HF 3327

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/16/2025 09:23 p.m.

A bill for an act
relating to taxation; local government aids; making class 4d(1) low-income rental
property aid permanent; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 477A.

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

Section 1.

new text begin [477A.33] CLASS 4D(1) LOW-INCOME RENTAL PROPERTY 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 terms in this
subdivision have the meanings given.
new text end

new text begin (b) "4d(1) property" means class 4d(1) low-income rental property under section 273.13,
subdivision 25.
new text end

new text begin (c) "Base assessment year" means assessment year 2023.
new text end

new text begin (d) "City" means a home rule charter or statutory city.
new text end

new text begin (e) "Modified tax capacity" means the product of (1) one minus the 4d(1) ratio for the
city, times (2) the low-income rental property tax capacity for the city.
new text end

new text begin (f) "4d(1) ratio" means the ratio of (1) the net tax capacity of 4d(1) property for the city
in the base assessment year calculated using the classification rates and first-tier limit in
effect for 4d(1) property for taxes payable in 2025, to (2) the net tax capacity of 4d(1)
property for the city in the base assessment year calculated using the classification rates
and first-tier limit in effect for 4d(1) property for taxes payable in 2024.
new text end

new text begin (g) "Low-income rental property tax capacity" means the greater of zero or the difference
between (1) the net tax capacity of 4d(1) property for the city in the base assessment year,
minus (2) two percent of the total net tax capacity for the city in the base assessment year.
new text end

new text begin Subd. 2. new text end

new text begin Aid amount. new text end

new text begin Low-income rental property aid for a city equals the product of
(1) the city's tax rate for taxes payable in 2024, times (2) the modified tax capacity for the
city.
new text end

new text begin Subd. 3. new text end

new text begin Administration; payment schedule. new text end

new text begin (a) For the purposes of this section, net
tax capacity must be determined by the commissioner of revenue based on information
available to the commissioner as of July 15, 2024.
new text end

new text begin (b) The commissioner of revenue must certify the aid amount to be paid to each city
before August 1 of the year preceding the aid distribution year and must pay the aid in two
installments on the dates specified in section 477A.015.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay low-income rental property 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 2027 and thereafter.
new text end