HF 1427 Summary

• Establishes electric generation transition aid for counties, cities, towns, and school districts that lose tax capacity when coal, nuclear, or natural gas-powered electric generating plants retire units from the property tax base.

• Initial aid equals the product of the tax capacity loss (unit differential) times the jurisdiction's tax rate in the retirement year, then decreases by 5 percent annually until dropping below $5,000.

• Eliminates aid if a jurisdiction's total net tax capacity grows beyond 90 percent of its baseline capacity in the year it first qualified, though subsequent unit retirements can qualify for new aid.

• Requires public utilities to notify the commissioner when retiring generating units, with aid computed annually and certified by August 1 for payments the following year.

• Appropriates sufficient funds from the general fund to the commissioner of revenue (for non-school jurisdictions) and commissioner of education (for school districts) to pay transition aid, effective for aids payable in 2024 and thereafter.