The Omnibus Tax Bill released for a Special Session includes increases to the Ag2School tax credit for farmers and to Tier 2 equalization factor for operating referendums. Ag2School would increase from 40 percent to 50 percent in FY 20 with additional increases up to 70 percent in future years based on the state budget. View the bill summary
This comes after E-12 legislators reached an agreement on the Omnibus Education Bill that includes an increased funding target of $543 million in the FY 20-21 and $720 million in FY 22-23. View key components. View impact by school district.
The Minnesota Legislature released the bill today. Gov. Tim Walz called a Special Session late Thursday to begin at 10 am on Friday and convene by 7 am on Saturday.
Here are the excerpts from the tax bill on the two key provisions in Article 5:
Tier 2 Equalization Factor
“Referendum equalization levy. Increases the second tier equalizing factor of referendum revenue from $510,000 to $567,000 beginning in fiscal year 2021. This lowers the referendum levy by approximately $10 million per year. Effective for revenue for fiscal year 2021 and later.” – Section 1
Ag2School
“Increases the school building bond agricultural credit from 40 percent to 70 percent of the tax on the property attributable to school district bonded debt levies. The credit is increased to 50 percent in 2020, 55 percent in 2021, 60 percent in 2022, and 70 percent in 2023. The credit is available to all property classified as agricultural, excluding the house, garage, and surrounding one acre of land of an agricultural homestead. Effective beginning with property taxes payable in 2020.” – Section 2
Resources
Omnibus Tax Bill State level tracking spreadsheet
