 2. Special rules. If the city or the authority establishes a tax increment financing
59.28 district under this section, the following special rules apply:
59.29     (1) the district is deemed to meet all the requirements of Minnesota Statutes, section
59.30 469.174, subdivision 10; and
59.31     (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
59.32     Subd. 3. Expiration. The authority to approve a tax increment financing plan to establish
59.33 a tax increment financing district under this section expires on December 31, 2031.
Article 5 Sec. 7.  59
06/07/25   REVISOR  EAP/VJ  25-05695
60.1      EFFECTIVE DATE. This section is effective the day after the governing body of the
60.2  city of Brooklyn Center and its chief clerical officer comply with the requirements of
60.3  Minnesota Statutes, section 645.021, subdivisions 2 and 3.
60.4    Sec. 8. CITY OF BROOKLYN PARK; TIF AUTHORITY; 610/ZANE AREA.
60.5      Subdivision 1. Establishment of districts. Under the special rules established in
60.6  subdivision 2, the economic development authority of the city of Brooklyn Park or the city
60.7  of Brooklyn Park may establish not more than two redevelopment districts located wholly
60.8  within the area of the city of Brooklyn Park. The districts may be composed of the following
60.9  parcels identified by their current parcel identification numbers together with adjacent and
60.10 internal roads and rights-of-way:
60.11 0811921410009 0811921440008 0911921210097 0911921210099 0911921220014
60.12 0911921220015 0911921220068 0911921230005 0911921320016 0911921320021
60.13 0911921320024 0911921330006 0911921340015 0911921340016 0911921430009
60.14 0911921430010 0911921430011 0911921430012 0911921430016 0911921430023
60.15 0911921430027 0911921430043 0911921430047 0911921430050 0911921430051
60.16 0911921430052 0911921430056 0911921430066 0911921430070 0911921430074
60.17 0911921430075 0911921430079 0911921430084 0911921430085 0911921430089
60.18 0911921430091 0911921430092 0911921430096 0911921430101 0911921430106
60.19 0911921430109 0911921430111 0911921430116 0911921430119 0911921120005
60.20 0911921210007 0911921230008 0911921230049 0911921240006 0911921240009
60.21 0911921320018 0911921330009 0911921430006 0911921430014 0911921430015
60.22 0911921430019 0911921430020 0911921430028 0911921430030 0911921430033
60.23 0911921430037 0911921430038 0911921430040 0911921430048 0911921430054
60.24 0911921430055 0911921430059 0911921430069 0911921430071 0911921430072
60.25 0911921430076 0911921430080 0911921430081 0911921430082 0911921430083
60.26 0911921430086 0911921430087 0911921430088 0911921430094 0911921430095
60.27 0911921430099 0911921430104 0911921430114 0911921210006 0911921210096
60.28 0911921210100 0911921210101 0911921220008 0911921220017 0911921230014
60.29 0911921230015 0911921240004 0911921240007 0911921310010 0911921310011
60.30 0911921310012 0911921330010 0911921330012 0911921340009 0911921430013
60.31 0911921430017 0911921430021 0911921430022 0911921430026 0911921430031
60.32 0911921430032 0911921430036 0911921430041 0911921430042 0911921430046
60.33 0911921430053 0911921430057 0911921430064 0911921430065 0911921430073
60.34 0911921430077 0911921430078 0911921430100 0911921430105 0911921430107
60.35 0911921430108 0911921430110 0911921430115 0911921430117 0911921430118
60.36 0811921140050 0811921140051 0911921210005 0911921210095 0911921220070
Article 5 Sec. 8.  60
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61.1  0911921220071 0911921230009 0911921230010 0911921230011 0911921230012
61.2  0911921230013 0911921240005 0911921240008 0911921310007 0911921310009
61.3  0911921320023 0911921330008 0911921330011 0911921340008 0911921340014
61.4  0911921340017 0911921430018 0911921430024 0911921430025 0911921430029
61.5  0911921430034 0911921430035 0911921430039 0911921430044 0911921430045
61.6  0911921430049 0911921430058 0911921430060 0911921430061 0911921430062
61.7  0911921430063 0911921430067 0911921430068 0911921430090 0911921430093
61.8  0911921430097 0911921430098 0911921430102 0911921430103 0911921430112
61.9  0911921430113 0911921430120 1011921330022
61.10     Subd. 2. Special rules. If the city or the authority establishes a tax increment financing
61.11 district under subdivision 1, the following special rules apply:
61.12     (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
61.13 469.174, subdivision 10; and
61.14     (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
61.15     Subd. 3. Expiration. The authority to approve a tax increment financing plan to establish
61.16 a tax increment finance district under this section expires on December 31, 2031.
61.17     EFFECTIVE DATE. This section is effective the day after the governing body of the
61.18 city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
61.19 Statutes, section 645.021, subdivisions 2 and 3.
61.20   Sec. 9. CITY OF BROOKLYN PARK; TIF AUTHORITY; BIOTECH AREA.
61.21     Subdivision 1. Establishment of districts. Under the special rules established in
61.22 subdivision 2, the economic development authority of the city of Brooklyn Park or the city
61.23 of Brooklyn Park may establish not more than two redevelopment districts located wholly
61.24 within the area of the city of Brooklyn Park. The districts may be composed of the following
61.25 parcels identified by their current parcel identification numbers together with adjacent and
61.26 internal roads and rights-of-way:
61.27 0711921110003 0711921120006 0711921110007 0711921140001 0711921140002
61.28 0711921140007 0711921240002 0711921240004 0711921110004 0711921110006
61.29 0711921110008 0711921120005 0711921130005 0711921140005 0711921140006
61.30 0711921210003 0811921230002 0811921230004 0711921110005 0711921120009
61.31 0711921220003 0711921230001 0711921230002 0811921220002
61.32     Subd. 2. Special rules. If the city or the authority establishes a tax increment financing
61.33 district under subdivision 1, the following special rules apply:
Article 5 Sec. 9.  61
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62.1      (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
62.2  469.174, subdivision 10; and
62.3      (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
62.4      Subd. 3. Expiration. The authority to approve a tax increment financing plan to establish
62.5  a tax increment finance district under this section expires on December 31, 2031.
62.6      EFFECTIVE DATE. This section is effective the day after the governing body of the
62.7  city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
62.8  Statutes, section 645.021, subdivisions 2 and 3.
62.9    Sec. 10. CITY OF BROOKLYN PARK; TIF AUTHORITY; BROOKLYN
62.10 BOULEVARD/WEST BROADWAY AREA.
62.11     Subdivision 1. Establishment of districts. Under the special rules established in
62.12 subdivision 2, the economic development authority of the city of Brooklyn Park or the city
62.13 of Brooklyn Park may establish not more than two redevelopment tax increment financing
62.14 districts located wholly within the area of the city of Brooklyn Park. The districts may be
62.15 composed of the following parcels identified by their current parcel identification numbers
62.16 together with adjacent and internal roads and rights-of-way:
62.17 2011921430092 2011921430099 2011921440089 2011921430101 2011921440088
62.18 2911921120001 2911921120004 2911921120032 2911921110004 2911921120005
62.19 2011921430093 2011921430100 2011921430102 2011921430103 2911921110118
62.20 2911921120006 2911921120043 2011921340022 2011921340027 2011921340036
62.21 2011921340038 2011921340042 2011921340047 2011921340048 2011921340070
62.22 2011921340071 2011921340026 2011921340037 2011921340046 2011921340050
62.23 2011921340069 2011921340075 2011921340079 2011921340080 2011921330004
62.24 2011921330005 2011921330006 2011921330012 2011921340024 2011921340025
62.25 2011921340029 2011921340044 2011921340066 2011921340068 2011921340073
62.26 2011921340076 2011921340078 2911921210023 2911921210030 2911921210040
62.27 2911921210042 2911921210051 2911921210052 2911921210054 2911921210056
62.28 2911921210057 2911921210063 2911921210074 2911921210077 2911921210078
62.29 2911921210079 2911921210090 2911921220010 2911921220012 2911921220021
62.30 2911921220023 2911921220025 2911921240102 2911921240117 2911921240132
62.31 2911921210021 2911921210024 2911921210025 2911921210026 2911921210027
62.32 2911921210028 2911921210029 2911921210034 2911921210035 2911921210037
62.33 2911921210038 2911921210039 2911921210053 2911921210061 2911921210062
62.34 2911921210066 2911921210070 2911921210073 2911921210081 2911921210082
Article 5 Sec. 10.  62
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63.1  2911921210086 2911921210094 2911921210105 2911921210106 2911921220011
63.2  2911921220020 2911921220022 2911921220028 2911921240101 2911921240104
63.3  2911921240105 2911921240106 2911921240109 2911921240134 2911921210007
63.4  2911921210050 2911921210055 2911921210058 2911921210059 2911921210071
63.5  2911921210083 2911921210104 2911921240095 2911921240099 2911921240118
63.6  2011921320010 2011921330003 2011921330007 2011921340023 2011921340028
63.7  2011921340034 2011921340035 2011921340039 2011921340040 2011921340043
63.8  2011921340045 2011921340049 2011921340077 2911921210022 2911921210031
63.9  2911921210032 2911921210033 2911921210036 2911921210041 2911921210060
63.10 2911921210064 2911921210065 2911921210067 2911921210068 2911921210069
63.11 2911921210080 2911921210084 2911921210085 2911921210087 2911921210088
63.12 2911921210089 2911921210091 2911921210092 2911921210093 2911921210096
63.13 2911921210103 2911921210111 2911921220024 2911921220026 2911921220029
63.14 2911921240100 2911921240103 2911921240107 2911921240133 2911921240135
63.15 3011921110009 3011921110007
63.16 and the following roadways within the city of Brooklyn Park: Brooklyn Boulevard (from
63.17 and including the intersection at Highway 169 to and including the intersection at Kentucky
63.18 Avenue North) and West Broadway Avenue (from and including the intersection at 75th
63.19 Avenue and to and including the intersection at 78th Avenue).
63.20     Subd. 2. Special rules. If the city or the authority establishes a tax increment financing
63.21 district under subdivision 1, the following special rules apply:
63.22     (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
63.23 469.174, subdivision 10; and
63.24     (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
63.25     Subd. 3. Expiration. The authority to approve a tax increment financing plan to establish
63.26 a tax increment finance district under this section expires on December 31, 2031.
63.27     EFFECTIVE DATE. This section is effective the day after the governing body of the
63.28 city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
63.29 Statutes, section 645.021, subdivisions 2 and 3.
63.30   Sec. 11. CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY;
63.31 EDEN PRAIRIE CENTER.
63.32     Subdivision 1. Establishment. Pursuant to the special rules established in subdivision
63.33 2, the economic development authority of the city of Eden Prairie or the city of Eden Prairie
63.34 may establish not more than two redevelopment districts located within the area of the city
Article 5 Sec. 11.  63
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64.1  of Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within
64.2  the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
64.3Subd. 2. Special rules. If the city or authority establishes a tax increment financing
64.4  district under this section, the following special rules apply:
64.5(1) the districts are deemed to meet the requirements of Minnesota Statutes, section
64.6  469.174, subdivision 10; and
64.7(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
64.8Subd. 3. Expiration. The authority to approve a tax increment financing plan to establish
64.9  a tax increment financing district under this section expires December 31, 2026.
64.10EFFECTIVE DATE. This section is effective the day after the governing body of the
64.11 city of Eden Prairie and its chief clerical officer comply with the requirements of Minnesota
64.12 Statutes, section 645.021, subdivisions 2 and 3.
64.13   Sec. 12. CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE
64.14 EXTENSION; DURATION EXTENSION.
64.15(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
64.16 extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
64.17 4, relating to the use of increment after the expiration of the five-year period, is extended
64.18 to 11 years for Tax Increment Financing District 70th & France in the city of Edina.
64.19(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
64.20 city of Edina or its housing and redevelopment authority may elect to extend the duration
64.21 of the district by ten years for Tax Increment Financing District 70th & France.
64.22EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the
64.23 city of Edina and its chief clerical officer comply with the requirements of Minnesota
64.24 Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
64.25 by the governing bodies of the city of Edina, Hennepin County, and Independent School
64.26 District No. 273 with the requirements of Minnesota Statutes, section 469.1782, subdivision
64.27 2.
64.28   Sec. 13. CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE
64.29 EXTENSION; DURATION EXTENSION.
64.30(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
64.31 extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
Article 5 Sec. 13.  64
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65.1  4, relating to the use of increment after the expiration of the five-year period, is extended
65.2  to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
65.3(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
65.4  city of Edina or its housing and redevelopment authority may elect to extend the duration
65.5  of the district by five years for Tax Increment Financing District 72nd & France 2.
65.6EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the
65.7  city of Edina and its chief clerical officer comply with the requirements of Minnesota
65.8  Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
65.9  by the governing bodies of the city of Edina, Hennepin County, and Independent School
65.10 District No. 273 with the requirements of Minnesota Statutes, section 469.1782, subdivision
65.11 2.
65.12   Sec. 14. CITY OF MARSHALL; TEMPORARY USE OF INCREMENT;
65.13 EXTENSION.
65.14(a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, paragraph (f),
65.15 the city of Marshall may elect to spend, loan, or invest transferred increment, including any
65.16 interest or investment earnings on such transferred increment, as authorized under Minnesota
65.17 Statutes, section 469.176, subdivision 4n, through December 31, 2027, provided that the
65.18 transferred increment was collected from TIF District No. 1-1, TIF District No. 1-7, or TIF
65.19 District No. 2-1, in the city of Marshall, and the use of the transferred increment is detailed
65.20 in the city's written spending plan adopted pursuant to Minnesota Statutes, section 469.176,
65.21 subdivision 4n, paragraph (c).
65.22(b) Increment not spent, loaned, or invested by December 31, 2027, must be returned
65.23 to the district. The requirement to return increment to the district includes any proceeds,
65.24 principal, and interest received on loans of transferred increment; interest or investment
65.25 earnings on transferred increment; or other repayments or returns of transferred increment
65.26 defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that
65.27 remain in the funds or accounts of the authority or municipality on December 31, 2027, or
65.28 that are subsequently received by the authority or municipality.
65.29EFFECTIVE DATE. This section is effective the day after the governing body of the
65.30 city of Marshall and its chief clerical officer comply with the requirements of Minnesota
65.31 Statutes, section 645.021, subdivisions 2 and 3.
Article 5 Sec. 14.  65
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66.1    Sec. 15. CITY OF MINNETONKA; OPUS TIF DISTRICT; FIVE-YEAR RULE
66.2  EXTENSION.
66.3      (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
66.4  extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
66.5  4, relating to the use of increment after the expiration of the five-year period, is extended
66.6  to 11 years for the Opus tax increment financing district established in 2021 by the economic
66.7  development authority in the city of Minnetonka.
66.8      (b) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
66.9      EFFECTIVE DATE. This section is effective the day after the governing body of the
66.10 city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota
66.11 Statutes, section 645.021, subdivisions 2 and 3.
66.12   Sec. 16. CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT
66.13 NO. 31; FIVE-YEAR RULE EXTENSION.
66.14     The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
66.15 extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
66.16 4, relating to the use of increment after the expiration of the five-year period, is extended
66.17 to 11 years for Tax Increment Financing District No. 31 in the city of Moorhead.
66.18     EFFECTIVE DATE. This section is effective the day after the governing body of the
66.19 city of Moorhead and its chief clerical officer comply with the requirements of Minnesota
66.20 Statutes, section 645.021, subdivisions 2 and 3.
66.21   Sec. 17. CITY OF OAKDALE; TEMPORARY USE OF INCREMENT; EXTENSION.
66.22     (a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, paragraph (f),
66.23 the city of Oakdale may elect to spend, loan, or invest transferred increment, including any
66.24 interest or investment earnings on such transferred increment, as authorized under Minnesota
66.25 Statutes, section 469.176, subdivision 4n, through December 31, 2027, provided that the
66.26 transferred increment was collected from TIF District No. 1-4 or TIF District No. 1-6, in
66.27 the city of Oakdale, and the use of the transferred increment is detailed in the city's written
66.28 spending plan adopted pursuant to Minnesota Statutes, section 469.176, subdivision 4n,
66.29 paragraph (c).
66.30     (b) Increment not spent, loaned, or invested by December 31, 2027, must be returned
66.31 to the district. The requirement to return increment to the district includes any proceeds,
66.32 principal, and interest received on loans of transferred increment; interest or investment
Article 5 Sec. 17.  66
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67.1  earnings on transferred increment; or other repayments or returns of transferred increment
67.2  defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that
67.3  remain in the funds or accounts of the authority or municipality on December 31, 2027, or
67.4  that are subsequently received by the authority or municipality.
67.5      EFFECTIVE DATE. This section is effective the day after the governing body of the
67.6  city of Oakdale and its chief clerical officer comply with the requirements of Minnesota
67.7  Statutes, section 645.021, subdivisions 2 and 3.
67.8    Sec. 18. CITY OF PLYMOUTH; TAX INCREMENT FINANCING;
67.9  ESTABLISHMENT.
67.10     Subdivision 1. Establishment. Under the special rules established in subdivision 2, the
67.11 city of Plymouth may establish not more than two redevelopment districts located wholly
67.12 within the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as
67.13 the city center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024,
67.14 and adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
67.15     Subd. 2. Special rules. If the city establishes a tax increment financing district under
67.16 this section, the following special rules apply:
67.17     (1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174,
67.18 subdivision 10;
67.19     (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
67.20 and
67.21     (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
67.22 extended to ten years, and the period under Minnesota Statutes, section 469.1763, subdivision
67.23 4, relating to the use of increment after the expiration of the five-year period, is extended
67.24 to 11 years.
67.25     Subd. 3. Expiration. The authority to approve a tax increment financing plan to establish
67.26 a tax increment financing district under this section expires December 31, 2031.
67.27     EFFECTIVE DATE. This section is effective the day after the governing body of the
67.28 city of Plymouth and its chief clerical officer comply with the requirements of Minnesota
67.29 Statutes, section 645.021, subdivisions 2 and 3.
Article 5 Sec. 18.  67
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68.1    Sec. 19. CITY OF ST. CLOUD; TAX INCREMENT FINANCING;
68.2  ESTABLISHMENT.
68.3      Subdivision 1. Establishment. Under the special rules established in subdivision 2, the
68.4  economic development authority of the city of St. Cloud or the city of St. Cloud may establish
68.5  not more than two redevelopment districts adjacent to the Division Street corridor or within
68.6  the Central Business District or Fringe Central District, limited to the following parcels
68.7  identified by tax identification numbers, together with the adjacent roads and rights-of-way:
68.8      (1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North
68.9  Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015
68.10 (Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); 82528850001 (Former
68.11 Herberger's); 82528850065 (Former Herberger's); 82528850005 (Former Herberger's);
68.12 82528850053; 82528850050; 82528850048 (Former Press Bar/Cowboy Jacks Lots); and
68.13     (2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site);
68.14 170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601;
68.15 170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South
68.16 Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; 170058900;
68.17 1700113900 (Transit Oriented Development Catalyst Site); 170060600; 170060700; and
68.18 170060800 (EDA Parking Lot & adjacent sites).
68.19     Subd. 2. Special rules. If the city or authority establishes a tax increment financing
68.20 district under this section, the following special rules apply:
68.21     (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
68.22 469.174, subdivision 10;
68.23     (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
68.24 and
68.25     (3) increments generated from the districts may be expended for the reconstruction,
68.26 expansion, or new construction of adjacent public infrastructure, including but not limited
68.27 to public parking, streets, and utilities necessary to serve the development, and all
68.28 expenditures under this clause are deemed expended on activities within the district for
68.29 purposes of Minnesota Statutes, section 469.1763.
68.30     Subd. 3. Expiration. The authority to approve a tax increment financing plan to establish
68.31 a tax increment financing district under this section expires on December 31, 2031.
Article 5 Sec. 19.  68
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69.1EFFECTIVE DATE. This section is effective the day after the city of St. Cloud and
69.2  its chief clerical officer comply with the requirements of Minnesota Statutes, section 645.021,
69.3  subdivisions 2 and 3.
69.4    Sec. 20. CITY OF ST. CLOUD; COOPER AVENUE REDEVELOPMENT TAX
69.5  INCREMENT FINANCING DISTRICT; FIVE-YEAR RULE EXTENSION.
69.6The following special rule applies for the Cooper Avenue Redevelopment Tax Increment
69.7  Financing District administered by the city of St. Cloud. The requirement of Minnesota
69.8  Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year
69.9  period from the date of certification of a tax increment financing district, is extended by a
69.10 five-year period to April 30, 2031. Beginning in 2032, the requirements of Minnesota
69.11 Statutes, section 469.1763, subdivision 4, apply to the district.
69.12EFFECTIVE DATE. This section is effective the day after the governing body of the
69.13 city of St. Cloud and its chief clerical officer comply with the requirements of Minnesota
69.14 Statutes, section 645.021, subdivisions 2 and 3.
69.15ARTICLE 6
69.16LOCAL SALES AND USE TAXES
69.17   Section 1. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by
69.18 Laws 2006, chapter 259, article 3, section 3, Laws 2011, First Special Session chapter 7,
69.19 article 4, section 4, and Laws 2017, First Special Session chapter 1, article 5, section 6, is
69.20 amended to read:
69.21Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section
69.22 477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
69.23 Hermantown may, by ordinance, impose an additional sales tax of up to one percent on
69.24 sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within
69.25 the city. The proceeds of the tax imposed under this section must be used to meet the costs
69.26 of:
69.27(1) extending a sewer interceptor line lines;
69.28(2) construction of a booster pump station stations, reservoirs, and related improvements
69.29 to the water system; and
69.30(3) construction of a building containing a police and fire station and an administrative
69.31 services facility.
Article 6 Section 1.  69
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70.1      (b) If the city imposed a sales tax of only one-half of one percent under paragraph (a),
70.2  it may increase the tax to one percent to fund the purposes under paragraph (a) provided it
70.3  is approved by the voters at a general election held before December 31, 2012.
70.4      (c) As approved by the voters at the November 8, 2016, general election, the proceeds
70.5  under this section may also be used to meet the costs of debt service payments for
70.6  construction of the Hermantown Wellness Center.
70.7      EFFECTIVE DATE. This section is effective the day following final enactment without
70.8  local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
70.9    Sec. 2. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws
70.10 2006, chapter 259, article 3, section 4, and Laws 2017, First Special Session chapter 1,
70.11 article 5, section 7, is amended to read:
70.12     Subd. 4. Termination. The tax authorized under this section terminates at the earlier of
70.13 (1) December 31, 2036 2046, or (2) when the Hermantown City Council first determines
70.14 that sufficient funds have been received from the tax to fund the costs, including bonds and
70.15 associated bond costs for the uses specified in subdivision 1. Any funds remaining after
70.16 completion of the improvements and retirement or redemption of the bonds may be placed
70.17 in the general fund of the city.
70.18     EFFECTIVE DATE. This section is effective the day following final enactment without
70.19 local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
70.20ARTICLE 7
70.21PUBLIC FINANCE
70.22   Section 1. Minnesota Statutes 2024, section 373.40, subdivision 2, is amended to read:
70.23     Subd. 2. Application of election requirement. (a) Bonds issued by a county to finance
70.24 capital improvements under an approved capital improvement plan are not subject to the
70.25 election requirements of section 375.18 or 475.58. The bonds must be approved by vote of
70.26 at least three-fifths of the members of the county board. In the case of a metropolitan county,
70.27 the bonds must be approved by vote of at least two-thirds of the members of the county
70.28 board.
70.29     (b) Before issuance of bonds qualifying under this section, the county must publish a
70.30 notice of its intention to issue the bonds and the date and time of a hearing to obtain public
70.31 comment on the matter. The notice must be published in the official newspaper of the county
Article 7 Section 1.  70
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71.1  or in a newspaper of general circulation in the county. The notice must be published at least
71.2  14 ten, but not more than 28, days before the date of the hearing.
71.3      (c) A county may issue the bonds only upon obtaining the approval of a majority of the
71.4  voters voting on the question of issuing the obligations, if a petition requesting a vote on
71.5  the issuance is signed by voters equal to five percent of the votes cast in the county in the
71.6  last county general election and is filed with the county auditor within 30 days after the
71.7  public hearing. If the county elects not to submit the question to the voters, the county shall
71.8  not propose the issuance of bonds under this section for the same purpose and in the same
71.9  amount for a period of 365 days from the date of receipt of the petition. If the question of
71.10 issuing the bonds is submitted and not approved by the voters, the provisions of section
71.11 475.58, subdivision 1a, shall apply.
71.12   Sec. 2. Minnesota Statutes 2024, section 446A.086, subdivision 1, is amended to read:
71.13     Subdivision 1. Definitions. (a) As used in this section, the following terms have the
71.14 meanings given.
71.15     (b) "Authority" means the Minnesota Public Facilities Authority.
71.16     (c) "Commissioner" means the commissioner of management and budget.
71.17     (d) "Debt obligation" means:
71.18     (1) a general obligation bond or note issued by a county, a bond or note to which the
71.19 general obligation of a county is pledged under section 469.034, subdivision 2, or a bond
71.20 or note payable from a county lease obligation under section 641.24, to provide funds for
71.21 the construction of:
71.22     (i) jails;
71.23     (ii) correctional facilities;
71.24     (iii) law enforcement facilities;
71.25     (iv) a courthouse or justice center, if connected to a jail, correctional facility, or other
71.26 law enforcement facility;
71.27     (iv) (v) social services and human services facilities;
71.28     (v) (vi) solid waste facilities; or
71.29     (vi) (vii) qualified housing development projects as defined in section 469.034,
71.30 subdivision 2; or
Article 7 Sec. 2.  71
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72.1(2) a general obligation bond or note issued by a governmental unit to provide funds for
72.2  the construction, improvement, or rehabilitation of:
72.3(i) wastewater facilities;
72.4(ii) drinking water facilities;
72.5(iii) stormwater facilities; or
72.6(iv) any publicly owned building or infrastructure improvement that has received partial
72.7  funding from grants awarded by the commissioner of employment and economic development
72.8  related to redevelopment, contaminated site cleanup, bioscience, small cities development
72.9  programs, and rural business infrastructure programs, for which bonds are issued by the
72.10 authority under section 446A.087.
72.11(e) "Governmental unit" means a county or a statutory or home rule charter city.
72.12   Sec. 3. Minnesota Statutes 2024, section 446A.086, subdivision 2, is amended to read:
72.13Subd. 2. Application. (a) This section provides a state guarantee of the payment of
72.14 principal and interest on debt obligations if:
72.15(1) the obligations are issued for new projects or the refunding at a net present value
72.16 savings of debt service costs of obligations that are currently guaranteed pursuant to this
72.17 section and are not issued for the purposes of refunding previous obligations other than as
72.18 described in this sentence;
72.19(2) application to the Public Facilities Authority is made before issuance; and
72.20(3) the obligations are covered by an agreement meeting the requirements of subdivision
72.21 3.
72.22(b) Applications to be covered by the provisions of this section must be made in a form
72.23 and contain the information prescribed by the authority. Applications are subject to either
72.24 a fee of $500 for each bond issue requested by a county or governmental unit or the applicable
72.25 fees under section 446A.087.
72.26(c) Application fees paid under this section must be deposited in a separate credit
72.27 enhancement bond guarantee account in the special revenue fund. Money in the credit
72.28 enhancement bond guarantee account is appropriated to the authority for purposes of
72.29 administering this section.
Article 7 Sec. 3.  72
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73.1      (d) Neither the authority nor the commissioner is required to promulgate administrative
73.2  rules under this section and the procedures and requirements established by the authority
73.3  or commissioner under this section are not subject to chapter 14.
73.4    Sec. 4. Minnesota Statutes 2024, section 462C.04, subdivision 2, is amended to read:
73.5      Subd. 2. Program review. A public hearing shall be held on each program after one
73.6  publication of notice in a newspaper circulating generally in the city, at least 15 ten days
73.7  before the hearing. On or before the day on which notice of the public hearing is published,
73.8  the city shall submit the program to the Metropolitan Council, if the city is located in the
73.9  metropolitan area as defined in section 473.121, subdivision 2, or to the regional development
73.10 commission for the area in which the city is located, if any, for review and comment. The
73.11 appropriate reviewing agency shall comment on:
73.12     (a) whether the program furthers local and regional housing policies and is consistent
73.13 with the Metropolitan Development Guide, if the city is located in the metropolitan area,
73.14 or adopted policies of the regional development commission; and
73.15     (b) the compatibility of the program with the housing portion of the comprehensive plan
73.16 of the city, if any.
73.17     Review of the program may be conducted either by the board of the reviewing agency
73.18 or by the staff of the agency. Any comment submitted by the reviewing agency to the city
73.19 must be presented to the body considering the proposed program at the public hearing held
73.20 on the program.
73.21     A member or employee of the reviewing agency shall be permitted to present the
73.22 comments of the reviewing agency at the public hearing. After conducting the public hearing,
73.23 the program may be adopted with or without amendment, provided that any amendments
73.24 must not be inconsistent with the comments, if any, of the reviewing agency and must not
73.25 contain any material changes from the program submitted to the reviewing agency other
73.26 than changes in the financial aspects of any proposed issue of bonds or obligations. If any
73.27 material change other than a change in the financial aspects of a proposed issue of bonds
73.28 or obligations, or any change which is inconsistent with the comments of the reviewing
73.29 agency is adopted, the amended program shall be resubmitted to the appropriate reviewing
73.30 agency for review and comment, and a public hearing shall be held on the amended program
73.31 after one publication of notice in a newspaper circulating generally in the city at least 15
73.32 ten days before the hearing. The amended program shall be considered after the public
73.33 hearing in the same manner as consideration of the initial program.
Article 7 Sec. 4.  73
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74.1    Sec. 5. Minnesota Statutes 2024, section 469.104, is amended to read:
74.2      469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.
74.3      Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to
74.4  469.108 that are limited required by federal tax law as defined in section 474A.02,
74.5  subdivision 8, to obtain an allocation of volume cap.
74.6    Sec. 6. Minnesota Statutes 2024, section 469.154, subdivision 4, is amended to read:
74.7      Subd. 4. Hearing. Prior to submitting an application to the department requesting
74.8  approval of a project pursuant to subdivision 3, the governing body or a committee of the
74.9  governing body of the municipality or redevelopment agency shall conduct a public hearing
74.10 on the proposal to undertake and finance the project. Notice of the time and place of hearing,
74.11 and stating the general nature of the project and an estimate of the principal amount of bonds
74.12 or other obligations to be issued to finance the project, shall be published at least once not
74.13 less than 14 ten days nor more than 30 days prior to the date fixed for the hearing, in the
74.14 official newspaper and a newspaper of general circulation of the municipality or
74.15 redevelopment agency. The notice shall state that a draft copy of the proposed application
74.16 to the department, together with all attachments and exhibits, shall be available for public
74.17 inspection following the publication of the notice and shall specify the place and times
74.18 where and when it will be so available. The governing body of the municipality or the
74.19 redevelopment agency shall give all parties who appear at the hearing an opportunity to
74.20 express their views with respect to the proposal to undertake and finance the project.
74.21 Following the completion of the public hearing, the governing body of the municipality or
74.22 redevelopment agency shall adopt a resolution determining whether or not to proceed with
74.23 the project and its financing; it may thereafter apply to the department for approval of the
74.24 project.
74.25   Sec. 7. Minnesota Statutes 2024, section 469.1813, subdivision 5, is amended to read:
74.26     Subd. 5. Notice and public hearing. (a) The governing body of the political subdivision
74.27 may approve an abatement under sections 469.1812 to 469.1815 only after holding a public
74.28 hearing on the abatement.
74.29     (b) Notice of the hearing must be published in a newspaper of general circulation in the
74.30 political subdivision at least once more than at least ten days but less than 30 days before
74.31 the hearing. The newspaper must be one of general interest and readership in the community,
74.32 and not one of limited subject matter. The newspaper must be published at least once per
74.33 week. The notice must indicate that the governing body will consider granting a property
Article 7 Sec. 7.  74
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75.1  tax abatement, identify the property or properties for which an abatement is under
75.2  consideration, and the total estimated amount of the abatement.
75.3    Sec. 8. Minnesota Statutes 2024, section 474A.091, subdivision 2, is amended to read:
75.4      Subd. 2. Application for residential rental projects. (a) Issuers may apply for an
75.5  allocation for residential rental bonds under this section by submitting to the department an
75.6  application on forms provided by the department accompanied by:
75.7      (1) a preliminary resolution;
75.8      (2) a statement of bond counsel that the proposed issue of obligations requires an
75.9  allocation under this chapter and the Internal Revenue Code;
75.10     (3) an application deposit in the amount of two percent of the requested allocation;
75.11     (4) a sworn statement from the applicant identifying the project as a preservation project,
75.12 30 percent AMI residential rental project, 50 percent AMI residential rental project, 100
75.13 percent LIHTC project, 20 percent LIHTC project, or any other residential rental project;
75.14 and
75.15     (5) a certification from the applicant or its accountant stating that the requested allocation
75.16 does not exceed the aggregate bond limitation.
75.17 The issuer must pay the application deposit to the Department of Management and Budget.
75.18 An entitlement issuer may not apply for an allocation for residential rental project bonds
75.19 under this section unless it has either permanently issued bonds equal to the amount of its
75.20 entitlement allocation for the current year plus any amount carried forward from previous
75.21 years or returned for reallocation all of its unused entitlement allocation. For purposes of
75.22 this subdivision, its entitlement allocation includes an amount obtained under section
75.23 474A.04, subdivision 6.
75.24     (b) An issuer that receives an allocation under this subdivision must permanently issue
75.25 obligations equal to all or a portion of the allocation received on or before the earlier of:
75.26 (1) 180 days of the allocation; or (2) the last business day of December. If an issuer that
75.27 receives an allocation under this subdivision does not permanently issue obligations equal
75.28 to all or a portion of the allocation received within the time period provided in this paragraph
75.29 or returns the allocation to the commissioner, the amount of the allocation is canceled and
75.30 returned for reallocation through the unified pool.
75.31     (c) The Minnesota Housing Finance Agency may apply for and receive an allocation
75.32 under this section without submitting an application deposit.
Article 7 Sec. 8.  75
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76.1    Sec. 9. Minnesota Statutes 2024, section 474A.091, subdivision 2a, is amended to read:
76.2      Subd. 2a. Application for all other types of qualified bonds. (a) Issuers may apply
76.3  for an allocation for all types of qualified bonds other than residential rental bonds under
76.4  this section by submitting to the department an application on forms provided by the
76.5  department accompanied by:
76.6      (1) a preliminary resolution;
76.7      (2) a statement of bond counsel that the proposed issue of obligations requires an
76.8  allocation under this chapter and the Internal Revenue Code;
76.9      (3) the type of qualified bonds to be issued;
76.10     (4) an application deposit in the amount of two percent of the requested allocation; and
76.11     (5) a public purpose scoring worksheet for manufacturing and enterprise zone
76.12 applications.
76.13 The issuer must pay the application deposit to the Department of Management and Budget.
76.14 An entitlement issuer may not apply for an allocation for public facility bonds or mortgage
76.15 bonds under this section unless it has either permanently issued bonds equal to the amount
76.16 of its entitlement allocation for the current year plus any amount carried forward from
76.17 previous years or returned for reallocation all of its unused entitlement allocation. For
76.18 purposes of this subdivision, an entitlement allocation includes an amount obtained under
76.19 section 474A.04, subdivision 6.
76.20     (b) An issuer that receives an allocation under this subdivision must permanently issue
76.21 obligations equal to all or a portion of the allocation received on or before the earlier of:
76.22 (1) 120 days of the allocation; or (2) the last business day of December. If an issuer that
76.23 receives an allocation under this subdivision does not permanently issue obligations equal
76.24 to all or a portion of the allocation received within the time period provided in this paragraph
76.25 or returns the allocation to the commissioner, the amount of the allocation is canceled and
76.26 returned for reallocation through the unified pool.
76.27     (c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
76.28 the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
76.29 under this section prior to the first Monday in October, but may be awarded allocations for
76.30 mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
76.31 Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
76.32 Rural Finance Authority may apply for and receive an allocation under this section without
76.33 submitting an application deposit.
Article 7 Sec. 9.  76
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77.1    Sec. 10. Minnesota Statutes 2024, section 475.521, subdivision 2, is amended to read:
77.2      Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance capital
77.3  improvements under an approved capital improvements plan are not subject to the election
77.4  requirements of section 475.58. The bonds must be approved by an affirmative vote of
77.5  three-fifths of the members of a five-member governing body. In the case of a governing
77.6  body having more or less than five members, the bonds must be approved by a vote of at
77.7  least two-thirds of the members of the governing body.
77.8      (b) Before the issuance of bonds qualifying under this section, the municipality must
77.9  publish a notice of its intention to issue the bonds and the date and time of the hearing to
77.10 obtain public comment on the matter. The notice must be published in the official newspaper
77.11 of the municipality or in a newspaper of general circulation in the municipality. Additionally,
77.12 the notice may be posted on the official website, if any, of the municipality. The notice must
77.13 be published at least 14 ten but not more than 28 days before the date of the hearing.
77.14     (c) A municipality may issue the bonds only after obtaining the approval of a majority
77.15 of the voters voting on the question of issuing the obligations, if a petition requesting a vote
77.16 on the issuance is signed by voters equal to five percent of the votes cast in the municipality
77.17 in the last municipal general election and is filed with the clerk within 30 days after the
77.18 public hearing. If the municipality elects not to submit the question to the voters, the
77.19 municipality shall not propose the issuance of bonds under this section for the same purpose
77.20 and in the same amount for a period of 365 days from the date of receipt of the petition. If
77.21 the question of issuing the bonds is submitted and not approved by the voters, the provisions
77.22 of section 475.58, subdivision 1a, shall apply.
77.23   Sec. 11. Minnesota Statutes 2024, section 641.23, is amended to read:
77.24     641.23 FUNDS; HOW PROVIDED.
77.25     Before any contract is made for the erection of a county jail, sheriff's residence, or both
77.26 sheriff's offices, law enforcement center, or courthouse or justice center attached to a county
77.27 jail, the county board shall either levy a sufficient tax to provide the necessary funds, or
77.28 issue county bonds therefor in accordance with the provisions of chapter 475, provided that
77.29 no election is required if the amount of all bonds issued for this purpose and interest on
77.30 them which are due and payable in any year does not exceed an amount equal to 0.09671
77.31 percent of estimated market value of taxable property within the county, as last determined
77.32 before the bonds are issued.
Article 7 Sec. 11.  77
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78.1ARTICLE 8
78.2MISCELLANEOUS
78.3    Section 1. Minnesota Statutes 2024, section 3.192, is amended to read:
78.4      3.192 REQUIREMENTS FOR NEW OR RENEWED TAX EXPENDITURES.
78.5      (a) Any Within 60 days after final enactment of a bill that creates, renews, or continues
78.6  a tax expenditure must include a statement of intent, the chairs of the house of representatives
78.7  and senate committees with primary jurisdiction over taxes must submit to the Tax
78.8  Expenditure Review Commission a statement of objective that clearly provides the purpose
78.9  of the tax expenditure and a standard or goal against which its effectiveness may be measured.
78.10     (b) For purposes of this section, "tax expenditure" has the meaning given in section
78.11 270C.11, subdivision 6, and "Tax Expenditure Review Commission" means the commission
78.12 established under section 3.8855.
78.13     (c) Any bill that creates a new tax expenditure or continues an expiring tax expenditure
78.14 must include an expiration date for the tax expenditure that is no more than eight years from
78.15 the day the provision takes effect.
78.16     EFFECTIVE DATE. This section is effective the day following final enactment for
78.17 tax expenditures authorized in this act.
78.18   Sec. 2. Minnesota Statutes 2024, section 3.8855, subdivision 2, is amended to read:
78.19     Subd. 2. Definitions. For the purposes of this section,:
78.20     (1) "commissioner" means the commissioner of revenue; and
78.21     (2) "significant tax expenditure," "tax," and "tax expenditure" have the meanings given
78.22 in section 270C.11, subdivision 6.
78.23     EFFECTIVE DATE. This section is effective the day following final enactment.
78.24   Sec. 3. Minnesota Statutes 2024, section 3.8855, subdivision 3, is amended to read:
78.25     Subd. 3. Membership. (a) The commission consists of:
78.26     (1) two senators appointed by the senate majority leader;
78.27     (2) two senators appointed by the senate minority leader;
78.28     (3) two representatives appointed by the speaker of the house;
Article 8 Sec. 3.  78
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79.1      (4) two representatives appointed by the minority leader of the house of representatives;
79.2  and
79.3      (5) the commissioner of revenue or the commissioner's designee.
79.4      (b) Each appointing authority must make appointments by January 31 of the regular
79.5  legislative session in the odd-numbered year.
79.6      (c) If the chair of the house or senate committee with primary jurisdiction over taxes is
79.7  not an appointed member, the chair is an ex officio, nonvoting member of the commission.
79.8      (d) The commissioner may designate another individual to represent the commissioner
79.9  or the commissioner's designee at any meeting of the commission.
79.10     EFFECTIVE DATE. This section is effective the day following final enactment.
79.11   Sec. 4. Minnesota Statutes 2024, section 3.8855, subdivision 4, is amended to read:
79.12     Subd. 4. Duties. (a) For not more than three years after the commission is established,
79.13 the commission must complete an initial review of the state's tax expenditures. The initial
79.14 review must identify the purpose objective of each of the state's tax expenditures, if none
79.15 was identified in the enacting legislation submitted to the commission in accordance with
79.16 section 3.192. The commission may also identify metrics for evaluating the effectiveness
79.17 of an expenditure.
79.18     (b) The commission must review and evaluate Minnesota's tax expenditures on a regular,
79.19 rotating basis. The commission must establish a review schedule that ensures each tax
79.20 expenditure will be reviewed by the commission at least once every ten years. The
79.21 commission may review expenditures affecting similar constituencies or policy areas in the
79.22 same year, but the commission must review a subset of the tax expenditures within each
79.23 tax type each year. To the extent possible, the commission must review a similar number
79.24 of tax expenditures within each tax type each year. The commission may decide not to
79.25 review a tax expenditure that is adopted by reference to federal law.
79.26     (c) Before December February 1 of the year a tax expenditure is included in a commission
79.27 report, the commission must hold a public hearing on the expenditure, including but not
79.28 limited to a presentation of the review components in subdivision 5.
79.29     EFFECTIVE DATE. This section is effective the day following final enactment.
Article 8 Sec. 4.  79
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80.1    Sec. 5. Minnesota Statutes 2024, section 3.8855, subdivision 5, is amended to read:
80.2      Subd. 5. Components of review. (a) When reviewing a tax expenditure, the commission
80.3  must at a minimum:
80.4      (1) provide an estimate of the annual revenue lost as a result of the expenditure;
80.5      (2) identify the purpose objective of the tax expenditure if none was identified in the
80.6  enacting legislation submitted to the commission in accordance with section 3.192;
80.7      (3) estimate the measurable impacts and efficiency of the tax expenditure in
80.8  accomplishing the purpose objective of the expenditure;
80.9      (4) compare the effectiveness of the tax expenditure and a direct expenditure with the
80.10 same purpose objective;
80.11     (5) identify potential modifications to the tax expenditure to increase its efficiency or
80.12 effectiveness;
80.13     (6) estimate the amount by which the tax rate for the relevant tax could be reduced if
80.14 the revenue lost due to the tax expenditure were applied to a rate reduction;
80.15     (7) if the tax expenditure is a significant tax expenditure, estimate the incidence of the
80.16 tax expenditure and the effect of the expenditure on the incidence of the state's tax system;
80.17     (8) consider the cumulative fiscal impacts of other state and federal taxes providing
80.18 benefits to taxpayers for similar activities; and
80.19     (9) recommend whether the expenditure be continued, repealed, or modified.
80.20     (b) The commission may omit a component in paragraph (a) if the commission determines
80.21 it is not feasible due to the lack of available data, third-party research, staff resources, or
80.22 lack of a majority support for a recommendation.
80.23     EFFECTIVE DATE. This section is effective the day following final enactment.
80.24   Sec. 6. Minnesota Statutes 2024, section 3.8855, subdivision 7, is amended to read:
80.25     Subd. 7. Report to legislature. (a) By December February 15 of each year, the
80.26 commission must submit a written report to the legislative committees with jurisdiction
80.27 over tax policy. The report must detail the results of the commission's review of tax
80.28 expenditures for the year, including the review components detailed in subdivision 5.
80.29     (b) Notwithstanding paragraph (a), during the period of initial review under subdivision
80.30 4, the report may be limited to the purpose objective statements and metrics for evaluating
Article 8 Sec. 6.  80
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81.1  the effectiveness of expenditures, as identified by the commission. The report may also
81.2  include relevant publicly available data on an expenditure.
81.3      (c) The report may include any additional information the commission deems relevant
81.4  to the review of an expenditure.
81.5      (d) The legislative committees with jurisdiction over tax policy must hold a public
81.6  hearing on the report during the regular legislative session in the year following the year in
81.7  which the report was submitted.
81.8      EFFECTIVE DATE. This section is effective the day following final enactment.
81.9    Sec. 7. Minnesota Statutes 2024, section 3.8855, subdivision 8, is amended to read:
81.10     Subd. 8. Terms; vacancies; meetings. (a) Members of the commission serve a term
81.11 beginning upon appointment and ending at the beginning of the regular legislative session
81.12 in the next odd-numbered year. The appropriate appointing authority must fill a vacancy
81.13 for a seat of a current legislator for the remainder of the unexpired term. Members may be
81.14 removed or replaced at the pleasure of the appointing authority.
81.15     (b) If a commission member ceases to be a member of the legislative body from which
81.16 the member was appointed, the member vacates membership on the commission.
81.17     (c) The commissioner must convene the first meeting of each year required under
81.18 subdivision 4, paragraph (c).
81.19     EFFECTIVE DATE. This section is effective the day following final enactment.
81.20   Sec. 8. Minnesota Statutes 2024, section 8.31, subdivision 2c, is amended to read:
81.21     Subd. 2c. Undistributed money to general fund consumer protection restitution
81.22 account. If a court of competent jurisdiction finds that a sum recovered under this section
81.23 for the benefit of injured persons cannot reasonably be distributed to the victims, because
81.24 the victims cannot readily be located or identified, or because the cost of distributing the
81.25 money would outweigh the benefit to the victims, then the court may order that the money
81.26 be paid into the general fund. All sums recovered must be deposited into the state treasury
81.27 and credited to the general fund or attorney general must deposit the money in the consumer
81.28 protection restitution account under section 8.37. Consumer enforcement public compensation
81.29 that the attorney general attempts to distribute to an eligible consumer, but that is not
81.30 redeemed by the consumer within 120 days, may be redeposited in the account. For purposes
81.31 of this subdivision, "consumer enforcement public compensation" and "eligible consumer"
81.32 have the meanings given in section 8.37, subdivision 2.
Article 8 Sec. 8.  81
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82.1      EFFECTIVE DATE. This section is effective July 1, 2025.
82.2    Sec. 9. [8.37] CONSUMER PROTECTION RESTITUTION ACCOUNT.
82.3      Subdivision 1. Creation of account. The consumer protection restitution account is
82.4  established in the special revenue fund. Money in the account is appropriated annually to
82.5  the attorney general for the purposes provided under subdivision 4.
82.6      Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
82.7      (b) "Account" means the consumer protection restitution account established under this
82.8  section.
82.9      (c) "Account administrator" means a person appointed by the attorney general as an
82.10 account administrator under this section.
82.11     (d) "Consumer enforcement action" means litigation in any forum, or settlement of a
82.12 matter that could have resulted in litigation, by the attorney general in whole or in part under
82.13 (1) the authority of the attorney general provided in section 8.31, or (2) other authority
82.14 granted to the attorney general by law to obtain the remedies provided in section 8.31.
82.15     (e) "Consumer enforcement public compensation" means money awarded or recovered
82.16 in a consumer enforcement action to vindicate public interests by providing restitution or
82.17 other compensation to persons directly impacted by unlawful acts and practices that are the
82.18 subject of the consumer enforcement action.
82.19     (f) "Court-appointed administrator" means an administrator appointed by a court under
82.20 section 8.31, subdivision 3c.
82.21     (g) "Eligible consumer" means a person who was directly impacted by unlawful acts
82.22 and practices that are the subject of a consumer enforcement action and, as a result, is eligible
82.23 to receive consumer enforcement public compensation under a final order.
82.24     (h) "Final order" means a judgment, assurance of discontinuance, consent order,
82.25 settlement, stipulation, or other order or settlement that is no longer appealable and for
82.26 which no appeals are pending. A final order does not include any judgment, assurance of
82.27 discontinuance, consent order, settlement, stipulation, or other order or settlement entered
82.28 into before January 1, 2024.
82.29     (i) "Identified amount of unpaid consumer enforcement public compensation" means a
82.30 specific amount of consumer enforcement public compensation that the attorney general,
82.31 court-appointed administrator, or fund administrator has determined a specific eligible
Article 8 Sec. 9.  82
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83.1  consumer is entitled to receive following a final order in a consumer enforcement action
83.2  and that has not been distributed to the specific eligible consumer.
83.3      Subd. 3. Money deposited in the account. 50 percent of all money recovered by the
83.4  attorney general in a consumer enforcement action that is payable to the state and not
83.5  designated as consumer enforcement public compensation or for another specific purpose
83.6  up to the first $5,000,000 each fiscal year must be deposited into the account. The remaining
83.7  50 percent of money recovered by the attorney general in a consumer enforcement action
83.8  that is payable to the state and not designated as consumer enforcement public compensation
83.9  or for another specific purpose must be deposited into the general fund. For purposes of
83.10 this subdivision, the amount of money recovered in a consumer enforcement action that
83.11 must be deposited into the fund is determined at the time when the money otherwise would
83.12 have been deposited into the general fund.
83.13     Subd. 4. Permissible use of account. Money in the account must be used only to
83.14 distribute consumer enforcement action public compensation to eligible consumers under
83.15 subdivision 5 and for costs to administer the account. The costs to administer the account
83.16 may include the cost to retain for any permissible purpose an account administrator or
83.17 court-appointed administrator but must not exceed three percent of the total amount of
83.18 money available. The attorney general may pay an account administrator from the account
83.19 if the account contains excess money.
83.20     Subd. 5. Distributions to eligible consumers. (a) Money in the account may be
83.21 distributed to any eligible consumer with an identified amount of unpaid consumer
83.22 enforcement public compensation. If the amount of money in the account is insufficient to
83.23 pay all distributions to eligible consumers with an identified amount of unpaid consumer
83.24 enforcement public compensation, the money must be distributed first to consumers eligible
83.25 for unpaid consumer enforcement public compensation based on a consumer enforcement
83.26 action with a final order of the oldest date.
83.27     (b) If the attorney general projects that there will be insufficient funding to pay all eligible
83.28 consumers from the funds available on an ongoing basis, the attorney general may
83.29 recommend to the legislature that the legislature prescribe a formula for prorating or capping
83.30 payments to eligible consumers so that more eligible consumers will receive payment from
83.31 the fund.
83.32     Subd. 6. Impractical payments and unreasonable effort as to unpaid
83.33 compensation. (a) The attorney general may deem a distribution to an eligible consumer
Article 8 Sec. 9.  83
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84.1  with an identified amount of unpaid consumer enforcement public compensation impractical
84.2  if:
84.3(1) the distribution to the eligible consumer is too small to justify the cost to locate the
84.4  eligible consumer or make the payment;
84.5(2) the eligible consumer does not redeem a payment within a reasonable time; or
84.6(3) other circumstances make distributing the unpaid consumer enforcement compensation
84.7  to the eligible consumer unreasonable.
84.8(b) The attorney general may deem an attempt to determine an identified amount of
84.9  unpaid consumer enforcement public compensation for some or all eligible consumers
84.10 relating to a consumer enforcement action is unreasonable when the judgment, assurance
84.11 of discontinuance, consent order, settlement, stipulation, or other order or settlement does
84.12 not identify specific amounts of consumer enforcement public compensation for specific
84.13 consumers if:
84.14(1) the number of likely eligible consumers and the amount of likely unpaid consumer
84.15 enforcement public compensation is too small to justify the cost to determine an identified
84.16 amount of unpaid consumer enforcement public compensation;
84.17(2) the information needed to identify an amount of unpaid consumer enforcement public
84.18 compensation is unavailable or too costly to obtain; or
84.19(3) other circumstances make an attempt to determine an identified amount of unpaid
84.20 consumer enforcement public compensation unreasonable.
84.21Subd. 7. Concluded distributions. The attorney general must stop providing distributions
84.22 of unpaid consumer enforcement public compensation relating to a consumer enforcement
84.23 action when the attorney general determines:
84.24(1) all eligible consumers with an identified amount of unpaid consumer enforcement
84.25 public compensation for the consumer enforcement action have received a distribution
84.26 through the account or the distribution has been deemed impractical under subdivision 6,
84.27 paragraph (a); and
84.28(2) no additional eligible consumers with unpaid consumer enforcement public
84.29 compensation for the consumer enforcement action exist or the attorney general has deemed
84.30 identifying unpaid compensation under subdivision 6, paragraph (b), unreasonable.
84.31Subd. 8. Annual report. (a) The attorney general must publish on the attorney general's
84.32 website an annual report identifying the following information for the annual period:
Article 8 Sec. 9.  84
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85.1      (1) the consumer enforcement actions resulting in payment of money to the account and
85.2  the amount of money paid to the account for each consumer enforcement action;
85.3      (2) the consumer enforcement actions for which distributions were made to eligible
85.4  consumers, the amount of money distributed for each consumer enforcement action, and
85.5  the amount of money distributed to each eligible consumer;
85.6      (3) the consumer enforcement actions for which there are eligible consumers awaiting
85.7  distribution from the account and the amount of money for which those eligible consumers
85.8  are awaiting distribution for each consumer enforcement action;
85.9      (4) the consumer enforcement actions for which the attorney general has concluded
85.10 account distribution;
85.11     (5) the consumer enforcement actions in which the attorney general determined that
85.12 some or all eligible compensation was impractical to distribute or unreasonable to determine
85.13 under subdivision 6; and
85.14     (6) the cost incurred to administer the account.
85.15     (b) The attorney general must provide the report to the chairs and ranking minority
85.16 members of the legislative committees with jurisdiction over state government, commerce,
85.17 and judiciary.
85.18     Subd. 9. Account administrator. (a) The attorney general may appoint an administrator
85.19 for any of the following purposes:
85.20     (1) determining identified amounts of unpaid consumer enforcement public compensation
85.21 for eligible consumers;
85.22     (2) collecting money that can be deposited, in whole or in part, to the account;
85.23     (3) distributing money to eligible consumers; or
85.24     (4) any other costs to administer the account.
85.25     (b) The attorney general may appoint more than one account administrator.
85.26     Subd. 10. No private right of action. A person does not have a private right of action
85.27 with respect to a payment from the account or administration of the account.
85.28     Subd. 11. Collection efforts unaffected. The distribution of money from the account
85.29 to eligible consumers does not affect the attorney general's authority to collect, satisfy, or
85.30 enforce final orders against persons ordered to pay consumer enforcement public
85.31 compensation to eligible consumers in the final order. To the extent the attorney general
Article 8 Sec. 9.  85
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86.1  collects consumer enforcement public compensation pursuant to a final order after money
86.2  has been distributed from the account to eligible consumers that are the subject of that final
86.3  order, the collected consumer enforcement public compensation must be deposited in the
86.4  account in an amount equal to the prior account distribution.
86.5      EFFECTIVE DATE. This section is effective July 1, 2025.
86.6    Sec. 10. Minnesota Statutes 2024, section 16A.151, subdivision 2, is amended to read:
86.7      Subd. 2. Exceptions. (a) If a state official litigates or settles a matter on behalf of specific
86.8  injured persons or entities, this section does not prohibit distribution of money to the specific
86.9  injured persons or entities on whose behalf the litigation or settlement efforts were initiated.
86.10 If money recovered on behalf of injured persons or entities cannot reasonably be distributed
86.11 to those persons or entities because they cannot readily be located or identified or because
86.12 the cost of distributing the money would outweigh the benefit to the persons or entities, the
86.13 money must be paid into the general fund.
86.14     (b) Money recovered on behalf of a fund in the state treasury other than the general fund
86.15 may be deposited in that fund.
86.16     (c) This section does not prohibit a state official from distributing money to a person or
86.17 entity other than the state in litigation or potential litigation in which the state is a defendant
86.18 or potential defendant.
86.19     (d) State agencies may accept funds as directed by a federal court for any restitution or
86.20 monetary penalty under United States Code, title 18, section 3663(a)(3), or United States
86.21 Code, title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue
86.22 account and are appropriated to the commissioner of the agency for the purpose as directed
86.23 by the federal court.
86.24     (e) Tobacco settlement revenues as defined in section 16A.98, subdivision 1, paragraph
86.25 (t), may be deposited as provided in section 16A.98, subdivision 12.
86.26     (f) (e) Any money received by the state resulting from a settlement agreement or an
86.27 assurance of discontinuance entered into by the attorney general of the state, or a court order
86.28 in litigation brought by the attorney general of the state, on behalf of the state or a state
86.29 agency, related to alleged violations of consumer fraud laws in the marketing, sale, or
86.30 distribution of opioids in this state or other alleged illegal actions that contributed to the
86.31 excessive use of opioids, must be deposited in the settlement account established in the
86.32 opiate epidemic response fund under section 256.043, subdivision 1. This paragraph does
86.33 not apply to attorney fees and costs awarded to the state or the Attorney General's Office,
Article 8 Sec. 10.  86
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87.1  to contract attorneys hired by the state or Attorney General's Office, or to other state agency
87.2  attorneys.
87.3      (g) (f) Notwithstanding paragraph (f) (e), if money is received from a settlement
87.4  agreement or an assurance of discontinuance entered into by the attorney general of the
87.5  state or a court order in litigation brought by the attorney general of the state on behalf of
87.6  the state or a state agency against a consulting firm working for an opioid manufacturer or
87.7  opioid wholesale drug distributor, the commissioner shall deposit any money received into
87.8  the settlement account established within the opiate epidemic response fund under section
87.9  256.042, subdivision 1. Notwithstanding section 256.043, subdivision 3a, paragraph (a),
87.10 any amount deposited into the settlement account in accordance with this paragraph shall
87.11 be appropriated to the commissioner of human services to award as grants as specified by
87.12 the opiate epidemic response advisory council in accordance with section 256.043,
87.13 subdivision 3a, paragraph (e).
87.14     (h) (g) If the Minnesota Pollution Control Agency, through litigation or settlement of a
87.15 matter that could have resulted in litigation, recovers $250,000 or more in a civil penalty
87.16 from violations of a permit issued by the agency, then 40 percent of the money recovered
87.17 must be distributed to the community health board, as defined in section 145A.02, where
87.18 the permitted facility is located. Within 30 days of a final court order in the litigation or the
87.19 effective date of the settlement agreement, the commissioner of the Minnesota Pollution
87.20 Control Agency must notify the applicable community health board that the litigation has
87.21 concluded or a settlement has been reached. The commissioner must collect the money and
87.22 transfer it to the applicable community health board. The community health board must
87.23 meet directly with the residents potentially affected by the pollution that was the subject of
87.24 the litigation or settlement to identify the residents' concerns and incorporate those concerns
87.25 into a project that benefits the residents. The project must be implemented by the community
87.26 health board and funded as directed in this paragraph. The community health board may
87.27 recover the reasonable costs it incurs to administer this paragraph from the funds transferred
87.28 to the board under this paragraph. This paragraph directs the transfer and use of money only
87.29 and does not create a right of intervention in the litigation or settlement of the enforcement
87.30 action for any person or entity. A supplemental environmental project funded as part of a
87.31 settlement agreement is not part of a civil penalty and must not be included in calculating
87.32 the amount of funds required to be distributed to a community health board under this
87.33 paragraph. For the purposes of this paragraph, "supplemental environmental project" means
87.34 a project that benefits the environment or public health that a regulated facility agrees to
87.35 undertake, though not legally required to do so, as part of a settlement with respect to an
Article 8 Sec. 10.  87
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88.1  enforcement action taken by the Minnesota Pollution Control Agency to resolve
88.2  noncompliance.
88.3      (i) (h) A community health board receiving a transfer of funds under paragraph (h) (g)
88.4  must, no later than one year after receiving the funds, submit a report to the chairs and
88.5  ranking minority members of the senate and house of representatives committees with
88.6  primary jurisdiction over environment policy and natural resources that describes:
88.7      (1) the process of community engagement employed to solicit community input regarding
88.8  the use of the funds;
88.9      (2) the purposes and activities for which the funds were used; and
88.10     (3) an account of expenditures.
88.11     (j) (i) The commissioner of the Minnesota Pollution Control Agency must submit a
88.12 report in September each even-numbered year, beginning in 2024, to the chairs and ranking
88.13 minority members of the senate and house of representatives committees with primary
88.14 jurisdiction over environmental policy and natural resources that includes:
88.15     (1) the amount transferred under paragraph (h) (g) to each community health board
88.16 during the previous two years; and
88.17     (2) any agency services provided to the community health board or community residents
88.18 during the duration of the project funded by the transfer, and the cost of those agency
88.19 services, for consideration by the legislature for future appropriations that address
88.20 reimbursement of the amount of the transfers and the cost of services provided by the agency.
88.21     (k) (j) Any money received by the state resulting from a settlement agreement or an
88.22 assurance of discontinuance entered into by the attorney general of the state, or a court order
88.23 in litigation brought by the attorney general of the state on behalf of the state or a state
88.24 agency related to alleged violations of consumer fraud laws in the marketing, sale, or
88.25 distribution of electronic nicotine delivery systems in this state or other alleged illegal
88.26 actions that contributed to the exacerbation of youth nicotine use, must be deposited in the
88.27 tobacco use prevention account under section 144.398. This paragraph does not apply to:
88.28 (1) attorney fees and costs awarded or paid to the state or the Attorney General's Office; (2)
88.29 contract attorneys hired by the state or Attorney General's Office; or (3) other state agency
88.30 attorneys. The commissioner of management and budget must transfer to the tobacco use
88.31 prevention account, any money subject to this paragraph that is received by the state before
88.32 May 24, 2023.
Article 8 Sec. 10.  88
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89.1      (k) This section does not apply to money deposited in the consumer protection restitution
89.2  account under section 8.37.
89.3      EFFECTIVE DATE. This section is effective July 1, 2025.
89.4    Sec. 11. Minnesota Statutes 2024, section 37.31, subdivision 1, is amended to read:
89.5      Subdivision 1. Bonding authority. The society may issue negotiable bonds in a principal
89.6  amount that the society determines necessary to provide sufficient money for achieving its
89.7  purposes, including the payment of interest on bonds of the society, the establishment of
89.8  reserves to secure its bonds, the payment of fees to a third party providing credit
89.9  enhancement, and the payment of all other expenditures of the society incident to and
89.10 necessary or convenient to carry out its corporate purposes and powers. Bonds of the society
89.11 may be issued as bonds or notes or in any other form authorized by law. The principal
89.12 amount of bonds issued and outstanding under this section at any time may not exceed
89.13 $30,000,000 $50,000,000, excluding bonds for which refunding bonds or crossover refunding
89.14 bonds have been issued.
89.15     EFFECTIVE DATE. This section is effective July 1, 2025.
89.16   Sec. 12. Minnesota Statutes 2024, section 270C.11, subdivision 4, is amended to read:
89.17     Subd. 4. Contents. (a) The report shall detail for each tax expenditure item:
89.18     (1) the amount of tax revenue forgone;
89.19     (2) a citation of the statutory or other legal authority for the expenditure;
89.20     (3) the year in which it was enacted or the tax year in which it became effective;
89.21     (4) the purpose objective of the expenditure, as identified in the enacting legislation
89.22 submitted to the commission in accordance with section 3.192 or identified by the Tax
89.23 Expenditure Review Commission;
89.24     (5) the incidence of the expenditure, if it is a significant sales or income tax expenditure;
89.25 and
89.26     (6) the revenue-neutral amount by which the relevant tax rate could be reduced if the
89.27 expenditure were repealed.
89.28     (b) The report may contain additional information which the commissioner considers
89.29 relevant to the legislature's consideration and review of individual tax expenditure items.
89.30 This may include but is not limited to analysis of whether the expenditure is achieving that
89.31 objective and the effect of the expenditure on the administration of the tax system.
Article 8 Sec. 12.  89
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90.1      EFFECTIVE DATE. This section is effective the day following final enactment.
90.2    Sec. 13. Minnesota Statutes 2024, section 289A.60, subdivision 12, is amended to read:
90.3      Subd. 12. Penalties relating to property tax refunds and certificates of rent paid. (a)
90.4  If it is determined that a property tax refund claim is excessive and was negligently prepared,
90.5  a claimant is liable for a penalty of ten percent of the disallowed claim. If the claim has
90.6  been paid, the amount disallowed must be recovered by assessment and collection.
90.7      (b) An owner who without reasonable cause fails to give a certificate of rent paid to a
90.8  renter, as required by sections 290.0693, subdivision 4, paragraph (a), and 290A.19,
90.9  paragraph (a), is liable to the commissioner for a penalty of $100 $50 for each failure. The
90.10 commissioner may abate the penalty using the abatement authority in section 270C.34.
90.11     (c) An owner who fails to file a certificate of rent paid with the commissioner, as required
90.12 by sections 290.0693, subdivision 4, paragraph (b), and 290A.19, paragraph (b), is liable
90.13 to the commissioner for a penalty of $50 for each failure. The commissioner may abate the
90.14 penalty using the abatement authority in section 270C.34.
90.15     (c) (d) If the owner or managing agent knowingly gives rent certificates that report total
90.16 rent constituting property taxes in excess of the amount of actual rent constituting property
90.17 taxes paid on the rented part of a property, the owner or managing agent is liable for a
90.18 penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An
90.19 overstatement of rent constituting property taxes is presumed to be knowingly made if it
90.20 exceeds by ten percent or more the actual rent constituting property taxes.
90.21     EFFECTIVE DATE. This section is effective for rent paid after December 31, 2025.
90.22   Sec. 14. Minnesota Statutes 2024, section 290.0693, subdivision 4, is amended to read:
90.23     Subd. 4. Owner or managing agent to furnish rent certificate. (a) The owner or
90.24 managing agent of any property for which rent is paid for occupancy as a homestead must
90.25 furnish a certificate of rent paid to a person who is a renter on December 31, in the form
90.26 prescribed by the commissioner. If the renter moves before December 31, the owner or
90.27 managing agent may give the certificate to the renter at the time of moving, or mail the
90.28 certificate to the forwarding address if an address has been provided by the renter. The
90.29 certificate must be made available to the renter before February 1 of the year following the
90.30 year in which the rent was paid. The owner or managing agent must retain a duplicate of
90.31 each certificate or an equivalent record showing the same information for a period of four
Article 8 Sec. 14.  90
06/07/25   REVISOR  EAP/VJ  25-05695
91.1  years. The duplicate or other record must be made available to the commissioner upon
91.2  request.
91.3      (b) The commissioner may require the owner or managing agent, through a simple
91.4  process, to must furnish to the commissioner on or before January 31 a copy of each
91.5  certificate of rent paid furnished to a renter for rent paid in the prior year. The commissioner
91.6  shall prescribe the content, format, and manner of the form pursuant to section 270C.30.
91.7  The commissioner may require the Social Security number, individual taxpayer identification
91.8  number, federal employer identification number, or Minnesota taxpayer identification
91.9  number of the owner or managing agent who is required to furnish a certificate of rent paid
91.10 under this paragraph. Before implementation, the commissioner, after consulting with
91.11 representatives of owners or managing agents, shall develop an implementation and
91.12 administration plan for the requirements of this paragraph that attempts to minimize financial
91.13 burdens, administration and compliance costs, and takes into consideration existing systems
91.14 of owners and managing agents.
91.15     (c) An owner who fails to furnish the certificate of rent paid to the renter or to the
91.16 commissioner as required under this section is subject to the penalty imposed under section
91.17 289A.60, subdivision 12.
91.18     EFFECTIVE DATE. This section is effective for rent paid after December 31, 2025.
91.19   Sec. 15. Minnesota Statutes 2024, section 290A.19, is amended to read:
91.20     290A.19 PARK OWNER TO FURNISH RENT CERTIFICATE.
91.21     (a) The park owner of a property for which rent is paid for occupancy as a homestead
91.22 must furnish a certificate of rent paid to a person who is a renter on December 31, in the
91.23 form prescribed by the commissioner. If the renter moves before December 31, the park
91.24 owner may give the certificate to the renter at the time of moving, or mail the certificate to
91.25 the forwarding address if an address has been provided by the renter. The certificate must
91.26 be made available to the renter before February 1 of the year following the year in which
91.27 the rent was paid. The park owner must retain a duplicate of each certificate or an equivalent
91.28 record showing the same information for a period of three years. The duplicate or other
91.29 record must be made available to the commissioner upon request.
91.30     (b) The commissioner may require the park owner, through a simple process, to must
91.31 furnish to the commissioner on or before March 1 a copy of each certificate of rent paid
91.32 furnished to a renter for rent paid in the prior year. The commissioner shall prescribe the
91.33 content, format, and manner of the form pursuant to section 270C.30. The commissioner
Article 8 Sec. 15.  91
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92.1  may require the Social Security number, individual taxpayer identification number, federal
92.2  employer identification number, or Minnesota taxpayer identification number of the park
92.3  owner who is required to furnish a certificate of rent paid under this paragraph. Prior to
92.4  implementation, the commissioner, after consulting with representatives of park owners,
92.5  shall develop an implementation and administration plan for the requirements of this
92.6  paragraph that attempts to minimize financial burdens, administration and compliance costs,
92.7  and takes into consideration existing systems of park owners.
92.8      (c) For the purposes of this section, "park owner" means a park owner as defined under
92.9  section 327C.015, subdivision 9, and "property" includes a lot as defined under section
92.10 327C.015, subdivision 6.
92.11     (d) A park owner who fails to furnish the certificate of rent paid to the renter or to the
92.12 commissioner, as required under this section, is subject to the penalty imposed under section
92.13 289A.60, subdivision 12.
92.14     EFFECTIVE DATE. This section is effective for rent paid after December 31, 2025.
92.15   Sec. 16. Minnesota Statutes 2024, section 295.53, subdivision 4a, is amended to read:
92.16     Subd. 4a. Credit for research. (a) In addition to the exemptions allowed under
92.17 subdivision 1, a hospital or health care provider may claim an annual credit against the total
92.18 amount of tax, if any, the hospital or health care provider owes for that calendar year under
92.19 sections 295.50 to 295.57. The credit shall equal 2.5 0.5 percent of revenues for patient
92.20 services used to fund expenditures for qualifying research conducted by an allowable research
92.21 program. The amount of the credit shall not exceed the tax liability of the hospital or health
92.22 care provider under sections 295.50 to 295.57.
92.23     (b) For purposes of this subdivision, the following requirements apply:
92.24     (1) expenditures must be for program costs of qualifying research conducted by an
92.25 allowable research program;
92.26     (2) an allowable research program must be a formal program of medical and health care
92.27 research conducted by an entity which is exempt under section 501(c)(3) of the Internal
92.28 Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under
92.29 authority of a governmental unit;
92.30     (3) qualifying research must:
92.31     (A) be approved in writing by the governing body of the hospital or health care provider
92.32 which is taking the deduction under this subdivision;
Article 8 Sec. 16.  92
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93.1      (B) have as its purpose the development of new knowledge in basic or applied science
93.2  relating to the diagnosis and treatment of conditions affecting the human body;
93.3      (C) be subject to review by individuals with expertise in the subject matter of the proposed
93.4  study but who have no financial interest in the proposed study and are not involved in the
93.5  conduct of the proposed study; and
93.6      (D) be subject to review and supervision by an institutional review board operating in
93.7  conformity with federal regulations if the research involves human subjects or an institutional
93.8  animal care and use committee operating in conformity with federal regulations if the
93.9  research involves animal subjects. Research expenses are not exempt if the study is a routine
93.10 evaluation of health care methods or products used in a particular setting conducted for the
93.11 purpose of making a management decision. Costs of clinical research activities paid directly
93.12 for the benefit of an individual patient are excluded from this exemption. Basic research in
93.13 fields including biochemistry, molecular biology, and physiology are also included if such
93.14 programs are subject to a peer review process.
93.15     (c) No credit shall be allowed under this subdivision for any revenue received by the
93.16 hospital or health care provider in the form of a grant, gift, or otherwise, whether from a
93.17 government or nongovernment source, on which the tax liability under section 295.52 is
93.18 not imposed.
93.19     (d) The taxpayer shall apply for the credit under this section on the annual return under
93.20 section 295.55, subdivision 5.
93.21     (e) Beginning September 1, 2001, if the actual or estimated amount paid under this
93.22 section for the calendar year exceeds $2,500,000, the commissioner of management and
93.23 budget shall determine the rate of the research credit for the following calendar year to the
93.24 nearest one-half percent so that refunds paid under this section will most closely equal
93.25 $2,500,000. The commissioner of management and budget shall publish in the State Register
93.26 by October 1 of each year the rate of the credit for the following calendar year. A
93.27 determination under this section is not subject to the rulemaking provisions of chapter 14.
93.28     EFFECTIVE DATE. This section is effective the day following final enactment.
93.29   Sec. 17. Minnesota Statutes 2024, section 295.54, subdivision 2, is amended to read:
93.30     Subd. 2. Pharmacy refund. (a) A pharmacy may claim an annual a quarterly refund
93.31 against the total amount of tax, if any, the pharmacy owes during that calendar year under
93.32 section 295.52, subdivision 4. The refund shall equal to the amount paid by the pharmacy
93.33 to a wholesale drug distributor subject to tax under section 295.52, subdivision 3, for legend
Article 8 Sec. 17.  93
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94.1  drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax percentage
94.2  specified in section 295.52, subdivision 3. If the amount of the refund exceeds the tax
94.3  liability of the pharmacy under section 295.52, subdivision 4, the commissioner shall provide
94.4  the pharmacy with a refund equal to the excess amount.
94.5      (b) Each qualifying pharmacy must apply for the refund on the annual quarterly return
94.6  as prescribed by the commissioner, on or before March 15 of the year following the calendar
94.7  year the legend drugs were delivered outside Minnesota. as required under the following
94.8  schedule:
94.9      (1) for legend drugs delivered by the pharmacy outside of Minnesota between January
94.10 1 and March 31, a pharmacy may file its refund request on or after July 1 of the calendar
94.11 year in which the legend drugs are delivered by the pharmacy outside of Minnesota;
94.12     (2) for legend drugs delivered by the pharmacy outside of Minnesota between April 1
94.13 and June 30, a pharmacy may file its refund request on or after July 1 of the calendar year
94.14 in which the legend drugs are delivered by the pharmacy outside of Minnesota;
94.15     (3) for legend drugs delivered by the pharmacy outside of Minnesota between July 1
94.16 and September 30, a pharmacy may file its refund request on or after October 1 of the
94.17 calendar year in which the legend drugs are delivered by the pharmacy outside of Minnesota;
94.18 and
94.19     (4) for legend drugs delivered by the pharmacy outside of Minnesota between October
94.20 1 and December 31, a pharmacy may file its refund request on or after January 1 of the
94.21 calendar year immediately following the calendar year in which the legend drugs are
94.22 delivered by the pharmacy outside of Minnesota.
94.23     The refund shall not be (c) No refund is allowed if the initial claim for refund is filed
94.24 more than one year after the original due date of the return end of the quarter in which the
94.25 legend drugs were delivered by the pharmacy outside of Minnesota. Interest on refunds paid
94.26 under this subdivision will begin begins to accrue 60 days after the date a claim for refund
94.27 is filed. For purposes of this subdivision, the date a claim is filed is the due date of the return
94.28 if a return is due or the date of the actual claim for refund, whichever is later.
94.29     EFFECTIVE DATE. This section is effective for legend drugs delivered outside of
94.30 Minnesota after December 31, 2025.
Article 8 Sec. 17.  94
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95.1    Sec. 18. Minnesota Statutes 2024, section 295.81, subdivision 10, is amended to read:
95.2      Subd. 10. Deposit of revenues; account established. (a) The commissioner must deposit
95.3  the revenues, including penalties and interest, derived from the tax imposed by this section
95.4  as follows:
95.5      (1) 80 percent to in the general fund; and.
95.6      (2) 20 percent to the local government cannabis aid account in the special revenue fund.
95.7      (b) The local government cannabis aid account is established in the special revenue fund.
95.8      EFFECTIVE DATE. The amendment to paragraph (a) is effective for revenues received
95.9  after June 30, 2025. The amendment to paragraph (b) is effective January 2, 2026.
95.10   Sec. 19. Minnesota Statutes 2024, section 609.902, subdivision 4, is amended to read:
95.11     Subd. 4. Criminal act. "Criminal act" means conduct constituting, or a conspiracy or
95.12 attempt to commit, a felony violation of chapter 152, or a felony violation of section 297D.09;
95.13 299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222;
95.14 609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343;
95.15 609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
95.16 subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
95.17 a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
95.18 clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
95.19 if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
95.20 subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
95.21 609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
95.22 offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
95.23 also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
95.24 of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
95.25 insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
95.26 plan corporation regulated under chapter 62C, a health maintenance organization regulated
95.27 under chapter 62D, or a fraternal benefit society regulated under chapter 64B.
95.28     EFFECTIVE DATE. This section is effective August 1, 2025.
95.29   Sec. 20. CANCELLATION OF AMOUNTS IN LOCAL GOVERNMENT CANNABIS
95.30 AID ACCOUNT.
95.31     On January 2, 2026, any balance within the local government cannabis aid account in
95.32 the special revenue fund is canceled to the general fund.
Article 8 Sec. 20.  95
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96.1      EFFECTIVE DATE. This section is effective the day following final enactment.
96.2    Sec. 21. APPROPRIATION; EXTENSION OF AVAILABILITY.
96.3      Notwithstanding Minnesota Statutes, section 16A.28, the appropriation in Laws 2023,
96.4  chapter 64, article 15, section 30, is available until June 30, 2027.
96.5    Sec. 22. REPEALER.
96.6      (a) Minnesota Statutes 2024, sections 297D.01; 297D.02; 297D.03; 297D.04; 297D.05;
96.7  297D.06; 297D.07; 297D.08; 297D.085; 297D.09; 297D.10; 297D.11; 297D.12; and
96.8  297D.13, are repealed.
96.9      (b) Minnesota Statutes 2024, section 477A.32, is repealed.
96.10     (c) Minnesota Statutes 2024, section 13.4967, subdivision 5, is repealed.
96.11     EFFECTIVE DATE. Paragraph (a) is effective August 1, 2025. Paragraph (b) is effective
96.12 for aids payable in 2026 and thereafter. Paragraph (c) is effective August 1, 2025.
96.13ARTICLE 9
96.14    DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE
96.15FRANCHISE TAXES
96.16   Section 1. Minnesota Statutes 2024, section 116U.27, subdivision 2, is amended to read:
96.17     Subd. 2. Credit allowed. A taxpayer is eligible for a credit up to 25 percent of eligible
96.18 production costs paid in a taxable year any consecutive 12-month period as described in
96.19 subdivision 1, paragraph (h). A taxpayer may only claim a credit if the taxpayer was issued
96.20 a credit certificate under subdivision 4.
96.21     EFFECTIVE DATE. This section is effective retroactively for taxable years beginning
96.22 after December 31, 2022.
96.23   Sec. 2. Minnesota Statutes 2024, section 290.0132, subdivision 26, as amended by Laws
96.24 2025, chapter 20, section 230, is amended to read:
96.25     Subd. 26. Social Security benefits. (a) A taxpayer is allowed a subtraction equal to the
96.26 greater of the simplified subtraction allowed under paragraph (b) or the alternate subtraction
96.27 determined under paragraph (e).
96.28     (b) A taxpayer's simplified subtraction equals the amount of taxable social security
96.29 benefits, as reduced under paragraphs (c) and (d).
Article 9 Sec. 2.  96
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97.1      (c) For a taxpayer other than a married taxpayer filing a separate return with adjusted
97.2  gross income above the phaseout threshold, the simplified subtraction is reduced by ten
97.3  percent for each $4,000 of adjusted gross income, or fraction thereof, in excess of the
97.4  phaseout threshold. The phaseout threshold equals:
97.5      (1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
97.6      (2) $78,000 for a single or head of household taxpayer; and
97.7      (3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
97.8  filing a joint return.
97.9      (d) For a married taxpayer filing a separate return, the simplified subtraction is reduced
97.10 by ten percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of
97.11 the phaseout threshold.
97.12     (e) A taxpayer's alternate subtraction equals the lesser of taxable Social Security benefits
97.13 or a maximum subtraction subject to the limits under paragraphs (f), (g), and (h).
97.14     (f) For married taxpayers filing a joint return and surviving spouses, the maximum
97.15 subtraction under paragraph (e) equals $5,840. The maximum subtraction is reduced by 20
97.16 percent of provisional income over $88,630. In no case is the subtraction less than zero.
97.17     (g) For single or head-of-household taxpayers, the maximum subtraction under paragraph
97.18 (e) equals $4,560. The maximum subtraction is reduced by 20 percent of provisional income
97.19 over $69,250. In no case is the subtraction less than zero.
97.20     (h) For married taxpayers filing separate returns, the maximum subtraction under
97.21 paragraph (e) equals one-half the maximum subtraction for joint returns under paragraph
97.22 (f). The maximum subtraction is reduced by 20 percent of provisional income over one-half
97.23 the threshold amount specified in paragraph (d). In no case is the subtraction less than zero.
97.24     (i) For purposes of this subdivision, "provisional income" means modified adjusted gross
97.25 income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the
97.26 taxable Social Security benefits received during the taxable year, and "Social Security
97.27 benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
97.28     (j) The commissioner shall adjust the phaseout threshold amounts in paragraph (c),
97.29 clauses (1) and (2), as provided in section 270C.22. The statutory year is taxable year 2023.
97.30 The maximum subtraction and threshold amounts as adjusted must be rounded to the nearest
97.31 $10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
Article 9 Sec. 2.  97
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98.1      EFFECTIVE DATE. This section is effective retroactively for taxable years beginning
98.2  after December 31, 2022.
98.3    Sec. 3. Minnesota Statutes 2024, section 290.0132, subdivision 34, is amended to read:
98.4      Subd. 34. Qualified retirement benefits. (a) The amount of qualified public pension
98.5  income is a subtraction. The subtraction in this section is limited to:
98.6      (1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
98.7      (2) $12,500 for all other filers.
98.8      (b) For a taxpayer with adjusted gross income above the phaseout threshold, the
98.9  subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction
98.10 thereof, in excess of the threshold. The phaseout threshold equals:
98.11     (1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
98.12     (2) $78,000 for a single or head of household taxpayer; or
98.13     (3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
98.14 filing a joint return.
98.15     (c) For the purposes of this section, "qualified public pension income" means any amount
98.16 received:
98.17     (1) by a former basic member or the survivor of a former basic member, as an annuity
98.18 or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A,
98.19 provided that the annuity or benefit is based on service for which the member or survivor
98.20 is not also receiving did not earn Social Security benefits;
98.21     (2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State
98.22 Patrol retirement plan under chapter 352B, or the public employees police and fire plan
98.23 under sections 353.63 to 353.666, provided that the annuity or benefit is based on service
98.24 for which the member or survivor is not also receiving did not earn Social Security benefits;
98.25     (3) from any retirement system administered by the federal government that is based on
98.26 service for which the recipient or the recipient's survivor is not also receiving did not earn
98.27 Social Security benefits; or
98.28     (4) from a public retirement system of or created by another state or any of its political
98.29 subdivisions, or the District of Columbia, if the income tax laws of the other state or district
98.30 permit a similar deduction or exemption or a reciprocal deduction or exemption of a
Article 9 Sec. 3.  98
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99.1  retirement or pension benefit received from a public retirement system of or created by this
99.2  state or any political subdivision of this state.
99.3      (d) The commissioner must annually adjust the subtraction limits in paragraph (a) and
99.4  the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year
99.5  is taxable year 2023.
99.6      EFFECTIVE DATE. This section is effective the day following final enactment.
99.7    Sec. 4. Minnesota Statutes 2024, section 290.0134, subdivision 20, is amended to read:
99.8      Subd. 20. Delayed business interest. (a) For each taxable year an addition is required
99.9  under section 290.0131, subdivision 19 290.0133, subdivision 15, the amount of the addition,
99.10 less the sum of all amounts subtracted under this paragraph in all prior taxable years, that
99.11 does not exceed the limitation on business interest in section 163(j) of the Internal Revenue
99.12 Code of 1986, as amended through December 15, 2022, notwithstanding the special rule in
99.13 section 163(j)(10) of the Internal Revenue Code, is a subtraction. Any excess is a delayed
99.14 business interest carryforward, the entire amount of which must be carried to the earliest
99.15 taxable year. No subtraction is allowed under this paragraph for taxable years beginning
99.16 after December 31, 2022.
99.17     (b) For each of the five taxable years beginning after December 31, 2022, there is allowed
99.18 a subtraction equal to one-fifth of the sum of all carryforward amounts that remain after the
99.19 expiration of paragraph (a).
99.20     (c) Entities that are part of a combined reporting group under the unitary rules of section
99.21 290.17, subdivision 4, must compute deductions and additions as required under section
99.22 290.34, subdivision 5.
99.23     EFFECTIVE DATE. This section is effective retroactively for taxable years beginning
99.24 after December 31, 2019.
99.25   Sec. 5. Minnesota Statutes 2024, section 290.0693, subdivision 1, is amended to read:
99.26     Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
99.27 the meanings given.
99.28     (b) "Dependent" means any individual who is considered a dependent under sections
99.29 151 and 152 of the Internal Revenue Code and was claimed by the taxpayer as a dependent.
99.30     (c) "Disability" has the meaning given in section 290A.03, subdivision 10.
Article 9 Sec. 5.  99
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100.1      (d) "Exemption amount" means the exemption amount under section 290.0121,
100.2  subdivision 1, paragraph (b).
100.3      (e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
100.4  homestead, exclusive of charges for any medical services furnished by the landlord as a
100.5  part of the rental agreement, whether expressly set out in the rental agreement or not. The
100.6  gross rent of a resident of a nursing home or intermediate care facility is $600 per month.
100.7  The gross rent of a resident of an adult foster care home is $930 per month. The commissioner
100.8  shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
100.9  statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's
100.10 length and the commissioner determines that the gross rent charged was excessive, the
100.11 commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
100.12     (f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
100.13     (g) "Household" has the meaning given in section 290A.03, subdivision 4.
100.14     (h) "Household income" means all income received by all persons of a household in a
100.15 taxable year while members of the household, other than income of a dependent.
100.16     (i) "Income" means adjusted gross income, minus:
100.17     (1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
100.18     (2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
100.19     (3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
100.20     (4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
100.21     (5) for the taxpayer's fifth dependent, the exemption amount; and
100.22     (6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
100.23 before the close of the taxable year, the exemption amount.
100.24     (j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid
100.25 in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable
100.26 year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the
100.27 taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim
100.28 for a credit under this section by the claimant. If an individual occupies a homestead with
100.29 another person or persons not related to the individual as the individual's spouse or as
100.30 dependents, and the other person or persons are residing at the homestead under a rental or
100.31 lease agreement with the individual, the amount of rent constituting property tax for the
100.32 individual equals that portion not covered by the rental agreement.
  Article 9 Sec. 5.  100
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101.1      EFFECTIVE DATE. This section is effective for taxable years beginning after December
101.2  31, 2024.
101.3    Sec. 6. Minnesota Statutes 2024, section 290.0693, subdivision 6, is amended to read:
101.4      Subd. 6. Residents of nursing homes, intermediate care facilities, long-term care
101.5  facilities, or facilities accepting housing support payments. (a) A taxpayer must not claim
101.6  a credit under this section if the taxpayer is a resident of a nursing home, intermediate care
101.7  facility, long-term residential facility, or a facility that accepts housing support payments
101.8  whose rent constituting property taxes is paid pursuant to the Supplemental Security Income
101.9  program under title XVI of the Social Security Act, the Minnesota supplemental aid program
101.10 under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
101.11 of the Social Security Act, or the housing support program under chapter 256I.
101.12     (b) If only a portion of the rent constituting property taxes is paid by these programs,
101.13 the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction,
101.14 the numerator of which is adjusted gross income, reduced by the total amount of income
101.15 from the above sources other than vendor payments under the medical assistance program
101.16 and the denominator of which is adjusted gross income, plus vendor payments under the
101.17 medical assistance program, to determine the allowable credit.
101.18     (c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing
101.19 home, intermediate care facility, long-term residential facility, or facility for which the rent
101.20 was paid for the claimant by the housing support program for only a portion of the taxable
101.21 year covered by the claim, the taxpayer may compute rent constituting property taxes by
101.22 disregarding the rent constituting property taxes from the nursing home or facility and may
101.23 use only that amount of rent constituting property taxes or property taxes payable relating
101.24 to that portion of the year when the taxpayer was not in the facility. The taxpayer's household
101.25 income is the income for the entire taxable year covered by the claim.
101.26     EFFECTIVE DATE. This section is effective for taxable years beginning after December
101.27 31, 2024.
101.28   Sec. 7. Minnesota Statutes 2024, section 290.0693, subdivision 8, is amended to read:
101.29     Subd. 8. One claimant per household. Only one taxpayer per household per year is
101.30 entitled to claim a credit under this section. In the case of a married couple filing a joint
101.31 return, the couple may claim a credit under this section based on the total amount of both
101.32 spouses' gross rent. In the case of a married taxpayer filing a separate return, only one spouse
101.33 may claim the credit under this section. The credit amount for the spouse that claims the
  Article 9 Sec. 7.  101
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102.1  credit must be calculated based on household income and both spouses' share of the gross
102.2  rent and not solely on the income of the spouse.
102.3      EFFECTIVE DATE. This section is effective for taxable years beginning after December
102.4  31, 2024.
102.5    Sec. 8. Minnesota Statutes 2024, section 290.0695, subdivision 2, is amended to read:
102.6      Subd. 2. Credit allowed; limitation; carryover. (a) An eligible taxpayer is allowed a
102.7  credit against tax due under this chapter equal to 50 percent of eligible expenses, not to
102.8  exceed $3,000 per mile, multiplied by the number of miles of railroad track owned or leased
102.9  within the state by the eligible taxpayer for which the taxpayer made the qualified railroad
102.10 reconstruction or replacement expenditures as of the close of the taxable year for which the
102.11 credit is claimed made by an eligible taxpayer within this state during the taxable year for
102.12 which the credit is claimed.
102.13     (b) The credit allowed under paragraph (a) for any taxable year must not exceed the
102.14 product of:
102.15     (1) $3,000, multiplied by;
102.16     (2) the number of miles of railroad track owned or leased by the eligible taxpayer within
102.17 this state as of the close of the taxable year for which the taxpayer made qualified railroad
102.18 reconstruction or replacement expenditures for which the credit is claimed.
102.19     (b) (c) If the amount of the credit determined under this section for any taxable year
102.20 exceeds the liability for tax under this chapter, the excess is a credit carryover to each of
102.21 the five succeeding taxable years. The entire amount of the excess unused credit for the
102.22 taxable year must be carried first to the earliest of the taxable years to which the credit may
102.23 be carried and then to each successive year to which the credit may be carried. The amount
102.24 of the unused credit that may be added under this paragraph must not exceed the taxpayer's
102.25 liability for tax less the credit for the taxable year.
102.26     (c) (d) An eligible taxpayer claiming a credit under this section may not also claim the
102.27 credit under section 297I.20, subdivision 6, for the same qualified railroad reconstruction
102.28 or replacement expenditures.
102.29     EFFECTIVE DATE. This section is effective retroactively for taxable years beginning
102.30 after December 31, 2022.
  Article 9 Sec. 8.  102
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103.1    Sec. 9. Laws 2023, chapter 1, section 22, is amended to read:
103.2    Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS,
103.3  ESTATES, AND TRUSTS.
103.4      (a) For the purposes of this section:
103.5      (1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
103.6  subdivision 1, and the rules in that subdivision apply to this section;
103.7      (2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision
103.8  1, and the rules in that subdivision apply to this section; and
103.9      (3) the definitions in Minnesota Statutes, section 290.01, apply to this section.
103.10     (b) The following amounts are subtractions:
103.11     (1) the amount of wages used for the calculation of the employee retention credit for
103.12 employers affected by qualified disasters, to the extent not deducted from income, under
103.13 Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section
103.14 303;
103.15     (2) the amount of wages used for the calculation of the payroll credit for required paid
103.16 sick leave, to the extent not deducted from income, under Public Law 116-127, section
103.17 7001, as amended by section 9641 of Public Law 117-2;
103.18     (3) the amount of wages or expenses used for the calculation of the payroll credit for
103.19 required paid family leave, to the extent not deducted from income, under Public Law
103.20 116-127, section 7003, as amended by section 9641 of Public Law 117-2;
103.21     (4) the amount of wages used for the calculation of the employee retention credit for
103.22 employers subject to closure due to COVID-19, to the extent not deducted from income,
103.23 under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE,
103.24 section 207, and Public Law 117-2, section 9651; and
103.25     (5) the amount required to be added to gross income to claim the credit in section 6432
103.26 of the Internal Revenue Code.
103.27     (c) The following amounts are additions:
103.28     (1) the amount subtracted for qualified tuition expenses under section 222 of the Internal
103.29 Revenue Code, as amended by Public Law 116-94, division Q, section 104;
103.30     (2) the amount of above the line charitable contributions deducted under section 2204
103.31 of Public Law 116-136;
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104.1      (3) the amount of meal expenses in excess of the 50 percent limitation under section
104.2  274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2),
104.3  subparagraph (D), of that section; and
104.4      (4) the amount of charitable contributions deducted from federal taxable income by a
104.5  trust for taxable year 2020 under Public Law 116-136, section 2205(a).
104.6      (d) The commissioner of revenue must apply the subtractions in paragraph (b) and the
104.7  additions in paragraph (c), when calculating the following:
104.8      (1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
104.9  (e);
104.10     (2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section
104.11 290.091; and
104.12     (3) "income" as defined in Minnesota Statutes, section 289A.08, subdivision 7, paragraph
104.13 (j), for the purposes of determining the tax for composite filers and the pass-through entity
104.14 tax, means the partner's share of federal adjusted gross income from the partnership modified
104.15 by the additions provided in Minnesota Statutes, section 290.0131, subdivisions 8 to 10,
104.16 16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes, section 290.0132,
104.17 subdivisions 9, 27, and 28, to the extent the amount is assignable or allocable to Minnesota
104.18 under Minnesota Statutes, section 290.17; and (ii) Minnesota Statutes, section 290.0132,
104.19 subdivision 14. The subtraction allowed under Minnesota Statutes, section 290.0132,
104.20 subdivision 9, is only allowed on the composite tax computation to the extent the electing
104.21 partner would have been allowed the subtraction.
104.22     (e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter
104.23 290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income,"
104.24 as defined in Minnesota Statutes, section 290A.03, subdivision 3.
104.25     EFFECTIVE DATE. This section is effective retroactively at the same time the changes
104.26 in Laws 2023, chapter 1, section 22, were effective for federal purposes.
104.27ARTICLE 10
104.28DEPARTMENT OF REVENUE; SALES AND USE TAXES
104.29   Section 1. Minnesota Statutes 2024, section 297A.71, subdivision 54, is amended to read:
104.30     Subd. 54. Sustainable aviation fuel facilities. (a) Materials and supplies used or
104.31 consumed in and equipment incorporated into the construction, reconstruction, or
104.32 improvement of a facility located in Minnesota that produces or blends sustainable aviation
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105.1  fuel, as defined in section 41A.30, subdivision 1, is if materials, supplies, and equipment
105.2  are purchased after June 30, 2027, and before July 1, 2034, are exempt.
105.3      (b) The tax must be imposed and collected as if the rate under section 297A.62,
105.4  subdivision 1, applied and then refunded in the manner as provided for projects under section
105.5  297A.75, subdivision 1, clause (1).
105.6      (c) For a project, a portion of which is not used to produce or blend sustainable aviation
105.7  fuel, the amount of purchases that are exempt under this subdivision must be determined
105.8  by multiplying the total purchases, as specified in paragraph (a), by the ratio of:
105.9      (1) the capacity to generate sustainable aviation fuel either through production or
105.10 blending; and
105.11     (2) the capacity to generate all fuels.
105.12     (d) This subdivision expires July 1, 2034. The expiration does not affect refunds due for
105.13 sales and purchases made prior to July 1, 2034.
105.14     EFFECTIVE DATE. This section is effective the day following final enactment.
105.15   Sec. 2. Minnesota Statutes 2024, section 297A.75, subdivision 1, as amended by Laws
105.16 2025, chapter 20, section 233, is amended to read:
105.17     Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following
105.18 exempt items must be imposed and collected as if the sale were taxable and the rate under
105.19 section 297A.62, subdivision 1, applied. The exempt items include:
105.20     (1) building materials for an agricultural processing facility exempt under section
105.21 297A.71, subdivision 13;
105.22     (2) building materials for mineral production facilities exempt under section 297A.71,
105.23 subdivision 14;
105.24     (3) building materials for correctional facilities under section 297A.71, subdivision 3;
105.25     (4) building materials used in a residence for veterans with a disability exempt under
105.26 section 297A.71, subdivision 11;
105.27     (5) elevators and building materials exempt under section 297A.71, subdivision 12;
105.28     (6) materials and supplies for qualified low-income housing under section 297A.71,
105.29 subdivision 23;
105.30     (7) materials, supplies, and equipment for municipal electric utility facilities under
105.31 section 297A.71, subdivision 35;
  Article 10 Sec. 2.  105
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106.1(8) equipment and materials used for the generation, transmission, and distribution of
106.2  electrical energy and an aerial camera package exempt under section 297A.68, subdivision
106.3  37;
106.4(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
106.5  (a), clause (10);
106.6(10) materials, supplies, and equipment for construction or improvement of projects and
106.7  facilities under section 297A.71, subdivision 40;
106.8(11) enterprise information technology equipment and computer software for use in a
106.9  qualified data center exempt under section 297A.68, subdivision 42;
106.10(12) materials, supplies, and equipment for qualifying capital projects under section
106.11 297A.71, subdivision 44, paragraphs (a) and (b);
106.12(13) items purchased for use in providing critical access dental services exempt under
106.13 section 297A.70, subdivision 7, paragraph (c);
106.14(14) items and services purchased under a business subsidy agreement for use or
106.15 consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
106.16 44;
106.17(15) building materials, equipment, and supplies for constructing or replacing real
106.18 property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;
106.19(16) building materials, equipment, and supplies for qualifying capital projects under
106.20 section 297A.71, subdivision 52; and
106.21(17) building materials, equipment, and supplies for constructing, remodeling, expanding,
106.22 or improving a fire station, police station, or related facilities exempt under section 297A.71,
106.23 subdivision 53.; and
106.24(18) building materials, equipment, and supplies for constructing, remodeling, or
106.25 improving a sustainable aviation fuel facility exempt under section 297A.71, subdivision
106.26 54.
106.27EFFECTIVE DATE. This section is effective the day following final enactment.
106.28   Sec. 3. Minnesota Statutes 2024, section 297A.75, subdivision 2, is amended to read:
106.29Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
106.30 commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
106.31 be paid to the applicant. Only the following persons may apply for the refund:
  Article 10 Sec. 3.  106
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107.1      (1) for subdivision 1, clauses (1), (2), and (13), the applicant must be the purchaser;
107.2      (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
107.3      (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
107.4  provided in United States Code, title 38, chapter 21;
107.5      (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
107.6  property;
107.7      (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
107.8      (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
107.9  joint venture of municipal electric utilities;
107.10     (7) for subdivision 1, clauses (8), (11), and (14), the owner of the qualifying business;
107.11     (8) for subdivision 1, clauses (9), (10), (12), (16), and (17), the applicant must be the
107.12 governmental entity that owns or contracts for the project or facility; and
107.13     (9) for subdivision 1, clause (15), the applicant must be the owner or developer of the
107.14 building or project.; and
107.15     (10) for subdivision 1, clause (18), the applicant must be the owner or developer of the
107.16 sustainable aviation fuel facility.
107.17     EFFECTIVE DATE. This section is effective the day following final enactment.
107.18   Sec. 4. Minnesota Statutes 2024, section 297A.75, subdivision 3, is amended to read:
107.19     Subd. 3. Application. (a) The application must include sufficient information to permit
107.20 the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
107.21 or builder, under subdivision 1, clauses (3) to (12) or (14) to (17) (18), the contractor,
107.22 subcontractor, or builder must furnish to the refund applicant a statement including the cost
107.23 of the exempt items and the taxes paid on the items unless otherwise specifically provided
107.24 by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
107.25 this section.
107.26     (b) An applicant may not file more than two applications per calendar year for refunds
107.27 for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
107.28     EFFECTIVE DATE. This section is effective the day following final enactment.
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108.1    Sec. 5. Minnesota Statutes 2024, section 297A.94, is amended to read:
108.2      297A.94 DEPOSIT OF REVENUES.
108.3      (a) Except as provided in this section, the commissioner shall deposit the revenues,
108.4  including interest and penalties, derived from the taxes imposed by this chapter in the state
108.5  treasury and credit them to the general fund.
108.6      (b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
108.7  account in the special revenue fund if:
108.8      (1) the taxes are derived from sales and use of property and services purchased for the
108.9  construction and operation of an agricultural resource project; and
108.10     (2) the purchase was made on or after the date on which a conditional commitment was
108.11 made for a loan guaranty for the project under section 41A.04, subdivision 3.
108.12 The commissioner of management and budget shall certify to the commissioner the date on
108.13 which the project received the conditional commitment. The amount deposited in the loan
108.14 guaranty account must be reduced by any refunds and by the costs incurred by the Department
108.15 of Revenue to administer and enforce the assessment and collection of the taxes.
108.16     (c) The commissioner shall deposit the revenues, including interest and penalties, derived
108.17 from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
108.18 paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
108.19     (1) first to the general obligation special tax bond debt service account in each fiscal
108.20 year the amount required by section 16A.661, subdivision 3, paragraph (b); and
108.21     (2) after the requirements of clause (1) have been met, the balance to the general fund.
108.22     (d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
108.23 in the state treasury the revenues collected under section 297A.64, subdivision 1, including
108.24 interest and penalties and minus refunds, and credit them to the highway user tax distribution
108.25 fund.
108.26     (e) The commissioner shall deposit the revenues, including interest and penalties,
108.27 collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
108.28 general fund. By July 15 of each year the commissioner shall transfer to the highway user
108.29 tax distribution fund an amount equal to the excess fees collected under section 297A.64,
108.30 subdivision 5, for the previous calendar year.
108.31     (f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
108.32 of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
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109.1  credit to the highway user tax distribution fund an amount equal to the estimated revenues
109.2  derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
109.3  rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
109.4  commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
109.5  based on the amount of revenue deposited under paragraph (d).
109.6      (g) Each month the commissioner must deposit the an amount equal to the estimated
109.7  revenues derived from the taxes imposed under section 297A.62, subdivision 1, on the sale
109.8  and purchase of motor vehicle repair and replacement parts in the state treasury and credit:
109.9      (1) 43.5 percent in each fiscal year to the highway user tax distribution fund;
109.10     (2) a percentage to the transportation advancement account under section 174.49 as
109.11 follows:
109.12     (i) 3.5 percent in fiscal year 2024;
109.13     (ii) 4.5 percent in fiscal year 2025;
109.14     (iii) 5.5 percent in fiscal year 2026;
109.15     (iv) 7.5 percent in fiscal year 2027;
109.16     (v) 14.5 percent in fiscal year 2028;
109.17     (vi) 21.5 percent in fiscal year 2029;
109.18     (vii) 28.5 percent in fiscal year 2030;
109.19     (viii) 36.5 percent in fiscal year 2031;
109.20     (ix) 44.5 percent in fiscal year 2032; and
109.21     (x) 56.5 percent in fiscal year 2033 and thereafter; and
109.22     (3) the remainder in each fiscal year to the general fund.
109.23 After each February forecast, and prior to the following April 15, the commissioner shall
109.24 estimate the monthly deposit amount for use in the following fiscal year based on the estimate
109.25 of average revenue derived from the taxes imposed under section 297A.62, subdivision 1,
109.26 on the sale and purchase of motor vehicle repair and replacement parts from the department's
109.27 three most recent consumption tax models. For purposes of this paragraph, "motor vehicle"
109.28 has the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair and
109.29 replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into
109.30 or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii)
109.31 paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle
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110.1  maintenance or repair. For purposes of this paragraph, "tire" means any tire of the type used
110.2  on highway vehicles, if wholly or partially made of rubber and if marked according to
110.3  federal regulations for highway use.
110.4      (h) 81.56 percent of the revenues, including interest and penalties, transmitted to the
110.5  commissioner under section 297A.65, must be deposited by the commissioner in the state
110.6  treasury as follows:
110.7      (1) 47.5 percent of the receipts must be deposited in the heritage enhancement account
110.8  in the game and fish fund, and may be spent only on activities that improve, enhance, or
110.9  protect fish and wildlife resources, including conservation, restoration, and enhancement
110.10 of land, water, and other natural resources of the state;
110.11     (2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
110.12 be spent only for state parks and trails;
110.13     (3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
110.14 be spent only on metropolitan park and trail grants;
110.15     (4) three percent of the receipts must be deposited in the natural resources fund, and
110.16 may be spent only on local trail grants;
110.17     (5) two percent of the receipts must be deposited in the natural resources fund, and may
110.18 be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
110.19 and the Duluth Zoo; and
110.20     (6) 2.5 percent of the receipts must be deposited in the pollinator account established in
110.21 section 103B.101, subdivision 19.
110.22     (i) 1.5 percent of the revenues, including interest and penalties, transmitted to the
110.23 commissioner under section 297A.65 must be deposited in a regional parks and trails account
110.24 in the natural resources fund and may only be spent for parks and trails of regional
110.25 significance outside of the seven-county metropolitan area under section 85.535, based on
110.26 recommendations from the Greater Minnesota Regional Parks and Trails Commission under
110.27 section 85.536.
110.28     (j) 1.5 percent of the revenues, including interest and penalties, transmitted to the
110.29 commissioner under section 297A.65 must be deposited in an outdoor recreational
110.30 opportunities for underserved communities account in the natural resources fund and may
110.31 only be spent on projects and activities that connect diverse and underserved Minnesotans
110.32 through expanding cultural environmental experiences, exploration of their environment,
110.33 and outdoor recreational activities.
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111.1      (k) The revenue dedicated under paragraph (h) may not be used as a substitute for
111.2  traditional sources of funding for the purposes specified, but the dedicated revenue shall
111.3  supplement traditional sources of funding for those purposes. Land acquired with money
111.4  deposited in the game and fish fund under paragraph (h) must be open to public hunting
111.5  and fishing during the open season, except that in aquatic management areas or on lands
111.6  where angling easements have been acquired, fishing may be prohibited during certain times
111.7  of the year and hunting may be prohibited. At least 87 percent of the money deposited in
111.8  the game and fish fund for improvement, enhancement, or protection of fish and wildlife
111.9  resources under paragraph (h) must be allocated for field operations.
111.10     (l) The commissioner must deposit the revenues, including interest and penalties minus
111.11 any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
111.12 that may be sold to persons 18 years old or older and that are not prohibited from use by
111.13 the general public under section 624.21, in the state treasury and credit:
111.14     (1) 25 percent to the volunteer fire assistance grant account established under section
111.15 88.068;
111.16     (2) 25 percent to the fire safety account established under section 297I.06, subdivision
111.17 3; and
111.18     (3) the remainder to the general fund.
111.19     For purposes of this paragraph, the percentage of total sales and use tax revenue derived
111.20 from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
111.21 sold to persons 18 years old or older and are not prohibited from use by the general public
111.22 under section 624.21, is a set percentage of the total sales and use tax revenues collected in
111.23 the state, with the percentage determined under Laws 2017, First Special Session chapter
111.24 1, article 3, section 39.
111.25     (m) The revenues deposited under paragraphs (a) to (l) do not include the revenues,
111.26 including interest and penalties, generated by the sales tax imposed under section 297A.62,
111.27 subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
111.28 article XI, section 15.
111.29     EFFECTIVE DATE. This section is effective the day following final enactment.
111.30   Sec. 6. Minnesota Statutes 2024, section 297A.99, subdivision 10, is amended to read:
111.31     Subd. 10. Use of zip code in determining location of sale. (a) The lowest combined
111.32 tax rate imposed in the zip code area applies if the area includes more than one tax rate in
111.33 any level of taxing jurisdictions.
  Article 10 Sec. 6.  111
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112.1      (b) If a nine-digit zip code designation is not available for a street address or if a seller
112.2  is unable to determine the nine-digit zip code designation of a purchaser after exercising
112.3  due diligence to determine the designation, the seller may apply the rate for the five-digit
112.4  zip code area.
112.5      (c) For the purposes of this subdivision, there is a rebuttable presumption that a seller
112.6  has exercised due diligence for a sale that requires a full street address to be completed if
112.7  the seller has attempted to determine the nine-digit zip code designation by utilizing (1) the
112.8  look-up application form the United States Postal Service; (2) software certified by the
112.9  Coding Accuracy Support System; or (3) other software approved by the governing board
112.10 that makes this designation from the street address and the five-digit zip code of the
112.11 purchaser. For a sale that does not require a full street address to be completed, a seller has
112.12 not exercised due diligence unless the seller has obtained or requested from the purchaser
112.13 (1) the complete street address, including the five-digit zip code; or (2) the nine-digit zip
112.14 code. A seller that has not exercised due diligence is not relieved from any additional liability
112.15 that may be due as a result of incorrect sourcing.
112.16     (d) Notwithstanding subdivision 13, this subdivision applies to all local sales taxes
112.17 without regard to the date of authorization. This subdivision does not apply when the
112.18 purchased product is received by the purchaser at the business location of the seller.
112.19     EFFECTIVE DATE. This section is effective for sales and purchases made after June
112.20 30, 2025.
112.21   Sec. 7. Minnesota Statutes 2024, section 297A.995, subdivision 2, is amended to read:
112.22     Subd. 2. Definitions. As used in this section:
112.23     (a) "Agreement" means the Streamlined Sales and Use Tax Agreement.
112.24     (b) "Certified automated system" means software certified jointly by the states that are
112.25 signatories to the agreement to calculate the tax imposed by each jurisdiction on a transaction,
112.26 determine the amount of tax to remit to the appropriate state, and maintain a record of the
112.27 transaction.
112.28     (c) "Certified service provider" means an agent certified jointly by the states that are
112.29 signatories to the agreement to perform all of the seller's sales tax functions under the
112.30 Agreement to perform the seller's sales and use tax functions as outlined in the contract
112.31 between the Streamlined Sales Tax Governing Board and the certified service providers,
112.32 except that sellers retain the obligation to remit tax on their own purchases.
  Article 10 Sec. 7.  112
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113.1      EFFECTIVE DATE. This section is effective for sales and purchases made after June
113.2  30, 2025.
113.3    Sec. 8. Minnesota Statutes 2024, section 297A.995, subdivision 10, is amended to read:
113.4      Subd. 10. Relief from certain liability. (a) Notwithstanding subdivision 9, sellers and
113.5  certified service providers are relieved from liability to the state for having charged and
113.6  collected the incorrect amount of sales or use tax resulting from the seller or certified service
113.7  provider (1) relying on erroneous data provided by the commissioner in the database files
113.8  on tax rates, boundaries, or taxing jurisdiction assignments, or (2) relying on erroneous data
113.9  provided by the state in its taxability matrix concerning the taxability of products and
113.10 services.
113.11     (b) Notwithstanding subdivision 9, sellers and certified service providers are relieved
113.12 from liability to the state for having charged and collected the incorrect amount of sales or
113.13 use tax resulting from the seller or certified service provider relying on the certification by
113.14 the commissioner as to the accuracy of a certified automated system as to the taxability of
113.15 product categories. The relief from liability provided by this paragraph does not apply when
113.16 the sellers or certified service providers have incorrectly classified an item or transaction
113.17 into a product category, unless the item or transaction within a product category was approved
113.18 by the commissioner or approved jointly by the states that are signatories to the agreement.
113.19 The sellers and certified service providers must revise a classification within ten days after
113.20 receipt of notice from the commissioner that an item or transaction within a product category
113.21 is incorrectly classified as to its taxability, or they are not relieved from liability for the
113.22 incorrect classification following the notification.
113.23     (c) Notwithstanding subdivision 9, if there are not at least 30 days between the enactment
113.24 of a new tax rate and the effective date of the new rate, sellers and certified service providers
113.25 shall be relieved from liability for failing to collect tax at the new rate during the first 30
113.26 days of the rate change, beginning on the day after the date of enactment of the rate change,
113.27 provided the seller or certified service provider continued to impose and collect the tax at
113.28 the immediately preceding tax rate during this period. Relief from liability provided by this
113.29 paragraph shall not apply if the failure to collect at the newly effective rate extends beyond
113.30 30 days after the enactment of the new rate. The relief provided by this paragraph shall not
113.31 apply if the commissioner determines that the seller or certified service provider fraudulently
113.32 failed to collect at the new rate or that the seller or certified service provider solicited
113.33 purchasers based on the immediately preceding tax rate.
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114.1      (d) Certified service providers are relieved from liability to the state when a seller fails
114.2  to remit all or a portion of the seller's taxes prior to the due date of the remittance if the
114.3  certified service provider has provided notification as outlined in the contract between the
114.4  Streamlined Sales Tax Governing Board and the certified service provider.
114.5      EFFECTIVE DATE. This section is effective for sales and purchases made after June
114.6  30, 2025.
114.7ARTICLE 11
114.8DEPARTMENT OF REVENUE; MISCELLANEOUS
114.9    Section 1. Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:
114.10     Subd. 3. Standards of conduct. No tax preparer shall:
114.11     (1) without good cause fail to promptly, diligently, and without unreasonable delay
114.12 complete a client's return;
114.13     (2) obtain the signature of a client to a return or authorizing document that contains
114.14 blank spaces to be filled in after it has been signed;
114.15     (3) fail to sign a client's return when compensation for services rendered has been made;
114.16     (4) fail to provide on a client's return the preparer tax identification number when required
114.17 under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
114.18     (5) fail or refuse to give a client a copy of any document requiring the client's signature
114.19 within a reasonable time after the client signs the document;
114.20     (6) fail to retain for at least four years a copy of a client's returns;
114.21     (7) fail to maintain a confidential relationship with clients or former clients;
114.22     (8) fail to take commercially reasonable measures to safeguard a client's nonpublic
114.23 personal information;
114.24     (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
114.25 indirectly, any false, deceptive, or misleading statement or representation relating to or in
114.26 connection with the offering or provision of tax preparation services;
114.27     (10) require a client to enter into a loan arrangement in order to complete a client's return;
114.28     (11) claim credits or deductions on a client's return for which the tax preparer knows or
114.29 reasonably should know the client does not qualify;
  Article 11 Section 1.  114
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115.1      (12) report a household income on a client's claim filed under chapter 290A that the tax
115.2  preparer knows or reasonably should know is not accurate;
115.3      (13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
115.4  13, 20, 20a, 26, or 28;
115.5      (14) whether or not acting as a taxpayer representative, fail to conform to the standards
115.6  of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
115.7      (15) whether or not acting as a taxpayer representative, engage in any conduct that is
115.8  incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
115.9      (16) whether or not acting as a taxpayer representative, engage in any conduct that is
115.10 disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
115.11     (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
115.12 refund for tax preparation services;
115.13     (18) under any circumstances, withhold or fail to return to a client a document provided
115.14 by the client for use in preparing the client's return;
115.15     (19) take control or ownership of a client's refund or department payment by any means,
115.16 including:
115.17     (i) directly or indirectly endorsing or otherwise negotiating a check or other refund
115.18 instrument, including an electronic version of a check;
115.19     (ii) directing an electronic or direct deposit of the refund or department payment into an
115.20 account unless the client's name is on the account; and
115.21     (iii) establishing or using an account in the preparer's name to receive a client's refund
115.22 or department payment through a direct deposit or any other instrument unless the client's
115.23 name is also on the account, except that a taxpayer may assign the portion of a refund
115.24 representing the Minnesota education credit available under section 290.0674 to a bank
115.25 account without the client's name, as provided under section 290.0679;
115.26     (20) fail to act in the best interests of the client;
115.27     (21) fail to safeguard and account for any money handled for the client;
115.28     (22) fail to disclose all material facts of which the preparer has knowledge which might
115.29 reasonably affect the client's rights and interests;
115.30     (23) violate any provision of section 332.37;
  Article 11 Section 1.  115
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116.1      (24) include any of the following in any document provided or signed in connection
116.2  with the provision of tax preparation services:
116.3      (i) a hold harmless clause;
116.4      (ii) a confession of judgment or a power of attorney to confess judgment against the
116.5  client or appear as the client in any judicial proceeding;
116.6      (iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
116.7  a debtor;
116.8      (iv) an assignment of or an order for payment of wages or other compensation for
116.9  services;
116.10     (v) a provision in which the client agrees not to assert any claim or defense otherwise
116.11 available;
116.12     (vi) a waiver of any provision of this section or a release of any obligation required to
116.13 be performed on the part of the tax preparer; or
116.14     (vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
116.15 a class basis; or
116.16     (25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
116.17 disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
116.18 form that may be retained by the client.
116.19     EFFECTIVE DATE. This section is effective for taxable years beginning after December
116.20 31, 2024.
116.21   Sec. 2. Minnesota Statutes 2024, section 270C.445, subdivision 6, is amended to read:
116.22     Subd. 6. Enforcement; administrative order; penalties; cease and desist. (a) The
116.23 commissioner may impose an administrative penalty of not more than $1,000 per violation
116.24 of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
116.25 for any conduct for which a tax preparer penalty is imposed under section 289A.60,
116.26 subdivision 13. The commissioner may terminate a tax preparer's authority to transmit
116.27 returns electronically to the state, if the commissioner determines the tax preparer engaged
116.28 in a pattern and practice of violating this section. Imposition of a penalty under this paragraph
116.29 is subject to the contested case procedure under chapter 14. The commissioner shall collect
116.30 the penalty in the same manner as the income tax. There is no right to make a claim for
116.31 refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
116.32 under this paragraph are public data.
  Article 11 Sec. 2.  116
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117.1      (b) In addition to the penalty under paragraph (a), if the commissioner determines that
117.2  a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
117.3  issue an administrative order to the tax preparer requiring the tax preparer to cease and
117.4  desist from committing the violation. The administrative order may include an administrative
117.5  penalty provided in paragraph (a).
117.6      (c) If the commissioner issues an administrative order under paragraph (b), the
117.7  commissioner must send the order to the tax preparer addressed to the last known address
117.8  of the tax preparer.
117.9      (d) A cease and desist order under paragraph (b) must:
117.10     (1) describe the act, conduct, or practice committed and include a reference to the law
117.11 that the act, conduct, or practice violates; and
117.12     (2) provide notice that the tax preparer may request a hearing as provided in this
117.13 subdivision.
117.14     (e) Within 30 days after the commissioner issues an administrative order under paragraph
117.15 (b), the tax preparer may request a hearing to review the commissioner's action. The request
117.16 for hearing must be made in writing and must be served on the commissioner at the address
117.17 specified in the order. The hearing request must specifically state the reasons for seeking
117.18 review of the order. The date on which a request for hearing is served by mail is the postmark
117.19 date on the envelope in which the request for hearing is mailed.
117.20     (f) If a tax preparer does not timely request a hearing regarding an administrative order
117.21 issued under paragraph (b), the order becomes a final order of the commissioner and is not
117.22 subject to review by any court or agency.
117.23     (g) If a tax preparer timely requests a hearing regarding an administrative order issued
117.24 under paragraph (b), the hearing must be commenced by the issuance of a notice of and
117.25 order for hearing by the commissioner within ten 30 days after the commissioner receives
117.26 the request for a hearing.
117.27     (h) A hearing timely requested under paragraph (e) is subject to the contested case
117.28 procedure under chapter 14, as modified by this subdivision. The administrative law judge
117.29 must issue a report containing findings of fact, conclusions of law, and a recommended
117.30 order within ten 30 days after the completion of the hearing, the receipt of late-filed exhibits,
117.31 or the submission of written arguments, whichever is later.
117.32     (i) Within five 15 days of the date of the administrative law judge's report issued under
117.33 paragraph (h), any party aggrieved by the administrative law judge's report may submit
  Article 11 Sec. 2.  117
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118.1  written exceptions and arguments to the commissioner. Within 15 45 days after receiving
118.2  the administrative law judge's report, the commissioner must issue an order vacating,
118.3  modifying, or making final the administrative order.
118.4      (j) The commissioner and the tax preparer requesting a hearing may by agreement
118.5  lengthen any time periods prescribed in paragraphs (g) to (i).
118.6      (k) An administrative order issued under paragraph (b) is in effect until it is modified
118.7  or vacated by the commissioner or an appellate court. The administrative hearing provided
118.8  by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
118.9  the exclusive remedy for a tax preparer aggrieved by the order.
118.10     (l) The commissioner may impose an administrative penalty, in addition to the penalty
118.11 under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
118.12 paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
118.13 procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
118.14 this paragraph, the tax preparer assessed the penalty may request a hearing to review the
118.15 penalty order. The request for hearing must be made in writing and must be served on the
118.16 commissioner at the address specified in the order. The hearing request must specifically
118.17 state the reasons for seeking review of the order. The cease and desist order issued under
118.18 paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
118.19 this paragraph. The date on which a request for hearing is served by mail is the postmark
118.20 date on the envelope in which the request for hearing is mailed. If the tax preparer does not
118.21 timely request a hearing, the penalty order becomes a final order of the commissioner and
118.22 is not subject to review by any court or agency. A penalty imposed by the commissioner
118.23 under this paragraph may be collected and enforced by the commissioner as an income tax
118.24 liability. There is no right to make a claim for refund under section 289A.50 of the penalty
118.25 imposed under this paragraph. A penalty imposed under this paragraph is public data.
118.26     (m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
118.27 commissioner may terminate the tax preparer's authority to transmit returns electronically
118.28 to the state. Termination under this paragraph is public data.
118.29     (n) A cease and desist order issued under paragraph (b) is public data when it is a final
118.30 order.
118.31     (o) Notwithstanding any other law, the commissioner may impose a penalty or take other
118.32 action under this subdivision against a tax preparer, with respect to a return, within the
118.33 period to assess tax on that return as provided by sections 289A.38 to 289A.382.
  Article 11 Sec. 2.  118
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119.1      (p) Notwithstanding any other law, the imposition of a penalty or any other action against
119.2  a tax preparer under this subdivision, other than with respect to a return, must be taken by
119.3  the commissioner within five years of the violation of statute.
119.4      EFFECTIVE DATE. This section is effective for penalties assessed and orders issued
119.5  after the day following final enactment.
119.6    Sec. 3. Minnesota Statutes 2024, section 273.13, subdivision 22, is amended to read:
119.7      Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and
119.8  (c), real estate which is residential and used for homestead purposes is class 1a. In the case
119.9  of a duplex or triplex in which one of the units is used for homestead purposes, the entire
119.10 property is deemed to be used for homestead purposes. The market value of class 1a property
119.11 must be determined based upon the value of the house, garage, and land.
119.12     The first $500,000 of market value of class 1a property has a net classification rate of
119.13 one percent of its market value; and the market value of class 1a property that exceeds
119.14 $500,000 has a classification rate of 1.25 percent of its market value.
119.15     (b) Class 1b property includes homestead real estate or homestead manufactured homes
119.16 used for the purposes of a homestead by:
119.17     (1) any person who is blind as defined in section 256D.35, or the person who is blind
119.18 and the spouse of the person who is blind;
119.19     (2) any person who is permanently and totally disabled or by the person with a disability
119.20 and the spouse of the person with a disability; or
119.21     (3) the surviving spouse of a veteran who was permanently and totally disabled
119.22 homesteading a property classified under this paragraph for taxes payable in 2008.
119.23     Property is classified and assessed under clause (2) only if the government agency or
119.24 income-providing source certifies, upon the request of the homestead occupant, that the
119.25 homestead occupant satisfies the disability requirements of this paragraph, and that the
119.26 property is not eligible for the valuation exclusion under subdivision 34.
119.27     Property is classified and assessed under paragraph (b) only if the commissioner of
119.28 revenue or the county assessor certifies that the homestead occupant satisfies the requirements
119.29 of this paragraph.
119.30     Permanently and totally disabled for the purpose of this subdivision means a condition
119.31 which is permanent in nature and totally incapacitates the person from working at an
119.32 occupation which brings the person an income. The first $50,000 market value of class 1b
  Article 11 Sec. 3.  119
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120.1  property has a net classification rate of .45 0.45 percent of its market value. The remaining
120.2  market value of class 1b property is classified as class 1a or property, class 2a property, or
120.3  class 4d(2) property, whichever is appropriate.
120.4      (c) Class 1c property is commercial use real and personal property that abuts public
120.5  water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
120.6  the Department of Natural Resources, and is devoted to temporary and seasonal residential
120.7  occupancy for recreational purposes but not devoted to commercial purposes for more than
120.8  250 days in the year preceding the year of assessment, and that includes a portion used as
120.9  a homestead by the owner, which includes a dwelling occupied as a homestead by a
120.10 shareholder of a corporation that owns the resort, a partner in a partnership that owns the
120.11 resort, or a member of a limited liability company that owns the resort even if the title to
120.12 the homestead is held by the corporation, partnership, or limited liability company. For
120.13 purposes of this paragraph, property is devoted to a commercial purpose on a specific day
120.14 if any portion of the property, excluding the portion used exclusively as a homestead, is
120.15 used for residential occupancy and a fee is charged for residential occupancy. Class 1c
120.16 property must contain three or more rental units. A "rental unit" is defined as a cabin,
120.17 condominium, townhouse, sleeping room, or individual camping site equipped with water
120.18 and electrical hookups for recreational vehicles. Class 1c property must provide recreational
120.19 activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
120.20 or cross-country ski equipment; provide marina services, launch services, or guide services;
120.21 or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
120.22 to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
120.23 for class 1c even though it may remain available for rent. A camping pad offered for rent
120.24 by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
120.25 the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
120.26 the same owner owns two separate parcels that are located in the same township, and one
120.27 of those properties is classified as a class 1c property and the other would be eligible to be
120.28 classified as a class 1c property if it was used as the homestead of the owner, both properties
120.29 will be assessed as a single class 1c property; for purposes of this sentence, properties are
120.30 deemed to be owned by the same owner if each of them is owned by a limited liability
120.31 company, and both limited liability companies have the same membership. The portion of
120.32 the property used as a homestead is class 1a property under paragraph (a). The remainder
120.33 of the property is classified as follows: the first $600,000 of market value is tier I, the next
120.34 $1,700,000 of market value is tier II, and any remaining market value is tier III. The
120.35 classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
120.36 percent. Owners of real and personal property devoted to temporary and seasonal residential
  Article 11 Sec. 3.  120
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121.1  occupancy for recreation purposes in which all or a portion of the property was devoted to
121.2  commercial purposes for not more than 250 days in the year preceding the year of assessment
121.3  desiring classification as class 1c, must submit a declaration to the assessor designating the
121.4  cabins or units occupied for 250 days or less in the year preceding the year of assessment
121.5  by January 15 of the assessment year. Those cabins or units and a proportionate share of
121.6  the land on which they are located must be designated as class 1c as otherwise provided.
121.7  The remainder of the cabins or units and a proportionate share of the land on which they
121.8  are located must be designated as class 3a commercial. The owner of property desiring
121.9  designation as class 1c property must provide guest registers or other records demonstrating
121.10 that the units for which class 1c designation is sought were not occupied for more than 250
121.11 days in the year preceding the assessment if so requested. The portion of a property operated
121.12 as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
121.13 other nonresidential facility operated on a commercial basis not directly related to temporary
121.14 and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
121.15     (d) Class 1d property includes structures that meet all of the following criteria:
121.16     (1) the structure is located on property that is classified as agricultural property under
121.17 section 273.13, subdivision 23;
121.18     (2) the structure is occupied exclusively by seasonal farm workers during the time when
121.19 they work on that farm, and the occupants are not charged rent for the privilege of occupying
121.20 the property, provided that use of the structure for storage of farm equipment and produce
121.21 does not disqualify the property from classification under this paragraph;
121.22     (3) the structure meets all applicable health and safety requirements for the appropriate
121.23 season; and
121.24     (4) the structure is not salable as residential property because it does not comply with
121.25 local ordinances relating to location in relation to streets or roads.
121.26     The market value of class 1d property has the same classification rates as class 1a property
121.27 under paragraph (a).
121.28     EFFECTIVE DATE. This section is effective beginning with assessment year 2025
121.29 and thereafter.
121.30   Sec. 4. Minnesota Statutes 2024, section 289A.12, subdivision 18, is amended to read:
121.31     Subd. 18. Returns Return by qualified heirs. A qualified heir, as defined in section
121.32 291.03, subdivision 8, paragraph (c), must file two returns a return with the commissioner
121.33 attesting that no disposition or cessation as provided by section 291.03, subdivision 11,
  Article 11 Sec. 4.  121
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122.1  paragraph (a), occurred. The first return must be filed no earlier than 24 months and no later
122.2  than 26 months after the decedent's death. The second return must be filed no earlier than
122.3  36 months and no later than 39 months after the decedent's death.
122.4      EFFECTIVE DATE. This section is effective the day following final enactment.
122.5    Sec. 5. Minnesota Statutes 2024, section 297E.06, subdivision 4, is amended to read:
122.6      Subd. 4. Annual audit, and certified inventory, and cash count. (a) An organization
122.7  licensed under chapter 349 with gross receipts from lawful gambling of more than $750,000
122.8  in any year must have an annual financial audit of its lawful gambling activities and funds
122.9  for that year. For the purposes of this subdivision, "gross receipts" does not include a licensed
122.10 organization's receipts from electronic pull-tabs regulated under chapter 349 provided the
122.11 electronic pull-tab manufacturer has completed an annual system and organization controls
122.12 audit, containing standards that must incorporate and be consistent with standards prescribed
122.13 by the American Institute of Certified Public Accountants.
122.14     (b) The commissioner may require a financial audit of the lawful gambling activities
122.15 and funds of an organization licensed under chapter 349, with gross receipts less than
122.16 $750,000 annually, when an organization has:
122.17     (1) failed to timely file required gambling tax returns;
122.18     (2) failed to timely pay the gambling tax or regulatory fee;
122.19     (3) filed fraudulent gambling tax returns;
122.20     (4) failed to take corrective actions required by the commissioner; or
122.21     (5) failed to otherwise comply with this chapter.
122.22     (c) Audits under this subdivision must be performed by an independent accountant firm
122.23 licensed in accordance with chapter 326A.
122.24     (d) An organization licensed under chapter 349 must perform an annual certified inventory
122.25 and cash count report at the end of its fiscal year and submit the report to the commissioner
122.26 within 30 days after the end of its fiscal year. The report shall be on a form prescribed by
122.27 the commissioner.
122.28     (e) The commissioner of revenue shall prescribe standards for the audits, and certified
122.29 inventory, and cash count reports report required under this subdivision. The standards may
122.30 vary based on the gross receipts of the organization. The standards must incorporate and
122.31 be consistent with standards prescribed by the American Institute of Certified Public
  Article 11 Sec. 5.  122
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123.1  Accountants. A complete, true, and correct copy of the audits, certified inventory, and cash
123.2  count report must be filed as prescribed by the commissioner.
123.3      EFFECTIVE DATE. This section is effective July 1, 2025.
123.4    Sec. 6. Minnesota Statutes 2024, section 297I.20, subdivision 4, is amended to read:
123.5      Subd. 4. Film production credit. (a) A taxpayer may claim a credit against the premiums
123.6  tax imposed under this chapter equal to the amount indicated on the credit certificate
123.7  statement issued to the company under section 116U.27. If the amount of the credit exceeds
123.8  the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of
123.9  the five succeeding taxable years. The entire amount of the excess unused credit for the
123.10 taxable year must be carried first to the earliest of the taxable years to which the credit may
123.11 be carried and then to each successive year to which the credit may be carried. This credit
123.12 does not affect the calculation of fire state aid under section 477B.03 and police state aid
123.13 under section 477C.03.
123.14     (b) This subdivision expires January 1, 2025 2031, for taxable years beginning after and
123.15 premiums received after December 31, 2024 2030.
123.16     EFFECTIVE DATE. This section is effective the day following final enactment.
123.17   Sec. 7. Laws 2023, chapter 1, section 28, is amended to read:
123.18   Sec. 28. EXTENSION OF STATUTE OF LIMITATIONS.
123.19     (a) Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as
123.20 a result of this act may file an amended return by December 31, 2023. The commissioner
123.21 may review and assess the return of a taxpayer covered by this provision for the later of:
123.22     (1) the periods under Minnesota Statutes, sections 289A.38; 289.39 289A.39, subdivision
123.23 3; and 289A.40; or
123.24     (2) one year from the time the amended return is filed as a result of a change in tax
123.25 liability under this section.
123.26     (b) Interest on any additional liabilities as a result of any provision in this act accrue
123.27 beginning on January 1, 2024.
123.28     EFFECTIVE DATE. This section is effective retroactively at the same time the changes
123.29 incorporated in Laws 2023, chapter 1, were effective for federal purposes.
  Article 11 Sec. 7.  123
  APPENDIX
  Article locations for 25-05695
ARTICLE 1   INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES.. Page.Ln 2.9
ARTICLE 2   PROPERTY TAXES.............................................................................. Page.Ln 20.9
ARTICLE 3   SALES AND USE TAXES; EXCISE TAXES....................................... Page.Ln 38.20
ARTICLE 4   PROPERTY TAX AIDS......................................................................... Page.Ln 45.1
ARTICLE 5   TAX INCREMENT FINANCING......................................................... Page.Ln 50.7
ARTICLE 6   LOCAL SALES AND USE TAXES...................................................... Page.Ln 69.15
ARTICLE 7   PUBLIC FINANCE................................................................................ Page.Ln 70.20
ARTICLE 8   MISCELLANEOUS............................................................................... Page.Ln 78.1
  DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND
ARTICLE 9   CORPORATE FRANCHISE TAXES.................................................... Page.Ln 96.13
ARTICLE 10 DEPARTMENT OF REVENUE; SALES AND USE TAXES.............. Page.Ln 104.27
ARTICLE 11 DEPARTMENT OF REVENUE; MISCELLANEOUS......................... Page.Ln 114.7
1
  APPENDIX
  Repealed Minnesota Statutes: 25-05695
    13.4967 OTHER TAX DATA CODED ELSEWHERE.
     Subd. 2a. Assignment of refund. Data regarding assignment of individual income tax refunds
is classified by section 290.0679, subdivision 9.
    Subd. 5. Marijuana and controlled substance tax information. Disclosure of information
obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3.
    275.065 PROPOSED PROPERTY TAXES; NOTICE.
    Subd. 3c. Notice of proposed taxes; property subject to chapter 276A. 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.
    276.04 NOTICE OF RATES; PROPERTY TAX STATEMENTS.
    Subd. 2a. Contents of tax statements; property subject to chapter 276A. 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.
    290.0679 ASSIGNMENT OF REFUND.
    Subdivision 1. Definitions. (a) "Qualifying taxpayer" means a resident who has a child in
kindergarten through grade 12 in the current tax year and who met the income requirements under
section 290.0674, subdivision 2, for receiving the education credit in the tax year preceding the
assignment of the taxpayer's refund.
    (b) "Education credit" means the credit allowed under section 290.0674.
    (c) "Refund" means an individual income tax refund.
    (d) "Financial institution" means a state or federally chartered bank, savings bank, savings
association, or credit union.
    (e) "Qualifying organization" means a tax-exempt organization under section 501(c)(3) of the
Internal Revenue Code.
   (f) "Assignee" means a financial institution or qualifying organization that is entitled to receive
payment of a refund assigned under this section.
    Subd. 2. Conditions for assignment. A qualifying taxpayer may assign all or part of an
anticipated refund for the current and future taxable years to a financial institution or a qualifying
organization. A financial institution or qualifying organization accepting assignment must pay the
amount secured by the assignment to a third-party vendor. The commissioner of education shall,
upon request from a third-party vendor, certify that the vendor's products and services qualify for
the education credit. A denial of a certification may be appealed to the commissioner pursuant to
this subdivision and notwithstanding chapter 14. A financial institution or qualifying organization
that accepts assignments under this section must verify as part of the assignment documentation
that the product or service to be provided by the third-party vendor has been certified by the
commissioner of education as qualifying for the education credit. The amount assigned for the
current and future taxable years may not exceed the maximum allowable education credit for the
current taxable year. Both the taxpayer and spouse must consent to the assignment of a refund from
a joint return.
   Subd. 3. Consent for disclosure. When the taxpayer applies to the financial institution or the
qualifying organization for a loan to be secured by the assignment under subdivision 2, the taxpayer
  1R
  APPENDIX
  Repealed Minnesota Statutes: 25-05695
must sign a written consent on a form prescribed by the commissioner. The consent must authorize
the commissioner to disclose to the financial institution or qualifying organization the total amount
of state taxes owed or revenue recapture claims filed under chapter 270A against the taxpayer, and
the total amount of outstanding assignments made by the taxpayer under this section. For a refund
from a joint return, the consent must also authorize the disclosure of taxes, revenue recapture claims,
and assignments relating to the taxpayer's spouse, and must be signed by the spouse. The financial
institution or qualifying organization may request that the taxpayer provide a copy of the taxpayer's
previous year's income tax return, if any, and may assist the taxpayer in requesting a copy of the
previous year's return from the commissioner.
   Subd. 4. Consumer disclosure. (a) A third-party vendor that receives payment of the amount
secured by an assignment must comply with the requirements of this subdivision.
    (b) The third-party vendor must disclose to the taxpayer, in plain language:
    (1) the cost of each product or service for which the third-party vendor separately charges the
taxpayer;
    (2) any fees charged to the taxpayer for tax preparation services; and
    (3) for qualifying low-income taxpayers, information on the availability of free tax preparation
services.
    (c) The third-party vendor must provide to the taxpayer executed copies of any documents
signed by the taxpayer.
     Subd. 5. Filing of assignment. The commissioner shall prescribe the form of and manner for
filing an assignment of a refund under this section.
    Subd. 6. Effect of assignment. The taxpayer may not revoke an assignment after it has been
filed. The assignee must notify the commissioner if the loan secured by the assignment has been
paid in full, in which case the assignment is canceled. An assignment is in effect until the amount
assigned is refunded in full to the assignee, or until the assignee cancels the assignment.
    Subd. 7. Payment of refund. When a refund assigned under this section is issued by the
commissioner, the proceeds of the refund, as defined in subdivision 1, paragraph (c), must be
distributed in the following order:
    (1) to satisfy any delinquent tax obligations of the taxpayer which are owed to the commissioner;
    (2) to claimant agencies to satisfy any revenue recapture claims filed against the taxpayer, in
the order of priority of the claims set forth in section 270A.10;
    (3) to assignees to satisfy assignments under this section, based on the order in time in which
the commissioner received the assignments; and
    (4) to the taxpayer.
    Subd. 8. Legal action. If there is a dispute between the taxpayer and the assignee after the
commissioner has remitted the taxpayer's refund to the assignee, the taxpayer's only remedy is to
bring an action against the assignee in court to recover the refund. The action must be brought
within two years after the commissioner remits the refund to the assignee. The commissioner may
not be a party to the proceeding.
    Subd. 9. Assignments private data. Information regarding assignments under this section is
classified as private data on individuals.
    297D.01 DEFINITIONS.
    Subdivision 1. Illegal cannabis. "Illegal cannabis" means any taxable cannabis product as
defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held,
possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota
criminal laws.
    Subd. 2. Controlled substance. "Controlled substance" means any drug or substance, whether
real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported,
transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does
not include illegal cannabis.
   Subd. 3. Tax obligor or obligor. "Tax obligor" or "obligor" means a person who in violation
of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any
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  APPENDIX
  Repealed Minnesota Statutes: 25-05695
manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams
of any controlled substance, or ten or more dosage units of any controlled substance which is not
sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the
weight of the substance whether pure or impure or dilute, or by dosage units when the substance
is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute
if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
   Subd. 4. Commissioner. "Commissioner" means the commissioner of revenue.
   297D.02 ADMINISTRATION.
    The commissioner of revenue shall administer this chapter. The commissioner shall prescribe
the content, format, and manner of all forms and other documents required to be filed under this
chapter pursuant to section 270C.30. Payments required by this chapter must be made to the
commissioner on the form provided by the commissioner. Tax obligors are not required to give
their name, address, Social Security number, or other identifying information on the form. The
commissioner shall collect all taxes under this chapter.
   297D.03 RULES.
    The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall
adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or
other official indicia for marijuana and controlled substances on which a tax is imposed.
   297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.
   No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is
imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled
substance as evidenced by a stamp or other official indicia.
   297D.05 NO IMMUNITY.
   Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal
prosecution pursuant to Minnesota law.
   297D.06 PHARMACEUTICALS.
   Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in
possession of illegal cannabis or a controlled substance to pay the tax required under this chapter.
   297D.07 MEASUREMENT.
    For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or
a controlled substance is measured by the weight of the substance whether pure or impure or dilute,
or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A
quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled
substance and any excipients or fillers.
   297D.08 TAX RATE.
     A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01
at the following rates:
   (1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and
   (2) on each gram of controlled substance, or portion of a gram, $200; or
    (3) on each ten dosage units of a controlled substance that is not sold by weight, or portion
thereof, $400.
   297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.
    If another state or local unit of government has previously assessed an excise tax on the illegal
cannabis or controlled substances, the taxpayer must pay the difference between the tax due under
section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local
unit of government was equal to or greater than the tax due under section 297D.08, no tax is due.
The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled
substances has been paid to another state or local unit of government.
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  APPENDIX
  Repealed Minnesota Statutes: 25-05695
   297D.09 PENALTIES; CRIMINAL PROVISIONS.
    Subdivision 1. Penalties. Any tax obligor violating this chapter is subject to a penalty of 100
percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected
as part of the tax.
    Subd. 1a. Criminal penalty; sale without affixed stamps. In addition to the tax penalty imposed,
a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing
the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be
sentenced to imprisonment for not more than seven years or to payment of a fine of not more than
$14,000, or both.
    Subd. 2. Statute of limitations. Notwithstanding section 628.26, or any other provision of the
criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any
criminal offense specified in this section, in the proper court within six years after the commission
of this offense.
   297D.10 STAMP PRICE.
    Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled
substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face
value for each stamp, label, or other indicia at the time of the purchase.
   297D.11 PAYMENT DUE.
    Subdivision 1. Stamps affixed. When a tax obligor purchases, acquires, transports, or imports
into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08,
and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor
shall have them permanently affixed on the illegal cannabis or controlled substance immediately
after receiving the substance. Each stamp or other official indicia may be used only once.
    Subd. 2. Payable on possession. Taxes imposed upon illegal cannabis or controlled substances
by this chapter are due and payable immediately upon acquisition or possession in this state by a
tax obligor.
   297D.12 ALL ASSESSMENTS ARE JEOPARDY.
    Subdivision 1. Assessment procedure. An assessment for a tax obligor not possessing valid
stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy
assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and
applicable penalties based on personal knowledge or information available to the commissioner;
mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the
amount of tax and penalty; demand its immediate payment; and, if payment is not immediately
made, collect the tax and penalty by any method prescribed in chapter 270C, except that the
commissioner need not await the expiration of the times specified in chapter 270C.
    Subd. 2. Injunction prohibited. No person may bring suit to enjoin the assessment or collection
of any taxes, interest, or penalties imposed by this chapter.
    Subd. 3. Standard of proof. The tax and penalties assessed by the commissioner are presumed
to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their
incorrectness or invalidity. Any statement filed by the commissioner with the court administrator,
or any other certificate by the commissioner of the amount of tax and penalties determined or
assessed is admissible in evidence and is prima facie evidence of the facts it contains.
   297D.13 CONFIDENTIAL NATURE OF INFORMATION.
    Subdivision 1. Disclosure prohibited. Notwithstanding any law to the contrary, neither the
commissioner nor a public employee may reveal facts contained in a report or return required by
this chapter or any information obtained from a tax obligor; nor can any information contained in
such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal
proceeding, unless independently obtained, except in connection with a proceeding involving taxes
due under this chapter from the tax obligor making the return.
   Subd. 2. Penalty for disclosure. Any person violating this section is guilty of a gross
misdemeanor.
    Subd. 3. Statistics. This section does not prohibit the commissioner from publishing statistics
that do not disclose the identity of tax obligors or the contents of particular returns or reports.
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  APPENDIX
  Repealed Minnesota Statutes: 25-05695
    Subd. 4. Possession of stamps. A stamp denoting payment of the tax imposed under this chapter
must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used
against the taxpayer in connection with the administration or civil or criminal enforcement of the
tax imposed under this chapter or any similar tax imposed by another state or local unit of
government.
    477A.32 LOCAL GOVERNMENT CANNABIS AID.
    Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings
given:
    (1) "city" means a statutory or home rule charter city; and
    (2) "director" means the director of the Office of Cannabis Management under section 342.02.
    Subd. 2. Certification to commissioner of revenue. (a) By July 15, 2024, and annually
thereafter, the commissioner of management and budget must certify to the commissioner of revenue
the balance of the local government cannabis aid account in the special revenue fund as of the
immediately preceding June 30.
    (b) By June 1, 2024, and annually thereafter, the director must certify to the commissioner of
revenue the number of cannabis businesses, as defined under section 342.01, subdivision 14, licensed
under chapter 342 as of the previous January 1, disaggregated by county and city.
    Subd. 3. Aid to counties. (a) Beginning for aid payable in 2024, the amount available for aid
to counties under this subdivision equals 50 percent of the amount certified in that year to the
commissioner under subdivision 2, paragraph (a).
   (b) Twenty percent of the amount under paragraph (a) must be distributed equally among all
counties.
    (c) Eighty percent of the amount under paragraph (a) must be distributed proportionally to each
county according to the number of cannabis businesses located in the county as compared to the
number of cannabis businesses in all counties as of the most recent certification under subdivision
2, paragraph (b).
     Subd. 4. Aid to cities. (a) Beginning for aid payable in 2024, the amount available for aid to
cities under this subdivision equals 50 percent of the amount certified in that year to the commissioner
under subdivision 2, paragraph (a).
    (b) The amount under paragraph (a) must be distributed proportionally to each city according
to the number of cannabis businesses located in the city as compared to the number of cannabis
businesses in all cities as of the most recent certification under subdivision 2, paragraph (b).
    Subd. 5. Payment. The commissioner of revenue must compute the amount of aid payable to
each county and city under this section. On or before September 1 of each year, the commissioner
must certify the amount to be paid to each county and city in that year. The commissioner must pay
the full amount of the aid on December 26 annually.
    Subd. 6. Appropriation. Beginning in fiscal year 2025 and annually thereafter, the amount in
the local government cannabis aid account in the special revenue fund is annually appropriated to
the commissioner of revenue to make the aid payments required under this section.
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