Property tax provisions modified, and cities authorized to create land-value taxation districts.

This bill allows cities in Minnesota to create special districts that reassign property taxes based on land value rather than improvements like buildings. To establish such a district, a city must hold a public hearing and mail notices to all affected property owners before passing an ordinance. The tax reallocation must use specific formulas that focus on the value of the land itself, excluding the value of structures or improvements made after a certain date. These new tax rules would first apply to property taxes payable in 2024.