Hauschild touts property tax relief, bonding wins for Northland communities

Two Harbors is set to get $2 million for Highway 61 infrastructure, the clearest Lake County payoff in a session that Sen. Grant Hauschild said delivered tax relief, school aid and bonding money for the Northland.

Hauschild, a Democrat who represents Senate District 3 and serves as vice chair of the Senate Taxes Committee, used his post-session update to argue that the 2026 Legislature came through on the basics: lowering costs, protecting taxpayers and financing projects that local governments cannot cover on their own. The session ended May 18 after lawmakers struck a late budget deal that included property tax relief, an anti-fraud package and more than $30 million in bonding for Northland communities.

The tax package centers on a one-time $125 million increase for Minnesota’s property tax refund program. State officials estimate the change will raise average refunds by nearly $200 for 588,000 homeowners in 2026, while the Department of Revenue projects a 12% increase in homeowner property tax refunds on taxes payable in 2026 and a general fund impact of about $100.8 million in fiscal year 2027. Hauschild said the policy was aimed at roughly 600,000 Minnesotans feeling the squeeze of rising property taxes and higher household costs.

Hauschild also highlighted a new School Seasonal Tax Base Replacement Aid Program, designed for districts with large amounts of seasonal recreational property. The aid is based on the share of seasonal recreational property in a district’s referendum market value tax base and is meant to reduce voter-approved school referendum levies. Department of Revenue estimates put the cost at $9.1 million for taxes payable 2026, $9.2 million in 2027 and $9.3 million in 2028. Senate bill summaries say the program could cut referendum tax rates by as much as 50% in districts with class 4c(12) seasonal recreational property, a change that could matter in lake-heavy parts of the Northland.

The bonding bill is where Lake County residents may see the most visible, on-the-ground impact. Along with $1 million for Cook County Gunflint Trail improvements, $3.5 million for utility extensions in Proctor, $1.5 million for the City of Cook and $3.8 million for Rice Lake sewer and water work, the package includes the $2 million for Two Harbors Highway 61 infrastructure. Minnesota Department of Transportation says that corridor project has been in development since 2018, is now in final design, and is planned for construction in 2027 and 2028, with some utility work in 2026.

The League of Minnesota Cities said the 2026 capital investment package totaled $1.1835 billion in general obligation bonds, plus $91.25 million from other funding sources and a separate $46.465 million general-fund appropriation bill. For Hauschild, the message was straightforward: state money is now flowing toward roads, schools and property tax relief in places like Lake County that cannot wait for local tax bases to catch up.