Aid and levy adjustments when a tax increment finance excess is received by a school district clarified.

HF 921 clarifies how Minnesota school districts adjust state aid and property tax levy limits when they receive excess funds from tax increment financing (TIF) districts. The bill requires districts to subtract a specific amount from their current year aid and levy limits if they receive over $25,000 in excess TIF payments during a calendar year. This adjustment is calculated by multiplying the excess payment by a ratio based on the district’s certified levy amounts from previous years. The bill ensures districts use the excess TIF funds to replace the reduced state aid and levy revenue, preventing double-counting of funds. It directly affects school districts that receive TIF excess payments exceeding $25,000 annually.