AG2SCHOOL TAX CREDIT
Do You Own Agricultural Land?
If you own agricultural land, the State of Minnesota would pay for a large portion of the total Referendum project through the Ag2School Tax Credit program.
The Ag2School Tax Credit would pay for $14.75 million of the total bond amount. That equates to over 59% of the referendum project total cost!
The Ag2School Tax Credit is an automatic 70% property tax credit for owners of agricultural land.
This tax credit program is not a tax deduction – it is an automatic dollar-for-dollar credit with no application required.
Please note: It does not include the house, garage, and one acre surrounding the agricultural homestead.
Who Can Participate?
The Ag2School tax program offers a 70% tax credit to all agricultural property owners including:
2a (homestead and non-homestead, agricultural land)
2b (rural vacant land)
2c (managed forest land) property except for the dwelling value of the property
What is Dwelling Value?
The home, garage, and surrounding 1 acre of land is NOT eligible for the Ag2School Tax Credit and is taxed the same as a residential home.
Estimated Source of Payments for Bond Project
Clinton-Graceville-Beardsley (ISD # 2888)'s tax base is made up of 84% qualifying agricultural land.
The State Agricultural Credit (Ag2School Tax Credit) is currently set at 70%, as a result, the State pays approximately 59% of existing and future debt service levies.
