HF535 (Legislative Session 94 (2025-2026))
Natural disaster debt service equalization aid program broadened to assist school districts with a high percentage of property excluded from tax rolls.
Related bill: SF437
AI Generated Summary
The legislative bill H.F. No., authored by Bliss, seeks to revise the natural disaster debt service equalization aid program to better support school districts that suffer significant damage from natural disasters and those with a large portion of property not contributing to tax revenues due to exemptions. This aid is intended to assist these districts by ensuring they have additional funds to make necessary interest and principal payments on their debt when faced with reduced tax capacities.
To qualify for this enhanced aid: 1. A school district must have experienced a natural disaster that caused at least $500,000 in damage to its facilities, and these expenses are not covered by insurance or FEMA payments. 2. Alternatively, it can qualify if at least 30% of its property value is exempt from taxation.
The bill also outlines the calculations for equalization aid and how it is applied, ensuring districts that meet these criteria receive the necessary financial support. Moreover, adjustments are made to include tax capacities of properties usually exempt from taxes to better reflect the fiscal capabilities of affected districts. The bill requires districts to notify the commissioner of their intended revenues from this enhanced service, dictating how the funds should be calculated and distributed accordingly.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Education Finance |
Citations
[
{
"analysis": {
"added": [
"Eligibility for enhanced debt service equalization aid includes conditions for natural disaster impact and property value exclusions."
],
"summary": "This bill modifies the natural disaster enhanced debt service revenue calculation under section 123B.535, which references obligations that qualify under section 123B.53.",
"modified": [
"Clarified the method for calculating eligible debt service revenue and how it relates to section 123B.53."
]
},
"citation": "123B.53"
},
{
"analysis": {
"added": [
"Adjusting the calculation of net tax capacity to include certain exempt properties."
],
"summary": "The bill references section 127A.48 for purposes of determining adjusted net tax capacity in the context of property value with specific tax exemptions.",
"modified": [
"Bases certain calculations on adjusted net tax capacity as determined by section 127A.48."
]
},
"citation": "127A.48"
},
{
"analysis": {
"added": [
"Specification of payment schedule for debt service equalization aid."
],
"summary": "The bill stipulates that debt service equalization aid payments follow the schedule outlined in section 127A.45, subdivision 10.",
"modified": [
"Aligns aid payment timing with existing statute requirements."
]
},
"citation": "127A.45"
},
{
"analysis": {
"added": [
"Expanded definition for adjusted net tax capacity including properties exempt from taxes."
],
"summary": "The calculation for adjusted net tax capacity includes reference to section 273.1325, relating to tax capacity adjustments.",
"modified": [
"Aligns tax capacity calculations with section 273.1325 requirements."
]
},
"citation": "273.1325"
},
{
"analysis": {
"added": [
"Incorporation of property values previously exempt under section 272.02 into tax capacity calculations."
],
"summary": "This section modifies calculations to include tax-exempt properties under section 272.02, subdivision 64.",
"modified": [
"Broaden inclusion criteria for properties affecting tax assessments."
]
},
"citation": "272.02"
}
]