Program would provide greater property tax fairness for residents while supporting students and schools.
[SAINT PAUL, MN] — Senator Grant Hauschild (DFL-Hermantown) presented legislation in the Senate Education Finance Committee Tuesday to provide greater property tax fairness and relief for residents in school districts with heavy concentrations of seasonal or recreational property.
“Too many school districts across our state are struggling to cover basic costs and fund basic services because lower-income residents are asked to pay for school operating levies while million-dollar cabins are not,” said Senator Hauschild. “This bill proposes a better way forward by creating a new seasonal and recreation tax based replacement aid program, reducing the burden facing local residents as they consider local operating levies by as much as 50%. This can make a real difference for students and schools across Minnesota.”
Senator Hauschild’s proposal, S.F. 4995, creates a new seasonal tax base replacement aid program for school districts where seasonal recreational properties (cabins) make up a large percentage of the property tax base but do not pay school levies. The bill would offset voter-approved operating referendum levies in districts with seasonal recreational properties and reduce tax rates by as much as 50% in school districts with large amounts of seasonal recreational properties.
The hearing on S.F. 4995 included testimony from Lake Superior School District Superintendent Jay Belcastro, St. Louis County Schools Finance Director Kim Johnson, Industrial Technology teacher from Lake Superior Public Schools Chris Belanger, and Cook County Schools teacher Chad Benesch.
The bipartisan legislation was passed and now moves to the Senate Taxes Committee.
