HF 3383 Summary

• Exempts from property tax certain fire-damaged properties located in cities with population under 2,500, net tax capacity less than $320 per capita, and initial revenue need greater than $1,220 per capita, specifically those damaged in the February 3, 2016 fire; exemption expires with taxes payable in 2031.

• Exempts building materials, equipment, and supplies used to construct or replace real property in Madelia affected by the February 3, 2016 fire from sales tax, with tax imposed and then refunded to the governmental entity owning or contracting for the project.

• Increases certified aid for qualifying cities by an unspecified amount for aids payable in 2017 through 2031, provided the city meets three criteria: net tax capacity less than $320 per capita, initial revenue need greater than $1,220 per capita, and 2013 population less than 2,500.

• Adjusts total city aid allocations under Minnesota Statutes section 477A.013, subdivision 9, to $519,398,012 for aids payable in 2016 and thereafter, with separate amounts to be determined for aids payable in 2017-2031 and 2032 onward.