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S.F. No. 802 - School Building Bond Agricultural Property Tax Credit (as proposed to be amended with A-1 amendment)
 
Author: Senator Rich Draheim
 
Prepared By: Eric S. Silvia, Senate Counsel (651/296-1771)
 
Date: February 28, 2017



 

S.F. No. 802 establishes a new school building bond agricultural property tax credit equal to 40 percent of the property’s tax attributable to school district debt levies.

Section 1. Payments to school nonoperating funds. Provides that state general fund aid payments shall be paid in six, rather than 12, monthly installments.

Section 2. Aid payment percentage. Incorporates the change made in Section 1.

Section 3. School building bond agricultural credit. Provides a property tax credit on all property classified as agricultural equal to 40 percent of the property tax attributable to school district bond levies. The Commissioner of Revenue shall certify the tax reductions under this section to the Commissioner of Education who shall reimburse each school district. An open appropriation from the general fund to the Commissioner of Education is provided.

Section 4. Payments; school district. Adds a reference to the new school building bond agricultural credit to the list of credit certifications made by the Department of Revenue to the Department of Education.

Section 5. Computation of net property taxes. Includes the new school building bond agricultural credit to the list of credits that reduced the amount of tax owed.

Section 6. Notice of proposed property taxes. Requires that the new school building bond agricultural credit appear on the truth-in-taxation (TNT) statement.

Section 7. School districts levies; special requirements. Defines what levies are considered to be debt services levies.

Section 8. Commutation of tax rates. Requires the county auditor to compute a school debt tax rate for each school district.

Section 9. Contents of tax statements. Requires that the new school building bond agricultural credit appear on the property tax statement.

Effective Date: Sections 1 and 2 are effective beginning with fiscal year 2019. Sections 3 through 10 are effective beginning with taxes payable in 2018.

 
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