HF3181 Summary

• Amends Minnesota Statutes 2008, section 414.036 to establish city reimbursement requirements to towns when annexing taxable property.

• Requires municipalities to reimburse towns for annexed taxable property at the town tax rate, payable in substantially equal installments over 2-8 years, not to exceed 8 years' worth of property taxes.

• Municipalities must reimburse towns for special assessments within 30 days of receipt and may reimburse pre-annexation debt either in equal payments over 2-8 years or on the same terms the town originally incurred it.

• For ordinance-based annexations, municipalities must make declining cash payments to affected towns over 5 years: 90% in year one, 80% in year two, 60% in year three, 40% in year four, and 20% in year five of property taxes from the annexed area.

• Specifies that reimbursements authorized under this section are the only payments or consideration a municipality may make to a town under this chapter.