The Cost & Tax Impact

The Alexandria School Board is committed to being good stewards of taxpayer resources. That’s why voters are being asked to consider an operating levy referendum which will take advantage of the state’s new Seasonal Recreation Property Tax Base Replacement Aid (STBRA).

If approved by voters in November, the operating levy will generate about $2,225 per student, or about $3.7 million, in net new revenue for the district annually for the next 10 years.

Students doing a robotic experiment

Bringing State Education Dollars Home

Because of the new state program, just over half of the levy would be paid by the state rather than by local property owners. That means approximately $1.9 million of the $3.7 million would be seasonal recreation tax dollars returned to our district by the state.

If approved by voters this November, an owner of a home valued at $400,000 would see an estimated tax increase of roughly $10 per month. Use our tax calculator to determine the estimated tax impact on your property.

Calculate My Tax Impact
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Funding Breakdown

A Funding Breakdown pie chart showing that 49% of the levy funding would come from local property owners, and 51% from the new state aid program.

  • In 2001, the Minnesota Legislature exempted cabin owners from some taxes used to fund local schools. But that money didn’t stay local – it became a new statewide property tax that cabin and business owners still pay to support state programs instead of local education. The new Seasonal Recreation Property Tax Base Replacement Aid program is about bringing that money back home. 

    If voters approve the November referendum, state aid to Alexandria Public Schools will increase by more than $1.9 million annually.

Tax Relief Opportunities

There are programs available to help Minnesota property owners, renters and seniors offset property tax increases. Refunds will range from 53% to 88% of the excess property tax you pay, as determined by a state formula based on income.

The referendum may make you eligible for state refunds/credits or may increase the amount from any refunds/credits you already receive. In addition, an increase in property taxes may be deductible on your federal tax return if you itemize deductions.

See what you may be qualified for below. The tax impact depends on your home's assessed value. If approved by voters this November, starting in 2027:

Potential Ways to Offset Your Tax Impact

  • Minnesota offers two types of Homestead Credit Refund can provide relief to homeowners paying property taxes. You may qualify for one or both of these refunds if you:

    • Own and occupy a home

    • Have your home classified as a homestead with your county

    • Pay or arrange to pay your property taxes

    The first kind of Homestead Credit Refund is a “regular refund” which is based on your income and property taxes. To claim the regular refund, you must have owned and lived in your home on January 2, 2026 and your household income for 2025 was less than $142,490.

    The second kind of Homestead Credit Refund is considered a “special refund” and is based on how much your property tax increased. To claim the special refund, you must have owned and lived in the same home on January 2, 2025, and January 2, 2026, and have a net property tax that increased more than 12% between 2025 and 2026 and totaled at least $100. The increase cannot be because of improvements you made to your property.

    Visit the State’s website to learn more about the Homestead Credit Refund and how to apply using Form M1PR .

  • Minnesota offers Property Tax Deferral for Senior Citizens which may allow you to defer a portion of the property taxes you owe if the property tax you pay will be 3% of your total household income based on your prior year income. To qualify, all of these must be true:

    • You are 65 or older in the year you apply. If married, one of you is 65 or older and the other is at least 62.

    • Your total household income is $96,000 or less.

    • You have owned and lived in your home for the last 5 years.

    • Your home has been homesteaded for 5 years.

    • You do not have a reverse mortgage, a life estate, any state or federal tax liens, or judgment liens on your property.

    • Other liens against your property are less than 75% of the estimated market value.

    Visit the State’s website to learn more about the Property Tax Deferral for Senior Citizens.

  • If you are a renter, you may be eligible to claim the Renter's Credit as part of your Minnesota Individual Income Tax return (Form M1). The Renter's Credit is a refundable credit on an income tax return. It decreases how much you owe or increases your refund. To qualify, all of these must be true:

    • You have a valid Social Security Number or Individual Taxpayer Identification Number.

    • You must be a full-year or part-year Minnesota resident.

    • You lived in and paid rent on a Minnesota building where the owner was assessed property tax or made payments in lieu of property tax.

    • Your household income is below $77,570 (see below).

    • You cannot be claimed as a dependent on someone else’s tax return.

    Visit the State’s website to learn more about the Renter’s Credit and how to claim it on your income tax return.

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