The bill proposes the creation of special taxing districts specifically for fire protection and emergency medical services. These districts would be allowed to collect a certain amount of tax, designated for the provision of these services. The bill defines key terms related to this setup, including the role of the commissioner of revenue who is responsible for administering the distribution of funds.

Each special taxing district would receive an annual aid equal to 50% of their tax levy from the previous year. However, if the total aid requested by all such districts exceeds the available funds, the amount each district receives will be proportionally reduced so that the total aid distributed does not exceed the available funds.

The commissioner is tasked with calculating and certifying the amount of aid each district is entitled to each year by August 1, for distribution on July 20 the following year. Funds for this aid would come from Minnesota’s general fund as stipulated in the bill.

Overall, this bill is aimed at supporting local government units that provide fire and emergency medical services by providing them with a reliable financial aid system funded through special taxing districts.