TAX IMPACT AND CREDITS
Stewartville Public Schools will hold a special election on Tuesday, November 7, 2023
seeking voter approval of two ballot questions, which if approved,
would result in a $62,920,000 bond issue.
The first question would total $55,670,000 and the second question $7,250,000.
Estimated tax impact of the referendum amount provided by District financial consultant Ehlers Public Finance Advisors.
WHAT WILL IT COST ME?
Online Tax Calculator
Approval of the ballot questions would result in a property tax increase beginning with taxes payable in 2024, and the debt service tax levies would remain in place for 22 years. To determine the estimated impact of the proposed ballot questions on your 2024 taxes use the tax calculator below.
Includes: Residential, Commercial / Industrial, and Agricultural Property
Residential Tax Impact - MONTHLY
TAX CREDITS
Ag2School Tax Credit
Do you on agricultural land?
If you own agricultural land and the referendum were to pass, you would receive the Minnesota Ag2School Tax Credit.
The Ag2School Tax Credit is an automatic 70% property tax credit for owners of agricultural land. (It does not include the house, garage, and one acre surrounding the agricultural homestead.)
This tax credit reduces the burden for agricultural property owners on existing and future school building bonds.
This tax credit program is not a tax deduction – it is an automatic dollar-for-dollar credit.
There is no application to receive the Ag2School credit. The credit is reduced automatically on the agricultural landowner’s property tax bill.
Debt Service Equalization Credit
Did you know that Stewartville Public Schools qualifies for Debt Service Equalization?
Debt Service Equalization program, first operated in 1993, offers state aid to certain school districts to help them repay debt used to construct or renovate school buildings and other facilities.
Some school districts have large tax bases (the value of taxable property within a school district on which property taxes are levied), but others do not. The Debt Service Equalization program offers state aid to help offset or “equalize” such variation in school district property taxes due to varying levels of property wealth.
This helps ensure that all school districts, regardless of property wealth, can provide adequate education facilities for their students.
The State of Minnesota will pay a significant portion of the total bond project cost through:
Ag2School Tax Credit (16% of the total cost) and
Debt Equalization (11% of the total cost)
In 2024, the State will pay approximately $16,988,400, which is 27% of the total bond.
Other Credits You May Qualify For...
There are certain Minnesota Tax Credits and Deferrals that may affect certain property owners’ situations. They include:
Minnesota Homestead Credit Refund
If your household income is less than approximately $128,280, you may qualify for the Homestead Credit Refund (also known as the “Circuit Breaker” refund). This program, which has existed since the 1970s, is intended to reduce tax burdens for homeowners with relatively low incomes and relatively high property tax burdens. Some important facts about this program are summarized below.
Available each year to owners of homestead property
Applies only to the taxes attributable to the house, garage, and one acre on agricultural homestead property
Available to all owners of residential homestead and agricultural homestead property with household incomes of less than $128,280
Refund is on a sliding scale, based on your income and your total property tax burden
The maximum refund is $3,140
Also available to renters
To determine eligibility and refund amounts, complete Minnesota tax form M1PR
Special Property Tax Refund
If your total property taxes increase by more than 6 percent and more than $100 from one year to the next, you may qualify for a state refund equal to a portion of the increase. There is no income limit for this refund and the maximum refund is $2,500.
To determine eligibility and refund amounts, complete Minnesota tax form M1PR.
Senior Citizen Property Tax Deferral
If you are 65 years or older and have a household income of $96,000 or less, you may be eligible to defer a portion of the property taxes on your home, through the Senior Citizen Property Tax Deferral Program. The program:
Limits the maximum amount of property tax you pay to 3 percent of your total household income
Provides predictability; the amount of tax you pay will not change for as long as you participate in this program
The 2023 Legislature modified the requirements of this program by increasing the household income limit to $96,000. This new income limit is in effect for taxes payable in 2024 and later years.
– ASK A QUESTION –
Submit your own question regarding the 2023 Referendum using the button below.