MN SF2477

Amends Minnesota Statutes section 123B.535 to establish enhanced debt service equalization for school districts affected by natural disasters or consolidations.

School districts qualify if impacted by a presidentially-declared natural disaster occurring January 1, 2005 or later that caused $500,000 or more in damages to buildings and repair costs are not covered by insurance or Federal Emergency Management Agency payments.

Districts that consolidated on or after July 1, 2016, with an approved consolidation plan that included building or remodeling school facilities are also eligible for enhanced debt service equalization.

Enhanced debt service equalization revenue is calculated as the amount needed to produce 5-6 percent in excess of principal and interest payments on qualifying bond obligations, minus revenues from a 10 percent levy times adjusted net tax capacity.

Enhanced debt service equalization aid becomes effective for taxes payable in 2019 and later, with payments made according to section 127A.45, subdivision 10.