Minnesota Legislature
HF 3830
as introduced - 90th Legislature (2017 - 2018) Posted on 03/26/2018 05:44pm
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A bill for an act
relating to local government aid; including local sales taxes in the calculation of
city aid; amending Minnesota Statutes 2016, section 477A.011, subdivision 43,
by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 477A.011, subdivision 43, is amended to
read:
Subd. 43.
Unmet need.
"Unmet need" for a city is equal to the difference between (1)
its city revenue need multiplied by its population, and (2) new text begin the sum of new text end its city net tax capacity
multiplied by the tax effort ratenew text begin , and its local sales tax adjustmentnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2019
and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2016, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 46. new text end
new text begin Local sales tax adjustment. new text end
new text begin
A city that imposes a general local sales tax that
is subject to the provisions contained in section 297A.99 shall have a local sales tax
adjustment equal to the amount of local sales tax revenue remitted back to it under section
297A.99, subdivision 11, in the calendar year two years prior to the year of the aid
distribution multiplied by the following factor:
new text end
new text begin
(1) for aids payable in 2019 the factor is 20 percent;
new text end
new text begin
(2) for aids payable in 2020 the factor is 40 percent;
new text end
new text begin
(3) for aids payable in 2021, the factor is 60 percent;
new text end
new text begin
(4) for aids payable in 2022, the factor is 80 percent; and
new text end
new text begin
(5) for aids payable in 2023 and thereafter, the factor is 100 percent.
new text end
new text begin
The local sales tax adjustment is zero for all other cities.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2019
and thereafter.
new text end