Property Tax Information Site

This site provides information for taxpayers of the St. Louis County 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 & Associates, Inc. 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 referendum on December 8, 2009. If approved, the referendum would authorize the district to issue $78,800,000 in school building bonds to finance construction and equipping of two new schools, one to serve the Alborn-Brookston-Cotton-Meadowlands attendance area and another to serve the Cook and Orr attendance areas; and the remodeling and renovation of the Cherry, Babbitt and Tower-Soudan Schools. For more information on how the funds would be used, click on the "Return to School District Website" button above.

Impact on Property Taxes

The district plans to repay the bonds over 20 years. This will cause an increase in property taxes for 20 years, beginning with taxes payable in 2010. To determine how much the proposed referendum is estimated to increase your property taxes, follow the steps below. We suggest that first you find your "Proposed Property Tax Statement for Taxes Payable in 2010" (mailed the first part of November 2009) or your "Notice of Valuation and Classification" (mailed by your local assessor in the spring of 2009).

Step 1. Determine the 2009 Taxable Market Value of your property. Taxable Market Value (or TMV) 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 referendum will begin with taxes payable in 2010, which will be based on the 2009 Payable 2010 Taxable Market Value.

We suggest you use one of the following methods to determine the 2009 Payable 2010 TMV.

• Your 2009 proposed property tax statement ("Your Proposed Property Tax Statement for Taxes Payable in 2010," mailed by your County in November of 2009). If you have the 2009 Proposed Property Tax Statement, find the number labeled "Taxable Market Value" in the 2009 valuation column; or
• Your "Notice of Valuation and Classification" (mailed by your County in the spring of 2009). If you have the 2009 Notice of Valuation and Classification, find the number labeled "Taxable Market Value" in the 2009 valuation column; or
• If you don't have your Proposed Property Tax Statement or your Notice of Valuation and Classification, you may contact your appropriate county at one of the numbers listed below, and ask them what the 2009 Taxable Market Value of your property is, for purposes of taxes payable in 2010.
  • St. Louis County Assessor: (218) 736-2304
  • Koochiching County Assessor: (218) 283-1121

Step 2. Verify what type of property you own. If your property is classified as residential homestead (an owner-occupied home) or seasonal recreational residential (a "cabin"), go to Step 3. If you own any other type of property, skip to step 4. (Your Proposed Property Tax Statement and your Notice of Valuation and Classification will show the classification of the property.)

Step 3. For residential homestead and seasonal recreational residential property only, enter the 2009 Taxable Market Value below to see the estimated tax increase for your property. Once you have completed Step 3, proceed to Step 5 to review the information below regarding the effect of the proposed tax increase on state tax refunds and your state and federal taxes.

Step 4: For all other types of property (other than residential homestead or seasonal recreational residential), 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 2009 Taxable Market Value (TMV), and look up the estimated tax impact for that example. If your TMV is between two of the values shown in the table, you can estimate the tax impact by "interpolating" between the estimates shown in the table.

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.

1. 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.
2. Either call or e-mail Ehlers, as explained below.
   1. 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 St. Louis County School District bond referendum, and read them the Property I.D. number(s) for your property and in what county it is/they are located.
   2. Send an e-mail message to mnschools@ehlers-inc.com. 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 or counties in which the property is located.
3. An Ehlers representative will contact your county to find the taxable market value of your property, calculate the tax impact, and either call you back or send you an e-mail message.

Step 5. Review the information below regarding the effect of the proposed tax increase on state tax refunds and your state and federal taxes.

1. Minnesota Property Tax Refund.

   If your adjusted gross income is less than approximately $96,940, 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 $96,940 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 $2,310
   • 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 $100 per year, your refund may cover up to $80 of this increase.

2. Special Property Tax Refund

   If your total property taxes increase by more than 12% and more than $100 between 2009 and 2010, you may qualify for a state refund equal to a portion of the increase. There is no income limit for this refund. The maximum refund is $1,000. To determine eligibility and refund amounts complete Minnesota tax form M1PR (available online at www.taxes.state.mn.us).

3. A.Taconite Homestead Credit

   This credit is provided to all homestead properties (residential and agricultural).

   • In most areas of the district, the credit is equal to 57% of the net taxes due, up to a maximum of $289.80
   • In some areas the credit is equal to 66% of the net property taxes, up to a maximum of $315.10
   • This credit is deducted proportionally from each portion of the property tax bill (county, city or township, school district, and other taxing jurisdictions)
   • For some taxpayers, the additional taxes associated with the bond issue will be partially offset by an increase in the taconite homestead credit; the offset could be as large as 66% of the additional taxes
4. 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 and deductions.

5. 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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