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." To qualify as a low-aid municipality, a municipality must 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 the calculation for the distribution, which is based on the municipality's net tax capacity tax rate and net fiscal disparities contribution, with a cap that prevents the distribution from exceeding the tax imposed on local taxpayers.

The bill also specifies that the distribution must be paid by the treasurer of the municipality's home county by December 1 of the tax year, and the amounts distributed will be deducted from the settlement of the state general levy. Additionally, it defines key terms related to the distribution process. This new provision is set to take effect for property taxes payable in 2026 and thereafter.

Statutes affected:
Introduction: 275.025