HF5118

Minnesota HF5118 reduces local government aid for jurisdictions that deny projects expanding their tax base.

Minnesota HF5118 mandates that counties or cities reducing their property tax base by denying local development projects face a reduction in state aid. The reduction amount is determined by the potential growth in net tax capacity that would have occurred if the project had been approved. The commissioner of revenue must certify these reductions annually, and they continue until the jurisdiction's taxable net tax capacity exceeds the sum of the certified amount plus the previous taxable net tax capacity.