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 related to the aid, including terms such as "4d(1) property," "base assessment year," and "modified tax capacity." The bill outlines the calculation for the aid amount, which is determined by multiplying the city's tax rate for taxes payable in 2024 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, specifying that payments will be made in two installments as outlined in section 477A.015. It also includes an annual appropriation from the general fund to ensure sufficient funds are available for the low-income rental property aid. The effective date for this new law is set for aids payable in 2027 and thereafter.