§ 477A.013 — Municipal Government Distributions
Plain-Language Summary
This section sets the formulas for distributing Local Government Aid (LGA) to cities and towns in Minnesota. Towns receive aid based on their agricultural land, total acreage, and population. Cities receive aid based on the gap between what they need and what they can raise through property taxes, with each city getting a formula-based distribution from the annual appropriation.
477A.013 MUNICIPAL GOVERNMENT DISTRIBUTIONS.
§
Subdivision 1.Towns.
(a) As used in this subdivision, the following terms have the meanings given them:
(1) “agricultural property factor” means the ratio of the adjusted net tax capacity of agricultural property located in a town, to the adjusted net tax capacity of all other property located in the town. The agricultural property factor cannot exceed eight;
(2) “agricultural property” means property classified under section 273.13, as homestead and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal recreational property;
(3) “town area factor” means the most recent estimate of total acreage, not to exceed 50,000 acres, located in the township available as of July 1 in the aid calculation year, estimated or established by:
(i) the United States Bureau of the Census;
(ii) the Minnesota Geospatial Information Office; or
(iii) the secretary of state;
(4) “population factor” means the square root of the town’s population; and
(5) “town aid factor” means the product of the town’s (i) agricultural property factor, (ii) town area factor, and (iii) population factor.
(b) Each town is eligible for a distribution under this subdivision equal to the product of (1) the total amount available for town aid under section 477A.03, subdivision 2c, and (2) the ratio of (i) the town’s town aid factor, to (ii) the sum of the town aid factors for all towns.
(c) Data used in calculating aids to towns under this subdivision, other than acreage, shall be the most recently available data as of January 1 in the year in which the aid is calculated. §
Subd. 2.
MS 1992 [Repealed, 1993 c 375 art 4 s 21] §
Subd. 3.
MS 1992 [Repealed, 1993 c 375 art 4 s 21] §
Subd. 4.
MS 1988 [Repealed, 1Sp1989 c 1 art 4 s 15] §
Subd. 5.
MS 1992 [Repealed, 1993 c 375 art 4 s 21] §
Subd. 6.
MS 1994 [Repealed, 1996 c 310 s 1] §
Subd. 7.
MS 1990 [Repealed, 1991 c 291 art 3 s 15] §
Subd. 8.City formula aid.
(a) For aids payable in 2024 and thereafter, the formula aid for a city is equal to the product of (1) the difference between its unmet need and its certified aid in the previous year, and (2) the aid gap percentage.
(b) The applicable aid gap percentage must be calculated by the Department of Revenue so that the total of the aid under subdivision 9 equals the total amount available for aid under section 477A.03. The aid gap percentage must be the same for all cities subject to paragraph (a). Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the most recently available data as of January 1 in the year in which the aid is calculated. §
Subd. 9.City aid distribution.
(a) In calendar year 2024 and thereafter, if a city’s certified aid for the previous year is less than its current unmet need, the city shall receive an aid distribution equal to the sum of (1) its certified aid in the previous year, and (2) the city formula aid under subdivision 8.
(b) For aids payable in 2024 and thereafter, if a city’s certified aid for the previous year is equal to or greater than its current unmet need, the total aid for a city is equal to the greater of (1) its unmet need, or (2) the amount it was certified to receive in the previous year minus the lesser of (i) $10 multiplied by its population, or (ii) five percent of its net levy in the year prior to the aid distribution. No city may have a total aid amount less than $0. §
Subd. 10.Levy adjustments for aid decreases.
Notwithstanding any local ordinance or charter provision, a city whose certified aid under subdivision 9 is less than the amount it received in the previous year under the same subdivision may increase its levy payable in the same year as the certified aid is paid by an amount equal to the aid decrease for that year. §
Subd. 11.
MS 2012 [Repealed, 2013 c 143 art 2 s 36] §
Subd. 12.
MS 2012 [Repealed, 2013 c 143 art 2 s 36] §
Subd. 13.
MS 2022 [Repealed, 2023 c 64 art 4 s 33] §
Subd. 14.Communication by electronic mail.
Prior to receiving aid pursuant to this section, a city must register an official electronic mail address with the commissioner of revenue, which the commissioner may use as an exclusive means to communicate with the city.
History:
1Sp1981 c 1 art 6 s 3; 1983 c 342 art 5 s 11; 1984 c 502 art 4 s 3,4; 1Sp1985 c 14 art 6 s 8; 1Sp1986 c 1 art 6 s 4; 1987 c 268 art 5 s 11; 1988 c 719 art 5 s 76-79,84; 1989 c 277 art 2 s 67; 1Sp1989 c 1 art 2 s 11; art 4 s 9-12; 1990 c 480 art 7 s 31; 1990 c 604 art 3 s 43; art 4 s 12-14; 1991 c 2 art 8 s 6,7; 1991 c 291 art 3 s 9,10; 1992 c 511 art 1 s 15-17; 1993 c 375 art 3 s 45; art 4 s 18,19; 1Sp1993 c 6 s 32; 1994 c 416 art 1 s 59; 1994 c 587 art 3 s 14-16; 1Sp2001 c 5 art 3 s 76,77; 2002 c 377 art 10 s 27; 1Sp2003 c 21 art 5 s 7,8; 2005 c 152 art 1 s 32; 1Sp2005 c 3 art 2 s 2; 2006 c 259 art 11 s 2; 2008 c 154 art 1 s 2,3; 2008 c 366 art 2 s 7,8; 2009 c 88 art 10 s 19; 2010 c 215 art 13 s 5; 2010 c 389 art 8 s 16; 1Sp2011 c 7 art 6 s 16,17; 2012 c 294 art 1 s 2,3; 2013 c 143 art 2 s 13-16; 2013 c 144 s 28; 2014 c 308 art 1 s 5; 2015 c 21 art 1 s 82,83; 1Sp2017 c 1 art 4 s 15,16; art 15 s 32; art 18 s 5; 2018 c 182 art 1 s 98,99; 1Sp2019 c 6 art 5 s 5; 2023 c 64 art 4 s 11,12; 2025 c 20 s 276; 1Sp2025 c 13 art 4 s 3
History: History: 1Sp1981 c 1 art 6 s 3; 1983 c 342 art 5 s 11; 1984 c 502 art 4 s 3,4; 1Sp1985 c 14 art 6 s 8; 1Sp1986 c 1 art 6 s 4; 1987 c 268 art 5 s 11; 1988 c 719 art 5 s 76-79,84; 1989 c 277 art 2 s 67; 1Sp1989 c 1 art 2 s 11; art 4 s 9-12; 1990 c 480 art 7 s 31; 1990 c 604 art 3 s 43; art 4 s 12-14; 1991 c 2 art 8 s 6,7; 1991 c 291 art 3 s 9,10; 1992 c 511 art 1 s 15-17; 1993 c 375 art 3 s 45; art 4 s 18,19; 1Sp1993 c 6 s 32; 1994 c 416 art 1 s 59; 1994 c 587 art 3 s 14-16; 1Sp2001 c 5 art 3 s 76,77; 2002 c 377 art 10 s 27; 1Sp2003 c 21 art 5 s 7,8; 2005 c 152 art 1 s 32; 1Sp2005 c 3 art 2 s 2; 2006 c 259 art 11 s 2; 2008 c 154 art 1 s 2,3; 2008 c 366 art 2 s 7,8; 2009 c 88 art 10 s 19; 2010 c 215 art 13 s 5; 2010 c 389 art 8 s 16; 1Sp2011 c 7 art 6 s 16,17; 2012 c 294 art 1 s 2,3; 2013 c 143 art 2 s 13-16; 2013 c 144 s 28; 2014 c 308 art 1 s 5; 2015 c 21 art 1 s 82,83; 1Sp2017 c 1 art 4 s 15,16; art 15 s 32; art 18 s 5; 2018 c 182 art 1 s 98,99; 1Sp2019 c 6 art 5 s 5; 2023 c 64 art 4 s 11,12; 2025 c 20 s 276; 1Sp2025 c 13 art 4 s 3