If all three questions are approved, it will cost about $40.09 per month for an average home value in the district of $125,000. That’s an annual property tax increase of $481.13.
An acre of homestead farmland valued at $5,000 would see an increase of $4.42 in 2022, which would drop to $3.31 in 2023. Non-homestead would be $8.84 and $6.63.
Use the Online Tax Calculator to calculate your tax impact.
Who pays for the referendum?
Thanks to the Ag2School Tax Credit, 49% of the total project will be paid by state aid.
Does farm property receive some tax relief? In 2017, the Minnesota Legislature approved a 40 percent tax credit for farm land school bond taxes. In 2019, the legislature approved higher tax credits to be phased in over time:
- 60 percent in 2022, and
- 70 percent in 2023 and after
“In my 21 years in the Legislature, this (the Ag2Schools tax credit) is one of the last laws that would be changed because it was passed on a bipartisan basis, supported by both metro and rural members and it really costs very little in comparison to our overall budget so there is no reason to cut the program. In fact, if anything, I see the 70 percent (tax credit on farm land) going up (rather) than ever going down.” - Rep. Paul Marquart