Natural disaster debt service equalization aid program broadened to assist school districts with a high percentage of property excluded from tax rolls.

HF 535 broadens Minnesota's existing natural disaster debt service aid program to include school districts where at least 30% of property value is excluded from taxable property (e.g., tax-exempt land or buildings). This change allows districts affected by disasters to qualify for aid even if they don't meet the prior $500,000 damage threshold, as long as their tax base is significantly reduced by non-taxable property. The bill amends statutes to adjust how aid is calculated, ensuring districts with high tax-exempt property percentages receive support for debt service costs. It directly affects school districts with substantial non-taxable property, helping them manage financial strain after natural disasters. The amendment applies to bond issues approved on or after July 1, 2025.