Funding would be provided by the sale of general obligation bonds by the school district. Debt service is estimated to come from the following sources below:
Tax Implications for different groups:
Residential Homestead
A combination of factors leaves residential homeowners with one of the smallest tax burdens for any district in the state of Minnesota related to a school bond referendum.
Residential Homestead property owners would account for just 13% of the total tax assessments.
Commercial & Industrial
Commercial & Industrial property would account for 70% of the tax impact. This includes roughly 62% of the total cost of debt service coming from property tax assessments on the utilities related to the pipeline.
Ag2School Tax Credit
If the referendum passes, agricultural property owners will see a 70% automatic tax credit on their property tax bill related to the portion impacted by the referendum. This is not a reimbursement. It is an automatic credit.
The Ag2School Tax Credit will result in the State of Minnesota paying 12% of the total cost.
Ag Land & Buildings
Due to the automatic state aid through the Ag2School credit, Ag Land and buildings will account for just 5% of the tax impact.