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HF 1061

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/30/2023 02:05pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to local government aid; establishing electric generation transition aid;
modifying the local government aid formula; appropriating money; amending
Minnesota Statutes 2022, section 477A.013, subdivision 8; proposing coding for
new law in Minnesota Statutes, chapter 477A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 477A.013, subdivision 8, is amended to read:


Subd. 8.

City formula aid.

(a) For aids payable in 2018 and thereafter, the formula aid
for a city is equal to the product of (1) the difference between its unmet need and its certified
aid in the previous year and before any aid adjustment under subdivision 13, and (2) the aid
gap percentage.

(b) The applicable aid gap percentage must be calculated by the Department of Revenue
so that the total of the aid under subdivision 9 equals the total amount available for aid under
section 477A.03. The aid gap percentage must be the same for all cities subject to paragraph
(a). Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be
the most recently available data as of January 1 in the year in which the aid is calculated.

new text begin (c) Notwithstanding paragraph (a), for a city that is eligible for electric generation
transition aid under section 477A.23, for aids payable in the third year following the base
year established under section 477A.23, the formula aid for a city is equal to the greater of:
(1) the amount calculated under paragraph (a); (2) ... percent of the current unmet need
calculated for the city; or (3) $1,000,000.
new text end

new text begin (d) If the aid gap percentage for the current year is less than zero due to the calculation
under paragraph (c), the commissioner must reduce the amount under paragraph (c)
accordingly.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2024 and thereafter.
new text end

Sec. 2.

new text begin [477A.23] ELECTRIC GENERATION TRANSITION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Base year" means the assessment year in which the net tax capacity differential for
an eligible city first exceeds ... percent of the net tax capacity for an eligible city in the
preceding assessment year.
new text end

new text begin (c) "Electric generation property" means taxable property of a coal energy producing
facility located in an eligible city.
new text end

new text begin (d) "Eligible city" means a home rule charter or statutory city: (1) located in a
metropolitan county as defined in section 473.121, subdivision 4; and (2) in which the net
tax capacity of electric generation property in assessment year 2022 equaled at least ...
percent of the net tax capacity of all property in the city in that year.
new text end

new text begin (e) "Net tax capacity differential" means the greater of: (1) zero; or (2) the amount by
which the net tax capacity of electric generation property for an eligible city was reduced
in the current assessment year from the preceding assessment year.
new text end

new text begin (f) "Cumulative differential" means the greater of: (1) zero; or (2) the difference between:
(i) the net tax capacity for the eligible city in the assessment year preceding the base year;
and (ii) the net tax capacity for the eligible city in the current assessment year.
new text end

new text begin Subd. 2. new text end

new text begin Aid eligibility; payment. new text end

new text begin (a) An eligible city with a base year established under
subdivision 1 is eligible for transition aid computed under paragraphs (b) to (d).
new text end

new text begin (b) For aids payable in the first year following the base year, transition aid equals ...
percent of: (1) the cumulative differential; times (2) the jurisdiction's tax rate for taxes
payable in the base year.
new text end

new text begin (c) For aids payable in the second year following the base year, transition aid equals ...
percent of: (1) the cumulative differential; times (2) the jurisdiction's tax rate for taxes
payable in the first year following the base year.
new text end

new text begin (d) For aids payable in the third year following the base year, transition aid equals ...
percent of: (1) the cumulative differential; times (2) the jurisdiction's tax rate for taxes
payable in the second year following the base year.
new text end

new text begin (e) The commissioner of revenue shall compute the amount of transition aid payable to
each eligible city under this section. On or before August 1 of each year, the commissioner
shall certify the amount of transition aid computed for aids payable in the following year
for each eligible city. The commissioner shall pay transition aid to an eligible city annually
at the times provided in section 477A.015.
new text end

new text begin (f) The commissioner of revenue may require counties to provide any data that the
commissioner deems necessary to administer this section.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay transition aid under this section
is annually appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2024 and thereafter.
new text end