Section 1. County tax-base equalization aid. Modifies county-tax base equalization aid by modifying the calculation used to determine a county’s tax-base equalization aid factor. Under current law, a county’s tax-base equalization aid factor is equal to the amount by which $185 times the county’s population exceeds 9.45 percent of the county’s net tax capacity. The section changes the factors used in this calculation to $190 and 9 percent. Effective for taxes payable in 2019, the value used to calculate a county’s tax-base equalization aid factor is automatically increased.
Beginning with distributions in 2017, the allocation to a county under tax-base equalization aid shall not be less than: (1) an amount equal to 0.27 percent of the total appropriation available for that year; or (2) 95 percent of the tax-base equalization aid for the county in the prior year, whichever is greater. If the sum of aids payable to counties exceeds the appropriation for that year, the distributions to those counties whose aid amounts exceed their minimum aid must be proportionately reduced.
Annual allocations to Anoka and Washington Counties to pay postretirement costs of health insurance premiums for court employees are also repealed.
Section 2. County program aid; appropriation. Increases the appropriation for county need aid to $111,526,935 for aid payable in 2018 through 2024, and for aids payable in 2025 and thereafter, to $108,526,935. This section also increases the appropriation for tax-base equalization aid to $137,641,510 for aids payable in 2018 and thereafter.
Section 3. Repealer. Repeals a provision allowing certain counties to continue to receive the transition aid it received in 2007. There are seven counties that receive additional aid under this section (Aitkin, Chippewa, Cook, Kanabec, Kittson, Traverse and Wilkin) totaling $463,869.
Effective Date. All sections are effective for aids payable in 2018 and thereafter.