This bill aims to enhance education finance in Minnesota by establishing a new form of aid known as "seasonal tax base replacement aid" for school districts. It amends Minnesota Statutes 2024, specifically section 126C.13, subdivision 4, by removing the reference to fiscal year 2015 and later, and introduces additional components to the general education aid calculation, including a new subdivision 7c in section 126C.17. This new subdivision outlines the formula for calculating seasonal tax base replacement aid, which is based on a district's referendum equalization levy and a seasonal tax base adjustment factor. The adjustment factor is defined as the ratio of the district's referendum market value to the sum of its referendum and seasonal market values, with specific limits on its value.

The bill also includes appropriations from the general fund to the Department of Education for general education aid, specifying funding amounts for the fiscal years 2025, 2026, and 2027. The effective dates for the new provisions are set for revenue in fiscal year 2027 and taxes payable in 2026 and later. Overall, this legislation seeks to provide additional financial support to school districts, particularly those affected by seasonal property values, thereby ensuring a more equitable distribution of education funding.

Statutes affected:
Introduction: 126C.13, 126C.17