New State Law

Seasonal & Recreational Tax Base Replacement Aid

A new Minnesota law makes this levy possible without increasing what residents currently pay in school taxes. For more than 20 years, taxes generated from seasonal and recreational properties could not directly support local operating referendums. This created a funding imbalance for rural districts like New London-Spicer, where seasonal property makes up a significant portion of the tax base.

The new law addresses this imbalance through Seasonal Tax Base Replacement Aid (STBRA). The law does not increase taxes on seasonal recreational property owners. Seasonal recreational property remains exempt from operating referendum taxation. Instead, beginning in 2027, school districts with significant concentrations of seasonal recreational property may qualify for additional state aid through the STBRA program.

This change provides meaningful property tax relief for year‑round homeowners and local businesses. Depending on the share of seasonal property in a district, residents may see a reduction in the referendum portion of their property tax bill. At the same time, schools receive additional funding for teachers, academic programs, and student services — without creating a new tax burden on seasonal property owners.

This legislation strengthens Greater Minnesota by providing long‑needed equity for rural communities with significant seasonal property values. It supports local schools, protects educational opportunities, and ensures districts like New London-Spicer can maintain high‑quality programs for students.