Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1996 Latest Draft

Bill / Introduced Version Filed 03/06/2025

                            1.1	A bill for an act​
1.2 relating to taxation; aid to local governments; modifying the calculation of town​
1.3 aid; increasing the annual town aid amount; amending Minnesota Statutes 2024,​
1.4 sections 477A.013, subdivision 1; 477A.03, subdivision 2c.​
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.6 Section 1. Minnesota Statutes 2024, section 477A.013, subdivision 1, is amended to read:​
1.7 Subdivision 1.Towns.(a) In 2014 and thereafter, each town is eligible for a distribution​
1.8under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town​
1.9area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the​
1.10following terms have the meanings given them:​
1.11 (1) "agricultural property factor" means the ratio of the adjusted net tax capacity of​
1.12agricultural property located in a town, to the adjusted net tax capacity of all other property​
1.13located in the town. The agricultural property factor cannot exceed eight;​
1.14 (2) "agricultural property" means property classified under section 273.13, as homestead​
1.15and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal​
1.16recreational property;​
1.17 (3) "town area factor" means the most recent estimate of total acreage, not to exceed​
1.1850,000 acres, located in the township available as of July 1 in the aid calculation year,​
1.19estimated or established by:​
1.20 (i) the United States Bureau of the Census;​
1.21 (ii) the State Land Management Information Center; or​
1.22 (iii) the secretary of state; and​
1​Section 1.​
REVISOR MS/MI 25-01068​12/06/24 ​
State of Minnesota​
This Document can be made available​
in alternative formats upon request​
HOUSE OF REPRESENTATIVES​
H. F. No.  1996​
NINETY-FOURTH SESSION​
Authored by Warwas, Davids, Skraba, Joy and Igo​03/06/2025​
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​
2.2 (5) "town aid factor" means the product of the town's (i) agricultural property factor, (ii)​
2.3town area factor, and (iii) population factor.​
2.4 (b) If the sum of the aids payable to all towns under this subdivision exceeds the limit​
2.5under section 477A.03, subdivision 2c, the distribution to each town must be reduced​
2.6proportionately so that the total amount of aids distributed under this subdivision does not​
2.7exceed the limit in section 477A.03, subdivision 2c.​
2.8 (b) Each town is eligible for a distribution under this subdivision equal to the product​
2.9of (1) the total amount available for town aid under section 477A.03, subdivision 2c, and​
2.10(2) the ratio of (i) the town's town aid factor to (ii) the sum of the town aid factors for all​
2.11towns.​
2.12 (c) Data used in calculating aids to towns under this subdivision, other than acreage,​
2.13shall be the most recently available data as of January 1 in the year in which the aid is​
2.14calculated.​
2.15 EFFECTIVE DATE.This section is effective for aid payable in calendar year 2026​
2.16and thereafter.​
2.17 Sec. 2. Minnesota Statutes 2024, section 477A.03, subdivision 2c, is amended to read:​
2.18 Subd. 2c.Towns.For aids payable in 2015 and thereafter through 2025, the total aids​
2.19paid under section 477A.013, subdivision 1, is limited to $10,000,000. For aids payable in​
2.202026 and thereafter, the total aid payable under section 477A.013, subdivision 1, is​
2.21$11,500,000.​
2.22 EFFECTIVE DATE.This section is effective for aid payable in calendar year 2026​
2.23and thereafter.​
2​Sec. 2.​
REVISOR MS/MI 25-01068​12/06/24 ​