HF921 (Legislative Session 94 (2025-2026))
Aid and levy adjustments when a tax increment finance excess is received by a school district clarified.
AI Generated Summary
The legislative bill H. F. No., authored by Kresha, aims to address adjustments in school district finances related to tax increment financing (TIF). When a school district receives excess tax increments due to adjustments or decertification of a tax increment district, this bill ensures modifications are made to both the aid and levy limits of the school district for the relevant fiscal year.
Key elements of the changes proposed by the bill include:
Adjustment in District Aid: For the fiscal year in which the excess tax increment payment is received, an amount equivalent to the payment multiplied by the ratio of specific prior years' certified levy amounts will be subtracted from the district's aid.
Aid Types Affected: The bill specifies multiple types of aid that can be affected by this adjustment, including health and safety, long-term facilities maintenance aid, community education programs aid, early childhood family education aid, referendum equalization aid, operating capital aid, equity aid, transition aid, debt service equalization aid, natural disaster debt service aid, school-age care aid, and alternative teacher compensation aid.
Adjustment in Levy Limitations: The school district's levy limit for the next certified levy will be reduced by the difference between the total amount of the excess tax increment received and the amount subtracted from the aid.
Application Criteria: The provision only applies if the total excess tax increment received by a district for a calendar year exceeds $25,000.
These adjustments help ensure that when a district receives unexpected increases in funding through tax increment financing, its financial support from state aids and levy limits are recalibrated accordingly to maintain balanced fiscal operations.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 16, 2025 | House | Floor | Action | Introduction and first reading, referred to | Education Finance |
| March 05, 2025 | House | Floor | Action | Committee report, to adopt | |
| March 05, 2025 | House | Floor | Action | Second reading | |
| March 10, 2025 | House | Floor | Action | House rule 1.21, placed on Calendar for the Day | |
| March 12, 2025 | House | Floor | Action | Motion to lay on the table | |
| March 12, 2025 | House | Floor | Action | Motion prevailed |
Citations
[
{
"analysis": {
"added": [
"Clarifies the process for aid and levy adjustments when excess tax increment is received."
],
"removed": [],
"summary": "This bill modifies the adjustments that need to be made when a school district receives excess tax increment, under section 127A.49 subdivision 3.",
"modified": [
"Modifies the fiscal year provisions for aid and levy adjustments related to excess tax increments."
]
},
"citation": "127A.49"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 469.176 subdivision 2 in the context of handling excess tax increments.",
"modified": [
"Specifies the return of excess tax increment as per section 469.176 subdivision 2."
]
},
"citation": "469.176"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 469.177 subdivision 9 about the treatment of excess tax increments.",
"modified": [
"Refers to the decertification of a tax increment district as per section 469.177 subdivision 9."
]
},
"citation": "469.177"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section involves aid adjustments related to health and safety long-term facilities maintenance.",
"modified": [
"Ensures that adjustments are made if the district received specific aids and fits within section 123B.57."
]
},
"citation": "123B.57"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill refers to health and safety long-term facilities maintenance aid and its implications on aid adjustments.",
"modified": []
},
"citation": "123B.595"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Community education program aids are discussed as part of aid and levy adjustments.",
"modified": []
},
"citation": "124D.20"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Early childhood family education aid is considered in the aid adjustment calculations.",
"modified": [
"Factors into aid adjustments if the district received aid as per section 142D.11."
]
},
"citation": "142D.11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to referendum equalization aid and its role in financial adjustments.",
"modified": []
},
"citation": "126C.17"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Several subdivisions of section 126C.10 are referenced in the context of aid adjustments.",
"modified": [
"Involves multiple subdivisions like 13a, 13b, 29, 30, 32, and 33 referring to various aids."
]
},
"citation": "126C.10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Determines how debt service equalization aid factors into school district aid adjustments.",
"modified": []
},
"citation": "123B.53"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Discusses natural disaster debt service equalization aids and their incorporation into the financial adjustments.",
"modified": []
},
"citation": "123B.535"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References the school-age care aid in relation to its impact on financial adjustments.",
"modified": []
},
"citation": "124D.22"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Alternative teacher compensation equalization aid is evaluated for its impact on school district financial adjustments.",
"modified": []
},
"citation": "122A.415"
}
]