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Minnesota Legislature

Office of the Revisor of Statutes

Chapter 477A

Section 477A.013

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477A.013 MUNICIPAL GOVERNMENT DISTRIBUTIONS.
    Subdivision 1. Towns. In 2002, no town is eligible for a distribution under this subdivision.
    Subd. 2.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 3.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 4.[Repealed, 1Sp1989 c 1 art 4 s 15]
    Subd. 5.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 6.[Repealed, 1996 c 310 s 1]
    Subd. 7.[Repealed, 1991 c 291 art 3 s 15]
    Subd. 8. City formula aid. In calendar year 2004 and subsequent years, the formula aid for a
city is equal to the need increase percentage multiplied by the difference between (1) the city's
revenue need multiplied by its population, and (2) the sum of the city's net tax capacity multiplied
by the tax effort rate; the taconite aids under sections 298.28 and 298.282 to any city except a city
directly impacted by a taconite mine or plant, multiplied by the following percentages:
(i) zero percent for aids payable in 2004;
(ii) 25 percent for aids payable in 2005;
(iii) 50 percent for aids payable in 2006;
(iv) 75 percent for aids payable in 2007; and
(v) 100 percent for aids payable in 2008 and thereafter.
For purposes of this subdivision, "a city directly impacted by a taconite mine or plant"
means: (1) Babbit, (2) Eveleth, (3) Hibbing, (4) Keewatin, (5) Mountain Iron, (6) Silver Bay,
or (7) Virginia.
No city may have a formula aid amount less than zero. The need increase percentage must be
the same for all cities.
The applicable need increase percentage must be calculated by the Department of Revenue
so that the total of the aid under subdivision 9 equals the total amount available for aid under
section 477A.03 after the subtraction under section 477A.014, subdivisions 4 and 5.
    Subd. 9. City aid distribution. (a) In calendar year 2002 and thereafter, each city shall
receive an aid distribution equal to the sum of (1) the city formula aid under subdivision 8, and
(2) its city aid base.
(b) For aids payable in 2005 and thereafter, the total aid for any city shall not exceed the sum
of (1) ten percent of the city's net levy for the year prior to the aid distribution plus (2) its total
aid in the previous year. For aids payable in 2005 and thereafter, the total aid for any city with a
population of 2,500 or more may not decrease from its total aid under this section in the previous
year by an amount greater than ten percent of its net levy in the year prior to the aid distribution.
(c) For aids payable in 2004 only, the total aid for a city with a population less than 2,500
may not be less than the amount it was certified to receive in 2003 minus the greater of (1) the
reduction to this aid payment in 2003 under Laws 2003, First Special Session chapter 21, article
5, or (2) five percent of its 2003 aid amount. For aids payable in 2005 and thereafter, the total aid
for a city with a population less than 2,500 must not be less than the amount it was certified to
receive in the previous year minus five percent of its 2003 certified aid amount.
(d) If a city's net tax capacity used in calculating aid under this section has decreased in
any year by more than 25 percent from its net tax capacity in the previous year due to property
becoming tax-exempt Indian land, the city's maximum allowed aid increase under paragraph (b)
shall be increased by an amount equal to (1) the city's tax rate in the year of the aid calculation,
multiplied by (2) the amount of its net tax capacity decrease resulting from the property becoming
tax exempt.
    Subd. 10. Levy adjustments for aid decreases. Notwithstanding any local ordinance or
charter provision, a city whose certified aid under subdivision 9 is less than the amount it received
in the previous year under the same subdivision may increase its levy payable in the same year as
the certified aid is paid by an amount equal to the aid decrease for that year.
History: 1Sp1981 c 1 art 6 s 3; 1983 c 342 art 5 s 11; 1984 c 502 art 4 s 3,4; 1Sp1985 c 14
art 6 s 8; 1Sp1986 c 1 art 6 s 4; 1987 c 268 art 5 s 11; 1988 c 719 art 5 s 76-79,84; 1989 c 277
art 2 s 67; 1Sp1989 c 1 art 2 s 11; art 4 s 9-12; 1990 c 480 art 7 s 31; 1990 c 604 art 3 s 43;
art 4 s 12-14; 1991 c 2 art 8 s 6,7; 1991 c 291 art 3 s 9,10; 1992 c 511 art 1 s 15-17; 1993 c
375 art 3 s 45; art 4 s 18,19; 1Sp1993 c 6 s 32; 1994 c 416 art 1 s 59; 1994 c 587 art 3 s 14-16;
1Sp2001 c 5 art 3 s 76,77; 2002 c 377 art 10 s 27; 1Sp2003 c 21 art 5 s 7,8; 2005 c 152 art 1 s
32; 1Sp2005 c 3 art 2 s 2; 2006 c 259 art 11 s 2