HF 4042

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/10/2022 05:24pm

A bill for an act
relating to taxation; taconite production tax; establishing the Iron Range education
account; amending Minnesota Statutes 2020, section 298.28, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2020, section 298.28, is amended by adding a subdivision
to read:

new text begin Subd. 7b. new text end

new text begin Iron Range education account. new text end

new text begin (a) Five cents per taxable ton for distributions
in 2024 through 2034 must be allocated to the commissioner of Iron Range Resources and
Rehabilitation to be deposited in the Iron Range education account that is hereby created.
new text end

new text begin (b) Funds from this account shall be allocated in equal shares to Independent School
District No. 695, Chisholm, and Independent School District No. 701, Hibbing, to assist
with the payment of bonds issued for school construction or improvement projects that were
approved by the commissioner of education pursuant to section 123B.71.
new text end

new text begin (c) Funds shall only be released under paragraph (b) once the district provides an
expenditure equal to twice the amount of the expenditure released from the Iron Range
education account for each school project.
new text end

new text begin (d) A district must use the distribution under this subdivision to reduce its equalized
debt service levy under section 123B.53. The commissioner of education must not recompute
the debt service equalization aid under section 123B.53 as a result of a disbursement under
this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with distributions in 2024.
new text end