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SF 2807

as introduced - 91st Legislature (2019 - 2020) Posted on 04/08/2019 02:29pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
 relating to taxes; local government aids; modifying the city aid program; amending
Minnesota Statutes 2018, sections 477A.013, subdivisions 8, 9, by adding
subdivisions; 477A.03, subdivision 2a.

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

Section 1.

Minnesota Statutes 2018, section 477A.013, subdivision 8, is amended to read:


Subd. 8.

City formula aid.

(a) For aids payable in deleted text begin 2018deleted text end new text begin 2020new text end and thereafter, the formula
aid for a city is equal to the product of (1) the difference between its unmet need and its
certified aid in the previous year and before any aid adjustment under subdivision 13, and
(2) the aid gap percentage.

(b) The applicable aid gap percentage must be calculated by the Department of Revenue
so that the total of the aid under subdivision deleted text begin 9deleted text end new text begin 16new text end equals the total amount available for aid
under section 477A.03. The aid gap percentage must be the same for all cities subject to
paragraph (a). Data used in calculating aids to cities under sections 477A.011 to 477A.013
shall be the most recently available data as of January 1 in the year in which the aid is
calculated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2020
and thereafter.
 new text end

Sec. 2.

Minnesota Statutes 2018, section 477A.013, subdivision 9, is amended to read:


Subd. 9.

new text begin Preliminary new text end city aid distribution.

(a) In calendar year deleted text begin 2018deleted text end new text begin 2020new text end and thereafter,
if a city's certified aid before any aid adjustment under subdivision 13 for the previous year
is less than its current unmet need, the city shall receive an aid distribution equal to the sum
of (1) its certified aid in the previous year before any aid adjustment under subdivision 13,
(2) the city formula aid under subdivision 8, and (3) its aid adjustment under subdivision
13.

(b) For aids payable in 2018 and thereafter, if a city's certified aid before any aid
adjustment under subdivision 13 for the previous year is equal to or greater than its current
unmet need, the total aid for a city is equal to the greater of (1) its unmet need plus any aid
adjustment under subdivision 13, or (2) the amount it was certified to receive in the previous
year minus the lesser of $10 multiplied by its population, or five percent of its net levy in
the year prior to the aid distribution. No city may have a total aid amount less than $0new text begin under
this paragraphnew text end .

new text begin (c) If a city's aid distribution under paragraph (b) is equal to $0, the city is eligible for
an alternative aid distribution under subdivision 15.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2020
and thereafter.
 new text end

Sec. 3.

Minnesota Statutes 2018, section 477A.013, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin Alternative per capita aid. new text end

new text begin (a) Beginning in calendar year 2020 and thereafter,
if a city's certified aid under subdivision 9 is $0 it shall receive an aid payment under this
subdivision equal to the sum of the following:
 new text end

new text begin (1) a base amount equal to the lesser of $40 multiplied by its population, or $60,000;
and
 new text end

new text begin (2) a formula amount equal to its population multiplied by a per capita amount, where
the per capita amount is set so that the total aid paid under this subdivision is the amount
allocated for alternative aid under section 477A.03, subdivision 2a.
 new text end

new text begin (b) The maximum aid for any city under this subdivision is $200,000.
 new text end

new text begin (c) Beginning with aids payable in 2021 and thereafter, the amounts of $40 and $60,000
in paragraph (a), clause (1), and $200,000 in paragraph (b) shall be increased by a percent
equal to the percent increase in the total limit on city aid under section 477A.03, subdivision
2a, for the payable year that is being calculated compared to the appropriation for aids
payable in 2020.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2020
and thereafter.
 new text end

Sec. 4.

Minnesota Statutes 2018, section 477A.013, is amended by adding a subdivision
to read:


new text begin Subd. 16. new text end

new text begin Final city aid distribution. new text end

new text begin For aids payable in 2020 and thereafter, the aid
distribution for a city receiving aid under subdivision 9 is equal to the greater of the amount
it would receive under subdivision 9 or the amount it would receive if it qualified for
alternative aid under subdivision 15. For aids payable in 2020 and thereafter, the aid
distribution for a city that receives zero aid under subdivision 9 is the alternative aid
calculated under subdivision 15.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2020
and thereafter.
 new text end

Sec. 5.

Minnesota Statutes 2018, section 477A.03, subdivision 2a, is amended to read:


Subd. 2a.

Cities.

deleted text begin For aids payable in 2016 and 2017, the total aid paid under section
477A.013, subdivision 9, is $519,398,012.deleted text end For aids payable in 2018 and deleted text begin thereafterdeleted text end new text begin 2019new text end ,
the total aid paid under section 477A.013, subdivision 9, is $534,398,012.new text begin For aids payable
in 2020 and thereafter, the total aid paid to cities under section 477A.013, subdivision 16,
is $564,990,952. Beginning with aids payable in 2020 and thereafter, two percent of this
amount will be paid as alternative aid to cities under section 477A.03, subdivision 15.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2020
and thereafter.
 new text end