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Tax.Base Change for Low-incoma Rental Property — Effective for assessment ye= 2022 and 2023, the
<br />first -tier linsit for class 4d low-income.rental property.is reduced from $1.74,000 to $100,000, with class
<br />rates remaining at �0.75 percent on.the first. $100,00i1 and 0.25 percent on the remaining balance. The -tier
<br />limit will once again be adjusted annually after assessment year 2023.
<br />Loaal Sales Tax Projects Defined —Minnesota. cities are authorized to: include up to'five.capital protects
<br />in proposals for local sales taxes. The( definition of a capitaL project for this purpose was updated to
<br />include:; a single. building or structure,. including associated irtfrastrue.ttu-e; improvements Wltltiiii a
<br />single park or recreation area; or, a contiguous trail.
<br />Tax Increment Financing (TM Fle9dbility — The Legislature enacted several measures that provide
<br />additional. flexibility for TIF spending, including:
<br />• Allowing unobligated-TIF to be used to.provide loans, interest rate subsidies, or other assistance
<br />to private developers for the construction or substantial rehabilitation of buildings an ancillary
<br />facilities, if doing sq. will -create jobs. Transfer authority expires on December 31, ..2022, and all
<br />transferred increment must be spent. by December 31, 2025; or returned to the TIF district.
<br />• Allowing TIF districts that have elected to::increase pooli%by .10.percent to use the increment for
<br />owner-dccupied housing .that meets. -the requirements* of a (rousing TIF district,. in addition to
<br />current low-income rental housing.
<br />• Providing three-year extensions ofibe ilve-.year and six year rules for -redevelopment districts
<br />created.after December 31., 2017, but before dune 30, 20 0,. thereby extending their duration.
<br />• !Creating. a three -city, pilot program;.'giving :temporary. authority -to -transfer unobligated housing
<br />TIF district increment ibIhe cities affordable housing trust funds:
<br />Sales and Use Tax.Refund Process —Effective for purchases made after-June-30, 2021,:cities and other -
<br />local governments are allowed to utilize a streamlined process. to secure. a sales tax refund on construction.
<br />materials purchased by a contractor on behalf of *the city for construction, remodeling, expansion, or
<br />improvement of public safety facilities owned bj *local governments, such as police and fire stations. The
<br />process also: applies to materials used in related facilities, such as access roads, lighting, sidewalks, and
<br />titi,,ty components. Under the:process, local governments would continue to initially pay sales tax on these
<br />naterials, but would then be allowed to fil&for a refund ofthu sales tax paid. Contractors would be required
<br />to provide the local: government with the info mation necessary to file:for the refund.
<br />Fire Protection Special Taxing District Anthority— Effective for'propertp tax levies payable in 2023 -and
<br />thereafter, She current !aw giving emergency medical. districts taxing authority is expanded to include fire
<br />.protection, districts, Two or.more.local units of government are rtow permitted to establish a'special taxing
<br />district topiovt"de fire protection, emergency medical services,,or both. The special taxing district will have
<br />authority to levy property taxes to finance district operations;: spread either across the entire district at a set.
<br />rate, or altoeated to.each }iarticipating.jurisdiction based on f rtors, such, as -population or aervice calls.
<br />Districts will also have authority to issue debt related to beer function.of the. district. Theproperty tax. and.
<br />debt issuance authority also apply to existing districts established, prior to Juhe 30; 2021.
<br />Open meeting -Law —'T'he Legislature made several pandemic -related changes to the Open Meeting. Law;
<br />:including removing the statutory tap 9f three times per year for elected officials to utilize .a medical
<br />exception for attending meetings remotely between. January 1, 2021, and July 1,2021., and removing the
<br />requirement *for elected officials participating in -public imcetings remotely, due to military service or
<br />medical exceptions, to disclose their -remote. locations. The law changes also updated the. definition -of
<br />"interactive technology' to replace "interactive television" throughout the text of the Open Meeting Laws,
<br />and added requirements for public bodies meeting remotely to enable remote: --participation by the public
<br />flee ofcharge.and enable public cgrrunent from. remote locattgns, when practical.
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