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SF1757 (Legislative Session 94 (2025-2026))

Distribution of the state general levy provision to certain municipalities

Related bill: HF1279

AI Generated Summary

This bill (S.F. No. 1757) proposes an amendment to Minnesota Statutes 2024, section 275.025, by adding a new subdivision to allocate a portion of the state general property tax levy to certain qualifying municipalities in Anoka County.

Key Provisions:

  1. Eligibility Criteria for Municipalities ("Lowaid Municipality"):

    • Must be located wholly or partially within the metropolitan area as defined by section 473F.02.
    • Does not receive municipal state-aid street funds.
    • Does not receive local government aid through sections 477A.011 to 477A.03.
    • Has a fiscal disparities contribution tax capacity that exceeds its fiscal disparities distribution tax capacity.
    • Has a population of less than 5,000.
    • Is located in Anoka County.

  2. Calculation of Distribution:

    • The distribution amount is determined by multiplying the municipality's net tax capacity tax rate by its net fiscal disparities contribution.
    • The total distribution cannot exceed the state general levy collected from taxpayers within that municipality.

  3. Administration of Distribution:

    • The Minnesota Commissioner of Revenue certifies the distribution amount for each eligible municipality by September 1 of the year in which taxes are payable.
    • The home county treasurer of the qualifying municipality must distribute the funds to the municipality by December 1.
    • These distributed funds are subtracted from the total state general levy settlement for that tax year.

  4. Definitions:

    • "Municipality" refers to a home rule or statutory city or town.
    • "Net fiscal disparities contribution" is defined as a municipality's fiscal disparities contribution net tax capacity minus the municipality's distribution net tax capacity.

Purpose:

The bill aims to provide financial relief to certain small municipalities in Anoka County that do not receive state-aid or local government aid but contribute significantly to the fiscal disparities program. By redistributing a portion of the state general levy collected from residents within these municipalities, it aims to provide additional funding support.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 24, 2025SenateActionIntroduction and first reading
February 24, 2025SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subdivision defining eligibility criteria for lowaid municipalities for distribution of state general levy proceeds."
      ],
      "removed": [],
      "summary": "Amendment proposed to add a new subdivision to section 275.025 regarding general levy distribution to lowaid municipalities.",
      "modified": []
    },
    "citation": "275.025"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced definition for eligible municipalities in context of this bill under section 473F.02 subdivision 2.",
      "modified": []
    },
    "citation": "473F.02"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Validation criteria that municipality does not receive a state aid street fund distribution, as per section 162.13.",
      "modified": []
    },
    "citation": "162.13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Part of validation criteria specifying that lowaid municipality does not receive local government aid under section 477A.011 to 477A.03.",
      "modified": []
    },
    "citation": "477A.011"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Provisions to deduct distribution amounts from the state general levy settlement under section 276.112.",
      "modified": []
    },
    "citation": "276.112"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors