This bill introduces a new provision in Minnesota Statutes, specifically under chapter 477A, that establishes penalties for local governments that deny development projects aimed at expanding their property tax base. Under the new section [477A.0178] AID REDUCTIONS FOR TAX BASE REDUCTIONS, counties and cities that reject such projects will face reductions in their local government aid. The amount of aid reduction will be determined based on the jurisdiction's taxable net tax capacity and the growth in net tax capacity that would have occurred had the project been approved. The commissioner of revenue is tasked with implementing these reductions in the year following the certification of the relevant data. Additionally, the bill outlines a process for the reinstatement of aid once a jurisdiction's taxable net tax capacity exceeds a specified threshold. Local governments must notify the commissioner of revenue when they surpass this threshold, after which the aid reductions will cease. The effective date for this new law is set for June 30, 2027. This legislation aims to incentivize local governments to approve development projects that could enhance their tax base, thereby promoting economic growth within the state.