HF 4768 Summary

• Creates a new "low-aid municipality distribution" from state general levy proceeds for municipalities meeting five eligibility criteria, including population under 5,000 and having fiscal disparities contribution tax capacity exceeding distribution tax capacity.

• Distribution amount equals the municipality's net tax capacity tax rate multiplied by the municipality's net fiscal disparities contribution multiplied by two, capped at the lesser of the state general levy tax imposed on the municipality or $200,000.

• Commissioner of revenue must determine and certify distribution amounts to affected municipalities and counties by September 1 of the tax payable year.

• County treasurers must pay qualifying municipalities by December 1 of the tax payable year, with distribution amounts deducted from the state general levy settlement.

• Provision is effective beginning with property taxes payable in 2023 and thereafter.