HF 5104

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/21/2024 02:31pm

A bill for an act
relating to taxation; property; providing a distribution of the state general levy to
certain municipalities; amending Minnesota Statutes 2022, section 275.025, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2022, section 275.025, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Low-aid municipality distribution. new text end

new text begin (a) A low-aid municipality is eligible for
a distribution from the proceeds of the state general levy imposed on taxpayers within the
municipality in the amount provided under paragraph (b). For the purposes of this
subdivision, a low-aid municipality is any municipality that for the taxes payable year:
new text end

new text begin (1) lies wholly or partially within the area as defined under section 473F.02, subdivision
2;
new text end

new text begin (2) does not receive a municipal state-aid street fund distribution under section 162.13;
new text end

new text begin (3) does not receive a local government aid distribution under sections 477A.011 to
477A.03;
new text end

new text begin (4) has a fiscal disparities contribution tax capacity that exceeds the municipality's fiscal
disparities distribution tax capacity; and
new text end

new text begin (5) has a population of less than 5,000.
new text end

new text begin (b) The distribution under this subdivision is equal to: (1) the municipality's net tax
capacity tax rate; multiplied by (2) the municipality's net fiscal disparities contribution. The
distribution under this subdivision may not exceed the tax under this section imposed on
taxpayers within the municipality. The amount of the distribution to each municipality must
be determined by the commissioner of revenue and certified to each affected municipality
and county by September 1 of the year in which taxes are payable.
new text end

new text begin (c) The distribution under this subdivision must be paid to the qualifying municipality
by the treasurer of the home county of the municipality by December 1 of the year the taxes
are payable. The amounts distributed under this subdivision must be deducted from the
settlement of the state general levy for the taxes payable year under section 276.112.
new text end

new text begin (d) For purposes of this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "municipality" means a home rule or statutory city or a town; and
new text end

new text begin (2) "net fiscal disparities contribution" means a municipality's fiscal disparities
contribution net tax capacity minus the municipality's distribution net tax capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2025 and thereafter.
new text end