SF4840
Reverse referendum for local government levies that increase by a certain amount authorization provision
Legislative Session 94 (2025-2026)
AI Generated Summary
Purpose
To change how property tax notices and hearings work, and to introduce a reverse referendum concept for local government levies that increase. The bill would amend existing Minnesota tax statutes and add new provisions to improve transparency, public input, and information about proposed property taxes.
Main provisions and objectives
- Require advanced notice of proposed property taxes and public meetings:
- County auditors must prepare and county treasurers must deliver a notice of proposed property taxes by Mail between November 10 and November 24 each year.
- The notice must show proposed taxes for the next year, the current year taxes, and a detailed breakdown by taxing authority (cities, counties, school districts, regional libraries, fire protection, etc.).
- Public meetings to discuss the budget and levy must be after November 24 and not before 6:00 p.m.; taxpayers must have a chance to speak.
- The notice must include a website and a phone number for questions, and an address for mailed comments.
- Detailed tax information in the notice:
- Market value (final values) used to compute next year’s taxes and current-year taxes.
- Classification (homestead vs nonhomestead) and lines for each tax type (city, county, school levy, special taxing districts, and areawide districts).
- Separate listing for certain levies that must be shown apart (e.g., lake improvement district, tax increments, areawide taxes).
- A comparison showing actual taxes for the current year and proposed taxes for the next year, with the percentage change.
- Referendum rights (reverse referendum):
- If a county or city’s proposed levy for next year is greater than its actual levy for the current year, voters may have the right to petition for a referendum on next year’s levy certification, provided the final levy is also greater than the current-year levy.
- Specific exemptions and exclusions:
- Certain items are not included in the proposed/final taxes shown in the notice (e.g., special assessments, voter-approved bonds/leveys after the date of certification, levy limit increases approved by voters, disaster cleanup costs, tort judgments, and contamination taxes).
- Tenant notification for certain rental properties:
- For class 4 residential property used as a residence for rentals of 30 days or more, the taxpayer must notify tenants by mailing or posting the notice (by November 27 or within three days of receipt, whichever is later).
- Reclassification and public accessibility:
- If a property is listed as nonhomestead but qualifies for homestead, it can be reclassified to homestead for the next year.
- If a taxing authority lacks a public website or phone line, the county will not list one for that authority.
- Metropolitan and regional taxing districts:
- Definitions and inclusion of metro-area districts (Metropolitan Council, Metropolitan Airports Commission, Metropolitan Mosquito Control Commission) and regional rail authorities’ levies in the appropriate county levy.
- Supplemental information:
- Governing bodies may include extra information about how state aid changes, inflation, population trends, and other factors affect property taxes and local services. This can be presented in tables, narrative, or graphics and may point to additional sources or comment opportunities.
Significant changes to existing law
- Adds a comprehensive, standardized notice of proposed property taxes with explicit content requirements and public input procedures.
- Introduces or formalizes a reverse referendum mechanism for next-year levies when they rise above current-year levels.
- Expands transparency by requiring district-by-district tax line items, separate reporting for certain levies, and clear statements about potential referendum rights.
- Requires tenant notification for certain rental properties and sets timelines for notices and meetings.
- Allows optional supplemental information about factors affecting taxes (inflation, population changes, state/federal actions, etc.).
- Explicitly lists exemptions from what must appear in the notice (e.g., voter-approved referenda after date, disaster costs, tort judgments, contamination taxes).
Additional notes on scope
- Applies to counties, cities, school districts, and certain special taxing districts, including Metropolitan Council, Metropolitan Airports Commission, and Metropolitan Mosquito Control Commission in the seven-county metropolitan area.
- Includes specific provisions for certain local entities (e.g., Minneapolis Park and Recreation, St. Paul Library Agency) to be displayed separately.
- Addresses how changes in levy levels relate to potential voter referendums and the timing of public hearings.
Relevant Terms - notice of proposed property taxes - reverse referendum - tax levy / levy certification - county auditor / county treasurer - November 10 to November 24 notice window - public meeting after November 24 (not before 6:00 p.m.) - market value (section 273.11) - homestead vs nonhomestead - actual tax vs proposed tax - tax increments / areawide tax (chapter 276A or 473F) - lake improvement district - special taxing districts - Metropolitan Council / Metropolitan Airports Commission / Metropolitan Mosquito Control Commission - Minneapolis Park and Recreation levy - St. Paul Library Agency levy - Ramsey County levies under section 134.07 - referendum rights (275.80) - senior citizens deferral (chapter 290B) - exclusions from taxes (special assessments, voter-approved after-date levies, disaster costs, tort judgments, contamination tax) - tenant notification (class 4 residential property)
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 25, 2026 | Senate | Action | Introduction and first reading | ||
| March 25, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Authorization of electronic delivery for the notice and related communications.",
"Explicit content requirements for the notice (taxing authorities, proposed vs. current taxes, market values, and breakdowns by authority).",
"Public hearing timing, location, and accessibility details (including website and phone contact).",
"Requirement to separately list certain areawide taxes and special districts (e.g., Minneapolis Park and Recreation, St. Paul Library Agency, Ramsey County items).",
"Authority to include supplemental information on the impact of state aid changes and other financial factors."
],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 275.065, subdivision 3, to revise the notice of proposed property taxes. The bill adds detailed requirements for timing, content, delivery methods, and public input related to proposed levies, including provisions for electronic delivery, required information, and interaction with multiple taxing authorities.",
"modified": [
"Overall restructuring and expansion of notice requirements for proposed property taxes, including additional classifications and disclosures."
]
},
"citation": "275.065",
"subdivision": "3"
},
{
"analysis": {
"added": [
"Reverse referendum mechanism for local government levies that increase by a defined threshold."
],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 275.07, subdivision 1, related to taxation and levy processes, in connection with establishing reverse referendum provisions for local government levies that rise by a specified amount.",
"modified": [
"Incorporates reverse referendum concepts into the levy process governed by section 275.07."
]
},
"citation": "275.07",
"subdivision": "1"
},
{
"analysis": {
"added": [
"Provisions aligning subdivision 1 and 2 with reverse referendum mechanics for certain levies."
],
"removed": [],
"summary": {
"text": "Amends Minnesota Statutes 2024, section 276.04, subdivisions 1 and 2, to align with the bill's reverse referendum framework and related levy procedures for local governments."
},
"modified": [
"Subdivisions 1 and 2 updated to reflect new levy-referendum rules within the bill."
]
},
"citation": "276.04",
"subdivision": "1, 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to market value determination used for computing property taxes, as part of the notice content in 275.065.",
"modified": [
"No direct modification stated; the section is cited for its role in determining market value."
]
},
"citation": "273.11",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Property tax credit related to the school building bond (agricultural) is listed within the notice framework under 275.065.",
"modified": [
"Inclusion of references to credits under 273.1384 within the proposed tax notice content."
]
},
"citation": "273.1384",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Voter-approved school levy credit referenced in the notice framework, consistent with the revised notice content.",
"modified": [
"Inclusion of credits under 273.1387 within the notice framework for proposed property taxes."
]
},
"citation": "273.1387",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan taxing districts defined under the metropolitan governance structure are referenced in the notice provisions.",
"modified": [
"Clarifies treatment of metropolitan taxing districts within the notice content and related disclosures."
]
},
"citation": "134.201",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 144F.01 establishes special taxing districts (e.g., fire protection and EMS) that are referenced for separate listing in notices.",
"modified": [
"Incorporation of special taxing districts established under 144F.01 into notice content requirements."
]
},
"citation": "144F.01",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to a school district referendum under 126C.17, subdivision 9 in connection with the county auditor noting pending referenda on notices.",
"modified": [
"Explicit note that pending referenda under 126C.17, subdivision 9 may affect proposed amounts shown to voters."
]
},
"citation": "126C.17",
"subdivision": "9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Statutory reference for referendum rights related to levy certifications, triggered when proposed levies exceed prior-year levies.",
"modified": [
"Maintains and clarifies the right to petition for a referendum under 275.80 in the context of new notice requirements."
]
},
"citation": "275.80",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Senior citizens deferral program referenced in the notice for homestead tax calculations under the deferral program discussed in the bill.",
"modified": [
"Incorporates the 290B deferral program into tax calculation references within the notice."
]
},
"citation": "290B",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Levy limits, including voter-approved increases, are acknowledged in the notice content (275.73).",
"modified": [
"Notes that levy increases approved by voters under 275.73 are excluded from certain notice calculations."
]
},
"citation": "275.73",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Areawide lake improvement district provisions referenced for separate tax levy treatment within the notice.",
"modified": [
"Includes separate disclosure for lake improvement districts within the areawide tax framework (103B.501-103B.581)."
]
},
"citation": "103B.501 to 103B.581",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Authority to list amounts levied under section 134.07 separately in the county's levy disclosures.",
"modified": [
"Allows separate listing of taxation under 134.07 in the notice."
]
},
"citation": "134.07",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Areawide tax provisions for the seven-county metropolitan area referenced in the notice requirements.",
"modified": [
"Incorporates 276A (Areawide tax) context into the notice content for metropolitan areas."
]
},
"citation": "276A",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Areawide tax provisions under chapter 473F referenced in the notice requirements.",
"modified": [
"Incorporates 473F (Areawide tax) into the notice content and calculation discussions."
]
},
"citation": "473F",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Council financing and levy authorities referenced in metropolitan special taxing district context.",
"modified": [
"Specifies treatment of Metropolitan Council levies within the notice framework."
]
},
"citation": "473.132",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Additional Metropolitan Council-related levy provisions cited for notice disclosures.",
"modified": [
"Clarifies inclusion of 473.167 in the notice details."
]
},
"citation": "473.167",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Council-related levy authorities cited for notice disclosures.",
"modified": [
"Incorporates 473.249 into the notice framework."
]
},
"citation": "473.249",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Council tax levy references included in notice content.",
"modified": [
"Adds 473.325 to the list of substantiating authorities in the notice."
]
},
"citation": "473.325",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Council levy provisions cited for the proposed tax notice.",
"modified": [
"Includes 473.446 in the notice disclosure requirements."
]
},
"citation": "473.446",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Council-related levy authority referenced in the notice framework.",
"modified": [
"References 473.521 as a component of metropolitan levy disclosures."
]
},
"citation": "473.521",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Council levy provisions acknowledged within the proposed tax notice content.",
"modified": [
"Incorporates 473.547 into the notice framework."
]
},
"citation": "473.547",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Additional Metropolitan Council levy provisions cited for notice requirements.",
"modified": [
"Includes 473.834 in the notice disclosures."
]
},
"citation": "473.834",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Airports Commission levy provisions included in the notice framework.",
"modified": [
"References 473.667 in the notice content."
]
},
"citation": "473.667",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Airports Commission levy provisions included in the notice framework.",
"modified": [
"References 473.671 in the notice content."
]
},
"citation": "473.671",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Airports Commission levy provisions included in the notice framework.",
"modified": [
"References 473.672 in the notice content."
]
},
"citation": "473.672",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Metropolitan Mosquito Control Commission levy provisions included in the notice framework.",
"modified": [
"References 473.711 in the notice content."
]
},
"citation": "473.711",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Chapter 398A references for regional rail authorities incorporated into the areawide tax framework within the notice content.",
"modified": [
"Ensures regional rail authority levies under chapter 398A are treated as part of the appropriate county levy for notice purposes."
]
},
"citation": "398A",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 365.52 (special town meeting provisions) referenced in context of future levy changes and corrections within the notice framework.",
"modified": [
"Notes the interaction with levy changes approved by special town meetings under 365.52."
]
},
"citation": "365.52",
"subdivision": ""
}
]Progress through the legislative process
In Committee