The bill amends Minnesota Statutes 2024, section 127A.49, subdivision 3, to clarify the adjustments to school district aid and levy limitations when a tax increment finance excess is received. Specifically, it stipulates that if a school district receives a return of excess tax increment, the district's aid for the current fiscal year must be reduced by a calculated amount based on the previous year's excess tax increment payment and the district's certified levy amounts from prior years. The bill also specifies that the school district's levy limitation for the next certified levy must be adjusted by the difference between the excess increment distribution and the amount subtracted from aid.

Notably, the bill replaces the reference to section 123B.57, which pertains to health and safety, with section 123B.595, which relates to long-term facilities maintenance. This change is part of a broader effort to ensure that the adjustments to aid and levy limitations accurately reflect the financial circumstances of school districts receiving excess tax increments. Additionally, the bill establishes that these adjustments only apply to excess increments exceeding $25,000 received by a district in a calendar year.

Statutes affected:
Introduction: 127A.49