HF4251

Purpose

• Establishes the Capitol Complex County Host Program to compensate Ramsey County for the loss of property tax base and the disproportionate impact from state-owned buildings located in the Capitol Area.

Main Provisions

• Starting in aids payable in 2027, the commissioner of revenue must pay Ramsey County an amount equal to 5 per square foot of state-owned buildings located in the Capitol Area described in section 15B.02 paragraph b.
• The aid is intended to be used to reduce current year property taxes levied on net tax capacity within Ramsey County.
• The aid program is funded by an annual appropriation from the general fund to the commissioner of revenue, sufficient to pay the aid.
• The commissioner of revenue must pay the aid each year at the times specified in section 477A.015.

Significant Changes to Existing Law

• Creates a new program under Minnesota Statutes Chapter 477A (Capitol Complex County Host Program) with its own section (477A.41).
• Establishes a per-square-foot payment for state-owned buildings in the Capitol Area to offset local tax base losses.
• Ties the aid to property tax relief within Ramsey County by directing payments to reduce local property taxes levied on net tax capacity.
• Requires ongoing annual funding from the general fund and formalizes annual disbursement timing.

Funding, Timing, and Administration

• Beginning with aids payable in 2027.
• An amount sufficient to pay the aid is annually appropriated from the general fund to the commissioner of revenue.
• Payments are to be made annually at the times described in section 477A.015.

Geographic Scope

• Applies to state-owned buildings located in the Capitol Area described in section 15B.02 paragraph b.

Practical Impact

• Ramsey County would receive predictable annual funds to counterbalance the tax base loss caused by state government property within the Capitol Area.
• The program aims to ensure local property taxes in Ramsey County are not as adversely affected by state ownership of nearby buildings.

Notes

• The excerpt ends after describing the funding and payment mechanism for 2027 and beyond.

Relevant Terms - Ramsey County - Capitol Area - state-owned buildings - Capitol Complex County Host Program - 5 per square foot - net tax capacity - property taxes - general fund - commissioner of revenue - aids payable in 2027 - section 15B.02 paragraph b - section 477A.015 - Minnesota Statutes Chapter 477A