Bill > HF1161

This bill establishes a seasonal tax base replacement aid program for school districts designed to provide financial support to districts with significant seasonal property value fluctuations. The bill modifies existing education finance statutes to create a new aid mechanism that helps districts with seasonal market value variations, such as those with substantial recreational or seasonal property. Specifically, the bill calculates a district's seasonal tax base replacement aid by multiplying the district's referendum equalization levy by a seasonal tax base adjustment factor, which is determined by comparing the district's referendum market value to its seasonal market value (defined as property classified under class 4c(12), typically including recreational properties). The aid will be used to reduce the district's referendum levy, ensuring that districts with seasonal property don't experience significant funding disparities. The changes will be effective for taxes payable in 2026 and later, and the bill includes provisions for appropriating funds to support this new aid program. By creating this mechanism, the bill aims to provide more equitable funding for school districts that have market value challenges due to seasonal property characteristics.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1161&ssn=0&y=2025