Bill > SF1197

This bill modifies Minnesota's school district funding mechanisms by introducing seasonal tax base replacement aid, which aims to provide financial support to districts with significant seasonal property values. Specifically, the bill amends existing statutes to calculate a new form of aid based on a district's referendum equalization levy and its seasonal market value. The seasonal tax base replacement aid is determined by a formula that considers the ratio of a district's referendum market value to the combined referendum and seasonal market values, with an adjustment factor that cannot be less than 0.5 or greater than 1. The seasonal market value is defined as the market value of properties classified under a specific property tax category (class 4c(12)). The aid will be used to reduce a district's referendum levy, though the levy cannot be reduced below zero. The changes will take effect for revenue in fiscal year 2027 and for taxes payable in 2026 and later, with appropriations to be made from the general fund to support this new aid mechanism. The bill also makes a minor modification to the general education aid calculation by adding a reference to the new seasonal tax base replacement aid.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1197&ssn=0&y=2025