MN SF3674

Expands natural disaster enhanced debt service equalization aid eligibility to include school districts where at least 30 percent of property value is excluded from taxable value, in addition to districts impacted by presidential-declared natural disasters with $500,000 or more in uninsured damages.

Establishes that eligible enhanced debt service revenue equals the amount needed to produce between 5 and 6 percent in excess of principal and interest payments on qualifying district obligations.

Requires eligible districts to notify the Commissioner of Education by July 1 of the calendar year the levy is certified regarding intended enhanced debt service revenue for all bonds sold prior to notification.

Adds natural disaster enhanced debt service equalization aid as a factor in aid adjustment calculations under Minnesota Statutes section 127A.49 for determining abatement adjustments and excess tax increment reductions.

Effective for bond issues approved on or after July 1, 2018; aid adjustment provisions effective for fiscal year 2020 and later.