| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; local government aid; creating a minimum city aid distribution; |
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| 3 | 3 | | 1.3 amending Minnesota Statutes 2024, sections 477A.013, subdivision 9; 477A.03, |
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| 4 | 4 | | 1.4 subdivision 2a. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 477A.013, subdivision 9, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 9.City aid distribution.(a) In calendar year 2024 and thereafter, if a city's |
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| 8 | 8 | | 1.8certified aid for the previous year is less than its current unmet need, the city shall receive |
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| 9 | 9 | | 1.9an aid distribution equal to the sum of (1) its certified aid in the previous year, and (2) the |
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| 10 | 10 | | 1.10city formula aid under subdivision 8. |
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| 11 | 11 | | 1.11 (b) For aids payable in 2024 and thereafter, if a city's certified aid for the previous year |
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| 12 | 12 | | 1.12is equal to or greater than its current unmet need, the total aid for a city is equal to the greater |
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| 13 | 13 | | 1.13of (1) its unmet need, or (2) the amount it was certified to receive in the previous year minus |
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| 14 | 14 | | 1.14the lesser of (i) $10 multiplied by its population, or (ii) five percent of its net levy in the |
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| 15 | 15 | | 1.15year prior to the aid distribution. No city may have a total aid amount less than $0. |
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| 16 | 16 | | 1.16 (c) Notwithstanding paragraphs (a) and (b), the aid distribution under this subdivision |
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| 17 | 17 | | 1.17to a city of the first class must not be less than $150 multiplied by the city's population. |
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| 18 | 18 | | 1.18 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2026 |
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| 19 | 19 | | 1.19and thereafter. |
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| 20 | 20 | | 1.20 Sec. 2. Minnesota Statutes 2024, section 477A.03, subdivision 2a, is amended to read: |
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| 21 | 21 | | 1.21 Subd. 2a.Cities.For aids payable in 2021 through 2023, the total aid payable under |
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| 22 | 22 | | 1.22section 477A.013, subdivision 9, is $564,398,012. For aids payable in 2024 and thereafter |
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| 23 | 23 | | 1Sec. 2. |
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| 24 | 24 | | REVISOR EAP/HL 25-0149801/16/25 |
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| 25 | 25 | | State of Minnesota |
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| 26 | 26 | | This Document can be made available |
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| 27 | 27 | | in alternative formats upon request |
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| 28 | 28 | | HOUSE OF REPRESENTATIVES |
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| 29 | 29 | | H. F. No. 350 |
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| 30 | 30 | | NINETY-FOURTH SESSION |
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| 31 | 31 | | Authored by Smith, Liebling and Hicks02/13/2025 |
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| 32 | 32 | | The bill was read for the first time and referred to the Committee on Taxes 2.12025, the total aid payable under section 477A.013, subdivision 9, is $644,398,012. For |
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| 33 | 33 | | 2.2aids payable in 2026 and thereafter, the total aid payable under section 477A.013, subdivision |
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| 34 | 34 | | 2.39, is $657,681,729. |
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| 35 | 35 | | 2.4 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2026 |
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| 36 | 36 | | 2.5and thereafter. |
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| 37 | 37 | | 2Sec. 2. |
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| 38 | 38 | | REVISOR EAP/HL 25-0149801/16/25 |
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