Crookston School District Property Tax Information Site

This site provides information for taxpayers of the Crookston School District regarding how the district's proposed operating referendum will affect their property taxes. The site was prepared by the school district's financial advisors, Ehlers. If you have questions about the information on this site, you may call Ehlers at one of the numbers listed below.

About the Referendum

The district will be holding a special election on November 8, 2011, seeking voter approval of two questions.

Question 1 would authorize the District to increase its general fund revenue by $1,000 per pupil unit for ten years. A portion of this authority would replace an existing referendum authority of $351.44 per pupil unit, which will expire after taxes payable in 2011. The existing authority generates approximately $517,000 in annual revenue and the proposed new authority would generate approximately $1,483,000 in annual revenue. The funds would come from a combination of state aid and local property taxes. For the first year (fiscal year 2012-13), it is estimated that approximately 28% of the funds will come from state aid.

Question 2 would authorize the District to increase its general fund revenue by an additional $100 per pupil unit for ten years. If approved, this would increase the district's general fund revenue by approximately $149,000 per year. The District will use these funds to finance operational expenses for the community swimming pool. These funds would also come from a combination of state aid and local property taxes. For the first year (fiscal year 2012-13), it is estimated that approximately 11% of the funds will come from state aid.

Impact on Property Taxes

The proposed referendum would cause an increase in property taxes for ten years, beginning with taxes payable in 2012. To determine how much the proposed referendum is estimated to increase your property taxes in 2012, follow the steps below. We suggest that you first find your "Notice of Valuation and Classification" (mailed by Polk County in the spring of 2011).

Step 1. Determine the 2011 Payable 2012 Estimated Market Value of your property. Estimated Market Value (or EMV) is a figure used by your county to calculate property taxes. It is usually less than the fair market value or the actual price if you were to sell your property. The tax impact of the proposed operating referendum will begin with taxes payable in 2012, which will be based on the 2011 Payable 2012 Estimated Market Value.

Use one of the following methods to determine the 2011 Payable 2012 EMV.

1. If you have the 2011 Notice of Valuation available, find the number labeled "Taxable Market Value" in the 2012 valuation column.
2. If you don't have your 2011 Notice of Valuation, contact the Polk County Assessor's office at 218-281-4186, and ask them what the 2011 Estimated Market Value of your property is, for purposes of taxes payable in 2012

Step 2. Verify what type of property you own. Your Notice of Valuation will display the type of property you own for purposes of property taxes. For most types of property (anything other than Agricultural or Seasonal Recreational Residential property), you may proceed to Step 3.

• If your property is classified as Seasonal Recreational Residential, you will pay no taxes for the proposed referendum.
• If your property is classified as Agricultural (either Homestead or Non-Homestead), the taxes for the referendum will be based only on the EMV of the house, garage, and one acre of land (also known as the HGA value). You will have to contact your home county to obtain this figure. You will pay no taxes for the referendum based on the value of agricultural land and agricultural buildings.

Step 3. Enter the 2011 Payable 2012 Estimated Market Value of your property below to see the estimated tax increase for your property. (For agricultural property, enter the Estimated Market Value of the house, garage and one acre of land.)

Step 4. Review the information below regarding the effect of the proposed tax increases on state tax refunds and your state and federal taxes.

1. Minnesota Property Tax Refund.

   If your adjusted gross income is less than approximately $99,240, you may qualify for the Minnesota Property Tax Refund (also known as the "Circuit Breaker" refund). This program, which has existed since the 1970s, is intended to reduce tax burdens for homeowners with relatively low incomes and relatively high property tax burdens. Some important facts about this program are summarized below.

   • Available to all owners of residential homestead and agricultural property with incomes of approximately $99,240 or less (income limits may be higher if you have dependents)
   • Refund is a sliding scale, based on your income and your total property tax burden
   • The maximum refund is $2,370
   • To determine eligibility and refund amounts, complete Minnesota tax form M1PR (available online at www.taxes.state.mn.us).

   If you qualify for this program, you may receive an additional refund of up to 80% of the amount of the property tax increase caused by the proposed referendum. For example, if the referendum increases your property taxes by $300 per year, your refund may cover up to $240 of this increase..

2. Special Property Tax Refund

   If your total property taxes increase by more than 12% and more than $100 between 2011 and 2012, you may qualify for a state refund equal to a portion of the increase. There is no income limit for this refund. To determine eligibility and refund amounts complete Minnesota tax form M1PR (available online at www.taxes.state.mn.us).

3. Deductibility of Property Taxes for State and Federal Income Taxes

   If you itemize deductions for federal income taxes, you may deduct all property taxes paid. Therefore, any increase in property taxes resulting from the proposed referendum will reduce your income tax liability. The reduction in income taxes may be as much as 42% of the increase in property taxes, depending on your total income and other credits and deductions.

4. Senior Citizen Property Tax Deferral

   If you are 65 years or older and have a household income of $60,000 or less, you may be eligible to defer a portion of the property taxes on your home, through the Senior Citizen Property Tax Deferral Program. Some basic facts about this program are summarized below.

   • The amount of taxes which you pay in any year is limited to 3% of your total household income for the year before you enter into the program; this amount does not change in future years.
   • The additional taxes are not forgiven, but are deferred. The State will charge interest of up to 5% per year on all deferred taxes, and will attach a lien to your property.
   • The accumulated deferred taxes (plus interest charges and filing fees) will need to be paid if the property is sold or transferred, the homeowners die, the property no longer qualifies as a homestead, or the homeowner voluntarily withdraws from the program.

   For more information on this program, click here for a fact sheet from the Minnesota Department of Revenue.

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