2007 Minnesota Statutes

CHAPTER 477A. LOCAL GOVERNMENT AID

477A.01    Subdivision 1.[Repealed, 1Sp1981 c 1 art 6 s 9]
    Subd. 2.[Repealed, 1Sp1981 c 1 art 6 s 9]
    Subd. 3.[Repealed, 1979 c 303 art 6 s 11; 1Sp1981 c 1 art 6 s 9]
    Subd. 4.[Repealed, 1Sp1981 c 1 art 6 s 9]
    Subd. 4a.[Repealed, 1979 c 303 art 6 s 11; 1Sp1981 c 1 art 6 s 9]
    Subd. 4b.[Repealed, 1Sp1981 c 1 art 6 s 9]
    Subd. 4c.[Repealed, 1Sp1981 c 1 art 6 s 9]
    Subd. 4d.[Repealed, 1Sp1981 c 1 art 6 s 9]
    Subd. 4e.[Repealed, 1Sp1981 c 1 art 6 s 9]
    Subd. 5.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 6.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 7.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 8.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 9.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 10.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 11.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 12.[Repealed, 1973 c 650 art 17 s 17; 1Sp 1981 c 1 art 6 s 9]
    Subd. 13.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 14.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 15.[Repealed, 1973 c 650 art 17 s 17; 1Sp 1981 c 1 art 6 s 9]
    Subd. 16.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 17.[Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 1 art 6 s 9]
    Subd. 18.[Repealed, 1Sp1981 c 1 art 6 s 9]

477A.011 DEFINITIONS.
    Subdivision 1. Application. For the purposes of sections 477A.011 to 477A.014 the
following terms shall have these meanings, unless otherwise provided to the contrary.
    Subd. 1a. City. "City" means a statutory or home rule charter city.
    Subd. 1b. Town. "Town" means a township.
    Subd. 2.[Repealed, 1996 c 310 s 1]
    Subd. 2a. Special taxing district. "Special taxing district" means a political subdivision with
the authority to levy property taxes, other than a city, county, town, or school district.
    Subd. 3. Population. "Population" means the population estimated or established as of July
15 in an aid calculation year by the most recent federal census, by a special census conducted
under contract with the United States Bureau of the Census, by a population estimate made by
the Metropolitan Council pursuant to section 473.24, or by a population estimate of the state
demographer made pursuant to section 4A.02, whichever is the most recent as to the stated date
of the count or estimate for the preceding calendar year, and which has been certified to the
commissioner of revenue on or before July 15 of the aid calculation year. The term "per capita"
refers to population as defined by this subdivision. A revision of an estimate or count is effective
for these purposes only if it is certified to the commissioner on or before July 15 of the aid
calculation year. Clerical errors in the certification or use of the estimates and counts established
as of July 15 in the aid calculation year are subject to correction within the time periods allowed
under section 477A.014.
    Subd. 3a.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 4.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 5.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 6.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 7.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 7a.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 8.[Repealed, 1983 c 342 art 5 s 16]
    Subd. 9.[Repealed, 1983 c 342 art 5 s 16]
    Subd. 10.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 11.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 12.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 13.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 14.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 15.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 16.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 17.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 18.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 19. Metropolitan area. "Metropolitan area" is the metropolitan area as defined in
section 473.121, subdivision 2.
    Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax capacity
computed using the net tax capacity rates in section 273.13 for taxes payable in the year of the
aid distribution, and the market values for taxes payable in the year prior to the aid distribution
plus (2) a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2,
paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior to that
for which aids are being calculated. The market value utilized in computing city net tax capacity
shall be reduced by the sum of (1) a city's market value of commercial industrial property as
defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3, multiplied by the ratio
determined pursuant to section 276A.06, subdivision 2, paragraph (a), or 473F.08, subdivision
2 , paragraph (a), (2) the market value of the captured value of tax increment financing districts
as defined in section 469.177, subdivision 2, and (3) the market value of transmission lines
deducted from a city's total net tax capacity under section 273.425. The city net tax capacity will
be computed using equalized market values.
    Subd. 21. Equalized market values. "Equalized market values" means market values that
have been equalized by dividing the assessor's estimated market value for the second year
prior to that in which the aid is payable by the assessment sales ratios determined by class in
the assessment sales ratio study conducted by the Department of Revenue pursuant to section
127A.48 in the second year prior to that in which the aid is payable. The equalized market values
equal the unequalized market values divided by the assessment sales ratio.
    Subd. 22.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 23.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 24.[Repealed, 1Sp1989 c 1 art 4 s 15]
    Subd. 25.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 26.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 27. Revenue base. "Revenue base" means the amount levied for taxes payable in the
previous year, including the levy on the fiscal disparity distribution under section 276A.06,
subdivision 3 , paragraph (a), or 473F.08, subdivision 3, paragraph (a); plus the originally certified
local government aid in the previous year under sections 477A.011 and 477A.013; and the
taconite aids received in the previous year under sections 298.28 and 298.282.
    Subd. 28.[Repealed, 2007 c 13 art 2 s 13]
    Subd. 29. Adjusted revenue base. "Adjusted revenue base" means revenue base as defined
in subdivision 27 less the levy reported under section 275.62, subdivision 1, clause (2).
    Subd. 30. Pre-1940 housing percentage. "Pre-1940 housing percentage" for a city is 100
times the most recent federal census count of all housing units in the city built before 1940,
divided by the total number of all housing units in the city. Housing units includes both occupied
and vacant housing units as defined by the federal census.
    Subd. 31. Population decline percentage. "Population decline percentage" for a city is the
percent decline in a city's population for the last ten years, based on the most recently available
population estimate from the state demographer or a federal census. A city's population decline
percentage cannot be less than zero.
    Subd. 32. Commercial industrial percentage. "Commercial industrial percentage" for a
city is 100 times the sum of the estimated market values of all real property in the city classified as
class 3 under section 273.13, subdivision 24, excluding public utility property, to the total market
value of all taxable real and personal property in the city. The market values are the amounts
computed before any adjustments for fiscal disparities under section 276A.06 or 473F.08. The
market values used for this subdivision are not equalized.
    Subd. 33. Transformed population. "Transformed population" for a city is the city
population raised to the .3308 power, times 30.5485.
    Subd. 34. City revenue need. (a) For a city with a population equal to or greater than
2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing percentage;
plus (2) 19.141678 times the population decline percentage; plus (3) 2504.06334 times the road
accidents factor; plus (4) 355.0547; minus (5) the metropolitan area factor; minus (6) 49.10638
times the household size.
(b) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial industrial
percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 1.206 times the
transformed population; minus (5) 62.772.
(c) For a city with a population of 2,500 or more and a population in one of the most recently
available five years that was less than 2,500, "city revenue need" is the sum of (1) its city revenue
need calculated under paragraph (a) multiplied by its transition factor; plus (2) its city revenue
need calculated under the formula in paragraph (b) multiplied by the difference between one and
its transition factor. For purposes of this paragraph, a city's "transition factor" is equal to 0.2
multiplied by the number of years that the city's population estimate has been 2,500 or more. This
provision only applies for aids payable in calendar years 2006 to 2008 to cities with a 2002
population of less than 2,500. It applies to any city for aids payable in 2009 and thereafter.
(d) The city revenue need cannot be less than zero.
(e) For calendar year 2005 and subsequent years, the city revenue need for a city, as
determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit price deflator
for government consumption expenditures and gross investment for state and local governments
as prepared by the United States Department of Commerce, for the most recently available year to
the 2003 implicit price deflator for state and local government purchases.
    Subd. 35. Tax effort rate. "Tax effort rate" means the net levy for all cities divided by the
sum of the city net tax capacity for all cities. For purposes of this section, "net levy" means the
city levy, after all adjustments, used for calculating the local tax rate under section 275.08 for
taxes payable in the year prior to the aid distribution. The fiscal disparity distribution levy under
chapter 276A or 473F is included in net levy.
    Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision, "city aid
base" is zero.
(b) The city aid base for any city with a population less than 500 is increased by $40,000 for
aids payable in calendar year 1995 and thereafter, and the maximum amount of total aid it may
receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $40,000 for
aids payable in calendar year 1995 only, provided that:
(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;
(ii) the city portion of the tax capacity rate exceeds 100 percent; and
(iii) its city aid base is less than $60 per capita.
(c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $20,000 in calendar year 1998 only, provided that:
(i) the city has a population in 1994 of 2,500 or more;
(ii) the city is located in a county, outside of the metropolitan area, which contains a city
of the first class;
(iii) the city's net tax capacity used in calculating its 1996 aid under section 477A.013 is less
than $400 per capita; and
(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of property
located in the city is classified as railroad property.
(d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $200,000 in calendar year 1999 only, provided that:
(i) the city was incorporated as a statutory city after December 1, 1993;
(ii) its city aid base does not exceed $5,600; and
(iii) the city had a population in 1996 of 5,000 or more.
(e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $450,000 in calendar year 1999 only, provided that:
(i) the city had a population in 1996 of at least 50,000;
(ii) its population had increased by at least 40 percent in the ten-year period ending in
1996; and
(iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita.
(f) The city aid base for a city is increased by $150,000 for aids payable in 2000 and
thereafter, and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9 , paragraph (c), is also increased by $150,000 in calendar year 2000 only, provided
that:
(1) the city has a population that is greater than 1,000 and less than 2,500;
(2) its commercial and industrial percentage for aids payable in 1999 is greater than 45
percent; and
(3) the total market value of all commercial and industrial property in the city for assessment
year 1999 is at least 15 percent less than the total market value of all commercial and industrial
property in the city for assessment year 1998.
(g) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $200,000 in calendar year 2000 only, provided that:
(1) the city had a population in 1997 of 2,500 or more;
(2) the net tax capacity of the city used in calculating its 1999 aid under section 477A.013 is
less than $650 per capita;
(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under section
477A.013 is greater than 12 percent;
(4) the 1999 local government aid of the city under section 477A.013 is less than 20 percent
of the amount that the formula aid of the city would have been if the need increase percentage
was 100 percent; and
(5) the city aid base of the city used in calculating aid under section 477A.013 is less than $7
per capita.
(h) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $102,000 in calendar year 2000 only, provided that:
(1) the city has a population in 1997 of 2,000 or more;
(2) the net tax capacity of the city used in calculating its 1999 aid under section 477A.013 is
less than $455 per capita;
(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is greater
than $195 per capita; and
(4) the 1999 local government aid of the city under section 477A.013 is less than 38 percent
of the amount that the formula aid of the city would have been if the need increase percentage
was 100 percent.
(i) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $32,000 in calendar year 2001 only, provided that:
(1) the city has a population in 1998 that is greater than 200 but less than 500;
(2) the city's revenue need used in calculating aids payable in 2000 was greater than $200
per capita;
(3) the city net tax capacity for the city used in calculating aids available in 2000 was equal
to or less than $200 per capita;
(4) the city aid base of the city used in calculating aid under section 477A.013 is less than
$65 per capita; and
(5) the city's formula aid for aids payable in 2000 was greater than zero.
(j) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $7,200 in calendar year 2001 only, provided that:
(1) the city had a population in 1998 that is greater than 200 but less than 500;
(2) the city's commercial industrial percentage used in calculating aids payable in 2000
was less than ten percent;
(3) more than 25 percent of the city's population was 60 years old or older according
to the 1990 census;
(4) the city aid base of the city used in calculating aid under section 477A.013 is less than
$15 per capita; and
(5) the city's formula aid for aids payable in 2000 was greater than zero.
(k) The city aid base for a city is increased by $45,000 in 2001 and thereafter and by an
additional $50,000 in calendar years 2002 to 2011, and the maximum amount of total aid it may
receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $45,000 in
calendar year 2001 only, and by $50,000 in calendar year 2002 only, provided that:
(1) the net tax capacity of the city used in calculating its 2000 aid under section 477A.013 is
less than $810 per capita;
(2) the population of the city declined more than two percent between 1988 and 1998;
(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is greater
than $240 per capita; and
(4) the city received less than $36 per capita in aid under section 477A.013, subdivision
9 , for aids payable in 2000.
(l) The city aid base for a city with a population of 10,000 or more which is located outside
of the seven-county metropolitan area is increased in 2002 and thereafter, and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (b) or (c), is
also increased in calendar year 2002 only, by an amount equal to the lesser of:
(1)(i) the total population of the city, as determined by the United States Bureau of the
Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or
(2) $2,500,000.
(m) The city aid base is increased by $50,000 in 2002 and thereafter, and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $50,000 in calendar year 2002 only, provided that:
(1) the city is located in the seven-county metropolitan area;
(2) its population in 2000 is between 10,000 and 20,000; and
(3) its commercial industrial percentage, as calculated for city aid payable in 2001, was
greater than 25 percent.
(n) The city aid base for a city is increased by $150,000 in calendar years 2002 to 2011
and the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $150,000 in calendar year 2002 only, provided that:
(1) the city had a population of at least 3,000 but no more than 4,000 in 1999;
(2) its home county is located within the seven-county metropolitan area;
(3) its pre-1940 housing percentage is less than 15 percent; and
(4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 per capita.
(o) The city aid base for a city is increased by $200,000 beginning in calendar year 2003
and the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 2003 only, provided that the city
qualified for an increase in homestead and agricultural credit aid under Laws 1995, chapter
264, article 8, section 18.
(p) The city aid base for a city is increased by $200,000 in 2004 only and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, is also increased by
$200,000 in calendar year 2004 only, if the city is the site of a nuclear dry cask storage facility.
(q) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased by
$10,000 in calendar year 2004 only, if the city was included in a federal major disaster designation
issued on April 1, 1998, and its pre-1940 housing stock was decreased by more than 40 percent
between 1990 and 2000.
(r) The city aid base for a city is increased by $25,000 in 2006 only and the maximum total
aid it may receive under section 477A.013, subdivision 9, is also increased by $25,000 in calendar
year 2006 only if the city had a population in 2003 of at least 1,000 and has a state park for which
the city provides rescue services and which comprised at least 14 percent of the total geographic
area included within the city boundaries in 2000.
(s) The city aid base for a city with a population less than 5,000 is increased in 2006 and
thereafter and the minimum and maximum amount of total aid it may receive under this section is
also increased in calendar year 2006 only by an amount equal to $6 multiplied by its population.
(t) The city aid base for a city is increased by $80,000 in 2007 only and the minimum and
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is also
increased by $80,000 in calendar year 2007 only, if:
(1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed to be
placed in trust status as tax-exempt Indian land;
(2) the placement of the land is being challenged administratively or in court; and
(3) due to the challenge, the land proposed to be placed in trust is still on the tax rolls as
of May 1, 2006.
(u) The city aid base for a city is increased by $100,000 in 2007 and thereafter and the
minimum and maximum total amount of aid it may receive under this section is also increased in
calendar year 2007 only, provided that:
(1) the city has a 2004 estimated population greater than 200 but less than 2,000;
(2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;
(3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids payable in
2006 was greater than 110 percent; and
(4) it is located in a county where at least 15,000 acres of land are classified as tax-exempt
Indian reservations according to the 2004 abstract of tax-exempt property.
    Subd. 37.[Repealed, 1Sp2003 c 21 art 5 s 14]
    Subd. 38. Household size. "Household size" means the average number of persons per
household in the jurisdiction as most recently estimated and reported by the state demographer
and Metropolitan Council as of July 15 of the aid calculation year. A revision to an estimate or
enumeration is effective for these purposes only if it is certified to the commissioner on or before
July 15 of the aid calculation year. Clerical errors in the certification or use of estimates and
counts established as of July 15 in the aid calculation year are subject to correction within the
time periods allowed under section 477A.014.
    Subd. 39. Road accidents factor. "Road accidents factor" means the average annual number
of vehicular accidents occurring on public roads, streets, and alleys in the jurisdiction as reported
to the commissioner of revenue by the commissioner of public safety by July 1 of the aid
calculation year using the most recent three-year period for which the commissioner of public
safety has complete information, divided by the jurisdiction's population.
    Subd. 40. Metropolitan area factor. "Metropolitan area factor" means 35.20915 for cities
located in the metropolitan area.
History: 1981 c 356 s 248; 1981 c 358 art 1 s 48; 1Sp1981 c 1 art 6 s 1; 1983 c 289 s 114
subd 2; 1983 c 342 art 5 s 5-9; 1984 c 558 art 4 s 10; 1Sp1985 c 14 art 6 s 1-6; 1Sp1986 c 1 art 6
s 1,2; 1987 c 291 s 240; 1988 c 719 art 5 s 66-75; 1989 c 277 art 2 s 66; 1Sp1989 c 1 art 4 s 3-6;
art 9 s 79,80; 1990 c 480 art 7 s 28,29; 1990 c 604 art 4 s 6-9; 1991 c 2 art 8 s 1-3; 1991 c 291
art 3 s 5-7; 1991 c 345 art 2 s 64,65; 1992 c 511 art 5 s 16,17; 1993 c 375 art 4 s 8-17; 1994 c
416 art 1 s 57; 1995 c 264 art 8 s 13; 1996 c 471 art 3 s 44; art 11 s 16-19; 1997 c 231 art 2 s
49,69; 1998 c 254 art 1 s 94,95; 1998 c 389 art 4 s 7; 1999 c 243 art 5 s 42; 2000 c 490 art 6 s 6;
1Sp2001 c 5 art 3 s 74,75; 2002 c 377 art 6 s 9; art 10 s 26; 1Sp2003 c 21 art 5 s 2-6; 2004 c 228
art 3 s 14-16; 2005 c 38 s 1; 2005 c 151 art 4 s 6-9; 1Sp2005 c 3 art 2 s 1; 2006 c 259 art 11 s 1

477A.012    Subdivision 1.[Repealed, 1996 c 310 s 1]
    Subd. 2.[Repealed, 1996 c 310 s 1]
    Subd. 3.[Repealed, 1996 c 310 s 1]
    Subd. 4.[Repealed, 1996 c 310 s 1]
    Subd. 5.[Repealed, 1991 c 291 art 3 s 15]
    Subd. 6.[Repealed, 1994 c 587 art 3 s 21]
    Subd. 7.[Repealed, 1996 c 310 s 1]
    Subd. 8.[Repealed, 1996 c 310 s 1]

477A.0121 [Repealed, 1Sp2003 c 21 art 6 s 17]

477A.0122 [Repealed, 1Sp2003 c 21 art 6 s 17]

477A.0123 [Repealed, 1Sp2003 c 21 art 6 s 17]

477A.0124 COUNTY PROGRAM AID.
    Subdivision 1. Calendar year 2004. In 2004, each county shall receive program aid in an
amount equal to the sum of:
(1) the amount of county attached machinery aid computed for the county for payment in
2003 under section 273.138 prior to any reduction under laws enacted in 2003;
(2) the amount of county homestead and agricultural credit aid computed for the county
for payment in 2003 under section 273.1398, subdivision 2, prior to any reduction under laws
enacted in 2003, minus the amount certified under section 273.1398, subdivision 4a, paragraph
(b), for counties in Judicial Districts One, Three, Six, and Ten, and by 25 percent of the amount
certified under section 273.1398, subdivision 4a, paragraph (b), for counties located in Judicial
Districts Two and Four;
(3) the amount of county manufactured home homestead and agricultural credit aid computed
for the county for payment in 2003 under section 273.166 prior to any reduction under laws
enacted in 2003;
(4) the amount of county criminal justice aid computed for the county for payment in 2003
under section 477A.0121 prior to any reduction under laws enacted in 2003; and
(5) the amount of county family preservation aid computed for the county for payment in
2003 under section 477A.0122 prior to any reduction under laws enacted in 2003.
    Subd. 2. Definitions. (a) For the purposes of this section, the following terms have the
meanings given them.
(b) "County program aid" means the sum of "county need aid," "county tax base equalization
aid," and "county transition aid."
(c) "Age-adjusted population" means a county's population multiplied by the county age
index.
(d) "County age index" means the percentage of the population over age 65 within the county
divided by the percentage of the population over age 65 within the state, except that the age index
for any county may not be greater than 1.8 nor less than 0.8.
(e) "Population over age 65" means the population over age 65 established as of July 15 in
an aid calculation year by the most recent federal census, by a special census conducted under
contract with the United States Bureau of the Census, by a population estimate made by the
Metropolitan Council, or by a population estimate of the state demographer made pursuant to
section 4A.02, whichever is the most recent as to the stated date of the count or estimate for the
preceding calendar year and which has been certified to the commissioner of revenue on or
before July 15 of the aid calculation year. A revision to an estimate or count is effective for these
purposes only if certified to the commissioner on or before July 15 of the aid calculation year.
Clerical errors in the certification or use of estimates and counts established as of July 15 in the aid
calculation year are subject to correction within the time periods allowed under section 477A.014.
(f) "Part I crimes" means the three-year average annual number of Part I crimes reported for
each county by the Department of Public Safety for the most recent years available. By July 1
of each year, the commissioner of public safety shall certify to the commissioner of revenue the
number of Part I crimes reported for each county for the three most recent calendar years available.
(g) "Households receiving food stamps" means the average monthly number of households
receiving food stamps for the three most recent years for which data is available. By July 1 of
each year, the commissioner of human services must certify to the commissioner of revenue the
average monthly number of households in the state and in each county that receive food stamps,
for the three most recent calendar years available.
(h) "County net tax capacity" means the net tax capacity of the county, computed analogously
to city net tax capacity under section 477A.011, subdivision 20.
    Subd. 3. County need aid. For 2005 and subsequent years, the money appropriated to
county need aid each calendar year shall be allocated as follows: 40 percent based on each
county's share of age-adjusted population, 40 percent based on each county's share of the state
total of households receiving food stamps, and 20 percent based on each county's share of the
state total of Part I crimes.
    Subd. 4. County tax-base equalization aid. (a) For 2006 and subsequent years, the money
appropriated to county tax-base equalization aid each calendar year, after the payment under
paragraph (f), shall be apportioned among the counties according to each county's tax-base
equalization aid factor.
(b) A county's tax-base equalization aid factor is equal to the amount by which (i) $185 times
the county's population, exceeds (ii) 9.45 percent of the county's net tax capacity.
(c) In the case of a county with a population less than 10,000, the factor determined in
paragraph (b) shall be multiplied by a factor of three.
(d) In the case of a county with a population greater than or equal to 10,000, but less than
12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.
(e) In the case of a county with a population greater than 500,000, the factor determined in
paragraph (b) shall be multiplied by a factor of 0.25.
(f) Before the money appropriated to county base equalization aid is apportioned among the
counties as provided in paragraph (a), an amount up to $73,259 is allocated annually to Anoka
County and up to $59,664 is annually allocated to Washington County for the county to pay
postretirement costs of health insurance premiums for court employees. The allocation under this
paragraph is in addition to the allocations under paragraphs (a) to (e).
    Subd. 5. County transition aid. (a) For 2005, a county is eligible for transition aid equal to
the amount, if any, by which:
(1) the difference between:
(i) the aid the county received under subdivision 1 in 2004, divided by the total aid paid to all
counties under subdivision 1, multiplied by $205,000,000; and
(ii) the amount of aid the county is certified to receive in 2005 under subdivisions 3 and 4;
exceeds:
(2) three percent of the county's adjusted net tax capacity.
A county's aid under this paragraph may not be less than zero.
(b) In 2006, a county is eligible to receive two-thirds of the transition aid it received in 2005.
(c) In 2007, a county is eligible to receive one-third of the transition aid it received in 2005.
(d) No county shall receive aid under this subdivision after 2007.
History: 1Sp2003 c 21 art 6 s 5; 2005 c 151 art 4 s 10,11

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

477A.0131 [Repealed, 1Sp1985 c 14 art 6 s 10]

477A.0132 [Repealed, 1Sp2003 c 21 art 5 s 14; art 6 s 17]

477A.014 COMMISSIONER'S RESPONSIBILITIES.
    Subdivision 1. Calculations and payments. (a) The commissioner of revenue shall make all
necessary calculations and make payments pursuant to sections 477A.013 and 477A.03 directly to
the affected taxing authorities annually. In addition, the commissioner shall notify the authorities
of their aid amounts, as well as the computational factors used in making the calculations for
their authority, and those statewide total figures that are pertinent, before August 1 of the year
preceding the aid distribution year.
(b) For the purposes of this subdivision, aid is determined for a city or town based on its city
or town status as of June 30 of the year preceding the aid distribution year. If the effective date
for a municipal incorporation, consolidation, annexation, detachment, dissolution, or township
organization is on or before June 30 of the year preceding the aid distribution year, such change
in boundaries or form of government shall be recognized for aid determinations for the aid
distribution year. If the effective date for a municipal incorporation, consolidation, annexation,
detachment, dissolution, or township organization is after June 30 of the year preceding the aid
distribution year, such change in boundaries or form of government shall not be recognized for
aid determinations until the following year.
(c) Changes in boundaries or form of government will only be recognized for the purposes of
this subdivision, to the extent that: (1) changes in market values are included in market values
reported by assessors to the commissioner, and changes in population, household size, and the road
accidents factor are included in their respective certifications to the commissioner as referenced in
section 477A.011, or (2) an annexation information report as provided in paragraph (d) is received
by the commissioner on or before July 15 of the aid calculation year. Revisions to estimates or data
for use in recognizing changes in boundaries or form of government are not effective for purposes
of this subdivision unless received by the commissioner on or before July 15 of the aid calculation
year. Clerical errors in the certification or use of estimates and data established as of July 15 in the
aid calculation year are subject to correction within the time periods allowed under subdivision 3.
(d) In the case of an annexation, an annexation information report may be completed by the
annexing jurisdiction and submitted to the commissioner for purposes of this subdivision if the net
tax capacity of annexed area for the assessment year preceding the effective date of the annexation
exceeds five percent of the city's net tax capacity for the same year. The form and contents of
the annexation information report shall be prescribed by the commissioner. The commissioner
shall change the net tax capacity, the population, the population decline, the commercial industrial
percentage, and the transformed population for the annexing jurisdiction only if the annexation
information report provides data the commissioner determines to be reliable for all of these factors
used to compute city revenue need for the annexing jurisdiction. The commissioner shall adjust
the pre-1940 housing percentage, the road accidents factor, and household size only if the entire
area of an existing city or town is annexed or consolidated and only if reliable data is available for
all of these factors used to compute city revenue need for the annexing jurisdiction.
    Subd. 1a.[Repealed, 1996 c 310 s 1]
    Subd. 2. Errors. A taxing authority may object to the commissioner of revenue with respect
to the amount of the distribution it has been certified to receive pursuant to subdivision 1. No
objection shall be raised later than 60 days after the taxing authority has received notice from the
commissioner of the amount which it has been certified to receive.
    Subd. 3. Aid amount correction. If, due to an error in the factors used to calculate a taxing
authority's aid pursuant to section 477A.013 the amount indicated in the certification of the
commissioner to the taxing authority for a year is less than the amount to which it is entitled
pursuant to this section, the commissioner of revenue shall additionally distribute the amount
necessary to make the full correct distribution to the taxing authority. The additional distribution
shall be paid from the general fund and shall not diminish the distributions made to other taxing
authorities under this section.
    Subd. 4. Costs. The director of the Office of Strategic and Long-Range Planning shall
annually bill the commissioner of revenue for one-half of the costs incurred by the state
demographer in the preparation of materials required by section 4A.02. The state auditor shall bill
the commissioner of revenue for the costs of best practices reviews and the services provided by
the Government Information Division and the parts of the constitutional office that are related
to the government information function, and for the services provided by the Tax Increment
Financing Investment and Finance Division required by section 469.3201, not to exceed $614,000
each fiscal year. The commissioner of administration shall bill the commissioner of revenue for
the costs of the local government records program and the intergovernmental information systems
activity, not to exceed $205,800 each fiscal year. The commissioner of employee relations shall
bill the commissioner of revenue for the costs of administering the local government pay equity
function, not to exceed $55,000 each fiscal year.
    Subd. 5. Deduction from aid payments. The commissioner of revenue shall deduct the
amounts certified under subdivision 4 from the aid payments to be made to appropriate local units
of government in the next aid payment year.
History: 1Sp1981 c 1 art 6 s 4; 1983 c 342 art 5 s 13; 1Sp1985 c 13 s 359; 1987 c 186 s
15; 1Sp1989 c 1 art 4 s 13; 1991 c 2 art 8 s 10; 1991 c 291 art 1 s 50,51; art 3 s 12,13; art 12 s
27; 1991 c 345 art 2 s 66; 1992 c 511 art 1 s 25; 1994 c 416 art 1 s 61; 1994 c 587 art 3 s
17; 1998 c 254 art 1 s 97,98; 1Sp2003 c 1 art 2 s 120; 2006 c 259 art 5 s 8; 2007 c 13 art 3 s
29; 2007 c 148 art 2 s 68

477A.015 PAYMENT DATES.
The commissioner of revenue shall make the payments of local government aid to affected
taxing authorities in two installments on July 20 and December 26 annually.
When the commissioner of public safety determines that a local government has suffered
financial hardship due to a natural disaster, the commissioner of public safety shall notify
the commissioner of revenue, who shall make payments of aids under sections 477A.011 to
477A.014, which are otherwise due on December 26, as soon as is practical after the determination
is made but not before July 20.
The commissioner may pay all or part of the payments of aids under sections 477A.011 to
477A.014, which are due on December 26 at any time after August 15 if a local government
requests such payment as being necessary for meeting its cash flow needs.
History: 1Sp1981 c 3 s 11; 1Sp1986 c 1 art 6 s 5; 1988 c 719 art 6 s 18; 1992 c 603 s
15; 1Sp2002 c 1 s 17; 2004 c 228 art 3 s 17

477A.016 NEW TAXES PROHIBITED.
No county, city, town or other taxing authority shall increase a present tax or impose a
new tax on sales or income.
History: 1Sp1981 c 1 art 6 s 5

477A.017 UNIFORM FINANCIAL ACCOUNTING AND REPORTING SYSTEM.
    Subdivision 1. Purpose. Sections 477A.011 to 477A.03 are designed to provide property
tax relief to local units of government. In order for the legislature to determine the amounts of
relief necessary each year, the legislature must have uniform and current financial information
from the governmental units which receive aid distributions. This section is intended to provide
that information.
    Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial
accounting and reporting standards in conformity with national standards to be applicable to cities
and towns of more than 2,500 population and uniform reporting standards to be applicable to
cities of less than 2,500 population.
    Subd. 3. Conformity. Other law to the contrary notwithstanding, in order to receive
distributions under sections 477A.011 to 477A.03, counties and cities must conform to the
standards set in subdivision 2 in making all financial reports required to be made to the state
auditor after June 30, 1984.
History: 1983 c 342 art 5 s 14; 1992 c 592 s 15

477A.018 [Repealed, 1989 c 277 art 1 s 35]

477A.019 [Repealed, 1989 c 277 art 1 s 35]

477A.02 [Expired]

477A.03 APPROPRIATION.
    Subdivision 1.[Repealed, 1994 c 587 art 3 s 21]
    Subd. 2.MS 1983 Supp [Repealed, 1984 c 502 art 4 s 8]
    Subd. 2. Annual appropriation. A sum sufficient to discharge the duties imposed
by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the
commissioner of revenue.
    Subd. 2a. Cities. For aids payable in 2004, the total aids paid under section 477A.013,
subdivision 9 , are limited to $429,000,000. For aids payable in 2005, the total aids paid under
section 477A.013, subdivision 9, are limited to $437,052,000. For aids payable in 2006 and
thereafter, the total aids paid under section 477A.013, subdivision 9, is limited to $485,052,000.
    Subd. 2b. Counties. (a) For aids payable in calendar year 2005 and thereafter, the total
aids paid to counties under section 477A.0124, subdivision 3, are limited to $100,500,000.
Each calendar year, $500,000 shall be retained by the commissioner of revenue to make
reimbursements to the commissioner of finance for payments made under section 611.27. For
calendar year 2004, the amount shall be in addition to the payments authorized under section
477A.0124, subdivision 1. For calendar year 2005 and subsequent years, the amount shall be
deducted from the appropriation under this paragraph. The reimbursements shall be to defray
the additional costs associated with court-ordered counsel under section 611.27. Any retained
amounts not used for reimbursement in a year shall be included in the next distribution of county
need aid that is certified to the county auditors for the purpose of property tax reduction for
the next taxes payable year.
(b) For aids payable in 2005, the total aids under section 477A.0124, subdivision 4, are
limited to $105,000,000. For aids payable in 2006 and thereafter, the total aid under section
477A.0124, subdivision 4, is limited to $105,132,923. The commissioner of finance shall bill the
commissioner of revenue for the cost of preparation of local impact notes as required by section
3.987, not to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner of education
shall bill the commissioner of revenue for the cost of preparation of local impact notes for school
districts as required by section 3.987, not to exceed $7,000 in fiscal year 2004 and thereafter.
The commissioner of revenue shall deduct the amounts billed under this paragraph from the
appropriation under this paragraph. The amounts deducted are appropriated to the commissioner
of finance and the commissioner of education for the preparation of local impact notes.
    Subd. 3.[Repealed, 1Sp2003 c 21 art 5 s 14; art 6 s 17]
    Subd. 4.[Repealed, 1Sp2003 c 21 art 5 s 14]
History: 1975 c 437 art 3 s 7; 1977 c 423 art 6 s 12; 1979 c 303 art 6 s 4; 1Sp1981 c 1 art 6
s 6; 3Sp1981 c 2 art 4 s 12; 1983 c 342 art 5 s 15; 1990 c 604 art 4 s 15; 1991 c 291 art 3 s 14;
1992 c 511 art 1 s 19; 1993 c 375 art 4 s 20; 1994 c 587 art 3 s 18; 1995 c 264 art 8 s 16; 1996 c
471 art 3 s 47; 1997 c 231 art 2 s 69; 1998 c 389 art 4 s 8,9; 1999 c 243 art 11 s 6; 2000 c 490 art
6 s 7; 1Sp2001 c 5 art 3 s 78; art 5 s 12; 2002 c 377 art 6 s 11; 2003 c 130 s 12; 1Sp2003 c 21 art
5 s 9,10; art 6 s 6; 2005 c 151 art 4 s 12; 1Sp2005 c 3 art 2 s 3,4

477A.04 [Repealed, 1985 c 300 s 30]

477A.05 [Repealed, 1999 c 243 art 5 s 54]

477A.06 [Repealed, 1Sp2003 c 21 art 5 s 14]

477A.065 [Repealed, 2003 c 127 art 5 s 50]

477A.07 [Repealed, 1Sp2003 c 21 art 5 s 14; art 6 s 17]

477A.08 [Repealed, 1Sp2005 c 3 art 7 s 20]

477A.11 NATURAL RESOURCES LANDS, PAYMENTS IN LIEU; DEFINITIONS.
    Subdivision 1. Terms. For the purpose of sections 477A.11 to 477A.145, the terms defined
in this section have the meanings given them.
    Subd. 2. Commissioner. "Commissioner" means the commissioner of natural resources.
    Subd. 3. Acquired natural resources land. "Acquired natural resources land" means:
(1) any land presently administered by the commissioner in which the state acquired by
purchase, condemnation, or gift, a fee title interest in lands which were previously privately
owned; and
(2) lands acquired by the state under chapter 84A that are designated as state parks, state
recreation areas, scientific and natural areas, or wildlife management areas.
    Subd. 4. Other natural resources land. "Other natural resources land" means any other
land presently owned in fee title by the state and administered by the commissioner, or any
tax-forfeited land, other than platted lots within a city or those lands described under subdivision
3, clause (2), which is owned by the state and administered by the commissioner or by the county
in which it is located.
    Subd. 5. Land utilization project land. "Land utilization project land" means land that is
leased by the state from the United States through the United States Secretary of Agriculture
according to Title III of the Bankhead Jones Farm Tenant Act and that is administered by the
commissioner.
History: 1979 c 303 art 8 s 1; 1990 c 604 art 4 s 16; 2000 c 485 s 18,19; 2000 c 490 art
6 s 10; 1Sp2005 c 3 art 1 s 31,32

477A.12 ANNUAL APPROPRIATIONS; LANDS ELIGIBLE; CERTIFICATION OF
ACREAGE.
    Subdivision 1. Types of land; payments. (a) As an offset for expenses incurred by counties
and towns in support of natural resources lands, the following amounts are annually appropriated
to the commissioner of natural resources from the general fund for transfer to the commissioner of
revenue. The commissioner of revenue shall pay the transferred funds to counties as required by
sections 477A.11 to 477A.145. The amounts are:
(1) for acquired natural resources land, $3, as adjusted for inflation under section 477A.145,
multiplied by the total number of acres of acquired natural resources land or, at the county's
option three-fourths of one percent of the appraised value of all acquired natural resources land
in the county, whichever is greater;
(2) 75 cents, as adjusted for inflation under section 477A.145, multiplied by the number of
acres of county-administered other natural resources land;
(3) 75 cents, as adjusted for inflation under section 477A.145, multiplied by the total number
of acres of land utilization project land; and
(4) 37.5 cents, as adjusted for inflation under section 477A.145, multiplied by the number
of acres of commissioner-administered other natural resources land located in each county as of
July 1 of each year prior to the payment year.
(b) The amount determined under paragraph (a), clause (1), is payable for land that is
acquired from a private owner and owned by the Department of Transportation for the purpose of
replacing wetland losses caused by transportation projects, but only if the county contains more
than 500 acres of such land at the time the certification is made under subdivision 2.
    Subd. 2. Procedure. Lands for which payments in lieu are made pursuant to section 97A.061,
subdivision 3 , and Laws 1973, chapter 567, shall not be eligible for payments under this section.
Each county auditor shall certify to the Department of Natural Resources during July of each year
prior to the payment year the number of acres of county-administered other natural resources land
within the county. The Department of Natural resources may, in addition to the certification of
acreage, require descriptive lists of land so certified. The commissioner of natural resources shall
determine and certify to the commissioner of revenue by March 1 of the payment year:
(1) the number of acres and most recent appraised value of acquired natural resources land
within each county;
(2) the number of acres of commissioner-administered natural resources land within each
county;
(3) the number of acres of county-administered other natural resources land within each
county, based on the reports filed by each county auditor with the commissioner of natural
resources; and
(4) the number of acres of land utilization project land within each county.
The commissioner of transportation shall determine and certify to the commissioner of
revenue by March 1 of the payment year the number of acres of land and the appraised value of
the land described in subdivision 1, paragraph (b), but only if it exceeds 500 acres.
The commissioner of revenue shall determine the distributions provided for in this section
using the number of acres and appraised values certified by the commissioner of natural resources
and the commissioner of transportation by March 1 of the payment year.
    Subd. 3. Determination of appraised value. For the purposes of this section, the appraised
value of acquired natural resources land is the purchase price for the first five years after
acquisition. The appraised value of acquired natural resources land received as a donation is the
value determined for the commissioner of natural resources by a licensed appraiser, or the county
assessor's estimated market value if no appraisal is done. The appraised value must be determined
by the county assessor every five years after the land is acquired.
History: 1979 c 303 art 8 s 2; 1986 c 386 art 4 s 29; 1986 c 444; 1994 c 632 art 2 s 54;
1995 c 220 s 125; 2000 c 490 art 6 s 11; 1Sp2001 c 5 art 3 s 80; 1Sp2005 c 3 art 1 s 33,34

477A.13 TIME OF PAYMENT, DEDUCTIONS.
Payments to the counties of the amounts determined under section 477A.12 must be made by
the commissioner of revenue from the general fund at the time provided in section 477A.015 for
the first installment of local government aid.
History: 1979 c 303 art 8 s 3; 1Sp1981 c 3 s 12; 1984 c 502 art 3 s 26; 1986 c 386 art 4 s
30; 1990 c 604 art 4 s 17; 1993 c 13 art 2 s 16; 2000 c 490 art 6 s 12

477A.14 USE OF FUNDS.
    Subdivision 1. General distribution. Except as provided in subdivision 2 or in section
97A.061, subdivision 5, 40 percent of the total payment to the county shall be deposited in the
county general revenue fund to be used to provide property tax levy reduction. The remainder
shall be distributed by the county in the following priority:
(a) 37.5 cents, as adjusted for inflation under section 477A.145, for each acre of
county-administered other natural resources land shall be deposited in a resource development
fund to be created within the county treasury for use in resource development, forest management,
game and fish habitat improvement, and recreational development and maintenance of
county-administered other natural resources land. Any county receiving less than $5,000 annually
for the resource development fund may elect to deposit that amount in the county general revenue
fund;
(b) From the funds remaining, within 30 days of receipt of the payment to the county, the
county treasurer shall pay each organized township 30 cents, as adjusted for inflation under
section 477A.145, for each acre of acquired natural resources land and each acre of land described
in section 477A.12, subdivision 1, paragraph (b), and 7.5 cents, as adjusted for inflation under
section 477A.145, for each acre of other natural resources land and each acre of land utilization
project land located within its boundaries. Payments for natural resources lands not located
in an organized township shall be deposited in the county general revenue fund. Payments to
counties and townships pursuant to this paragraph shall be used to provide property tax levy
reduction, except that of the payments for natural resources lands not located in an organized
township, the county may allocate the amount determined to be necessary for maintenance of
roads in unorganized townships. Provided that, if the total payment to the county pursuant to
section 477A.12 is not sufficient to fully fund the distribution provided for in this clause, the
amount available shall be distributed to each township and the county general revenue fund on
a pro rata basis; and
(c) Any remaining funds shall be deposited in the county general revenue fund. Provided
that, if the distribution to the county general revenue fund exceeds $35,000, the excess shall be
used to provide property tax levy reduction.
    Subd. 2. Distribution for consolidated conservation lands. In the case of payments for
consolidated conservation land, at least 15 percent of the amount paid on account of that land
under section 477A.12 must be distributed to the county for use as provided in section 84A.51,
subdivision 4 , clause (1). The remainder of the payment under section 477A.12 will be distributed
in proportion to the distributions described in subdivision 1.
History: 1979 c 303 art 8 s 4; 1993 c 375 art 17 s 20; 1994 c 632 art 2 s 55; 1995 c 220
s 126; 1998 c 389 art 3 s 26; 2000 c 490 art 6 s 13; 1Sp2001 c 5 art 3 s 81; 2002 c 353 s
3; 1Sp2005 c 3 art 1 s 35

477A.145 INFLATION ADJUSTMENT.
In 2001 and each year thereafter, the amounts required to be adjusted for inflation in sections
477A.12 and 477A.14 shall be increased to an amount equal to: (1) the amount before the inflation
adjustment multiplied by (2) one plus the percentage increase in the implicit price deflator for
government consumption expenditures and gross investment for state and local governments
prepared by the Bureau of Economic Analysis of the United States Department of Commerce for
the period indicated below:
(i) the period starting with the first quarter of 1994 and ending with the third quarter of the
calendar year prior to the year in which aid is paid, provided that lands acquired by the state under
chapter 84A that are designated as state parks, state recreation areas, scientific and natural areas,
or wildlife management areas are included in the definition of acquired natural resource land
under section 477A.11 for calculating payments in calendar year 2001 and thereafter;
(ii) otherwise the period starting with the first quarter of 1987 and ending with the third
quarter of the calendar year prior to the year in which the aid is paid.
These adjusted amounts must be rounded to the nearest one-tenth of a cent.
History: 2000 c 490 art 6 s 14

477A.15 TACONITE AID REIMBURSEMENT.
Any school district in which is located property which had been entitled to a reduction of
tax pursuant to Minnesota Statutes 1978, section 273.135, subdivision 2, clause (c), shall receive
in 1981 and subsequent years an amount equal to the amount it received in 1980 pursuant to
Minnesota Statutes 1978, section 298.28, subdivision 1, clause (3)(b). Payments shall be made
pursuant to this section and section 126C.48, subdivision 8, paragraph (5), by the commissioner
of revenue to the taxing jurisdictions on the date in each calendar year when the first installment is
paid under section 477A.015.
History: 1980 c 607 art 7 s 6; 1994 c 416 art 1 s 62; 2002 c 377 art 8 s 16