AG2school Just Got Better!
Did you know that ag land makes up 80.7% of our school district taxes? During the 2017 Minnesota Legislative Session the Legislature and Governor passed a new credit called Ag2School.
This gives a 40% credit to ag land owners on school taxes paid on current and future school bonds, which includes our 2003 gym, 2008 energy, 2016 energy, our 2017 renovation, and our 2018 health and safety bonds.
To put this into perspective, this reduced school taxes paid by ag land owners on school bonds in our district from a total of $935,074 to $561,044!
This is great news for ag land owners, but it gets even better.
During our most recent legislative session (2019), the MN Legislature and Governor made modifications to the Ag2School law. Starting on July 1, 2019, the ag credit will increase from 40% to 50%!
This will give our ag land owners an even a bigger credit. The plan, if the state budget stays strong, is to increase the Ag2School credit to 55% in 2021, 60% in 2022, and to 70% in 2023.
At 70% credit, this would reduce school taxes paid on ag land on school bonds from a total of $945,193 to $283,558! In a school district that is so highly comprised of ag land, this credit is very welcomed.
This tax savings means a lot more money stays in our community which is a benefit to our whole local economy.
I want to thank the MN Legislature and Governor for providing this relief to rural Minnesota.