SF4670 (Legislative Session 94 (2025-2026))
Certain school district lease levy amounts eligibility for the school building bond agricultural credit authorization provision
AI Generated Summary
Purpose
- This bill aims to make certain school district lease levy amounts eligible for the school building bond agricultural credit.
- It also updates how school districts certify their taxes and identify debt-related portions of their levies, especially for districts that span more than one county.
Main provisions
In districts that lie in more than one county, the clerk must certify the district’s tax levy to the county auditor in the county where the district’s administrative offices are located.
When certifying the levy, the district must identify the portion of the levy that is used for debt service.
Definition of the debt service portion:
- The first part covers the portion equal to the levies authorized under sections 123B.53, 123B.535, and 123B.55, adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions under section 475.61, subdivision 4, and excluding debt service amounts necessary for repayment of other postemployment benefits (OPEB) under section 475.52, subdivision 6.
- The second part covers the portion equal to the levy authorized under section 126C.40 that is assessed and certified by a cooperative unit to the district as the district’s proportionate share of debt issued by the cooperative unit.
Changes to existing law
- Adds a requirement that multi-county districts certify their levy to the county where their administrative offices are located.
- Requires explicit identification of the debt service portion of the levy at the time of certification.
- Redefines what counts as debt service for the purpose of these certifications, including adjustments and exclusions for certain prior levy reductions and for OPEB repayment costs.
- Includes the cooperative unit’s share of district debt as part of the debt service portion.
Implementation considerations
- Districts will need to adjust bookkeeping and annual levy certification processes to separately identify debt service portions.
- Clerks in multi-county districts will route levy certification to the appropriate county auditor.
- The calculation of the debt service portion will affect eligibility for the school building bond agricultural credit.
Relevant Terms - debt service - levy - lease levy - school building bond agricultural credit - district certification - county auditor - multi-county district - cooperative unit - debt excess levy reductions - other postemployment benefits (OPEB) - sections referenced: 123B.53, 123B.535, 123B.55, 126C.46, 126C.48, 475.61(4), 475.52(6), 126C.40
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2026 | Senate | Action | Introduction and first reading | ||
| March 23, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"New Subd.2 language added detailing the identification and certification of the debt service portion of the levy and cross-references to related sections."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 275.07, subdivision 2, to define how the school district debt service levy is identified and certified, and to enumerate cross-references to other levy authorities and adjustments.",
"modified": [
"Subd.2 is amended to replace the prior text with provisions describing the debt service levy and its cross-references."
]
},
"citation": "275.07",
"subdivision": "2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as part of the debt service levy framework in relation to portions of levies authorized for debt service.",
"modified": []
},
"citation": "123B.53",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as part of the debt service levy framework in relation to portions of levies authorized for debt service.",
"modified": []
},
"citation": "123B.535",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as part of the debt service levy framework in relation to portions of levies authorized for debt service.",
"modified": []
},
"citation": "123B.55",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference used in relation to the debt service levy adjustments within the bill, alongside 126C.48.",
"modified": []
},
"citation": "126C.46",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference used in relation to the debt service levy adjustments within the bill, alongside 126C.46.",
"modified": []
},
"citation": "126C.48",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Includes debt excess levy reductions under section 475.61, subdivision 4, in determining the debt service levy calculations.",
"modified": []
},
"citation": "475.61",
"subdivision": "4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Excludes debt service amounts necessary for repayment of other postemployment benefits under section 475.52, subdivision 6, from certain calculations.",
"modified": []
},
"citation": "475.52",
"subdivision": "6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The levy authorized under section 126C.40 is referenced as the district’s proportionate share attributable to debt issued by a cooperative unit.",
"modified": []
},
"citation": "126C.40",
"subdivision": ""
}
]Progress through the legislative process
In Committee