Minnesota HF5118: Local government aid reduced for denial of projects that would expand tax base.

What the bill says

A bill for an act relating to taxation; local government aid reduction for denial of projects that would expand tax base; proposing coding for new law in Minnesota Statutes, chapter 477A.

From the introduced text, May 4, 2026:

A bill for an act relating to taxation; local government aid reduction for denial of projects that would expand tax base; proposing coding for new law in Minnesota Statutes, chapter 477A. Section 1. new text begin [ADDED: [477A.0178] AID REDUCTIONS FOR TAX BASE REDUCTIONS.] new text end new text begin [ADDED: Subdivision 1.] new text end new text begin [ADDED: Penalty for failure to approve tax base expansions.] new text end new text begin [ADDED: Notwithstanding any other law to the contrary, a county or a city that denies approval for a local development project that would have increased the jurisdiction's property tax base must have its aid under sections 477A.011 to 477A.03 reduced by the amount determined under subdivision 2. The commissioner of revenue must reduce county program aid paid to a county or local government aid paid to a city by the amount determined under subdivision 2 in the aids payable year following certification of the amount under subdivision 3. Reductions under this section continue until certification under subdivision 4. No aid payment may be less than zero as a result of reductions under this section, but the amount of the reduction that cannot be made out of a payment shall be applied to future payments until the total amount has been deducted.] new text end new text …

Read the full official text

Sponsors

• Chris Swedzinski (R) · primary sponsor
• Davids, Greg (R, 26B)
• Anderson, P. H. (R)
• Jim Joy (R)
• Tim O'Driscoll (R)
• Heintzeman, Josh (R, 06B)
• Tom Murphy (R)
• Bernie Perryman (R)

Latest actions

1. May 6, 2026: Authors added Murphy and Perryman
2. May 5, 2026: Introduction and first reading, referred to Taxes

Common questions

What is HF5118?

HF5118 is a bill in the Minnesota Legislature (94th Legislature 2025-2026): Local government aid reduced for denial of projects that would expand tax base.

What does HF5118 do?

In its own words: A bill for an act relating to taxation; local government aid reduction for denial of projects that would expand tax base; proposing coding for new law in Minnesota Statutes, chapter 477A.

What is the status of HF5118?

In committee as of May 6, 2026. Latest action: Authors added Murphy and Perryman (May 6, 2026).

Who sponsored HF5118?

Chris Swedzinski (R), with 7 co-sponsors.

Where is the official record for HF5118?

On the Minnesota Legislature website: https://www.revisor.mn.gov/bills/bill.php?f=HF5118&y=2025&ssn=0&b=house