Here's a late-breaking email from the Minnesota School Boards Association, calling attention to a feature of the omnibus tax bill passed by the Legislature that could have an impact on voters in the P-E-M bond referendum, coming Tuesday. That is, if the governor signs it.
This change wouldn't just rearrange the tax burden (adding more to residential property taxpayers, for example) -- it's a tax credit for farmers.
This is from Greg Abbott, MSBA communications director in St. Paul:
The Omnibus Tax Bill, if signed by the Governor, will have MAJOR impacts on the Plainview bond referendum tomorrow.
Here are some basics:
Who is eligibile?
Farmland in Class 2A, 2B and 2C proper
What is the credit?
40 percent of the property’s eligible net tax capacity, multiplied by the school debt tax rate.
Who determines the amount?
The county auditor, with verification from the Department of Revenue
How much will this save area farmers in your specific district?
The district’s financial adviser should have sent them figures on the savings. If not, call them to get the information.
How must the credit be used?
To reduce school district net tax capacity-based property tax.
When does the ag credit begin?
It would begin with taxes payable in 2017
Will it impact bond referendums that are on the ballot this spring?
YES. Because taxes payable for bonds approved now will not usually be collected until 2017.
Farm ag land would be reduced DRAMATICALLY, if Dayton signs this. So if he signs today or tomorrow, the passage of the bond will be MUCH easier once word gets out.
We'll see about Greg's assertion about "MUCH easier," but it's a fascinating late twist. We're working on a story.