This bill proposes to make the class 4d(1) low-income rental property aid a permanent fixture in Minnesota law, specifically codified in chapter 477A of the Minnesota Statutes. It establishes definitions for key terms related to the aid, including "4d(1) property," "base assessment year," and "modified tax capacity." The bill outlines the calculation for the aid amount, which is determined by the city's tax rate for taxes payable in 2024 multiplied by the modified tax capacity for the city. Additionally, it mandates that the commissioner of revenue will determine the net tax capacity and certify the aid amount to each city before August 1 of the year prior to the aid distribution.

Furthermore, the bill includes provisions for the administration and payment schedule of the aid, requiring payments to be made in two installments as specified in existing law. It also appropriates an amount sufficient to cover the low-income rental property aid from the general fund to the commissioner of revenue. The effective date for this new aid structure is set for aids payable in 2027 and thereafter, ensuring that the support for low-income rental properties is sustained in the long term.