Bill > HF1996

This bill modifies the calculation and amount of town aid in Minnesota by changing how towns receive financial support from the state. Currently, town aid is calculated using factors like agricultural property, town area, and population, but the bill introduces a new "town aid factor" that combines these elements. The bill increases the total available town aid from $10 million to $11.5 million, effective for aid payments starting in calendar year 2026. The new calculation method means that each town will receive a proportion of the total aid based on its town aid factor, which is determined by multiplying its agricultural property factor, town area factor, and population factor. The agricultural property factor represents the ratio of agricultural property's adjusted net tax capacity to other property, and cannot exceed eight. The town area factor is based on the township's total acreage (up to 50,000 acres), and the population factor is the square root of the town's population. This change aims to provide a more nuanced and potentially more equitable distribution of state aid to towns, with a modest increase in the total funding available.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1996&ssn=0&y=2025