S.F. No. 5139 Summary

• Creates a "low-aid municipality distribution" from state general levy proceeds for municipalities meeting five eligibility criteria: located within the fiscal disparities area, not receiving municipal state-aid street funds or local government aid, having fiscal disparities contribution tax capacity exceeding distribution tax capacity, and having a population under 5,000.

• 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 on the municipality's taxpayers.

• Commissioner of revenue must determine and certify distribution amounts to affected municipalities and counties by September 1 of the tax payable year, with payment required by county treasurers by December 1.

• Distributed amounts are deducted from the state general levy settlement under Minnesota Statutes section 276.112, with "municipality" defined as home rule or statutory cities and towns.

• Effective for property taxes payable in 2025 and thereafter.