MN SF2835

Removes the "unless otherwise agreed" language, making mandatory reimbursement required when a municipality annexes part of a town under section 414.0325.

Requires municipalities to reimburse towns for taxable property annexed at the town tax rate, with payments spread over 2-8 years and capped at 8 years' worth of property taxes.

Mandates municipalities reimburse towns for special assessments within 30 days of receipt and for pre-annexation debt if the town submits a written request with supporting documentation within 60 days of the order.

For annexations by ordinance under section 414.033, establishes a 5-year declining reimbursement schedule (90%, 80%, 60%, 40%, and 20% in successive years) based on property taxes distributed to the town in the last year before annexation.

Specifies that reimbursements under this section are the only payments or consideration a municipality can make to a town under the annexation chapter.