MN SF1757

Creates a new "low-aid municipality distribution" from state general levy proceeds for small municipalities in Anoka County with populations under 5,000 that are net contributors to the fiscal disparities program and receive no local government aid or municipal state-aid street funding

Distribution amount equals the municipality's net tax capacity tax rate multiplied by its net fiscal disparities contribution, capped at the state general levy collected from taxpayers within that municipality

Commissioner of Revenue must certify distribution amounts to affected municipalities and counties by September 1, with payment due by December 1 of the taxes payable year

Distributions are deducted from the state general levy settlement, effectively redirecting a portion of state property tax revenue back to qualifying municipalities

Effective beginning with property taxes payable in 2026