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HF1279 (Legislative Session 94 (2025-2026))

Property tax; distribution of the state general levy provided to certain municipalities.

Related bill: SF1757

AI Generated Summary

The bill, H.F. No. 1279, proposes an amendment to Minnesota Statutes 2024, section 275.025, establishing a "low-aid municipality distribution." This amendment provides financial relief to certain municipalities in Anoka County by redistributing a portion of the state general property tax levy.

Key Provisions:

  1. Eligibility Criteria: A municipality qualifies as a "low-aid municipality" if it:

    • Falls wholly or partially within the area governed by section 473F.02.
    • Does not receive state aid from the Municipal State-Aid Street (MSAS) fund.
    • Does not receive aid from the Local Government Aid (LGA) program.
    • Has a fiscal disparities contribution tax capacity exceeding its fiscal disparities distribution tax capacity.
    • Has a population below 5,000.
    • Is located in Anoka County.

  2. Calculation of Distribution:

    • The payment to the municipality is based on:
      • Net tax capacity tax rate × Net fiscal disparities contribution.
    • The total distribution cannot exceed the state general levy collected from taxpayers within the municipality.

  3. Administration of Funds:

    • The Minnesota Commissioner of Revenue will determine and certify the amount for each eligible municipality by September 1 each year.
    • Payments must be made to the municipality by the county treasurer by December 1 of the same year.
    • Funds for these payments will be deducted from the state’s general tax levy settlements.

Objective of the Bill:

The bill aims to financially support small municipalities in Anoka County that contribute more to the fiscal disparities program than they receive in return, while lacking access to traditional forms of state aid.

Would you like any clarification or additional details on the bill?

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
February 19, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies geographic qualification for distributions."
      ],
      "removed": [
        ""
      ],
      "summary": "Defines the area for lowaid municipality qualifications with respect to state general levy distribution.",
      "modified": [
        ""
      ]
    },
    "citation": "473F.02",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to criteria for municipality's not receiving state-aid street fund distribution.",
      "modified": [
        ""
      ]
    },
    "citation": "162.13",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Sets conditions pertaining to exclusions from local government aid distribution.",
      "modified": [
        ""
      ]
    },
    "citation": "477A.011",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Outlines the framework affecting lowaid municipalities in terms of government aid exclusion.",
      "modified": [
        ""
      ]
    },
    "citation": "477A.03",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to the administration of the state general levy settlement deductions.",
      "modified": [
        ""
      ]
    },
    "citation": "276.112",
    "subdivision": ""
  }
]

Sponsors