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

This bill requires Minnesota counties and cities to lose state funding if they reject development projects that would have increased their local property tax base. Under the law, the state Department of Revenue would calculate a penalty equal to the lost tax growth and cut the affected government's financial aid for the following year. Local officials must report the details of denied projects to the state by July 1, and the funding penalty continues until the jurisdiction's tax capacity grows enough to offset the lost value. The measure is designed to financially discourage local governments from blocking projects that expand the tax base, with an effective date of June 30, 2027.