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A bill for an act
relating to taxation; local government aids; imposing penalties under affordable
housing aids for cities that impose moratoria on new residential developments;
amending Minnesota Statutes 2024, sections 477A.35, by adding a subdivision;
477A.36, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 477A.35, is amended by adding a subdivision
to read:
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Subd. 5b.
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Penalties for moratoria on residential construction.
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Notwithstanding
anything in this section, the commissioner of revenue must not pay aid under this section
to a city that imposes a moratorium on new residential developments. The commissioner
of revenue must stop issuing payments to the city in the year after the city adopts a resolution
or ordinance imposing the moratorium. The commissioner of revenue must issue payments
to the city: (1) in the year after the moratorium expires; or (2) in the year after a resolution
or ordinance to end the moratorium takes effect. During the period in which a city is not
receiving aid pursuant to this subdivision, the commissioner of revenue must pay the amount
that the city would have received under this section in the absence of this penalty to the
county or counties containing the city. In the annual report required under subdivision 6, a
tier I city must certify whether it has in effect a moratorium on new residential developments.
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EFFECTIVE DATE.
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This section is effective beginning with aids payable in 2027.
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Sec. 2.
Minnesota Statutes 2024, section 477A.36, is amended by adding a subdivision to
read:
new text begin
Subd. 5b.
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new text begin
Penalties for moratoria on residential construction.
new text end
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Notwithstanding
anything in this section, the commissioner of revenue must not pay aid under this section
to a city that imposes a moratorium on new residential developments. The commissioner
of revenue must stop issuing payments to the city in the year after the city adopts a resolution
or ordinance imposing the moratorium. The commissioner of revenue must issue payments
to the city: (1) in the year after the moratorium expires; or (2) in the year after a resolution
or ordinance to end the moratorium takes effect. During the period in which a city is not
receiving aid pursuant to this subdivision, the commissioner of revenue must pay the amount
that the city would have received under this section in the absence of this penalty to the
county or counties containing the city. In the annual report required under subdivision 6, a
tier I city must certify whether it has in effect a moratorium on new residential developments.
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EFFECTIVE DATE.
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This section is effective beginning with aids payable in 2027.
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