Cities authorized to create land-value taxation districts.

HF 161 allows Minnesota cities to establish land-value taxation districts, where property taxes are calculated primarily based on land value (excluding improvements) rather than total property value. This directly affects property owners within designated districts, as their tax burden would shift toward land value. Cities must adopt an ordinance describing the district boundaries, tax reallocation method (using uniform rates on land value or similar measures), and conduct public hearings with advance notice. The law requires cities to evaluate long-term economic impacts for at least 15 years and takes effect for 2026 property taxes.