In Thursday’s hearing of the Senate Taxes Committee, Senator Grant Hauschild (DFL–Hermantown) advanced a bipartisan Iron Range delegation minerals article, focused on ensuring that the benefits of the first new taconite mine in over 50 years are delivered back into local schools, communities, and infrastructure.
Hauschild presented the legislation alongside Senator Robert Farnsworth (R-Hibbing), highlighting a shared commitment across the Iron Range delegation to get this right for the region.
“This is a major opportunity for the Iron Range,” said Hauschild. “Senator Farnsworth and I, as well as other members of the Range Delegation, were proud to work together to make sure these future production tax dollars are invested back into our schools, our communities, and our townships, keeping those dollars here at home where they belong. This is about putting the Range first."
The minerals article modifies how production tax revenue from Mesabi Metallics will be distributed once production begins, with a stronger focus on supporting local schools and communities. It does not raise any taxes but is rather focused on the distribution.
Key provisions include:
• Increased investment in Iron Range school districts on the Iron Range, as well as adding new distributions for school districts including Ely, Chisholm, Grand Rapids, Nashwauk Keewatin, and Greenway to distributions from production taxes.
• New and expanded support for local cities and townships in Senator Hauschild's district, including $25,000 for Orr and Winton, as well as $75,000 for Cook and Two Harbors who have been left out of direct distributions from production taxes in the past.
• Expanded eligibility for township funding and increased support for rural and unorganized areas impacted by mining activity.
“This legislation reflects what we heard directly from communities across the Range,” Hauschild added. “Our schools are facing enrollment challenges and rising costs, and our local governments are under pressure. This bill makes sure the benefits of this project are felt in classrooms, in our towns, and across the entire region.”
Following testimony from Senators Hauschild and Farnsworth, the bill was laid over for possible inclusion in the Senate Tax Omnibus bill.
School districts receiving funds from the Taconite Railroad Aid Account would see distributions rise. This represents an estimated 20.9% increase for these school districts: Cook County Schools, Lake Superior Schools, St. Louis County Schools (Northeast Range, North Woods, Cherry, etc.), Mesabi East Schools
Districts receiving School Building Maintenance funds would increase from four cents per taxable ton to eight cents per taxable ton — effectively doubling distributions. Benefiting districts include: Greenway, Nashwauk-Keewatin, Lake Superior, Chisholm, Hibbing, Mountain Iron-Buhl, St. Louis County, Mesabi East, Rock Ridge
Additionally, Ely and Grand Rapids schools would each receive $150,000 annually.
Districts receiving the Taconite School Fund would rise from 3.43 cents per ton to eight cents per ton, an increase of approximately 133%. Benefiting districts include: Cook County, Greenway, Nashwauk-Keewatin, Lake Superior, Hibbing, Mountain Iron-Buhl, St. Louis County, Mesabi East, Rock Ridge
Additional fixed allocations: Ely and Chisholm schools: $100,000 annually
A special note: These new amounts of spending for schools and the fixed distributions would take place after Mesabi Metallics starts production. That start date is unclear. The company has expressed the opinion it will start in the third or fourth quarter of 2026. If that is the case, the increased payments would flow to schools in payable 2027. Alternatively, if production at Mesabi Metallics starts in 2027, payable 2028 would be the start of the new funds.
Most importantly, funding at these new levels will be guaranteed for two years after the start of production at Mesabi Metallics, backed up by the DJJ Trust Fund.
Cities and townships receiving Mining Effects Aid would see approximately 25% increases: Keewatin, Lone Pine Township, Nashwauk, Nashwauk Township, Aurora, Buhl, Babbitt, Balkan Township, Bassett Township, Biwabik, Biwabik Township, Chisholm, Clinton Township, Eveleth, Fayal Township, Gilbert, Great Scott Township, Hibbing, Hoyt Lakes, Kinney, Leonidas, McKinley, Mountain Iron, Virginia, Waasa Township, White Township, and Wuori Township
Cities receiving Taconite Municipal Aid would see an estimated 13.49% increase: Crosby, Ironton, Riverton, Trommald, Bovey, Calumet, Coleraine, Greenway Township, Keewatin, Lone Pine Township, Marble, Nashwauk, Nashwauk Township, Taconite, Silver Bay, Aurora, Babbitt, Balkan Township, Biwabik, Breitung Township, Buhl, Chisholm, Ely, Eveleth, Gilbert, Great Scott Township, Hibbing, Hoyt Lakes, Kinney, Leonidas, McDavitt Township, McKinley, Mountain Iron, Tower, Virginia, White Township and Wuori Township.
In addition, the bill creates new annual guarantees for two years by the DJJ Trust Fund for these payments: Two Harbors – $75,000, Cook – $75,000, Orr – $25,000, Winton – $25,000
Communities receiving mining and concentrating tax distributions would see an estimated 22% increase, helping communities directly tied to mining operations and processing facilities: Schroeder Township, Greenway Township, Keewatin, Lone Pine Township, Nashwauk, Nashwauk Township, Beaver Bay Township, Silver Bay, Aurora, Babbitt, Balkan Township, Biwabik, Biwabik Township, Eveleth, Fayal Township, Gilbert, Great Scott Township, Hibbing, Hoyt Lakes, Kinney, Leonidas, McDavitt Township, Mountain Iron, Virginia, White Township, and Wuori Township.
