MN HF1061

Establishes electric generation transition aid program for eligible cities in metropolitan counties with significant coal energy production property, effective for aids payable in 2024 and thereafter.

Defines eligible cities as home rule charter or statutory cities in metropolitan counties where coal generation property net tax capacity equaled at least a specified percentage of total property net tax capacity in assessment year 2022.

Provides three years of transition aid payments based on cumulative reduction in net tax capacity of electric generation property, calculated as a percentage of that differential multiplied by the jurisdiction's applicable tax rate.

Modifies local government aid formula to provide cities eligible for electric generation transition aid with the greater of: (1) standard formula aid calculation; (2) a percentage of current unmet need; or (3) $1,000,000, effective for aids payable in 2024 and thereafter.

Appropriates sufficient funds annually from the general fund to the Commissioner of Revenue to pay all transition aid, with the commissioner certifying amounts by August 1 each year for payment the following year.