This bill amends Minnesota Statutes 2024, 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 meet specific criteria, including being located in Anoka County, having a population of less than 5,000, and not receiving certain state aid distributions. The bill outlines that eligible municipalities will receive a distribution from the state general levy based on their net tax capacity tax rate and net fiscal disparities contribution, with the total distribution not exceeding the tax imposed on taxpayers within the municipality.

The bill also specifies the process for determining and certifying the distribution amounts, which will be handled by the commissioner of revenue and communicated to the municipalities by September 1 of the tax year. Payments to qualifying municipalities are to be made by the treasurer of the home county by December 1 of the same year. Additionally, the bill clarifies definitions for terms used within the subdivision and states that the new provisions will take effect for property taxes payable in 2026 and thereafter.

Statutes affected:
Introduction: 275.025