HF 1676

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:53am

A bill for an act
relating to state government; protecting credit reimbursements for cities that are
net contributors to fiscal disparities from unallotment and aid cuts; proposing
coding for new law in Minnesota Statutes, chapter 16A.

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

Section 1.

new text begin [16A.1524] PROTECTED STATE REIMBURSEMENT AMOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Determination of amount. new text end

new text begin For any taxes payable year, a city's
protected state reimbursement amount is equal to (1) the amount by which its fiscal
disparities contribution net tax capacity exceeds its distribution net tax capacity for the
taxes payable year, times (2) its local net tax capacity tax rate for the taxes payable year. If
a city's contribution net tax capacity does not exceed its distribution net tax capacity, or
if the city does not lie within an area covered by a fiscal disparities program, the city's
protected state reimbursement amount is zero. For the purposes of this subdivision, "fiscal
disparities" and "fiscal disparities program" mean the programs created in chapters 276A
and 473F.
new text end

new text begin Subd. 2. new text end

new text begin Protection of reimbursement amount. new text end

new text begin A city's reimbursement under
section 273.1384, subdivision 4, up to the amount determined in subdivision 1, may not
be reduced through unallotment under section 16A.152, or under any enacted overall
reduction in state aids and credit reimbursements due to state budgetary concerns. If a
city's reimbursement under section 273.1384, subdivision 4, is less than the protection
amount determined under subdivision 1, the excess protection amount shall extend to any
state aid that the city is scheduled to receive under section 477A.013.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for credit reimbursements and aids
payable in 2009 and thereafter.
new text end