1.1 A bill for an act 1.2 relating to taxation; local government aid; establishing state fairgrounds public 1.3 safety and municipal services aid with an annual inflation adjustment; appropriating 1.4 money; proposing coding for new law in Minnesota Statutes, chapter 477A. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. [477A.41] STATE FAIRGROUNDS PUBLIC SAFETY AND MUNICIPAL 1.7SERVICES AID. 1.8 Subdivision 1.Public safety and municipal services aid; purpose.(a) The commissioner 1.9of revenue must make aid payments to the city of Falcon Heights and the city of St. Paul. 1.10The purpose of the aid is to compensate the cities for costs that are attributable to events 1.11occurring at the State Fairgrounds, such as public safety services including police, fire, and 1.12emergency medical response; public works expenses for traffic management and sanitation; 1.13and neighborhood cleanup and restoration efforts. 1.14 (b) For aids payable in 2026, the aid amount for the city of Falcon Heights equals $75,000 1.15and the aid amount for the city of St. Paul equals $500,000. For aids payable in 2027 and 1.16thereafter, the aid amount for each city equals the aid payable to each city in the previous 1.17year multiplied by the inflation adjustment under subdivision 2. 1.18 Subd. 2.Inflation adjustment.In January of the year in which the aid amounts are 1.19certified, the commissioner of revenue must calculate the inflation adjustment. For purposes 1.20of this section, the "inflation adjustment" equals the sum of one plus the rate of change in 1.21inflation according to the implicit price deflator for government consumption and 1.22expenditures and gross investment for state and local governments prepared by the Bureau 1Section 1. 25-05258 as introduced03/27/25 REVISOR MS/HL SENATE STATE OF MINNESOTA S.F. No. 3203NINETY-FOURTH SESSION (SENATE AUTHORS: OUMOU VERBETEN) OFFICIAL STATUSD-PGDATE Introduction and first reading04/01/2025 Referred to Taxes 2.1of Economic Analysis of the United States Department of Commerce for the 12-month 2.2period ending March 31 of the previous calendar year. 2.3 Subd. 3.Certification and payment.By August 1 of each year, the commissioner of 2.4revenue must certify the amount to be paid to each city in the following year. The 2.5commissioner of revenue must make aid payments to the city of Falcon Heights and to the 2.6city of St. Paul annually on July 20. 2.7 Subd. 4.Appropriation.An amount sufficient to pay aid under this section is 2.8appropriated annually from the general fund to the commissioner of revenue. 2.9 EFFECTIVE DATE.This section is effective beginning with aids payable in 2026. 2Section 1. 25-05258 as introduced03/27/25 REVISOR MS/HL