SF4867

Purpose

This bill changes how the proceeds from Minnesota’s metropolitan sales tax are divided to support local affordable housing and rent assistance. It creates and directs funds to three specific accounts within the housing assistance system and sets up annual funding to cities.

Main Provisions

• Distribution of metropolitan sales tax proceeds

  • 25 percent goes to the state rent assistance account (in the housing assistance fund) under section 462A.2095.
  • 25 percent goes to the metropolitan city aid account (in the housing assistance fund) under section 477A.37.
  • 50 percent goes to the metropolitan county aid account (in the housing assistance fund) under section 477A.37.
  • These distributions are specified “notwithstanding” other rules, meaning they are mandatory allocations as described.

• Establishment and use of the metropolitan city aid account

  • A metropolitan city aid account is created within the housing assistance fund.
  • The account’s money comes from the 297A.9925 distribution and any other money donated, allotted, transferred, or otherwise provided.
  • Money in this account is annually appropriated to the commissioner of revenue to make payments to cities as allowed under section 477A.35.

Significance and Potential Effects

• Creates explicit, dedicated funding streams within the housing assistance framework for city and county aid and for rent assistance.
• Shifts or locks in how metropolitan sales tax revenue supports local housing programs, with a formal mechanism for annual city payments.
• Aligns funding with existing statute sections (462A.2095, 477A.37, 297A.9925, 477A.35), clarifying administration and distribution.

Administrative Notes

• The text references specific Minnesota Statutes (e.g., 297A.9925, 477A.37, 462A.2095, 477A.35) and their subsections, indicating where the funds are sourced and how they are disbursed.

Potential Clarifications

• The distribution条 shows a total of 25% + 25% + 50% = 100%. The printed text has a formatting quirk around the “50 2 75 percent” segment, but it appears to intend 50 percent to the metropolitan county aid account.

Language to Watch

• Metropolitan sales tax
• State rent assistance account
• Housing assistance fund
• Metropolitan city aid account
• Metropolitan county aid account
• Sections: 462A.2095, 477A.37, 297A.9925, 477A.35

Relevant Terms - metropolitan sales tax - state rent assistance account - housing assistance fund - metropolitan city aid account - metropolitan county aid account - Minnesota Statutes 2024 section 462A.2095 - Minnesota Statutes 2024 section 477A.37 - Minnesota Statutes 2024 section 297A.9925 - Minnesota Statutes 2024 section 477A.35 - payments to cities - annual appropriation - local affordable housing aid - taxes and housing funding