1.1 A bill for an act
1.2 relating to taxation; local government aid; creating a minimum city aid distribution;
1.3 amending Minnesota Statutes 2024, sections 477A.013, subdivision 9; 477A.03,
1.4 subdivision 2a.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 477A.013, subdivision 9, is amended to read:
1.7 Subd. 9.City aid distribution.(a) In calendar year 2024 and thereafter, if a city's
1.8certified aid for the previous year is less than its current unmet need, the city shall receive
1.9an aid distribution equal to the sum of (1) its certified aid in the previous year, and (2) the
1.10city formula aid under subdivision 8.
1.11 (b) For aids payable in 2024 and thereafter, if a city's certified aid for the previous year
1.12is equal to or greater than its current unmet need, the total aid for a city is equal to the greater
1.13of (1) its unmet need, or (2) the amount it was certified to receive in the previous year minus
1.14the lesser of (i) $10 multiplied by its population, or (ii) five percent of its net levy in the
1.15year prior to the aid distribution. No city may have a total aid amount less than $0.
1.16 (c) Notwithstanding paragraphs (a) and (b), the aid distribution under this subdivision
1.17to a city must not be less than $150 multiplied by the city's population if (1) the city is
1.18located in a county that contains a city of the first class, and (2) the city's unmet need is
1.19greater than zero.
1.20 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2026
1.21and thereafter.
1Section 1.
REVISOR EAP/NS 25-0150101/16/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 351
NINETY-FOURTH SESSION
Authored by Smith, Liebling and Hicks02/13/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1 Sec. 2. Minnesota Statutes 2024, section 477A.03, subdivision 2a, is amended to read:
2.2 Subd. 2a.Cities.For aids payable in 2021 through 2023, the total aid payable under
2.3section 477A.013, subdivision 9, is $564,398,012. For aids payable in 2024 and thereafter
2.42025, the total aid payable under section 477A.013, subdivision 9, is $644,398,012. For
2.5aids payable in 2026 and thereafter, the total aid payable under section 477A.013, subdivision
2.69, is $722,704,893.
2.7 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2026
2.8and thereafter.
2Sec. 2.
REVISOR EAP/NS 25-0150101/16/25