MN SF897

Establishes electric generation transition aid for eligible cities in metropolitan counties experiencing significant declines in coal energy facility tax capacity, effective for aids payable in 2024 and thereafter.

Defines eligible cities as home rule charter or statutory cities located in metropolitan counties where electric generation property comprised a specified threshold of total net tax capacity in assessment year 2022.

Provides transition aid payments over three years following a "base year" (when net tax capacity differential first exceeds a specified threshold), calculated as a percentage of cumulative differential multiplied by the jurisdiction's applicable tax rate.

Modifies local government aid formula to guarantee eligible cities receiving electric generation transition aid receive the greater of: standard formula aid, a specified percentage of current unmet need, or $1,000,000 in the third year following the base year.

Appropriates sufficient funds from the general fund to the commissioner of revenue to pay transition aid, with the commissioner responsible for computing and certifying amounts by August 1 each year.