SF2016

Purpose

This bill changes how the school building bond agricultural credit is calculated. It amends Minnesota law to set the credit amount for each qualifying property as a percentage of the property's eligible net tax capacity, multiplied by the school debt tax rate.

Main Provisions

• For each qualifying property, the school building bond agricultural credit is equal to 70 to 100 percent of the property's eligible net tax capacity multiplied by the school debt tax rate.
• The school debt tax rate used in this calculation is the rate determined under section 275.08 subdivision 1b.
• The amendment targets Minnesota Statutes 2024 section 273.1387 subdivision 2, Subdivision 2 (Credit amount).

Significance and Changes to Law

• Introduces a variable credit range (70-100%) instead of a single fixed percentage for the credit calculation.
• Ties the credit amount directly to the school debt tax rate via the formula.
• Alters the statute governing the school building bond agricultural credit (amending the specified subdivision).

Implications

• The calculated credit depends on each qualifying property's eligible net tax capacity and the school debt tax rate; larger net tax capacities likely yield larger credits within the 70-100% range.
• Could affect property tax bills for qualifying properties and the overall financing mechanism for school debt through the agricultural credit.

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Relevant Terms - school building bond agricultural credit - eligible net tax capacity - school debt tax rate - section 275.08 subdivision 1b - qualifying property - Minnesota Statutes 2024 section 273.1387 subdivision 2 - Subd. 2 (Credit amount)