AG2SCHOOL TAX CREDIT

Estimated tax impact of the referendum amount provided by District financial consultant Baird Financial Advisors.

Do You Own Agricultural Land?

If you own agricultural land, the State of Minnesota would pay for a portion of the total Referendum project through the Ag2School Tax Credit program.

The Ag2School Tax Credit will result in the State of Minnesota paying approximately 20% of the district’s debt payments for this bond. This includes about $7,982,004 of the $39,990,000 bond amount.

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 program is not a tax deduction – it is an automatic dollar-for-dollar credit with no application required.
The Ag2School Tax Credit bill was passed through bipartisan support and is in State Statute. The program is part of the State’s forecasted budget and has no expiration date.

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.

Who pays for the Referendum?

Estimated tax impact of the referendum amount provided by District financial consultant Baird Financial Advisors.

A win-win for farmers and rural districts.

Ag2School Tax Credit provides property tax relief to farmers while also helping rural school districts make needed improvements to their facilities — a win-win for farmers and their communities.
— Minnesota Farmers Union