MN HF2427

Reduces the fiscal disparities contribution percentage for cities with a population of less than 15,000 from 40 percent to 30 percent of the amount determined under section 473F.06.

Maintains the 40 percent contribution percentage for all other municipalities in the metropolitan area.

Establishes a new state payment mechanism requiring the administrative auditor to determine the state's fiscal disparities payment by multiplying the state's contribution net tax capacity by the areawide tax rate.

Requires the commissioner of revenue to submit the state's fiscal disparities payment to the administrative auditor in two equal installments on June 1 and November 1 each year, with funding from the general fund.

All changes are effective for taxes payable in 2017 and thereafter.