SF4408

Purpose

This bill creates a program to compensate Ramsey County for the tax base loss caused by state-owned buildings in the Capitol Area. The goal is to reduce the county’s current-year property taxes by offsetting the disproportionate impact of state ownership on local tax base.

Main Provisions

• Establishes the Capitol Complex County Host Program, with aid payments to Ramsey County starting in 2027.
• Payment amount: $5 per square foot of state-owned buildings located in the Capitol Area described in section 15B.02 paragraph b.
• Use of aid: The county must apply the aid to reduce the current year property taxes levied on net tax capacity within the county.
• Funding source: An amount sufficient to pay the aid is annually appropriated from the general fund to the commissioner of revenue.
• Payment timing: The commissioner of revenue must pay the aid annually at times specified in section 477A.015.
• Legal framing: The bill codifies these provisions as part of Minnesota Statutes chapter 477A.

Implementation Details and Changes to Law

• Effective date for aid payments begins in 2027.
• This creates a new financial mechanism (Capitol Complex County Host Program) to offset tax base loss for Ramsey County due to state-owned properties in the Capitol Area.
• The program uses a per-square-foot metric (5 dollars per square foot) and ties aid to state-owned buildings in a specifically defined Capitol Area.

Practical Impact

• Ramsey County should see relief in its property tax burden in years when the aid is paid, because the aid is intended to reduce current-year property taxes levied on net tax capacity.
• The general fund bears the cost of providing this aid, via annual appropriation to the commissioner of revenue.

Relevant Terms Capitol Complex County Host Program; Ramsey County; state-owned buildings; Capitol Area; tax base; disproportionate impact; tax base loss; net tax capacity; property taxes; general fund; commissioner of revenue; aids; per square foot; $5 per square foot; section 15B.02 paragraph b; section 477A.015; Minnesota Statutes chapter 477A; aids payable in 2027.