HF5104 Summary

• Establishes a "low-aid municipality distribution" from state general levy proceeds for municipalities meeting five eligibility criteria, including location within a fiscal disparities area, population under 5,000, and receipt of no municipal state-aid street funds or local government aid.

• Distribution amount equals the municipality's net tax capacity tax rate multiplied by its net fiscal disparities contribution, capped at the total state general levy tax imposed within that municipality.

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

• County treasurer must pay distributions to qualifying municipalities by December 1 of the tax year, with amounts deducted from the state general levy settlement.

• Effective for property taxes payable in 2025 and thereafter.