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SF2116 (Legislative Session 94 (2025-2026))

Calculation of town aid modification

Related bill: HF1996

AI Generated Summary

This bill proposes modifications to how town aid is calculated and distributed in Minnesota. Specifically, it:

  1. Modifies the Calculation of Town Aid:

    • Adjusts the formula determining town aid by factoring in:
      • Agricultural Property Factor: The ratio of agricultural property’s adjusted net tax capacity to all other property in the town, with a cap of 8.
      • Town Area Factor: The estimated total acreage of a town, up to 50,000 acres.
      • Population Factor: The square root of the town's population.
    • Introduces a Town Aid Factor, which is the product of the three factors above.

  2. Establishes a New Method for Distributing Aid:

    • If total town aid exceeds the set limit, payments to towns will be proportionally reduced.
    • Each town's aid is now determined by its Town Aid Factor relative to all other towns.

  3. Uses Updated Data for Aid Calculation:

    • Ensures the most recent data available as of January 1 of the aid calculation year is used, except for acreage estimates.

  4. Increases Annual Town Aid:

    • Amends Minnesota Statutes to increase the total amount of aid available for towns under section 477A.03, subdivision 2c.

In summary, this bill reforms the way Minnesota calculates and distributes financial aid to towns by adjusting formulas, updating data sources, and ensuring aid is fairly distributed based on population, area, and agricultural factors.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025HouseFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025HouseFloorActionReferred toTaxes
March 02, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies terms such as agricultural property factor and town area factor."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill amends the calculation factors and distribution method for town aid under section 477A.013, subdivision 1.",
      "modified": [
        "Updates method for calculating total eligible town aid distribution."
      ]
    },
    "citation": "477A.013",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references the aid distribution limit under section 477A.03, subdivision 2c.",
      "modified": [
        "Ensures aid distribution does not exceed the set limit, references compliance."
      ]
    },
    "citation": "477A.03",
    "subdivision": "subdivision 2c"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references property classification under section 273.13.",
      "modified": [
        ""
      ]
    },
    "citation": "273.13",
    "subdivision": ""
  }
]

Sponsors