Minnesota Legislature
HF 1396
as introduced - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 04:15pm
Current Version - as introduced
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A bill for an act
relating to education finance; increasing equalization aid for the debt service
equalization program; decreasing property tax levies; appropriating money;
amending Minnesota Statutes 2022, section 123B.53, subdivisions 4, 5, 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 123B.53, subdivision 4, is amended to read:
Subd. 4.
Debt service equalization revenue.
(a) The debt service equalization revenue
of a district equals the sum of the first tier debt service equalization revenue and the second
tier debt service equalization revenue.
(b) The first tier debt service equalization revenue of a district equals the deleted text begin greaterdeleted text end new text begin lessernew text end
of deleted text begin zero ordeleted text end thenew text begin district'snew text end eligible debt service revenue deleted text begin minus the amount raised by a levy of
15.74deleted text end new text begin or tennew text end percent times the adjusted net tax capacity of the district deleted text begin minus the second tier
debt service equalization revenue of the districtdeleted text end .
(c) The second tier debt service equalization revenue of a district equals the greater of
zero or the eligible debt service revenue, minus the deleted text begin amount raised by a levy of 26.24 percent
times the adjusted net tax capacity of the districtdeleted text end new text begin district's first tier of debt service equalization
revenuenew text end .
(d) Notwithstanding paragraphs (b) and (c), for a district with a capital loan under sections
126C.60 to 126C.72, the first tier debt equalization revenue equals zero, and the second tier
debt equalization revenue equals the portion of the district's eligible debt service levy under
subdivision 2 in excess of the district's maximum effort debt service levy under section
126C.63, subdivision 8.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2025 and later.
new text end
Sec. 2.
Minnesota Statutes 2022, section 123B.53, subdivision 5, is amended to read:
Subd. 5.
Equalized debt service levy.
(a) The equalized debt service levy of a district
equals the sum of the first tier deleted text begin equalizeddeleted text end debt service levy and the second tier equalized debt
service levy.
(b) A district's first tier deleted text begin equalizeddeleted text end debt service levy equals the district's first tier debt
service equalization revenue deleted text begin times the lesser of one or the ratio of:deleted text end new text begin .
new text end
deleted text begin
(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
year before the year the levy is certified by the adjusted pupil units in the district for the
school year ending in the year prior to the year the levy is certified; to
deleted text end
deleted text begin
(2) $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, and the greater of $4,430 or
55.33 percent of the initial equalizing factor in fiscal year 2018 and later.
deleted text end
(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:
(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
year before the year the levy is certified by the adjusted pupil units in the district for the
school year ending in the year prior to the year the levy is certified; to
(2) deleted text begin $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 ordeleted text end 100 percent of
the initial equalizing factor deleted text begin in fiscal year 2018 and laterdeleted text end .
(d) For the purposes of this subdivision, the initial equalizing factor equals the quotient
derived by dividing the total adjusted net tax capacity of all school districts in the state for
the year before the year the levy is certified by the total number of adjusted pupil units in
all school districts in the state in the year before the year the levy is certified.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2025 and later.
new text end
Sec. 3.
Minnesota Statutes 2022, section 123B.53, subdivision 6, is amended to read:
Subd. 6.
Debt service equalization aid.
deleted text begin
(a) A district's debt service equalization aid is
the sum of the district's first tier debt service equalization aid and the district's second tier
debt service equalization aid.
deleted text end
deleted text begin
(b) A district's first tier debt service equalization aid equals the difference between the
district's first tier debt service equalization revenue and the district's first tier equalized debt
service levy.
deleted text end
deleted text begin (c)deleted text end A district's deleted text begin second tierdeleted text end debt service equalization aid equals the difference between
the district's second tier debt service equalization revenue and the district's second tier
equalized debt service levy.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2025 and later.
new text end
Sec. 4. new text begin APPROPRIATIONS.
new text end
new text begin
$....... in fiscal year 2025 is appropriated from the general fund to the Department of
Education for additional debt service equalization aid required under this act.
new text end