SF1757

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.