State general levy established for residential homestead property, and city aid formula modified.

This bill establishes a new state general levy specifically for residential homestead property in Minnesota, which will be collected starting with taxes payable in 2027. The legislation creates a formula where the amount levied on homeowners is calculated to ensure cities receive a specific level of state aid, replacing the previous method that excluded homesteads from this specific tax pool. Additionally, the bill modifies how state aid is distributed to cities by guaranteeing that each city receives an amount equal to its unmet need or its prior year's certified aid, whichever is greater. These changes aim to adjust the funding structure for local governments while introducing a dedicated tax source for residential properties.