Bill > SF2116

This bill modifies the calculation of town aid in Minnesota by changing how towns receive financial distributions from the state. The bill introduces a new "town aid factor" which is calculated by multiplying the town's agricultural property factor (a ratio of agricultural property's adjusted net tax capacity), town area factor (total acreage up to 50,000 acres), and population factor (square root of the town's population). Instead of the previous method of proportional reduction, towns will now receive aid based on their individual town aid factor relative to the total town aid factors across the state. Additionally, the bill increases the total amount of aid available to towns from $10,000,000 to $11,500,000, effective for aid payments in calendar year 2026 and thereafter. The changes aim to provide a more equitable distribution of aid to towns based on their specific agricultural, area, and population characteristics, while also increasing the overall funding available for town aid.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2116&ssn=0&y=2025