This bill amends Minnesota Statutes 2022, section 275.025, by adding a new subdivision that establishes a distribution mechanism for certain municipalities classified as "low-aid municipalities." These municipalities are defined as those that do not receive municipal state-aid street fund distributions or local government aid distributions, have a fiscal disparities contribution tax capacity exceeding their distribution tax capacity, and have a population of less than 5,000. The bill outlines the criteria for eligibility and specifies that the distribution amount will be calculated based on the municipality's net tax capacity tax rate and net fiscal disparities contribution, with a cap on the distribution not exceeding the tax imposed on taxpayers within the municipality.

The bill also mandates that the distribution be paid by the treasurer of the municipality's home county by December 1 of the year the taxes are payable, and it requires the commissioner of revenue to determine and certify the distribution amounts by September 1. Additionally, the bill clarifies definitions for terms used within the subdivision, such as "municipality" and "net fiscal disparities contribution." This new provision is set to take effect for property taxes payable in 2025 and thereafter.

Statutes affected:
Introduction: 275.025