SF1202

SF1202 (Legislative Session 94 (2025-2026))

School district aid calculation clarification provision and levy limitations upon return of excess tax increment or decertification of a tax increment district

AI Generated Summary

This bill is about updating how school district funding and limits on property tax levies are adjusted when there's extra money from tax increment financing (TIF). A TIF district is a tool that cities use to encourage development. When a TIF district ends or returns extra money, this bill specifies how to recalculate the financial support and tax limits for the schools that might be affected.

Here's what happens under the bill: 1. If a school district gets extra money from a TIF district, the state will reduce the district's financial aid by an amount related to how much tax increment they received the previous year. 2. The bill also reduces the maximum amount the district can raise from local property taxes. This decrease in the local tax limit is related to the extra funds they received minus any adjustment in state aid. 3. If these changes can't be completed in the current fiscal year or tax levying period, they're postponed to the next ones.

The bill aims to ensure that when a school district receives unexpected funds from a TIF district, it adjusts its aid and tax levies accordingly to maintain financial balance.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 09, 2025	Senate	Floor	Action	Introduction and first reading
February 09, 2025	Senate	Floor	Action	Referred to	Education Finance

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to adjustments in excess tax increment under section 469.176, subdivision 2.",
      "modified": []
    },
    "citation": "469.176"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to adjustments upon decertification of a tax increment district under section 469.177, subdivision 9.",
      "modified": []
    },
    "citation": "469.177"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mentions certified levy adjustments for districts receiving health and safety long-term facilities maintenance aid.",
      "modified": []
    },
    "citation": "123B.57"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Related to long-term facilities maintenance aid received by the district.",
      "modified": []
    },
    "citation": "123B.595"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to community education programs aid adjustment.",
      "modified": []
    },
    "citation": "124D.20"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adjustment for early childhood family education aid.",
      "modified": []
    },
    "citation": "142D.11"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adjustment for referendum equalization aid.",
      "modified": []
    },
    "citation": "126C.17"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adjustments related to operating capital aid, equity aid, and transition aid.",
      "modified": []
    },
    "citation": "126C.10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adjustment for debt service equalization aid.",
      "modified": []
    },
    "citation": "123B.53"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to natural disaster debt service equalization aid.",
      "modified": []
    },
    "citation": "123B.535"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adjustments related to school-age care aid.",
      "modified": []
    },
    "citation": "124D.22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adjustment for alternative teacher compensation equalization aid.",
      "modified": []
    },
    "citation": "122A.415"
  }
]