State program to return seasonal recreational property tax revenue to rural schools

As the Minnesota Legislature worked over the past few weeks to pass final versions of legislation discussed this session, one provision that will have a significant impact on Cook County was included in the Senate Omnibus Bill, then taken up in the state’s budget agreement. The provision, authored by District 3 State Senator Grant Hauschild, would provide more funding to rural schools from taxes paid by seasonal property owners.

For over two decades, a portion of the taxes paid by seasonal recreational property owners has been paid into the state’s general fund, rather than going to support area schools. This has meant a greater burden of the school’s operating levy falling on a district’s permanent residents. While in many districts, this system does not pose a significant problem, in areas with high percentages of properties falling into the seasonal recreational category, it has proved a struggle for schools to maintain adequate funding.

Hauschild’s change to the budget agreement created a state aid structure for districts where more than 15% of properties are classified as seasonal recreational. Under the new system, a portion of what seasonal recreational property owners pay will be returned to schools.

Hauschild identified the effort as a legislative priority in a conversation with WTIP at the start of the 2026 Legislative Session. In a press release following the inclusion of the provision in the Senate Omnibus Bill, Hauschild was quoted, saying, “Ensuring seasonal properties and cabins pay into their local school districts in Northern Minnesota has been a top priority for me, and we’re finally taking steps to address this unfairness for our area. This is a huge win for communities and schools like ours”

ISD 166 Superintendent Chris Lindholm shared a statement with WTIP in which he thanked Hauschild and applauded the reallocation of tax revenue funds back into local school districts. He also provided some more concrete numbers when talking about the impact of the change.

The bill provides aid in the amount that would be raised by taxing seasonal recreational properties for operating levies, therefore reducing the tax burden on resident home and business owners.  In Cook County, the amount resident home and business owners will pay for our current $800 per pupil operating levy will be reduced by approximately $156,849 in 2027.  This is approximately a 40% reduction in cost per pupil spread out among the local resident tax base.  We are grateful for Senator Hauschild’s leadership to correct an issue that has negatively impacted districts with a lot of seasonal recreational property for over two decades!

For seasonal recreational property owners, their actual tax bills will not change as a result of this provision.

Kirsten Wisniewski May 20, 2026