Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1996 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; aid to local governments; modifying the calculation of town
3	3	1.3 aid; increasing the annual town aid amount; amending Minnesota Statutes 2024,
4	4	1.4 sections 477A.013, subdivision 1; 477A.03, subdivision 2c.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 477A.013, subdivision 1, is amended to read:
7	7	1.7 Subdivision 1.Towns.(a) In 2014 and thereafter, each town is eligible for a distribution
8	8	1.8under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town
9	9	1.9area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the
10	10	1.10following terms have the meanings given them:
11	11	1.11 (1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
12	12	1.12agricultural property located in a town, to the adjusted net tax capacity of all other property
13	13	1.13located in the town. The agricultural property factor cannot exceed eight;
14	14	1.14 (2) "agricultural property" means property classified under section 273.13, as homestead
15	15	1.15and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
16	16	1.16recreational property;
17	17	1.17 (3) "town area factor" means the most recent estimate of total acreage, not to exceed
18	18	1.1850,000 acres, located in the township available as of July 1 in the aid calculation year,
19	19	1.19estimated or established by:
20	20	1.20 (i) the United States Bureau of the Census;
21	21	1.21 (ii) the State Land Management Information Center; or
22	22	1.22 (iii) the secretary of state; and
23	23	1Section 1.
24	24	REVISOR MS/MI 25-0106812/06/24
25	25	State of Minnesota
26	26	This Document can be made available
27	27	in alternative formats upon request
28	28	HOUSE OF REPRESENTATIVES
29	29	H. F. No. 1996
30	30	NINETY-FOURTH SESSION
31	31	Authored by Warwas, Davids, Skraba, Joy and Igo03/06/2025
32	32	The bill was read for the first time and referred to the Committee on Taxes 2.1 (4) "population factor" means the square root of the town's population.; and
33	33	2.2 (5) "town aid factor" means the product of the town's (i) agricultural property factor, (ii)
34	34	2.3town area factor, and (iii) population factor.
35	35	2.4 (b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
36	36	2.5under section 477A.03, subdivision 2c, the distribution to each town must be reduced
37	37	2.6proportionately so that the total amount of aids distributed under this subdivision does not
38	38	2.7exceed the limit in section 477A.03, subdivision 2c.
39	39	2.8 (b) Each town is eligible for a distribution under this subdivision equal to the product
40	40	2.9of (1) the total amount available for town aid under section 477A.03, subdivision 2c, and
41	41	2.10(2) the ratio of (i) the town's town aid factor to (ii) the sum of the town aid factors for all
42	42	2.11towns.
43	43	2.12 (c) Data used in calculating aids to towns under this subdivision, other than acreage,
44	44	2.13shall be the most recently available data as of January 1 in the year in which the aid is
45	45	2.14calculated.
46	46	2.15 EFFECTIVE DATE.This section is effective for aid payable in calendar year 2026
47	47	2.16and thereafter.
48	48	2.17 Sec. 2. Minnesota Statutes 2024, section 477A.03, subdivision 2c, is amended to read:
49	49	2.18 Subd. 2c.Towns.For aids payable in 2015 and thereafter through 2025, the total aids
50	50	2.19paid under section 477A.013, subdivision 1, is limited to $10,000,000. For aids payable in
51	51	2.202026 and thereafter, the total aid payable under section 477A.013, subdivision 1, is
52	52	2.21$11,500,000.
53	53	2.22 EFFECTIVE DATE.This section is effective for aid payable in calendar year 2026
54	54	2.23and thereafter.
55	55	2Sec. 2.
56	56	REVISOR MS/MI 25-0106812/06/24