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HF 359

A bill for an act relating to disclosures on property tax statements concerning school district funding reductions and individual taxpayer payments to the education savings account program.

2025-2026 Regular Session Introduced by Sean Bagniewski

HF 359 requires tax statements to disclose ESA effects: local district funding reductions and the share of state income taxes used for ESAs, with DOM calculations to the treasurer.

Introduced, referred to Ways and Means.
#disclosure #privateeducationstudentaccounts #propertytaxes #schooldistricts #schoolfinance
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Bill Summary · HF 359

Summary of HF 359 (Introduced Feb 12, 2025)

Overview

HF 359 is a bill that would require certain disclosures on a property tax statement to inform titleholders about financial impacts related to the Education Savings Account (ESA) program. The bill emphasizes transparency regarding how ESA-related student payments affect local school district funding and how much of a taxpayer’s state income tax goes toward funding the ESA program. It assigns calculations to state agencies and requires collaboration between agencies to determine the disclosed figures, with information transmitted to the state treasurer.

Purpose and Intent

  • Increase transparency for property taxpayers about the effect of the ESA program on their local school district funding.
  • Inform taxpayers of the portion of their state income taxes used to fund the ESA program.
  • Provide standardized language on property tax statements to convey these impacts.

Key Provisions

  • Disclosures on tax statements
    • Every statement of tax due and payable by a titleholder must include:
    • How much less funding the titleholder’s school district received in the current school year compared to the previous school year due to students receiving ESA payments (if such a reduction exists).
    • How much of the titleholder’s state income taxes have been used to fund the ESA program.
    • The language: “The gross reduction in state funding to your school district in (current school year) as a result of students receiving education savings account payments is (amount).”
  • Calculations and collaboration
    • The Department of Management (DOM) must perform all calculations necessary to determine the disclosed information about reductions to the titleholder’s district caused by ESA payments.
    • DOM and the Department of Revenue must collaborate to determine the information required to disclose the titleholder’s total state income tax payments allocated to the ESA program.
  • Transmission of information
    • DOM is responsible for transmitting the calculated information to the state treasurer in a timely manner.

Who Is Affected

  • Property taxpayers/titleholders receiving tax statements.
  • Local school districts affected by ESA-related funding changes.
  • Students participating in or affected by the ESA program.
  • State agencies: Department of Management and Department of Revenue.
  • Minnesota State Treasurer (receives transmitted information).

Procedural and Timeline Aspects

  • Status: Introduced and referred to Ways and Means on February 12, 2025.
  • No specific effective date or detailed timeline for implementation is provided in the summary.
  • Requires timely transmission of information from DOM to the treasurer once calculations are completed.

Legislative Details

  • Bill Number: HF 359
  • Primary Sponsor: Bagniewski
  • Classification/Subject: DISCLOSURE, private education student accounts (ESA), property taxes, school finance

Notes

  • The text specifies “current school year” data and explicit disclosure language to be included on tax statements.
  • Administrative costs or implementation timelines are not specified and would likely be addressed in committee discussions or fiscal notes.

Compiled from official sources — confirm details with the bill’s official record.

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