HF 3864

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/15/2024 09:35am

A bill for an act
relating to taxation; aid to local governments; modifying the calculation of town
aid; increasing the annual town aid amount; amending Minnesota Statutes 2022,
sections 477A.013, subdivision 1; 477A.03, subdivision 2c.

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

Section 1.

Minnesota Statutes 2022, section 477A.013, subdivision 1, is amended to read:

Subdivision 1.

Towns.

(a) deleted text begin In 2014 and thereafter, each town is eligible for a distribution
under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town
area factor, (iii) its population factor, and (iv) 0.0045. deleted text end As used in this subdivision, the
following terms have the meanings given them:

(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
agricultural property located in a town, to the adjusted net tax capacity of all other property
located in the town. The agricultural property factor cannot exceed eight;

(2) "agricultural property" means property classified under section 273.13, as homestead
and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
recreational property;

(3) "town area factor" means the most recent estimate of total acreage, not to exceed
50,000 acres, located in the township available as of July 1 in the aid calculation year,
estimated or established by:

(i) the United States Bureau of the Census;

(ii) the State Land Management Information Center; or

(iii) the secretary of state; deleted text begin and
deleted text end

(4) "population factor" means the square root of the towns' population deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) "town aid factor" means the product of the town's (i) agricultural property factor, (ii)
town area factor, and (iii) population factor.
new text end

deleted text begin (b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
under section 477A.03, subdivision 2c, the distribution to each town must be reduced
proportionately so that the total amount of aids distributed under this subdivision does not
exceed the limit in section 477A.03, subdivision 2c.
deleted text end

new text begin (b) Each town is eligible for a distribution under this subdivision equal to the product
of (1) the total amount available for town aid under section 477A.03, subdivision 2c, and
(2) the ratio of (i) the town's town aid factor to (ii) the sum of the town aid factors for all
towns.
new text end

(c) Data used in calculating aids to towns under this subdivision, other than acreage,
shall be the most recently available data as of January 1 in the year in which the aid is
calculated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payable in calendar year 2025
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2022, section 477A.03, subdivision 2c, is amended to read:

Subd. 2c.

Towns.

For aids payable in 2015 deleted text begin and thereafter deleted text end new text begin through 2024 new text end , the total aids
paid under section 477A.013, subdivision 1, is limited to $10,000,000. new text begin For aids payable in
2025 and thereafter, the total aid payable under section 477A.013, subdivision 1, is
$11,500,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payable in calendar year 2025
and thereafter.
new text end