Property Tax Information Site Underwood School District
This site provides information to the taxpayers of the Underwood School District regarding how the district's proposed
bond referendum will affect their property taxes. The site was prepared by the school district's financial advisors,
Ehlers, in cooperation with the school district. If you have questions about the information on this site, you may call
Ehlers at the numbers listed
To skip directly to the tax impact calculator for homeowners, click here.
About the Referendum
The district will be holding a special election on May 20, 2014, seeking voter approval that would authorize
the district to issue up to $3,400,000 in bonds to fund the acquisition and betterment of school sites and
facilities; including improvements to and the construction of an addition to the existing Underwood Public School
building and a new bus garage.
For additional information on how the funds would be used, click on the "Return to School District Website" button above.
Impact on Property Taxes
Approval of this ballot question would cause an increase in property taxes for 16 years, beginning with taxes
payable in 2015. To determine the estimated impact of the proposed ballot question on your 2015 taxes, follow
the steps below. We suggest that first you find your "Notice of Valuation and Classification" (mailed by the
County in the spring of 2013) or your "Proposed Property Tax Statement" (mailed by the County in November of 2013).
Step 1. Determine the 2013 Payable 2014 Estimated Market Value of your property.
The tax impact of the proposed bond issue will begin with taxes payable in 2015, which will be based on the 2014
Estimated Market Value (EMV). This value is not currently available, so you will need to use your 2013 Payable
2014 value to approximate the tax impact. If you believe the Estimated Market Value of your property has
increased from 2013 to 2014, you may want to estimate an appropriate increase.
You may use one of the following methods to determine the 2013 Payable 2014 estimated market value:
If you have the 2013 Notice of Valuation mailed in the spring of 2013 available (for taxes payable in 2014), find
the number labeled "Estimated Market Value" in the 2014 valuation column.
If you have your 2014 Proposed Property Tax Notice statement,find the number labeled "Estimated Market Value"
for Tax Payable Year 2014.
If you don't have either of these documents, please contact Ehlers for your estimated tax impact. Otter Tail
County has provided Ehlers with valuation records for all properties in the county that are in the Underwood
School District. You may call the Ehlers Property Tax Hotline (800-552-1171) during regular business hours
and ask to speak to any member of the Education Team. You may also send an e-mail message to
mnschools@ehlers- inc.com. If you prefer to get the information
directly from the County, you can call the Otter Tail County Auditor (218-998-8030) and ask them for your
2013 payable 2014 estimated market value.
Step 2. Verify what type of property you own. If your property is an owner-occupied home, your
Property Tax Statement and your Notice of Valuation and Classification will list the Property Classification as "Residential Homestead" or
"Res. Hstd." If this is the case, go to step 3. If you own any other type of property, skip to step 5.
Step 3. For residential homestead property only, enter the 2014 Estimated Market Value below to see the
projected tax increase for your property.
Estimated Market Value:
Step 4. Review the information below regarding how various state and federal programs may affect the property tax increases.
Minnesota Property Tax Refund.
If your adjusted gross income is less than $105,500, 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 less than $105,500
Refund is on a sliding scale, based on your income and your total property tax burden
The maximum refund is $2,580
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 percent of the amount of the property tax increase
caused by the proposed referendum. For example, if the referendum increases
your property taxes by $70 per year, your refund may cover up to $56 of this increase..
Special Property Tax Refund
If your total property taxes increase by more than 12 percent and more than $100 from one year to the next, 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).
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 percent of the increase in property taxes, depending on your total income and other credits
Senior Citizen Property Tax Deferral
The Senior Citizen Property Tax Deferral Program was established to help senior citizens who are having difficulty
paying their property taxes. This deferral program has two primary advantages for senior citizens:
It limits the maximum amount of property tax you pay to 3 percent of your total household income, and
It provides predictability. The amount of tax you pay will not change for as long as you participate in this program.
The Senior Citizens Property Tax Deferral program allows people 65 years of age or older, whose household incomes are $60,000 or
less, to defer a portion of their property tax on their home. For more information go
Under the General Information heading, click on Fact Sheets and then click on Senior Citizen Property Tax Deferral.
Step 5: For all other types of property (other than residential homestead), follow these steps.
If your property is not classified as residential homestead, there are two methods you may use to obtain estimates of the tax impact of the referendum.
Method A. Use the table of sample properties below.
Find your type of property in the table,
find the sample value that is closest to your property's 2013 Payable 2014 Estimated Market Value (EMV), and look up
the projected tax impact for that example. If your EMV is between two of the values shown in the table, you can estimate
the tax impact by "interpolating".
Method B. Contact Ehlers
If your type of property is not shown in the table,
or if you would like a more precise estimate, you may call the Ehlers Property
Tax Hotline or send an e-mail message to Ehlers. If you own agricultural homestead property, we recommend
that you use this method.
First find the
Property I.D. number(s) for all parcels of property that you own. This number is normally shown in the upper
left corner of your property tax statement.
Either call or e-mail
Ehlers, as explained below.
Call the Ehlers
Property Tax Hotline (see phone numbers below) during regular business hours (8
to 5 Monday - Friday) and ask to speak to any member of the Education
Team. Tell the Ehlers representative that you are calling about the tax impact of the
Underwood School District referendum and read them the Property I.D. number(s) for your property.
Send an e-mail message
Include the following information in your
message: your name, a daytime phone number, the property I.D. number(s) for all
parcels of property you own within the school district, and the county that the property parcels are located in.
An Ehlers representative will contact your county to find the tax capacity of your property, calculate the tax impact, and
either call you back or send you an e-mail message.
This site was prepared by Ehlers, the school district's financial advisors. If you have questions about the
information on the site or would like more information about how the proposed referendum will affect your taxes, call
Ehlers (Twin Cities area call 651-697-8500, or outstate call 1-800-552-1171) during regular business hours and
ask to speak to any member of the Education Team. You may also send an e-mail message to
please include your name and a daytime phone number so that we may contact you if we need more information.