SF 3203

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/02/2025 10:27 a.m.

A bill for an act
relating to taxation; local government aid; establishing state fairgrounds public
safety and municipal services aid with an annual inflation adjustment; 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.41] STATE FAIRGROUNDS PUBLIC SAFETY AND MUNICIPAL
SERVICES AID.
new text end

new text begin Subdivision 1. new text end

new text begin Public safety and municipal services aid; purpose. new text end

new text begin (a) The commissioner
of revenue must make aid payments to the city of Falcon Heights and the city of St. Paul.
The purpose of the aid is to compensate the cities for costs that are attributable to events
occurring at the State Fairgrounds, such as public safety services including police, fire, and
emergency medical response; public works expenses for traffic management and sanitation;
and neighborhood cleanup and restoration efforts.
new text end

new text begin (b) For aids payable in 2026, the aid amount for the city of Falcon Heights equals $75,000
and the aid amount for the city of St. Paul equals $500,000. For aids payable in 2027 and
thereafter, the aid amount for each city equals the aid payable to each city in the previous
year multiplied by the inflation adjustment under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Inflation adjustment. new text end

new text begin In January of the year in which the aid amounts are
certified, the commissioner of revenue must calculate the inflation adjustment. For purposes
of this section, the "inflation adjustment" equals the sum of one plus the rate of change in
inflation according to the implicit price deflator for government consumption and
expenditures and gross investment for state and local governments prepared by the Bureau
of Economic Analysis of the United States Department of Commerce for the 12-month
period ending March 31 of the previous calendar year.
new text end

new text begin Subd. 3. new text end

new text begin Certification and payment. new text end

new text begin By August 1 of each year, the commissioner of
revenue must certify the amount to be paid to each city in the following year. The
commissioner of revenue must make aid payments to the city of Falcon Heights and to the
city of St. Paul annually on July 20.
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 aid under this section is
appropriated annually 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 beginning with aids payable in 2026.
new text end