Bill > HF1279

This bill creates a new distribution mechanism for the state general levy for a specific type of low-aid municipality in Anoka County. The bill defines a "low-aid municipality" as a small town or city (with fewer than 5,000 residents) that meets certain specific criteria, including being located within a metropolitan area, not receiving municipal state-aid street funds or local government aid, and having a fiscal disparities contribution tax capacity that exceeds its distribution tax capacity. The distribution will be calculated by multiplying the municipality's net tax capacity tax rate by its net fiscal disparities contribution, with a cap that cannot exceed the total state general levy imposed on taxpayers within that municipality. The Minnesota Commissioner of Revenue will calculate and certify the distribution amount by September 1, and the home county treasurer will distribute the funds by December 1 of the tax payable year. These distributed amounts will be deducted from the state general levy settlement. The bill is set to take effect for property taxes payable in 2026 and subsequent years, providing a new financial mechanism to support specific small municipalities with unique tax characteristics.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1279&ssn=0&y=2025