SF 4092

as introduced - 91st Legislature (2019 - 2020) Posted on 03/10/2020 08:39am

A bill for an act
relating to taxes; modifying the funding level for local government aid for cities;
amending Minnesota Statutes 2018, section 477A.03, by adding a subdivision;
Minnesota Statutes 2019 Supplement, section 477A.03, subdivision 2a.

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

Section 1.

Minnesota Statutes 2019 Supplement, 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. For aids payable in 2018 and 2019, the total aid
paid under section 477A.013, subdivision 9, is $534,398,012. deleted text end For aids payable in 2020, the
total aid paid under section 477A.013, subdivision 9, is $560,398,012. For aids payable in
2021 deleted text begin and thereafter deleted text end , the total aid payable under section 477A.013, subdivision 9, is
$564,398,012. new text begin For aids payable in 2022 and thereafter, the total aid paid under section
477A.013, subdivision 9, is equal to the total aid certified to be paid under that section in
the previous year multiplied by the inflation adjustment under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 2.

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

new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin Beginning with aids payable in 2022 and thereafter, the
inflation adjustment for aids paid under subdivision 2a is equal to one plus the sum of: (1)
the percentage increase in the implicit price deflator for government purchases and gross
investment for state and local government purchases, as prepared by the United States
Department of Commerce, for the 12 month period ending March 31 of the previous calendar
year; and (2) the percentage increase in the total city population for the most recently
available year, as of January 15 in the year in which the aid is certified. The inflation
adjustment in this subdivision in any year shall not be less than 1.025 or greater than 1.05.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end